HomeMy WebLinkAbout15762 ORD - 09/17/1980•
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AN ORDINANCE
AMENDING THE CODE OF ORDINANCES, CITY. OF CORPUS CHRISTI,
1976 REVISION, AS AMENDED, BY ADOPTING ARTICLE IV, GULF
DRILLING, TO CHAPTER 35 OF THE SAID CODE OF ORDINANCES,
TO REGULATE DRILLING IN THE GULF AREA; AMENDING SECTION
35-21, SCOPE, OF THE CITY CODE SO AS TO EXCLUDE AREAS IN
ARTICLE IV AS WELL AS AREAS IN ARTICLE III, BAY DRILLING,
FROM THE REGULATIONS OF ARTICLE II, LAND DRILLING; PRO-
VIDING FOR SEVERABILITY; PROVIDING FOR PUBLICATION.
BE IT ORDAINED BY THE CITY COUNCIL OF.THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the Code of Ordinances, City of Corpus Christi,
1976 Revision, as amended, be amended by adopting Article IV, GULF DRILLING,
to Chapter 35, OIL AND GAS WELLS, of the said Code of Ordinances, said
Article IV to hereafter read as follows:
15762
MICKO LMED
SSP 2 71964
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CORPUS CHRISTI CITY CODE - CHAPTER 35 - OIL AND GAS WELLS
ARTICLE IV - GULF DRILLING
DIVISION 1. GENERALLY
Sec. 35-450. Area and scope of article.
(1) This article shall apply only to the area of the Gulf of Mexico
within the boundaries of the City, (as such boundaries may exist from time
to time). No provision of Article I, II, or III of Chapter 35, as now or
hereafter amended, shall apply to the area covered by this article unless
specifically made applicable thereto.
(2) No operations for production, treating, transporting, or for explor-
ing, drilling or reworking for production of oil, gas or other mineral shall
be conducted in, under, or over the area defined in paragraph (1) above except
as provided in this article.
Sec. 35-451. Right of access - To premises.
The superintendent, or any duly authorized official, representative or
employee of the City shall have the right of access for purposes of inspection
at all reasonable times to any drilling location, surface structure, or other
facility for which a permit is required or issued hereunder.
Sec. 35-452. Richt of access - To data.
Upon request by any duly authorized official, representative or employee
of the City, any lessee or permittee shall furnish such data as lessee files
with the Railroad Commission of Texas.
Sec. 35-453. Insurance.
The holder of any permit issued hereunder shall obtain and maintain in
force a policy or policies of public liability and property damage insurance
issued by a reliable insurance company or companies authorized to do business
in Texas and having a policyholder rating of excellent or better and financial
rating of RBBB or better according to the ratings issued by the Best Insurance
Guide, insuring the permittee against claims for bodily injury or property
damage which might be sustained by the City or any member of the public by
reason of any operations conducted under said permit, with coverage limits
for bodily injury or death to any one person of not less than one hundred
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thousand dollars ($100,000.00) and not less than one million dollars
($1,000,000.00) for any one accident, and for property damage of not less
than one million dollars ($1,000,000.00) for any one occurrence; with en-
dorsements to said policies running to the City for the benefit of it and
members of the public, and obligating the insurers to give the superinten-
dent written notice of cancellation of such insurance not less than fifteen
(15) days prior to the date of cancellation.
Sec. 35-454. Bonds.
The holder of any permit(s) issued hereunder shall post a corporate
surety bond in the sum of two hundred thousand dollars ($200,000.00) executed
by the permittee as principal and by a surety company acceptable to the City,
as surety, and conditioned that the principal named in the bond shall faith-
fully comply with all of the provisions of this article (or chapter as the
case may be) and of the permit(s) until the said permit(s) shall have been
released by the principal and the release shall have been approved by the City
as provided herein. Such bond shall secure the City against all costs, charges,
and expenses incurred by it by reason of the failure of the principal to fully
comply with the provisions of the permit(s) and of this article. In the sole
discretion of the council, a permittee may be allowed to post an indemnity
agreement with the City conditioned in the same manner as a bond required
hereunder if such permittee files a balance sheet and statement certified by
a recognized firm of certified public accountants reflecting the net worth of
permittee to be in excess of twenty million dollars ($20,000,000.00).
Sec: 35-455. Effect of zoning ordinance and building code.
It is hereby determined by the council that any well structure, facility
or installation as herein regulated shall, if permitted by a permit duly is-
sued and subsisting hereunder, in nowise be considered in violation of the
zoning ordinance of the City, or to require compliance with the building code.
Sec. 35-456. Conflicting ordinances, etc.
(a) All ordinances and parts of ordinances in conflict with any of the
provisions of this article are hereby expressly repealed. If ever and when-
ever in this article, restrictions, prohibitions or provisions conflict, and
if ever and whenever restrictions, prohibitions or provisions in this article
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conflict with laws of the state, or with regulations of state or federal
regulatory bodies having jurisdiction, in each instance the more restrictive
restriction, regulation, prohibition or provision shall apply.
