HomeMy WebLinkAbout18177 ORD - 04/11/1984•
AN ORDINANCE
AMENDING CHAPTER 35, OIL AND GAS WELLS, OF THE CITY CODE TO
CONSOLIDATE THE FOUR ARTICLES OF THE CHAPTER, EACH FOR
DIFFERENT GEOGRAPHICAL AREAS, INTO ONE SET OF REGULATIONS
FOR ALL AREAS AND AMENDING THE AREA OUTSIDE OF THE CITY
LIMITS TO BE REGULATED AND AMENDING THE METHODS FOR
PERMITTING AND UNITIZATION AND PROVIDING FOR INCREASED
PUBLIC LIABILITY INSURANCE REQUIREMENTS; AND PROVIDING FOR
PUBLICATION AND SEVERABILITY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That Chapter 35, Oil and Gas, of the Code of Ordinances,
as amended, be amended by deleting the chapter in its entirety and substiting
therefor the following:
SEP 2 81984
FACWIR
1811.'''7
CHAPTER 35 - OIL AND GAS
DIVISION 1. IN GENERAL
Section 35-1. Purpose and Scope.
The City Council recognizes that commercial oil and gas deposits underlie
areas of the City and that there is a need to allow for the development of these
natural resources in a manner that protects the health, safety and welfare of
the public by establishing regulations pertinent to the exploration, drilling
and production of hydrocarbons in a metropolitan environment. To this end, this
Chapter shall govern the exploration, drilling and production of hydrocarbons
and matters incident thereto, including unitization, in all areas of the City
and areas outside of the City that are less than 467 feet from the city limits,
whether surface or subsurface, unless the surface location is within the city
limits of any other incorporated City or seaward of the city limits boundary in
the Gulf of Mexico wherein nothing in said Chapter shall apply except pertinent
requirements for unitization.
Section 35-2. Continuation of prior Ordinances.
This Chapter is intended to supersede and displace the previous existing
Ordinances, comprising Chapter 35, but all conditions in violation of the
previous Ordinances shall nevertheless be punishable under said Ordinances. All
permits issued under the previous Ordinances shall continue valid unless and
until the permittee shall have violated the terms of said permit or the terms of
this Chapter. All bonds appe cforsthe insurance
purp seted fornwhichthe
theyvwere
ious
Ordinances shall remain applicabl
required.
Section 35-3. Administrative enforcement and supervision.
Administrative enforcement of the terms of this Chapter shall be by the
Department of Petroleum Inspection of the City. It shall be the duty of the
Suyperintendent to enforce the provisions of this Chapter and to taht end he is
hereby vested with police authority.
Section 35-4. Injunction.
In addition to any other penalty provided by this Chapter, the Council may
direct the City Attorney to initiate an action in any court having competent
juisdiction anrinjunction tto compel co pliance with any hpre ovisionons of this Chapter or for
of this Chapter.
Section 35-5. Access to wells and facilities.
It shall be unlawful for any person, unless authorized by the operator, to
enter a fenced area around any well or production facility. It shall be
unlawful for any person, unless authorized by the otherprovision erator to touch
hanyowell
tor
production equipment. Notwithstanding any
Superintendent shall have the right to enter the area of any well or tank
battery site at any time. In the event any fence surrounding any well or
production facility shall be kept locked, upon request of the Superintendent,
the key shall be furnished to him for use in access to said premises. For
marine locations, operators shall provide boat transportation for the
Superintendent or any other duly authorized City official or employee for the
purpose of inspecting wells or facilities, with the understanding that the
furnishing of such transportation shall create no extra duty of care.
Section 35-6. Penalty.
Any person violating any provision of this Chapter or failing to comply
with any requirement of this Chapter will be guilty of a misdemeanor and subject
to a fine as provided in Section 1-6 upon conviction.
Section 35-7. Amendment.
This Chapter or any part thereof may be altered, repealed or amended at any
time and no rights or privileges may ever be acquired hereby which may not be
altered, repealed or modified by the City.
Section 35-8. Severability.
If for any reason any section, paragraph, clause, phrase or provision of
this Chapter shall be held invalid, it shall not affect any valid provisions of
this or any other Ordinance of the City to which these rules and regulations
relate.
Section 35-9. Waiver by City Council.
Any and all provisions of this Chapter may be waived by the City upon a
showing by the applicant to the satisfaction of the City Council that the
planned manner of operation by the applicant or the equipment to be used by the
applicant will adequately protect the environment, public health, safety and
welfare.
Section 35-10. Definitions.
For the purposes of this Chapter, the words and phrases set out in the
Division shall have the scope and meanings herein ascribed to them.
Section 35-11. "Applicant."
The term "applicant" means any person who applied for a permit under the
provisions of this Chapter.
Section 35-12. Bay Drilling Committee.
The "Bay Drilling Committee" or the "Committee" means the Committee
established in Section 35-26.
Section 35-13. "Regular."
