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HomeMy WebLinkAbout04542 ORD - 05/31/1956TAP:MEM:5 /3X/56 AN ORDINANCE 454-- AMENDING AN ORDINANCE PASSED AND APPROVED ON THE ELEVENTH DAY OF JULY, 1950, BEING ORDINANCE NO. 2818, ENTITLED THE "CORPUS CHRISTI OIL AND GAS ORDINANCE" BY AMENDING SUB - SECTION (A) AND (8) OF SECTION 4, THEREOF, SO AS TO AMEND THE DRILLING BLOCK MAP; AND BY AMENDING SECTION 20 THEREOF SO AS TO ENABLE THE CITY COUNCIL TO VARY THE TERMS OF SECTIONS 21, 26y AND 28 OF SAID ORDINANCE WHEN A PROPOSED WELL IS TO BE LOCATED IN AN UNIMPROVED AREA BY ALLOWING A PERMITTEE TO PROCURE PUBLIC LIABILITY INSURANCE IN LIEU OF BOND BY ALLOWING A PERMITTEE TO USE EARTHEN SLUSH PITS AND BY REQUIRING A PERMITTEE TO SET SURFACE CASING TO SUCH DEPTHS AS THE COUNCIL MAY DETERMINE, BUT IN NO EVENT LESS THAN 1,000 FEET; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. THAT ORDINANCE No. 2818, PASSED AND APPROVED BY THE CITY COUNCIL ON THE 11TH DAY OF JULY, 1950, ENTITLED THE CORPUS CHRISTI OIL AND GAS ORDINANCE," AS AMENDED, BE, AND THE SAME IS HEREBY AMENDED BY AMENDING SUB- SECTIONS (A) AND (B) OF SECTION 4, THEREOF. WHICH SUB - SECTIONS OF SECTION 4 SHALL HENCEFORTH READ AS FOLLOWS, TO -WIT: (A) THE CORPORATE AREA EMBRACED WITHIN THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI, TEXAS 15 HEREBY SUB- DIVIDED INTO DRILLING BLOCKS AS SHOWN BY A MAP OF THE CITY OF CORPUS CHRISTI, DESIGNATED "CORPUS CHRISTI DRILLING BLOCKS," May 31, 1956, WHICH HAS BEEN SIGNED BY THE MAYOR AND THE CITY SECRETARY OF THE CITY OF CORPUS CHRISTI, AND WHICH MAP 15 ATTACHED HERETO AND BY REFERENCE MADE A PART OF THIS ORDINANCE, AS AMENDED. ALL SUCH DRILLING BLOCKS ARE NUMBERED FROM ONE TO 526 , INCLUSIVE, AS SHOWN ON SUCH MAP, WITH EACH DRILLING BLOCK, EXCEPT THE AIRPORT, BEING FOR PRACTICAL PURPOSES OF APPROXIMATELY EQUIVALENT AREA AND BEING OF APPROXIMATELY COMPACT FORM, WITH THE EXTERIOR BOUNDARIES OF EACH OF SUCH DRILLING BLOCKS BEING THE CENTER LINE OF THE EXTERIOR ADJOINING AND ABUTTING STREETS AND ALLEYS OF SUCH DRILLING BLOCKS, EXCEPT AS OTHERWISE SHOWN ON SAID MAP. (B) WITH REFERENCE TO ANY LANDS WHICH AT THE DATE OF THE PASSAGE OF THIS ORDINANCE, OR ANY AMENDMENTS THERETO, ARE SITUATED OUT- SIDE THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI AND WHICH LANDS SUBSEQUENTLY BECOME PART OF, ARE ANNEXED TO, OR BROUGHT INTO THE CORPORATE AREA EMBRACED WITHIN THE CITY LIMITS OF THE CITY OF CORPUS CHRISTI, THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI SHALL HAVE THE POWER, AND RESERVES THE AUTHORITY , TO PLACE THE SAME OR TO SUBDIVIDE THE SAME INTO ADDITIONAL DRILLING BLOCKS, WITH EACH SUCH DRILLING BLOCK TO CONTAIN FOR