(b) This article shall not be construed as repealing, altering or other-
wise affecting the validity and bonding force of any ordinance pertaining to
fire prevention, health, noise, sanitation or safety of persons or property
heretofore enacted by the City, except as specifically repealed hereby.
Sec. 35-457. Violations - Declared offenses. -
It shall be unlawful and an offense for any person to violate or fail to
comply with any provision of this article or any provision of a permit issued
hereunder. Any violation or failure to comply with the laws of the state, or
any rule, regulation, or requirement of any state or federal regulatory body
having jurisdiction with respect to drilling, completing, equipping, operating,
producing or abandoning an oil or gas well or related appurtenances, equipment
or facilities or with respect to the storage and transportation of oil, gas
and other hydrocarbons, or in reference to fire protection, blowout protec-
tion, safety protection, water or gulf pollution, or navigation, shall also
be unlawful and an offense under this article. Each day of violation shall
constitute a separate offense.
Sec. 35-458. Same - Punishment; revocation of permit.
Any person who shall do or perform an unlawful act or commit an offense
as specified in section 35-457 shall be deemed guilty of a misdemeanor and
shall, on conviction thereof, be fined in any sum not less than five dollars
($5.00) and not more than the limit prescribed in section 1-6. In addition
to the foregoing penalties, it is further provided that the council, at any
regular or special meeting thereof, may revoke any permit issued hereunder
in the event the permittee has intentionally or repeatedly done or performed
an unlawful act or committed an offense as specified herein, provided, that
if the violation is such as could be remedied by permittee, the permit shall
not be revoked unless permittee has been notified in accordance with section
35-459 and has thereafter failed or refused to remedy such violation, and
further provided that ten (10) days' notice shall be given to the permittee
that revocation is to be considered at such meeting. In the event the permit
is revoked, the permittee may make application to the council for a reissuance
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of such permit.
Sec. 35-459. Same - Remedying after notice.
In addition to all other penalties provided herein, any violation of the
provisions of this article which may be cured by remedial action shall be
remedied by the person committing such violation within ten (10) days after
notification of the specific remedial action required by the council, and
upon failure of such person to take the action required in the notification
by the council, the council may direct any official or agency of the City to
do and perform all such remedial action as may be necessary to cure said
violation, which shall be done at the sole cost and expense of the person
committing such violation and such person shall immediately reimburse the
City for all costs so incurred upon notification thereof.
Sec. 35-460. Same - Injunction.
In addition to any other penalty provided herein, the council may direct
the city attorney to institute an action in any court having competent juris-
diction_to enjoin any violation of the provisions of this article or for an
injunction to compel compliance with any provision of this article.
Sec. 35-461. Same — Penalties, etc., cumulative.
The penalties and remedies provided herein for violations of this article
shall be cumulative, and nothing herein contained shall be deemed to require
the council, or any officer or employee of the City, to elect to pursue one
penalty or remedy hereunder to the exclusion of any other remedy or penalty
for which provision is herein made, or to be to the exclusion of any remedy
at law or in equity, nor shall any action taken or caused to be taken by the
council or any officer or employee of the City be construed to be such an
election.
Sec. 35-462. Definitions.
Those definitions as set forth in Division 2 of Article III of Chapter
35 shall apply where applicable and shall have the scope and meaning there
indicated, unless the context clearly indicates otherwise.
Sec. 35-463 - 35-465. Reserved.
DIVISION 2. GULF PARR AND RECREATION AREA
Sec. 35-466. Designation.
There is hereby designated an area to be known as the Gulf Park and
Recreation Area (also referred to herein as Gulf Park Area), which shall
consist of that portion of the Gulf of Mexico that is within one mile of
the 1.37 foot line above mean sea level of the Gulf of Mexico side of
Mustang Island and Padre Island.
Sec. 35-467. New operations prohibited; exceptions.
Subject only to the other provisions of this division, no well other
than existing wells shall be drilled, operated or produced from any surface
location within the Gulf Park Area and no production platform, pipeline
header, or other equipment, except buried pipelines and existing structures,
shall be operated within the Gulf Park Area after the effective date of this
Article. All wells and structures in existence upon the effective date
within the Gulf Park Area shall be deemed to be permitted under this arti-
cle. No other permit hereunder shall ever be issued for any such purpose;
provided only that the -council may grant exceptions as follows:
(a) Sub -sea well producing structures may be permitted and wells which
will be completed with sub -sea well producing structures may be
permitted to be drilled from surface locations in the Gulf Park
Area.