"Regular" as applied to a surface location for a drill site or well
structure is one that meets all of the location and structure requirements of
this Chapter.
Section 35-14. "Exceptional."
"Exceptional" as applied to well surface locations and structures are
surface locations or well structures that are not "regular" location or
"regular" structures.
Section 35-15. "Mayor," etc.
The terms "Mayor," "City Manager," "City Council," "Council," and "City
Secretary" refer to those of this City unless otherwise expressively indicated.
Section 35-16. "City Petroleum Superintendent."
The term "City Petroleum Superintendent" or "Superintendent" means the head
of the Department of Petroleum Inspection of the City.
Section 35-17. "Marine areas."
The term "marine areas" means the areas of the City that are usually
submerged or islands that are not connected to the mainland by a bridge capable
of transporting automobiles.
Section 35-18. "Straight well."
The term "straight well" means a well intended to be drilled from the
surface to the bottom thereof with no portion of the hole having a deviation of
more than five (5) degrees from vertical.
Section 35-19. "Directional well."
The term "directional WELL" means a well intended to be drilled from the
surface to the bottom thereof with some portion of the hole having a deviation
of more than five (5) degrees from vertical.
Section 35-20. "Sub -mud."
The term "sub -mud" as used in reference to a well completion or well
producing structure means a device or scheme in which no part of the wellhead
installation, including any and all appurtenances thereto, extends above the sea
floor.
Section 35-21. "Operator."
The term "operator" shall include every person, and the agents, servants
and employees of such person, engaged in operations for the drilling, reworking,
redrilling, well servicing or plugging and abandonment of any well subject to
this Chapter and the production or transportation of any product therefrom.
Section 35-22. "Drilling operation."
The term "drilling operation" means the making of a hole in the earth for
the purpose of discovery, exploration or production of oil, gas or minerals.
Section 35-23. "Permittee."
The term "permittee" is any person holding a permit granted under this
Chapter, or under a prior ordinance and in good standing on the effective date.
Section 35-24. "Well."
The term "well" means any hole, excavation or bore downward from the
surface, intended to extend two hundred (200) feet or more into the subsurface,
made by any means or manner, for the purpose of exploring for, discovering,
producing, or injecting hydrocarbons, water or other mineral, and which has not
been officially plugged and abandoned.
Section 35-25. "Islands."
For the purpose of this Chapter, the term island will not apply to Padre
Island and Mustang Island which shall be treated as mainland areas.
Section 35-26. Bay Drilling Committee.
There is hereby continued as an advisory body to assist the City Council in
its function hereunder, the Committee known as the Bay Drilling Committee, to
exist until abolished by the Council. The membership of this Committee shall be
composed of six (6) persons who are residents of the City of Corpus Christi,
three (3) of whom shall be selected from among the general public not connected
with the business of exploring or drilling for, or producing oil, gas and other
hydrocarbons, and three (3) of whom shall be selected from the oil and gas
industry. In addition to the aforementioned six (6) persons, two (2) additional
persons shall be made part of the Committee who shall serve as alternates. One
person from the general public shall serve when a public member is absent and
one from the industry shall serve whenever any industry member is absent.
Whenever a public or industry alternate member replaces an absent member, then
the alternate's presence and vote shall be the same as though he were a regular
member. The public members shall be appointed by the Mayor with the approval of
the Council, and the industry members shall be appointed by the Mayor with the
approval of the Council from those persons nominated by the oil and gas industry
as hereinafter provided. Not later than one month after occurrence of a vacancy
in the position of such a member, any lessee may nominate one person from his or
its own organization for the position of industry member of the Committee. Such
members of the Committee shall be appointed from such nominees. In making such
appointments, the Mayor shall give due consideration to the extent of interest
owned by each lessee making a nomination. In the event that no such nomination
is submitted or, in the event no person so nominated is appointed and approved,
the Mayor shall appoint any person he deems suitable with the approval of the
Council to fill the position of industry member of the Committee.
Section 35-27. Terms of office.
Except as provided herein, members of the Committee shall be appointed for
terms of three (3) years, and may succeed themselves. To establish rotation of
membership, the terms of the Committee shall extend from selection to the end of
the day indicated, viz: One public member and one industry member to December
31, 1986; one public member to December 31, 1984, and one public member to
December 31, 1985; one industry member to December 31, 1984, and one industry
member to December 31, 1985. Vacancies on the Committee, however brought about,
shall be filled as provided in Section 35-26 of a new term or for the balance of
any unexpired term vacated, as the case may be. A member of the Committee may
resign at any time upon written notice to the Superintendent, or any member may
be removed at any time by a majority vote of the Council for cause deemed
sufficient by it. The tenure for an alternate member shall be three (3) years,
beginning with any part or all of the year in which the appointment is made.
All other provisions of the Chapter concerning membership and the Committee are
applicable to the alternate members.
Section 35-28. Officers.
The Committee shall annually elect its own Chairman and Vice -Chairman. In
the absence of the Chairman, the Vice -Chairman shall act in place of the
Chairman on any matter on which action of the Chairman is called for by this
Chapter.