PRACTICAL PURPOSES APPROXIMATELY THE EQUIVALENT AREA OF THE AVERAGE DRILLING IN BLOCK SHOWN ON THE MAP ATTACHED HERETO, WITH EACH TO BE NUMBERED, AND WITH EACH TO BE AS SHOWN BY A MAP THEREOF SIGNED BY THE MAYOR AND THE CITY SECRETARY OF THE CITY OF CORPUS CHRISTI AND FILED IN THE OFFICE OF THE SAID CITY SECRETARY, AND WHEN 50 FILED, TO BECOME A PART OF THIS ORDINANCE. ALL LAND 50 ANNEXED AND NOT SO DIVIDED INTO DRILLING BLOCKS, SHALL, AS TO EACH SEPARATE AREA 50 ANNEXED, BE CONSIDERED AS ONE DRILLING BLOCK. SECTION 2. THAT ORDINANCE No. 2818, PASSED AND APPROVED BY THE CITY COUNCIL ON THE 11TH DAY OF JULY, 1950, AND ENTITLED "THE CITY OIL AND GAS ORDINANCE," BE, AND THE SAME 15 HEREBY FURTHER AMENDED BY AMENDING SECTION 20 THEREOF, AND SAID SECTION 20 SHALL HEREAFTER READ AS FOLLOWS, TO-WIT: SECTION 20 - ISSUANCE OR REFUSAL OF PERMIT: (A) IF AFTER SUCH HEARING AN APPLICATION FILED PURSUANT TO THIS ORDINANCE BE FOUND BY THE CITY COUNCIL TO COMPLY IN ALL RESPECTS WITH THE TERMS OF THIS ORDINANCE, AND THE DRILLING AND OPERATION OF A WELL ON SUCH DRILLING BLOCK 1S NOT PROHIBITED BY THE TERMS OF THIS ORDINANCE, AND THE CITY COUNCIL DOES NOT ELECT TO REFUSE THE APPLICATION AS AUTHORIZED BY SECTION 10 HEREOF, THEN THE CITY COUNCIL SHALL DETERMINE THE AMOUNT OF THE PRINCIPAL OF THE BOND PROVIDED FOR IN SECTION 21 HEREOF. OR THE LIMITS OF THE POLICY OF PUBLIC LIABILITY INSURANCE AS PROVIDED IN SUBSEC- TION (C) OF THIS SECTION, WHICH SHALL BE NOT LESS THAN ONE HUN- DRED THOUSAND DOLLARS ($100.000), AND AFTER SUCH DETERMINATION SHALL ISSUE A PERMIT FOR THE DRILLING AND OPERATION OF THE WELL APPLIED FOR, PROVIDED. HOWEVER, THE CITY COUNCIL NAY, PURSUANT TO THE PROVISIONS OF SECTION 9 HEREOF, REFUSE TO ISSUE A PERMIT FOR THE PARTICULAR DRILLING LOCATION ON THE DRILLING BLOCK AS APPLIED FOR BY THE APPLICANT AND IN LIEU THEREOF DESIGNATE AS THE DRILLING -2- LOCATION ON THE DRILLING BLOCK AS APPLIED FOR BY THE APPLICANT AND IN LIEU THEREOF DESIGNATE AS THE DRILLING LOCATION A DIFFERENT DRILLING SITE ON THE SAID DRILLING BLOCK SUBJECT TO THE APPLICANT OBTAINING ALL REQUISITE LEASES, CONTRACTS, AND SURFACE PERMISSIONS, FOR THE DESIGNATED SUBSTITUTED DRILLING SITE; OR THE CITY COUNCIL MAY ISSUE A PERMIT UNDER THE PROVISIONS OF SUB- SECTION (C) OF THIS SECTION 20, HEREOF. (B) EACH PERMIT ISSUED UNDER THIS ORDINANCE SHALL (I) BY REFERENCE HAVE INCORPORATED THEREIN ALL PROVISIONS OF THIS ORD- INANCE WITH THE SAME FORCE AND EFFECT AS IF THIS ORDINANCE WERE COPIED VERBATIM IN SAID PERMIT; (II) SPECIFY THE WELL LOCATION WITH PARTICULARITY TO LOT NUMBER, BLOCK NUMBER, NAME OF ADDITION OR SUBDIVISION, OR OTHER AVAILABLE CORRECT LEGAL DESCRIPTION; (111) CONTAIN