(b) Other exceptions to this section may be granted by the city council
upon application for a permit hereunder, and on affirmative showing
by applicant that the requested exception is necessary to prevent
confiscation of property. The term "confiscation of property" as
used in this instance shall not be deemed to exist unless it is
established by applicant that:
(1) Use of a surface location outside the Gulf Park Area either on
water or land, renders it physically impossible to make a
bottom hole completion within such area; and
(2) The need for the well cannot be eliminated by pooling or
unitization
(3) Applicant is suffering loss through uncompensated drainage of
its lease, or is in imminent danger of losing its lease; and
(c)
(4) Subject to item (a) immediately preceding, no sub -sea com-
pletion is practicable for engineering reasons.
The drilling of a relief well under emergency circumstances
arising in connection with an existing well, to correct or safe-
guard'against hazardous conditions may be commenced without first
obtaining a permit. No such well drilled as a relief well shall
be completed as a producing well unless a permit therefor shall
have been issued in the same manner as is required hereunder for
the drilling of any other well and shall be subject to all other
applicable provisions of this Article. Any relief well not com-
pleted as a producing well within six 16) months after commence-
ment of drilling operations, unless an extension is obtained from
the city council, shall be plugged and abandoned.
DIVISION 3
Sec. 35-468. Approved exposed silhouettes, spacing of well structures,
location of production platforms, and disposal of drilling
mud.
As of the effective date and from time to time thereafter, the city
council shall prescribe the approved exposed silhouettes of well surface
structures, 'consistent with accepted safety standards, which are to be in-
stalled.within the portion of the Gulf of Mexico that is within the Corpus
Christi city limits and also within two miles of the 1.37 foot above mean
sea level line along the eastern side of Padre Island and Mustang Island.
The rules adopted as of the effective date are as follows:
(1) Within such two-mile area, an approved well structure shall have
an exposed perimeter of 170 feet or less (heliport decks con-
structed directly over such structures are excepted and may have
a perimeter greater than 170 feet) and be not leas than 250 feet
from another well structure.
(2) An exceptional well structure shall be a well structure having a
perimeter greater than 170 feet or located within 250 feet.of
another well structure but recommended by the Bay Drilling Com-
mittee after considering the following criteria:.
(a) The number of wells to'be drilled from within the structure.
(b) The distance from developments on adjacent beach and the
impact on such developments and beach utilization.
(c) The size and shape of the proposed structure and the possi-
bility of engineering a more compact structure.
(3) Within such two-mile area, production platforms shall be prohibited
unless deemed necessary and shall be applied for and considered on
an individual basis.
(4) Within such -two-mile area, the disposal of drilling mud into the
waters of the Gulf of Mexico to the extent that drilling mud would
be apparent at the shoreline shall be prohibited.
DIVISION 4
Sec. 35-469. Wells drilled from surface locations outside of the city limits
but having a bottom hole location beneath the portion of the
Gulf of Mexico that lies within the Corpus Christi city limits.
(1) Wells drilled from surface locations within the waters of the Gulf
of Mexico and outside of the Corpus Christi city limits but with a bottom
hole location within the city limits shall be subject to Division 5, technical
regulations and requirements for inspections, permits and fees hereunder but
are not subject to Division 3 requirements for exposed silhouettes and
locations.
(2) Wells drilled from land areas outside of the city limits but having
a bottom hole location within the portion of the Gulf of Mexico that lies
within the city limits shall be subject to all of the applicable regulations
of City Code Article II, Land Drilling, including obtaining a permit therefor.
(3) Any well or structure existing on the effective date of this Arti-
cle IV and with a surface or bottom hole location subject to this Division
4 shall be deemed to be permitted but shall be subject to Division 5 techni-
cal regulations and inspection fees applicable to this Division.
DIVISION 5
Sec. 35-470. Technical regulations.
The rules of this Division shall apply only for wells drilled subject
to this Article except for those drilled from a land surface location that
have a bottom hole location within the portion of the Gulf of Mexico that
lies within the city limits and subject to Article II.
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Sec. 35-471. Railroad Commission of Texas Rules.
Railroad Commission of Texas, Rule 13 (E) Texas offshore casing, ce-
menting, drilling, and completion requirements (Reference order No. 20-59,
200, effective 5-1-69) shall be made a part of this Article and any violation of
said rule shall also be a violation of this Article.
Sec. 35-472. Protection aid painting of structures.
All well surface structures and other structures located above the
water and composed of materials generally protected or painted, shall be
protected and painted in an appropriate color and shall be repainted at
sufficiently frequent intervals to maintain same, in good condition.
Sec. 35-473. Aids to navigation.
All well surface structures located in the Gulf of Mexico waters subject
to this ordinance are required to have adequate and appropriate lighting
and fog signals in accordance with and conformable to the applicable United
States Coast Guard requirements and regulations. No other lights except
working lights shall be permitted.
Sec. 35-474. Signs.
All surface structures and other facilities for which a permit is
issued hereunder shall have affixed thereto an identification sign conformable
to the requirements of the Railroad Commission of Texas. Except for the
required identification signs and signs such as "No Smoking", "No Trespass-
ing" and heliport identification, no other signs, billboards, or advertise-
ments shall be erected, posted or allowed.