Section 35-29. Organization.
The Committee shall make and adopt rules of procedure governing its own
actions, not inconsistent with this Chapter, and shall hold such meetings and
hearings as may be required for its proper function hereunder. Each member of
the Committee shall be entitled to one vote upon all matters coming before the
Committee.
Section 35-30. Quorum, meetings.
Four (4) members shall constitute a quorum for action at any meeting held
or hearing conducted by the Committee. Meetings of the Committee shall be
called by the Chairman, or by the Vice -Chairman in the absence of the Chairman,
or by any three (3) members of the Committee, by written notice to each member
delivered at least twenty-four (24) hours or mailed at least forty -eighty (48)
hours in advance of the proposed time of meeting, which notice may be waived by
any member as to himself.
Section 35-31. Records; assistance by City Manager and Superintendent.
The Superintendent or such other person as may be designated by the
Committee shall keep and retain such records of the Committee's proceedings as
the Committee or the Council may direct, and all such records shall be filed in
the office of the Superintendent. The City Manager and the Superintendent shall
assist the Committee at its request, each consistent with the other demands of
his office.
Section 35-32. Compensation.
Members of the Committee shall receive no compensation for their services
as such, but any and all expense reasonable and necessarily incurred by the
Committee, or any member duly authorized, shall be borne by the City; provided,
however, that the same shall have been duly authorized or approved by specific
or general action of the Council or the City Manager, as the case may be, prior
to incurring such expenses.
Section 35-33. Function, powers and duties.
The Bay Drilling Committee is hereby designated as an advisory agency of
the Council for all purposes stated or reasonably implied. in this Chapter.
This Committee shall make a continuing study of operations for the exploration,
drilling, and production of oil, gas and minerals in the areas subject to this
Chapter, and the possible effect of same upon the environment, 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 Chapter 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 Chapter.
Section 35-34. Established Department of Petroleum Inspection.
There is hereby continued, the Department of Petroleum Inspection, to exist
until abolished by the Council.
Section 35-35. Department head - Appointment; qualifications; disclosure of
interest.
The head of the Department of Petroleum Inspection shall be a person called
the City Petroleum Superintendent who shall be appointed by the City Manager,
subject to confirmation by vote of a majority of the members of the Council.
The City Petroleum Superintendent (also referred to herein as Superintendent),
shall be a technically qualified person with respect to the type of oil and gas
activity prevalent in the area covered by this Chapter, and the Council shall
prescribe such compensation for his services and other terms of employment as
may appear to be reasonable and proper. Before appointment, any person being
considered for the post of Superintendent shall make a full disclosure to the
City Manager and the Council of any employment, stock ownership or other
pecuniary or business relationship with any lessee, and during his term of
office the Superintendent shall make the same disclosure as to any changes in
such matters.
Section 35-36. Same - Duties.
The Superintendent shall advise the Council, the City Manager and the
Committee with respect to the matters regulated by this Chapter, shall have the
duties and authority prescribed by this Chapter, and shall perform such other
duties as may be properly by the Council or the City Manager.
Section 35-37. Inspectors and other personnel.
In the event it appears necessary or advisable, the Superintendent shall
recommend to the City Manager the hiring of inspectors or other personnel in
order to fully enforce the provisions of this Chapter. Upon authorization of
such positions by the Council, any such personnel shall be appointed by the City
Manager.
Section 35-38 - 35-46. Reserved.
DIVISION 2. WELL AND FACILITY LOCATIONS
Section 35-47. Deed restriction provisions.
Nothing contained in this Chapter shall be construed as authorizing the
drilling of any well where the operator has no legal authority to do so. It is
expressly provided that no well shall be drilled at any location where there are
of public record legally enforceable deed restrictions or covenants prohibiting
the drilling of such well.
Section 35-48. Surface rights.
Neither this Chapter nor any permit issued hereunder shall be interpreted
as granting any right or licenses to the permittee to enter upon or use any land
nor shall it limit or prevent the free right of the owner of such land to
contract for any payment of any kind for damages or for rights or privileges
with respect thereto.
Section 35-49. Distance from residences, buildings or structures.
No well shall be drilled at any location which is nearer than four hundred
(400) feet from any residence, commercial building or other permanent structure
intended for human occupancy, unless the applicant furnishes to the
Superintendent written waivers executed by all owners of such residences,
commercial buildings and such structure which are located within four hundred
(400) feet from the proposed location whereby the owners waive objection to the
location and, unless the applicant furnishes to the Superintendent evidence of
reasonably appropriate written notification furnished by applicant to the
occupants of all such residences, commercial buildings and such structures;
provided, however, that an existing well which has been previously plugged and
abandoned maybe reentered at any location which is more than two hundred (200)
feet from any residence, commercial building or other permanent structure
intended for human occupancy where a permit has been obtained in accordance with
this Chapter.
Section 35-50. Location near schools, hospitals, etc.