AND SPECIFY THAT THE TERM OF SUCH PERMIT SHALL BE FOR A PERIOD OF ONE YEAR FROM THE DATE OF THE PERMIT AND AS LONG THEREAFTER AS THE PERMITTEE IS ENGAGED IN CONTINUOUS DRILLING OPERATIONS OR OIL OR GAS IS PRODUCED IN COMMERCIAL QUANTITIES FROM THE WELL DRILLED PURSUANT TO SUCH PERMIT, PROVIDED THAT IF AT ANY TIME AFTER DISCOVERY OF OIL OR GAS THE PRODUCTION THEREOF IN COMMERCIAL QUANTITIES SHOULD CEASE THE TERM SHALL NOT TERMINATE IF THE PERMITTEE COMMENCES ADDITIONAL REWORKING OPERATIONS WITHIN NINETY (90) DAYS THEREAFTER, AND IF THEY RESULT IN THE PRODUCTION OF OIL OR GAS, SO LONG THEREAFTER AS OIL OR GAS I5 PRODUCED IN COMMERCIAL QUANTITIES FROM SAID WELL; (IV) CONTAIN AND SPECIFY SUCH CONDITIONS AS ARE BY THIS ORDINANCE AUTHORIZED; (V) SPECIFY THE TOTAL DEPTH TO WHICH THE WELL MAY BE DRILLED, NOT EXCEEDING THE PROJECTED DEPTH; AND (VI) CONTAIN AND SPECIFY THAT NO ACTUAL DRILLING OPERATIONS SHALL BE COMMENCED UNTIL THE PERMITTEE SHALL FILE AND HAVE APPROVED AN INDEMNITY BOND IN THE DESIGNATED PRINCI- PAL AMOUNT AS 50 DETERMINED BY THE CITY COUNCIL AND CONDITIONED AS SPECIFIED IN SECTION 21 HEREOF, OR A PUBLIC LIABILITY INSURANCE POLICY AS PROVIDED IN SUB - SECTION (C) HEREOF. (C) WHEN ANY PERSON FILING AN APPLICATION FOR A PERMIT TO DRILL AND OPERATE A WELL WITHIN THE CORPORATE LIMITS OF THE CITY OF -3- 4 ; <i CORPUS CHRISTI SHALL SET FORTH IN SUCH APPLICATION, AND EgTABLISH TO THE SATISFACTION OF THE CITY COUNCIL, THAT THE PROPOSED WELL WILL NOT BE SITUATED NEARER THAN 330 FEET OF ANY RESIDENCE, BUILDING OR OTHER PERMANENT STRUCTURE; THAT SUCH WELL WILL NOT BE SITUATED NEARER THAN 330 FEET OF ANY PUBLIC STREET, ROAD OR ALLEY; THAT SUCH WELL WILL NOT BE SITUATED NEARER THAN 350 FEET OF THE EXTERIOR OF BOUNDARIES OF LANDS UTILIZED FOR A PUBLIC OR PAROCHIAL SCHOOL, A COLLEGE, A UNIVERSITY, A HOSPITAL. A CHURCH, OR A PUBLIC BUILDING, AND THAT THE APPLICANT OWNS A LEASE OR LEASES COVERING ALL MINERAL INTERESTS WITHIN THE DRILL- ING BLOCK IN WHICH SUCH WELL 15 TO BE LOCATED, THEN THE CITY COUNCIL SHALL DETERMINE WHETHER OR NOT THE LOCATION OF THE PRO- POSED WELL I5 IN SUCH AN UNIMPROVED AREA THAT THE PROVISIONS OF SECTIONS 21, 26 AND 28 OF THIS ORDINANCE MAY BE VARIED TO THE EXTENT NECESSARY FOR THE PROTECTION OF THE SAFETY, HEALTH AND WELFARE OF THE PUBLIC. UPON DETERMINATION THAT THE SAID PROTEC- TIONS OF THE PUBLIC DOES NOT REQUIRE THAT FULL ENFORCEMENT OF THE PROVISIONS OF SECTION 21, 26 AND 28 OF THIS ORDINANCE, THE CITY COUNCIL MAY, IN ITS DISCRETION, IN GRANTING ANY PERMIT, SPECIFY IN SUCH PERMIT THAT IN LIEU OF THE PROVISIONS OF SEC- TIONS 21, 26 AND 28 OF THIS ORDINANCE THE FOLLOWING REQUIREMENTS SHALL APPLY IN THE DRILLING AND