Sec. 35-475. Plugging abandoned well.
Whenever any well is abandoned, it shall be the obligation of the
operator to plug such well in accordance with the laws of the state, the
rules of the Railroad Commission of Texas, the procedure outlined in this
article, and any other agency having jurisdiction in connection with the
abandonment or plugging of such well. The operator shall submit to the
superintendents office twenty-four (24) hours in advance of the plugging
operation a "Notice of Intent to ,Plug and Abandon" which will include the
abandonment program and request for release of permit. Whenever a drilling
or reworking operation has just been completed on a well and the operator
desires to plug and abandon such well, the twenty-four (24) hour notice
shall be reduced to no less than a two (2) hour notice.
(A) Where enough of the producing or protective casing has been re-
moved from the well to expose the shoe of the surface casing then a one
hundred (100) foot cement plug shall be placed opposite the shoe of the
surface casing to extend at least fifty (50) feet downward and a similar
fifty (50) feet upwards from the shoe of the surface casing. Sufficient
time shall be allowed for this cement to harden enough so that it will
sustain the weight of drill pipe or tubing to this depth. The operator
shall feel for the top of the plug to determine that the top is at least
fifty (50) feet above. the shoe of the surface casing and is of sufficient
hardness to hold the weight of the drill pipe or tubing to this depth. In
the event the top of the plug is not fifty (50) feet upwards from the shoe,
then a second cement application will be required and tested as above.
After the plug at the shoe has been successfully completed then a minimum
fifty (50) foot cement plug shall be set at or near the surface, after which
the casing shall be cut off a depth prescribed by the Railroad Commission of
Texas and the Corps of Engineers.
(B) Where the protective or producing string of casing to be left in
the well extends upwards from the shoe of the surface casing so as to pre-
vent the above described method of abandonment, then the following procedure
will be used. A packer or cement retainer shall be set in the surface casing
fifty (50) feet above the top of any other casing within the surface casing
and sufficient cement shall then be squeezed below the packer or retainer
to theoretically extend to one hundred (100) feet below the shoe of the
surface casing and fill that portion up to the packer or retainer with the.
cement. The packer or retainer will be left in the well. Abandonment.will
then be completed in the same manner as described in subsection (A) of this
section.
(0) Whenever operations under subsections (A) and '(B) of this section
are employed then the following further requirements will be complied with:
(1) When casing is to be shot or cut off and pulled, a blowout pre-
venter with pipe and blank rams equipped to close off around the
casing to be pulled shall be installed prior to shooting or
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cutting off the casing.
(2) In all cases prior to cutting any casing, the annulus between the
casing to be recovered and the surface string of casing will be
tested to determine whether the annulus is dead or pressured. In
the event it is pressured then no casing will be recovered until
this pressure is released to zero and the annulus filled with 9.5#
per gallon mud laden fluid.
(3) The well shall have a safety valve installed on the top of the
casing string before any casing is shot or cut off. This safety
valve shall not be removed until the first joint of casing has
been pulled and shall then be kept immediately at hand so that
it may be, if needed, reinstalled.
(4) The well shall be completely filled at all times with mud laden
fluid of not leas than 9.5# per gallon during all casing and
tubing pulling operations. Periodic checks will be made of the
mud fluid weight during displacing operations.
(5) Operator shall have a company or previously approved responsible
representative at the well site during the setting and tagging of
cement plugs and during the casing pulling operations, to insure
that the procedures outlined in the "Notice of Intent to Plug and
Abandon" filed with the Railroad Commission of Texas are complied
with and to insure that other provisions of this article are com-
plied with.
(D) Where well conditions prevent plugging of the well in accordance
with above subsections (A) and (B) of this section, the operator shall plug
and abandon such well using any alternate method which may be proposed by
the operator and approved by the superintendent.
(E) The superintendent's office shall witness all plugging and abandon-
ments and certify in writing that the abandonment was or was not in accordance
with the above procedure. No permit will be released without certification
that the plugging and abandonment was successfully accomplished in accordance
with the above procedure.
Sec. 35-476. Subsurface safety valves.
All flowing wells shall be equipped with a subsurface safety valve in-
stalled in the tubing string unless a tubingless completion is involved. This
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valve shall be pulled and inspected or satisfactorily tested not less than
biannually and a report for same filed with the Division of Petroleum In-
spection. In the event that the Railroad Commission of Texas issues an order
which has the effect of authorizing the removal of such a subsurface safety
valve, application can then be made to the city council for waiver of this
requirement. Upon written request for waiver from the operator for a
particular well, the petroleum superintendent shall evaluate the flow and
pressure in that well and using appropriate engineering guidelines to prevent
any pollution of the Gulf he may recommend to the city council that the re-
quirement for the subsurface safety valve be waived.
Sec. 35-477. Movement of hydrocarbons from wells to storage.