No well shall be drilled at any location which is on, or within four
hundred (400) feet from an exterior boundary line of, land used by any public or
parochial school, college, university, or hospitaL, or which is occupied by a
church or a public building. The City Council is specifically authorized to
grant a variance and allow the drilling of a well which does not meet the
requirements of this sections, if the applicant presents written evidence to the
Council that the owners of the governing body of such public or parochial
school, college, university, hospital, church or public building, have consented
and agreed in writing to the proposed well location.
Section 35-51. Location near cemeteries and parks.
No well shall be drilled at any location which is on, or less than one
hundred seventy-five (175) feet from the exterior boundary line of lands
utilized for cemeteries or public parks except marine parks.
Section 35-52. Streets, alleys and easements.
No well shall be drilled within, or at any location nearer than fifty (50)
feet from, any street, alley or utility easement.
Section 35-53. Bayfront restrictions.
No well shall be drilled within that portion of the city bounded on the
west by either Water Street or by Ocean Drive, bounded on the South by the Naval
Air Station, bounded on the east by Corpus Christi Bay, and bounded on the north
by the Corpus Christi Ship Channel.
Section 35-54. Marine Park Areas.
There are hereby designated areas to be known as Marine Parks. In the Gulf
of Mexico, the Marine Park 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 is within the city limits. The Laguna
Madre and Corpus Christi Bay Marine Park shall consist of that portion of water,
submerged land and islands between a line formed by the line of mean higher high
tide on the shoreline and the following described line:
Beginning at the southeasternmost point of Whiteley Drive
near the southeastern tip of Flour Bluff, thence on quarter
mile in a southeasterly direction along the southwesternmost
boundary line of Laguna Madre State Tract 24, thence in a
northeasterly direction in a straight line to a point in the
northeasternmost line of State Tract 24 one quarter mile
southeast of the intersection of the northeasternmost line
of State Tract 24, extended, with the centerline of Laguna
Shores Road, thence in a general northeasterly direction
paralleling the center of Laguna Shores Road and Laguna
Shores Drive, all one quarter mile southeast of the center
of Laguna Shores Road to the center of Padre Island Drive,
thence in a northeasterly direction along the
southeasternmost lines of State Tracts 13, 12, 11, 9, 8, 7
and 6 to the northeasternmost corner of State Tract 6,
thence in a southeasterly direction along the southwesterly
line of State Tract 36 to the southernmost corner of State
Tract 36, thence in a northeasterly direction along the
southeasterly lines of State Tracts 36, 37 and 38 to the
easternmost corner of State Tract 38, thence in a
southeasterly direction along the northeasterly line of
State Tract 39 to a point where the boundary line between
State Tract 98 and State Tract 94 intersect, thence in a
northerly direction along the common line of State Tract 98
and State Tract 94 to the easternmost corner of State Tract
98, also being the westernmost corner of State Tract 93,
thence in a westerly direction, being a straight line to a
point in the line common to State Tracts 67 and 79 as shown
on "Map of Corpus Christi Bay in Nueces County showing
subdivision for Mineral Development" issued by general land
office, May 5, 1950, the Lambert Grid Coordinates (Texas
South Zone) of said point being X = 859521.14 and Y =
269851.07; said point being on the east boundary line of the
city limits as set out in call no. 77 of the Corpus Christi
Annexation Ordinance No. 6636.
Thence North 69 degrees 07 minutes 26 seconds West 2665.57
varas to a point, X = 857030.56 and Y = 270800.94;
Thence North 65 degrees 30 minutes 47 seconds West 1844.31
varas to a point, X = 855352.14 and Y = 271565.38;
Thence North 56 degrees 54 minutes 51 seconds West 1765.57
varas to a point, X = 853872.85 and Y = 272529.20;
Thence North 44 degrees 25 minutes 40 seconds West 1727.83
varas to a point, X = 852663.35 and Y = 2737363.10;
Thence North 18 degrees 43 minutes 02 seconds West 1927.46
varas to a point, X = 852044.83 and Y = 275588.62;
Thence North 42 degrees 37 minutes 15 seconds West 1729.23
varas to a point, X = 850873.89 and Y = 276861.08;
Thence North 11 degrees 20 minutes 31 seconds West 852.12
varas to a point, X = 850706.31 and Y = 277696.56;
Thence North 8 degrees 13 minutes 08 seconds East 1702.83
varas to a point, X = 850949.74 and Y = 279381.90;
Thence North 7 degrees 27 minutes 43 seconds West 596.32
varas to a point, X = 850872.30 and Y = 279973.17;
Thence North 15 degrees 48 minutes 15 seconds East 1978.58
varas to a point, X = 851411.17 and Y = 281876.96;
Thence North 29 degrees 48 minutes 24 seconds East 1111.98
varas to a point, X = 851963.91 and Y = 282841.83;
Thence North 49 degrees 19 minutes 59 seconds East 2389.11
varas to a point, X = 853776.07 and Y = 284398.72;
Thence North 53 degrees 56 minutes 18 seconds East 2145.85
varas to a point on the line common to State Tracts 26 and
40, X = 855510.74 and Y = 285661.89; said point being South
45 degrees 01 minutes 50 seconds East 1195.15 varas along
the line common to State Tracts 40 and 26 from the most
easterly corner of State Tract 41, X = 854665.19 and Y =
286506.53. This point being common to call number 65 in the
City of Corpus Christi Annexation Ordinance No. 6636.