OPERATION OF SUCH WELL: (I) BEFORE ACTUAL DRILLING OPERATIONS SHALL BE COMMENCED THE PERMITTEE SHALL FILE WITH THE CITY SECRETARY OF THE CITY OF CORPUS CHRISTI EVIDENCE THAT THE PERMITTEE HAS IN FORCE A POLICY OF PUBLIC LIABILITY AND PROPERTY DAMAGE INSURANCE ISSUED BY A RELIABLE INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN THE STATE OF TEXAS, WHICH INSURANCE POLICY SHALL INSURE THE PERMITTEE AGAINST BODILY INJURY OR PROPERTY DAMAGE WHICH MIGHT BE SUSTAINED BY ANY MEMBER CF THE PUBLIC BY REASON OF THE DRILLING AND OPERATION OF SUCH WELL, SUCH POLICY HAVING LIMITS OF ONE HUNDRED THOUSAND DOLLARS ($100,000) TO ANY ONE PERSON AND $100,000 FOR ANY ONE ACCIDENT. (I1) EARTHEN SLUSH, MUD OR RESERVE PITS MAY BE USED IN CON- NECTION WITH DRILLING OR RE- WORKING OPERATIONS IN LIEU OF a STEEL PITS, PROVIDED, HOWEVER, THAT PERMITTEE SHALL OBLIGATE HIMSELF, THAT HE WILL, UPON COMPLETION OF DRILLING OPERATIONS OR UPON THE ABANDONMENT OF ANY WELL, REMOVE ALL DRILLING MUD AND SHALL CLEAN, GRADE AND RESTORE THE PREMISES AS NEAR AS POSSIBLE TO THE CONDITION THAT EXISTED WHEN OPERATIONS WERE FIRST COMMENCED. (III) SURFACE CASING SHALL BE PROPERLY SET TO SUCH DEPTHS AS THE COUNCIL MAY DETERMINE BUT IN NO EVENT LESS THAN AS SPECIFIED IN THE RULES AND REGULATIONS OF THE RAILROAD COM- MISSION OF THE STATE OF TEXAS, AND SHALL BE CEMENTED BY THE PUMP AND PLUG METHOD WITH SUFFICIENT CEMENT TO COMPLETELY FILL ALL OF THE ANNULAR SPACE BEHIND SUCH CASING TO THE SUR- FACE OF THE GROUND; PROVIDED, THAT IN ANY EVENT SURFACE CAS- ING SHALL BE PROPERLY SET TO A MINIMUM DEPTH OF ONE THOUSAND FEET (1,000). PRODUCTION STRING SHALL BE CEMENTED BY THE PUMP AND PLUG METHOD WITH SUFFICIENT CEMENT TO COMPLETELY FILL ALL THE ANNULAR SPACE BEHIND THE PRODUCTION STRING TO AT LEAST SIX HUNDRED (600) FEET ABOVE EACH OIL AND /OR GAS HORIZON CAPABLE OF COMMERCIAL PRODUCTION, AND IN THE EVENT A PROTECTION STRING OF CASING BE REQUIRED BY ORDINANCE No. 2818, THEN SUCH PROTECTION STRING SHALL BE CEMENTED BY THE PUMP AND PLUG METHOD WITH SUFFICIENT CEMENT TO COMPLETELY FILL ALL THE ANNULAR SPACE BEHIND THE PROTECTION STRING TO AT LEAST SIX HUNDRED (600) FEET ABOVE THE HIGHEST OIL AND /OR GAS PRODUCING HORIZON. SECTION 3, THAT ORDINANCE No. 2818, PASSED AND APPROVED BY THE CITY COUNCIL ON THE 11TH DAY OF JULY, 1950, AND ENTITLED "THE CITY OIL AND GAS ORDINANCE," BE, AND THE SAME IS HEREBY FURTHER AMENDED BY AMENDING SEC- TION 11 THEREOF, BY ADDING TO SAID SECTION 11 THE FOLLOWING: WHENEVER THE COUNCIL HAS DETERMINED THAT THE DRILLING BLOCK I5 IN AN UNDEVELOPED AREA AS DEFINED IN SECTION 20 AS HEREIN AMENDED, THE COUNCIL MAY CONSIDER THE ISSUANCE OF MORE THAN ONE PERMIT WITHIN SUCH