The movement of hydrocarbons from wells to storage shall be made in such
manner as to prevent the escape of hydrocarbons. All flow lines leading from
wells shall be hydrostatically tested so as to meet specifications in the
U. S. Department of Transportation Pipeline Safety Standards. All lines shall
be placed in conformity with regulations of the U. S. Army Corps of Engineers.
Each line shall be constructed from new or reconditioned pipe in first class
condition, and before it is submerged shall be doped and treated in such
manner as to offer reasonable resistance to salt water corrosion.
Sec. 35-478. Prevention of pollution and fire and stopping of leaks.
All wells shall be cleaned, tested and produced in a manner to prevent
pollution and utilize procedures and equipment that will eliminate or minimize
any fire hazard.
When a leak occurs in a pipeline or flow line, the flow of substance
therein will be stopped as soon as possible after being detected, and will
continue to be stopped until repairs have been effected in the most expedient
manner to prevent pollution and hazard.
Sec. 35-479. Use of wooden timbers.
Except for pilings and bumpers, wood timbers shall be prohibited in the
construction of well structures and other facilities.
Sec. 35-480. Issuance of rules and regulations.
The council may, from time to time, issue such rules and regulations not
inconsistent with but in implementation of this division, copies of which
shall be made available to the public in the office of the superintendent.
Sec. 35-481 - 35-490. Reserved.
DIVISION 6. PERMITS AND PERMIT FEES
Sec. 35-491. Permit fees.
The filing fee to drill a well subject to this Article shall be five
hundred dollars ($500.00). There shall be no filing fee for wells existing
as of the effective date of this Article and subject to this Article. The
fee for an amended permit shall be one hundred dollars ($100.00) except that
no fee is required for amending a bottom hole location only. There shall be
no fee for a transfer of permit from a permittee to another operator as
provided in Section 35-499 of this Article. Where a permit application is
denied by council action, one hundred dollars ($100.00) will be retained by
the City as a service charge and the balance refunded to the applicant.
Sec. 35-492. Contents of and attachments to permit application to drill a
well.
(a) All applications for a permit to drill a well shall contain at
least the following information:
(1) The names and addresses of all owners of working interest in
the well;
(2) The name of the drilling contractor, if same be a different
party than the applicant. If the identity of the drilling
contractor is not known at the time the application is made,
the name of the drilling contractor shall be furnished to
the superintendent prior to the commencement of drilling
operations;
(3) The location from which the well is to be drilled, the approxi-
mate location of the surface structures appurtenant to the
well, and the approximate bottom hole location of the well;
(4) The vertical depth to which it is proposed that the well be
drilled, a statement as to whether the well is to be drilled
as a straight hole or as a directional well, and if the latter,
the general plan of deviation;
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(5) A general but accurate summary, including drawing where neces-
sary, to indicate the surface equipment and installations
(i.e., equipment located at Ur above the floor of the Gulf)
that will be installed and maintained if the well is completed
as a producer, including any and all pipeline connections to
the well insofar as possible;
(6) A general but accurate statement as to anticipated time of
commencement and duration of drilling, testing and completion
procedures (including any unusual circumstances).
(b) All applications for permits to drill a well shall have attached
thereto the following:
(1) Certified or photostatic copy of all pertinent oil and gas
leases and assignments thereof, with recording data, showing
the applicant to be the owner of all or a part of the mineral
leasehold working interest under the particular state lease
tract;
(2) Copies of all permits or authorizations for the particular
well granted by other governmental agencies, or applications
therefor that are pending;
(3) A certificate from an insurance company that the applicant
has in force insurance complying with the provisions of this
article, and a copy of a bond (or indemnity in lieu thereof)
complying with the provisions of this article.
(4) A copy of proposed casing program.
Sec. 35-493. Routine processing of permit applications in full compliance.
If the superintendent finds that the application is for a well with a
standard well structure as defined in Section 35-468 and is in all things in
full compliance with the requirements of this article, he shall within seven
(7) days after receipt submit to the council his written report certifying
to such facts and recommending approval, and a copy of the report shall be
contemporaneously delivered to each member of the committee. If the chairman
disagrees, he shall so promptly notify the council in writing. If the chair-
man so agrees, or if the chairman does not submit to the council within five
(5) days after receipt of the superintendent's report, a written statement
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that he or the committee does not agree with the conclusion and/or recom-
mendation of the superintendent, the council shall approve the application
at its next regular or called meeting unless the council shall itself dis-
agree with such conclusion and/or recommendation. In the event of any such
disagreement with the superintendent's recommendation of approval, the ap-
plicant shall be promptly notified and, if the objections are not cured or
removed otherwise, the application shall be further processed as provided
hereafter for applications for wells with exceptional well structures.
Sec. 35-494. Committee hearing on applications other than routine.