Thence North 56 degrees 20 minutes 51 seconds East 1939.25
varas to a point, X = 857125.00 and Y = 286736.54;
Thence North 67 degrees 43 minutes 19 seconds East 4122.74
varas to a point, X = 860940.00 and Y = 288299.48;
Thence to the point that is a common corner for State Tracts
1, 2, 10 and 11.
Thence along the line common to State Tracts 1 and 11 to the
shoreline of Corpus Christi Bay.
In addition to the foregoing, Laguna Madre State Tract 62 shall be a Marine
Park Area.
The Marine Park Area in Nueces Bay shall be those portions of State Tract
749 and State Tract 788 that are within one-quarter (1/4) mile of the shoreline.
The Marine park Area in the Cayo del Oso shall be all that portion of the
State Tracts on the northerly side of South Padre Island Drive that is within
one-quarter (1/4) mile of the State Tract shoreline boundary.
Section 35-55. Marine Park Restrictions and Exceptions.
Well surface locations and exposed oil and gas structures of any kind
whatsoever shall be prohibited in Marine Park Areas except as follows:
Sub -mud well producing structures may be permitted, and in
the Gulf of Mexico, sub -sea well producing structures may be
permitted, to be drilled from surface locations in the
Marine Park Areas that are 1,000 ft. seaward of the
shoreline at mean higher high tide and not closer than 1,000
ft. to any recreational pier or breakwater. 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:
(A) Use of a surface location outside the Marine Park Area
either on water or land, renders it physically
impossible to make a bottomhole completion within such
area; and
(B) The need for the well cannot be eliminated by pooling
or unitization; and
(C) Applicant is suffering loss through uncompensated
drainage of its lease, or is in imminent danger of
losing its lease; and
(0) No sub -sea completion is practicable for engineering
reasons.
Section 35-56. Marine Recreation Area, Corpus Christi Bay.
The Marine Recreation Area in Corpus Christi bay shall consist of that
portion of the bay, not including Marine Park Areas, that is westerly of the
following described line:
Beginning at the intersection of the southeasterly boundary
of State Tract 6 and the shoreline, thence along the
southeasterly boundary of State Tract 6 to a point for a
corner being the northeasternmost corner of State Tract 419,
thence along the northeasterly boundaries of State Tracts
419 and 420; thence along the southeasterly boundary of
State Tract 420; thence along the northeasterly boundaries
of State Tract 446 and 445; thence along the southeasterly
line of State Tract 445; thence along the northeasterly
boundaries of State Tracts 453 and 454; thence along the
southeasterly boundary line of State Tract 454; thence along
the northeasterly boundary lines of State Tracts 470 and
469; thence along the northeasterly boundary line of State
Tract 469; thence along the northeasterly boundary line of
State Tract 87; thence along the southeasterly boundary line
of State Tract 87 and continuing to the intersection of this
line and the northeasterly boundary of State Tract 93;
thence in a northwesterly direction along the common
boundary line between State Tracts 93 and 84 to a point
being the northernmost end of the common boundary line
between State Tracts 93 and 95; thence in a southwesterly
direction along the common boundary line between State
Tracts 93 and 95 to its intersection with the Marine Park
Area.
No well surface structure shall be located in the area covered by this
section except in conformity with the provisions of this section.
Subject to the exceptions hereafter provided in this section, in any state
lease tract on which there is no well surface structure located as of the
effective date all well surface structures shall be located within an area in
the form of a square with dimensions of five hundred (500) feet by five hundred
(500) feet. The center of such areas north of the ship channel known as the
Port Aransas-Corpus Christi Waterway shall be a point anywhere from four hundred
sixty seven (467) feet to six hundred sixty (660) feet form the northwest
boundary line and four hundred sixty-seven (467) feet to six hundred sixty (660)
feet from the northeast boundary line of said tract. The center of such areas
south of the ship channel known as the Port Aransas-Corpus Christi Waterway
shall be a point anywhere from four hundred sixty-seven (467) feet to six
hundred sixty (660) feet from the northwest boundary line and from four hundred
sixty-seven (467) feet to six hundred sixty (660) feet from the southwest
boundary line of said tract. The center of each such area shall be designated
in the permit for the first well to be drilled from such area. Each such area
shall be termed and referred to hereinafter as the "cluster area." The first
well surface structure placed on any such tract may be located at any location
within such cluster area but additional well surface structures shall be located
at either ten (10) foot or two hundred fifty (250) foot spacings from the
nearest existing well surface structure, except that the distance from center to
corner wells in a cluster area must be three hundred fifty-four (354) feet.