DRILLING BLOCK WHEN SUCH ADDITIONAL PERMIT 15 AUTHORIZED UNDER THE SPACING RULES AND REGULATIONS PROVIDED BY THE RAILROAD COMMISSION OF TEXAS, THE ISSUANCE OF SUCH ADDITIONAL PERMIT BEING A MATTER TO BE DETERMINED BY SAID COUNCIL UNDER ALL THE RULES OF PROCEDURE HEREIN PROVIDED FOR THE ISSUANCE OF DRILLING PERMITS. SECTION 4. EXCEPT AS HEREIN AMENDED, ALL OF THE PROVISONS AND REQUIREMENTS OF ORDNANCE 2818 ARE CONTINUED Bi FULL FORCE AND EFFECT. SECTION 5. THIS ORDINANCE SHALL TAKE EFFECT FROM AND AFTER ITS PUBLICATION ONE TIME IN THE OFFICIAL PUBLICATION OF THE CITY OF CORPUS CHRISTI, WHICH PUBLICATION SHALL CONTAIN THE CAPTION STATING IN SUMMARY THE PURPOSE OF THE ORDINANCE AND THE PENALTY FOR VIOLATION THEREOF. SECTION 6. THE NECESSITY FOR AMENDING THE CORPUS CHRISTI OIL AND GAS ORDINANCE BY AMENDING THE DRILLING BLOCK MAP AND BY SPECIFYING CERTAIN REQUIREMENTS FOR DRILLING OF WELLS IN AN UNDEVELOPED AREA CREATES A PUBLIC EMERGENCY AND PUBLIC IMPERATIVE NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY OH THE DATE IT 15 INTRODUCED ANO THAT SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE SEVERAL MEETINGS OF THE CITY COUNCIL, AND THE MAYOR HAVING DECLARED THAT SUCH PUBLIC EMERGENCY AND IMPERATIVE PUBLIC NECESSITY EXIST, AND HAVING REQUESTED THAT SUCH CHARTER RULE BE SUSPENDED. AND THAT THIS ORDINANCE BE PASSED FINALLY ON THE DATE OF ITS INTRODUCTION AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND AFTER ITS PASSAGE IT IS ACCORDINGLY SO ORDAINED. PASSED AND APPROVED THIS ( DAY OF MAY, 1956. ATTEST. CITY BEGET APPROVED AS TO LEGAL fOR THIS / DAY OF MAY, 1956: ,Eir) CITY ATTORN MAYOR THE CITY OF CORPUS CHRISTI,TEXAS 4' li: • TO THE MEMBERS OF THE CITY COUNCIL CORPUS CHRISTI, TEXAS GENTLEMEN: CORPUS RISTI, TEXAS 1956 . FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FOREGOING ORDINANCE, A PUBLIC EMERGENCY AND IMPERATIVE NECESSITY EXIST FOR THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT 15 INTRODUCED, AND THAT SUCH ORDINANCE OR RESOLUTION SHALL 5E READ AT THREE MEETINGS OF THE CITY COUNCIL; 1, THEREFORE, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE OR REQUIREMENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT 15 INTRODUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL. RESPECTFULLY, MAYOR THE CITY OF CORPUS CHRISTI, TEXAS THE CHARTER RULE WAS SUSPENDED BY THE FOLLOWING VOTE: FARRELL D. SMITH MINOR CULLI W. J. ROBERTS B. E. BILLER MANUEL P. MALDONADO THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE: FARRELL D. SMITH MINOR CULLI W. U. ROBERTS B. E. BIGLER MANUEL P. MALDONADO RN PR op • • CifY • ti4f /T ro T cs) 4 ct) e 0 Y V 4 BR(}g016044 Y C C RPUS CHRISTI BAY 9L // ° "5\1- /jv