The superintendent shall, within seven (7) days after receipt of an
application, submit to the committee his written report on the application,
including any recommendation for its disposition or further handling as to
him appears proper, a copy of which shall be contemporaneously delivered or
mailed to the applicant. At the request of applicant or any other interested
party, the committee shall, or upon its own motion may within ten (10) days
after its receipt of the superintendent's report hold a hearing on any ap-
plication for a permit at which any interested party shall be allowed to
submit to the committee any written statement or evidence and shall be af-
forded a reasonable opportunity to present oral testimony or other -pertinent
evidence to the committee. All proceedings before the committee shall be
orderly but informal and rules of procedure and evidence (including the
crossexamination of witnesses) normal in court proceedings shall not be
followed except to the extent permitted or required by the committee. At
the request of any applicant, a written record of the proceedings of any
such hearing shall be kept, provided that applicant shall pay for all cost
and expense of making such record.
Sec. 35-495. Council action on permit application after hearing.
Not later than thirty (30) days after receiving the written report of
the superintendent or after receipt of an application without such report,
the committee shall make a written recommendation to the council as to
whether the application should be granted, denied, modified or otherwise
disposed of. All written materials, statements, proceedings had in public
hearings, and the report of the superintendent shall be transmitted to the
council with such recommendation. A true copy of said recommendation shall
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be delivered to the applicant who shall have five (5) days within which to
file with the city secretary a written protest to the council of the com-
mittee's recommendation, setting forth therein the grounds for any objection.
The failure to file any such objection to the recommendation of the committee
shall be deemed to be a waiver of any objection by the applicant. Upon the
filing of said recommendation by the committee and of said objection, if any,
by the applicant, or upon the failure of the committee to make such recom-
mendation to the council within the thirty (30) day period herein provided
for, the council shall promptly act upon the application for permit. Except
in instances in which the applicant has failed to provide information required
by this article and in which the council determines that additional informa-
tion pertaining to such application should be furnished, the council shall
take final action upon such application not later than thrity (30) days after
such application properly comes before the council. The council may act upon
the basis of the written recommendation and other reports submitted to it,
provided, however, that the council may in its discretion order such further
or additional hearings before the committee or before the council as it may
deem appropriate.
Sec. 35-496. No permit approval by default.
Regardless of any time period suggested or prescribed in this article,
no inaction or failure to act by the council shall constitute its action or
approval by default.
Sec. 35-497. Issuance of permit.
Any permit issued hereunder shall be issued over the signature of the
city manager or superintendent or director of inspections and operations
under the authority of the council. The permit shall be in duplicate, with
one counterpart to be delivered to the permittee after the permittee has
executed an acceptance on the other counterpart to be retained by the super-
intendent.
Sec. 35-498. Permanent permit unless termed temporary; temporary permit;
permit terms; expiration of permit; extension; appeal.
Any permit shall be termed and referred to as a permanent permit. The
term of a permanent permit shall be for a period of one (1) year within which
to commence work thereunder, and shall continue in force as long thereafter
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as the use of the facility for which the permit is granted shall not be
abandoned, or in the case of a permit to drill a well in search of oil
and/or gas, as long_ thereafter as the permittee is engaged in continuous
drilling operations, or oil, gas or other hydrocarbons are produced (or
capable of being produced) from the well drilled pursuant to such permit.
Upon written application, the superintendent, with the approval of the
Bay Drilling Committee, may grant one extension of time for cause, not to
exceed six months, when drilling will not commence within one year from
the date a permit is issued.
The permit for any nonproducing well will expire on the anniversary
date next following completion of a dry hole or on the anniversary next
after any well.has ceased to be classified by the Railroad Commission as
a "producing" well, unless the well is actually being used for disposal
purposes, secondary recovery, or is within a well surface structure with.
other producing wells. Upon expiration of any well permit the superintendent
will order that the well be abandoned and the owners will effect abandonment
within sixty (60) days of the order.
If the owners of any well, whose permit is subject to expiration, feel
that the need of such well is required or will be required for production,
disposal or secondary recovery purposes, then application may be made to
the superintendent's office for an extension of the permit for use thereof
for disposal purposes or secondary recovery. The superintendent will re-
view the application and within seven (7) days of receipt of such applica-
tion make his recommendation to the committee. If the committee finds that
there is a need for the well, then it will order the superintendent to ex-
tend the permit for a one-year period. Subsequent extensions may be obtained
by similar application and approval. Should the committee at any time find
that the need for such well does not exist, then it will instruct the super-
intendent to order the well abandoned within a sixty-day period. If the
owners of the well still disagree with the abandonment order, then they will
have final recourse through appeal to the city council.
Sec. 35-499. Transfer of permit.
Any permit issued hereunder may be transferred, provided that the trans-
feree meets all of the requirements of this article, including the posting
1
of insurance and bonds required herein. A notice of transfer shall be filed
with the superintendent. Within fifteen (15) days after such filing, the
superintendent shall notify the transferor and the transferree.whether or
not the transferree meets the requirements of this article. The transferor
shall nevertheless be liable for all obligations under the permit accruing
prior to the effective date of the transfer.