In any state lease tract which contains well surface structures in
existence as of the effective date, all additional well surface structures
placed in such tract shall be located in an area in the form of a square, with
dimensions of five hundred (500) feet by five hundred (500) feet, within which
the existing well surface structure shall be located, which area shall be termed
and referred to as the "cluster area." Additional well surface structures shall
be located at either ten (10) foot or two hundred fifty (250) foot spacings from
the nearest existing well surface structure, except that the distance from
center to corner wells in a cluster area may be no more than three hundred
fifty-four (354) feet. In the event that any state lease tract contains two (2)
or more existing well surface structures on the effective date, which are
located so close together that the cluster area assigned to each would overlap,
then only one cluster area shall be permitted, within which the existing well
surface structure which is located closest to a corner of such tract shall be
located; provided that with the acquiescence of the lessees of adjoining state
lease tracts, the lessee of such tract may designate another existing well
surface structure around which the cluster area shall be located. The first
permit granted hereunder within any such state lease tract shall specify the
location of the cluster area. In the event that any state lease tract contains
two (2) or more existing well surface structures an the effective date which are
located so far apart that the cluster area assigned to each would not overlap,
then additional well surface structures may be placed in each of such cluster
areas.
With respect to state leases which cover only an area approximately three
hundred twenty (320) acres in size, the term "state lease tract" as used in this
section shall be deemed to mean and require an area approximately six hundred
forty (640) acres in size which shall be formed by combining two (2) of said
state leases along the abutting long sides thereof, with such combinations to be
commenced on the most easterly side of the Marine Recreation Area where said
leases are found and to be carried forward contiguously in a westerly direction
so as to form areas of approximately six hundred forty (640) acres in size in
the shape of a square.
Sub-mud well producing structures shall be permitted to be installed at any
location in the area covered by this section, and the drilling of wells which
will be completed with sub-mud well producing structures shall be permitted from
any surface location in the area covered by this section.
If the location prescribed for a cluster area in this section is situated
within the Marine Park Area, ship channels or seaplane landing restricted area
or any other area where surface structures are prohibited by other governmental
authorities, upon application the Council shall prescribe an alternate cluster
area; provided that no cluster area will be prescribed in the Marine Park Area
except as contemplated in Section 35-55 of this Division.
Exceptions to this section may be granted by the City Council upon
application for a permit hereunder and an affirmative showing by a lessee of any
oil, gas or mineral lease situated within the area covered by this section that
an exception is necessary to prevent confiscation of property. The term
"confiscation of property" as used herein shall not be deemed to exist unless it
is affirmatively established by lessee that use of a surface location in the
applicable cluster area renders it physically impossible to make a satisfactory
bottomhole completion within the applicable state lease tract.
No more than four (4) production platforms shall be allowed to be
maintained at any ane time in the Corpus Christi Bay Marine Recreation Area.
One of said production platforms shall be permitted to be located north of the
ship channel known as the Port Aransas-Corpus Christi Waterway and the remaining
three (3) of said production platforms shall be permitted to be located south of
said ship channel. No production platform shall be located within three (3)
miles of the shoreline of Corpus Christi Bay and no production platform shall be
located within three (3) miles of any existing production platform. No
enlargement of production platforms or facilities exceeding fifty (50) percent
of the surface area covered thereby on the effective date or fifty (50) percent
of the height of the appurtenances thereto on said date shall be allowed unless
a permit therefor is granted by the Council.
Any bay production facility for which a permit has been granted and which
is in existence on the effective date and which is situated on any spoil bank or
island shall be exempt from the limitations for the number of platforms in this
section and shall be allowed to be maintained and operated subject to the
pertinent provisions of this Chapter.
The proposed location of any production platform for which a permit is
requested must be approved by the Council, which approval shall be signified by
the issuance of a permit setting forth the location for such production
platform. In determining the location of production platforms hereunder, the
City Council shall consider, but shall not be limited to, the following factors:
The opinions of other lessees in the area to be served by the production
platform; convenience of the proposed location with respect to all then existing
production and any future production (insofar as same can be determined) in the
area to be served by the production platform; sufficiency of the proposed
facilities for present production and such future production as reasonably can
be estimated; appearance of the proposed facilities, including compactness and
height; willingness of the operator of the proposed platform to serve all
parties within the area to be served by the platform and reasonableness of
public health, safety and general welfare.
Section 35-57. Marine Recreation Area, Gulf of Mexico.
The Marine Recreation Area in the Gulf of Mexico shall be that portion of
the Gulf of Mexico that is within the city limits and is between one and two
miles seaward of the 1.37 foot above mean sea level line along the eastern side
of Padre Island and Mustang Island.
(1) Within the Marine Recreational Area, an approved well
structure location shall be not less than 250 feet from
another well structure.
(2) An exceptional well structure location shall be a well
structure located within 250 feet of another well
structure but recommended by the Bay Drilling Committee
after holding a public hearing to determine the impact
on island utilization and development relative to the
size and location of the structure applied for.
(3) Within the Marine Recreational Area, production
platforms shall be prohibited unless deemed necessary
and shall be applied for and considered on an
individual basis.
Section 35-58 - 35-59. Reserved.
DIVISION 3. LAND DRILLING BLOCK UNITIZATION
Section 35-60. Drilling blocks.
In order that the purpose and intent of this Chapter, as stated in Division
1, shall be carried out and future drilling for oil and gas within the City may
proceed in an orderly manner, and for convenience and clarity in identifying the
location of approved or proposed drilling locations, the land area of the City
to which this Division applies (with the exceptions noted in Section 35-62) has
been divided into drilling blocks, each containing approximately forty (40)
acres. Each block is shown and identified on a map marked Exhibit "A", and on
file in the Petroleum Inspection office. The exact description of any such
drilling block not already approved by ordinance prior to the adoption of this
Chapter shall be determined in the manner provided in Section 35-61 hereof.
All mineral interests in each drilling block shall be unitized as herein
provided with the exceptions noted in Section 35-62. No application to drill on
any drilling block where all or part is required to be unitized will be approved
unless the applicant shows that he owns or controls by voluntary agreement more
than fifty (50) percent of the total operating rights in the drilling block, or
that portion of the block left after deducting exempt acreage, to be unitized.
No more than one completion shall be made in any reservoir on any drilling block
until special field rules have been adopted by the Railroad Commission for the
reservoir. The final well density within each drilling block will be no greater
than that prescribed by the Railroad Commission in special field rules which may
be adopted for the field.
The City Council may, from time to time, amend the boundaries of the
drilling blocks referred to in this section, after a recommendation to that
effect from the Petroleum Inspection Department. Prior to a recommendation for
amendment of the drilling block boundaries, the Petroleum Inspection Department
shall cause to be published on the same day for two consecutive weeks a notice
of the drilling blocks proposed to be changed. The applicant seeking the change
in the drilling block boundaries shall pay for notification in the official City
newspaper. The proposed changes shall also be kept on record in the office of
the Petroleum Inspection Department for a period of seven days after the second
notice hereinabove referred to. If no objections have been received, or if
after examination of any objections received, the Petroleum Superintendent or
his representative recommends a change in the drilling block or blocks, then the
recommendation of the Petroleum superintendent shall be forwarded to the office
of the City Manager for further action. If objections are received, then the
City Secretary shall arrange for a public hearing on the question of alteration
of the drilling block boundaries before the City Council.
Section 35-61. Survey description of drilling blocks.
Each applicant is required by Division 4 of this Chapter to file with the
Superintendent his application to drill which includes a metes and bounds
description of the drilling block proposed to be covered by the permit. Such
metes and bounds description shall be prepared by a surveyor licensed by the
State of Texas, and shall conform to the extent reasonably possible to the
outlines of drilling blocks shown on Exhibit "A". No such metes and bounds
description shall be approved by the Superintendent unless its outside
boundaries substantially conform to the general pattern shown on Exhibit "A".
When so approved, such description shall become the official legal description
of the drilling block therein for all purposes hereunder. The Superintendent
shall take into account the metes and bounds description of all previously
approved drilling blocks in determining the property of the description
furnished in connection with any permit application in order to obtain ultimate
conformity to the pattern shown on Exhibit "A".
Section 35-62. Exemptions to unitization and well density requirements.
Exemptions to unitization and well density requirements shall be controlled
by the following rules:
(A) Each drilling block as to all depths and all minerals
thereunder is exempt from the well density and
unitization provisions of this Chapter when an existing
well, being a well previously permitted by the City as
exempt from unitization requirements, is situated
thereon and such unitization and density exemption
shall continue so long as said existing well is not
required to be plugged and abandoned in compliance with
Division 6 of this Chapter.
(B) All or such portion of a drilling block as is included
in a pooled unit with an existing well situated on said
unit is exempt and shall continue exempt until said
unit is dissolved.
(C) All or such portion of a drilling block which is
included in a pooled unit with an existing well
situated on such unit or which is covered by an oil and
gas lease or leases and allocated to an existing well
in which common ownership exists between said well and
said lease or leases is exempt from the well density
and unitization provisions of this Chapter and such
exemption shall continue until the lease expires.
(0) Wherever, under paragraph (B) of this section, a
portion only of a drilling block is exempt, if the
remaining portion of a drilling block is twenty (20)
acres or more it shall thereafter constitute the
drilling block. If the remaining portion is less than
twenty (20) acres it also shall be exempt as part of
the original drilling block and under the same
conditions.
(E) When annexations of land areas occur, they shall remain
exempt until such time as the City Council amends
Exhibit "A" to include the annexed area as drilling
blocks.
Section 35-63. Formation of production units larger than drilling blocks.