Sec. 35-500. Effect of acceptance of permit.
The issuance of a permit and its acceptance by the permittee shall
ipso facto bond and obligate the permittee, his or its executors, adminis-
trators, successors and assigns, for so long as any drilling, producing,
processing, transporting, handling, treating or other operations are being
conducted on or with reference to the permitteed well or other facility as
follows:
(a) To maintain in force and effect a policy or policies of public
liability and property damage insurance with the minimum coverages
specified in this article and to furnish annually to the superin-
tendent current certificates of insurance and endorsements cor-
responding to those required herein;
(b) To indemnify the City against, and to promptly pay the City for
all property damage of every kind and nature caused to property
owned by the City that may arise because of willful or negligent
act of permittee or the failure of permittee to comply with the
provisions of this article;
(c) To fully comply with all of the terms and requirements of the
permit and of this article and all other applicable ordinances
of the City, as any of the same may be amended from time to time,
and to fully comply with all applicable requirements of federal
and state laws and of all federal and state regulatory bodies
having jurisdiction;
(d) To conduct all operations relative to the 'purpose for which'the
permit is obtained with adequate rigs, tools, machinery and equip-
ment, employing recognized procedures in a prudent manner so as
to provide maximum protection and safeguards against possible
injury to persons or damage to property, public or private;
•
to prevent blowout, cratering, fire, explosions, surface property damage,
pollution or contamination of the waters of the gulf and hazards to navi-
gation.
Sec. 35-501. Seismic surveys.
No geophysical work will be permitted except upon proper application
and the payment of a one hundred dollar ($100.00) application fee. A
proper application will include the following:
(1) Letter of application requesting a geophysical permit. The
letter shall set out the system to be employed, when it is in-
tended to begin the work, and also the anticipated date of com-
pletion. A statement shall also be made relieving the City of
any liability for damages which may result from that operation
performed by the applicant.
(2) The letter of application shall be accompanied by a copy of a
valid and subsisting public liability insurance policy.
(3) A plat outlining the areas proposed to be covered by the survey.
When the above is properly submitted, the superintendent may issue a
permit to the applicant to conduct such seismic or geophysical work, if by
his determination, this work will not create a public nuisance nor be con-
trary to the public safety. The determination shall include the considera-
tion of the following factors;
(a) The location of the point relative to surrounding improvements
and the distance of point of exploration from the nearest mean
high tide shoreline;
(b) The quantity and nature of the proposed seismic survey to be used
in implementing the exploration;
(c)
The depth in the structure from the Gulf bottom at which the
seismic survey will be operational;
(d) The pendency of other activities in the Gulf at and adjacent to
the point of exploration.
Sec. 35-502 - 35-503. Reserved.
•
DIVISION 7. INSPECTIONS AND INSPECTION FEE
Sec. 35-504. Inspection - Annually.
Each well or other structure or facility for which a permit has been
issued and is still in effect shall be inspected, insofar as it is feasible
to do so, at least annually by the superintendent (or by an inspector or
other employee of the City designated pursuant hereto) and at such other
times as may be directed by the council or the committee.
Sec. 35-505. Annual inspection fee.
There is hereby levied an annual per well inspection fee of fifty
dollars ($50.00) which shall be due and payable during the month of January
of each calendar year, and a failure to pay such fee shall be cause for
revocation of any permit issued under this article. The superintendent
will prepare an annual well inspection report which is to be made available
to the operators prior to January 1st of each year. In the event an intent
to plug and abandon a well has been filed with the superintendent prior to
January -31st, payment of said fifty dollars ($50.00) fee for that well shall
be excused provided such well is finally plugged and abandoned in accordance
with this article prior to March lst of that same year. A new well on which
drilling operations are in progress on the 31st day of January shall be
exempt from the fifty dollar ($50.00) fee for the remainder of that calendar
year.
Sec. 35-506. Same - On relinquishment of permit.
In the event of abandonment of a well, or the permanent cessation of
use of a production platform, or other structure or facility for which a
temporary or permanent permit has been issued hereunder, such permit shall
be relinquished by the parties to whom it.was granted or transferred. The
permittee shall promptly notify the superintendent in writing whenever such
permit should be relinquished under the provisions of this section. The
superintendent (or any inspector or other official duly authorized hereunder)
shall forthwith make an inspection to determine if all requirements and
provisions of this article have been complied with, and if so found, then
the city manager, or superintendent, or director of inspections and operations
may issue a release to the holder of such permit and such permittee as well
•
as his sureties shall thereafter be relieved of all obligations hereunder,
except that the permittee and sureties shall not thereby be relieved of
obligation with respect to any legal cause of action which may have ac-
crued prior thereto in favor of the City, or any other person, until the
applicable statute of limitation shall have barred any such cause of action.
Sec. 35-507 - 35-508. Reserved.
DIVISION 8
Sec. 35-509. Bay Drilling Committee.
The Bay Drilling Committee as established in Article III of Chapter 35,
as now or hereafter amended is designated as an advisory agency of the
council for all purposes stated or reasonably implied in this article. This
committee shall make a continuous study of operations for the exploration,
drilling and production of oil, gas and other minerals in the Gulf areas
within the city limits, and the possible effect of the same upon the public
health, safety and general welfare of the City. It shall make such reports
and recommendations from time to time as it deems advisable -to the council
for the amendment and revision of this article and all other regulations
pertaining to said activities. The committee shall have all of the powers
and duties imposed upon it by any other provision of this article.
SECTION 2. That Section 35-21, Scope, of the Corpus Christi
City Code, 1976 Revision, be amended to hereafter read as follows:
"Sec. 35-21. Scope.
This article shall govern the exploration, drilling and
production of hydrocarbons and matters incident thereto, in all areas
of the City except those areas subject to regulations under the terms
of Articles III and IV of this chapter." '
SECTION 3. If for any reason any section, paragraph, sub-
division, clause, phrase, word, or provision of this ordinance shall
be held invalid or unconstitutional by final judgment of a court of
competent jurisdiction it shall not affect any other section, para-
graph, subdivision, clause, phrase, word or provision of this ordi-
nance, for it is the definite intent of this City Council that every
section, paragraph, subdivision, clause, phrase, word or provision
hereof be given full force and effect for its purpose.
SECTION 4. Publication shall be made one time in the offi-
cial publication of the City of Corpus Christi, by publishing the
caption of this ordinance, stating in substance the purpose of the
ordinance.
a T •
That the foregoing ordinance was read for t fstjtimeaanlj,passed tooits
second reading on this the q la
day of by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance was read for t
third reading on this the ,ep day of
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
That the foregoing ordi
on this the /7 day o
anc wa rea
Luther Jones
Edward L. Sample
Dr. Jack Best
David Diaz
Jack K. Dumphy
Betty N. Turner
Cliff Zarsky
PASSED AND APPROVED, this the
ATTEST:
-C S cretary
APED:
DAY OF
passed to its
0 , by the
for the third time and passed finally
, 1940 , by the following vote:
/7 day of
, 19%0 :
J. BRUCE AYCOCK, CITY ATTORNEY
Stant City Att4ey
,
THE CITY OF CORPUS CHRISTI, TEXAS
15762
8, STATE OF TEXAS, ta
sCounty of Nueces. 1
PUBLISHER'S AFFIDAVIT
Before me, the undersigned, a Notary Public, this day personally
LORRAINE CORTEZ
who being first duly sworn, according to law, says that he is the
ACCOUNTING CLERK of the Corpus Christi Caller and The Corpus Christi Times,
Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of
NOTICE OF P,ASSAgE, QLiijTTNANCE NO 15742_
THE CORPUS CHRSSIT CAT ,T,FR—TIMES
of which the annexed is a true copy, was published in
on the..Z.bth. day of_. ..
BE ._..._.19 89., and once each.__ aa.E_.____thereafter for one
consecutive. day
.4 34.65
p�`'OUNiiNG"Q"CLE18C���9?/2Lta/�22 �,�/
Subscribed and sworn to before me this...._.. 9 day of - ofL° aa2..._..._ _ 19.....$4__
s S.
Eugen$a S. Cortez
Public, Nueces County, T
NOTICE OF PASSAGE
• OF ORDINANCE
NO. 15762:
AMENDING THE CODE
E
OF ORDINANCES, CITY
'REVISION,
CORPUS CHRISTI, 1976
REVISION, AS AMENDED,
;BY ADOPTING ARTICLE
;IV, GULF DRILLING TO.
CHAPTER 35 OF THE SAID
CODE OF ORDINANCES,.
TO REGULATE DRILLING
IN THE GULF AREA;
AMENDING SECTION 35-
'21, SCOPE, OF THE CITY
CODE SO AS TO EXCLUDE
AREAS IN ARTICLE IV AS
WELL AS AREAS IN AR-
TICLE III, BAY DRILLING,
FROM THE REGU-
LATIONS OF ARTICLE II,
LAND DRILLING, PRO-
VIDING FOR SEVER-
ABILITY; PROVIDING
FOR PUBLICATION.
WAS PASSED AND AP-
PROVED bytheClty Council
,of the City of Corpus Christi,
Texas, during the Regular
Council Meeting held on the
17th day of September, 1980,
at 2:00 p.m. and providing
p fltlh tion one time In the.
publication of the'
City of Corpus Christi,
Texas.
ISSUED UNDER MY HAND,
AND SEAL of the City of
Corpus Christi, Texas, this'
the 1811) day of September,
1980.
-s-BIII G. Read,
City secretary
City of Corpuss,�
h 'MChrl$FI, ,7axu:1