It is realized that unit areas larger than a drilling block are sometimes
desirable and more beneficial to effectively develop and drain a hydrocarbon
reservoir. To this end it is therefore permissible for an applicant or a
permittee to form unitized areas, as to specific or all horizons, larger than
the drilling block in which a well has been drilling. The formation of a
production unit which is larger than a single drilling block will be subject to
the following requirements:
(A) Such a production unit shall consist of an area which
embraces contiguous entire drilling blocks, within
which the operator shall have more than fifty (50)
percent of the operating rights in each drilling block
included in such production unit.
(B) No such production unit will be formed in a manner that
will prevent the inclusion of any adjoining drilling
block with other acreage to form another production
unit larger than such adjoining drilling block unless
the operator proposing to form the original production
unit presents evidence reasonably acceptable to the
Superintendent that he has given an opportunity to the
mineral interest owners in said adjoining drilling
block by thirty (30) days written notice delivered to
or mailed by certified mail to their last known address
offering the option to unitize their interests with the
mineral interests in the production unit proposed to be
formed by him. If the owners of more than fifty (50)
percent of the operating rights, as operating rights
are defined in paragraph (B-2) of Section 35-83 hereof,
in said drilling block desire to join in said
production unit and execute within said thirty (30) day
period pooling agreements on the same proportionate
basis and containing terms and conditions as the
pooling agreements executed by other mineral interest
owners in said production unit, such adjoining drilling
block shall become a part of the production unit. If
fifty (50) percent or less of the mineral interest
owners in said adjoining drilling block execute such
pooling agreements within said time, the same shall not
be required to be included within the production unit
proposed to be formed by the operator.
(C) All mineral interests in each production unit, whether
the production unit consists of a single drilling block
or more than ane drilling block, shall be unitized as
herein provided as to each horizon from which
production is obtained.
(0) Production units may be formed or declared for all
depths or for separate horizons.
(E) The Superintendent's office will be provided a survey
plat for each drilling block contained in the
production unit, as well as a survey plat of the
boundaries of the entire production unit. A statement
as to horizons governed by the production unit and a
copy of the mineral interest ownership setting out
percentages of ownership for the production unit will
be filed with the Superintendent by the time of
commencement of production.
(F) Well density within the production unit will not exceed
one well per drilling block per producing horizon,
unless an increase in well density is permitted by the
Railroad Commission.
(G) In all cases where a production unit is formed composed
of acreage in more than one drilling block, but the
drilling permit only covers one drilling block or the
well is on exempt acreage or outside of the city
limits, all of the above requirements shall be met by
applying for an amended drilling permit and receiving
such amended permit before proceeding further with
drilling or production operations. Whenever a well is
drilled and a permit from the City is not required but
the production unit will extend into City drilling
blocks, such drilling blocks shall be unitized in
compliance with all of the unitization requirements of
this Chapter 35.
Section 35-64. Opportunity to participate.
In order to facilitate the orderly development of
the City and to avoid confiscation of property, owners
required to be unitized, shall be given the opportuni
production of oil and gas from the drilling block in
located subject to the rules provided in this Division.
Section 35-65. Procedure for unitization.
The procedure outlined herein for the unitization
oil and gas production in
of oil and gas interests
ty to participate in the
which their property is
of oil and gas interests
is not intended to be an exclusive method for unitizing such interest.
Voluntary unitization is authorized and encouraged as a substitute for the
procedure outlined herein. A voluntary unitization agreement between the
various owners will satisfy the unitization requirements contained in this
Chapter insofar as they relate to those owners signing said unitization
agreement. If voluntary agreements cannot be reached with all of the owners of
oil and gas interests within the drilling block to be unitized, the procedure
for unitizing all interests in such drilling block or blocks not voluntarily
unitized or owned by applicant shall be as follows:
(A) Applicant shall file application to drill in accordance
with the terms and provisions of Division 4 hereof,
including the names and addresses of all owners of oil
and gas interests within the drilling block or blocks
covered by the application.
(8) The owner of unleased mineral or the lessee of an oil
and gas interest shall be entitled to the following
options wherein the lessee will be responsible for
discharging his obligations to his lessor:
Option No. 1: He may elect to accept a one-fifth (1/5)
royalty based on his proportionate ownership in the unit and
participate in the drilling and production of the well as a
working interest owner based on four-fifths (4/5) of his
proportionate share of ownership in the unit in which event
he shall pay his share of all drilliing and operating costs.
If such owner or lessee elects to participate as an
operating owner he shall either post bond, written by an
approved bonding ocmpany as provided in Section 35-80, or
deposit cash with the applicant guaranteeing payment to
applicant of such working interest owner's share in the
following amounts: (a) The estimated cost of drilling and
completing the well; and (b) the estimated monthly operating
expenses. If the cost of drilling and completing the well
exceed the estimated cost, such owner shall forthwith on
demand pay his proportionate share of the excess to the
applicant, or if the actual costs are less than the
estimate, such owner's proportionate share of the difference
shall be refunded by applicant on demand. Such working
interest owner shall advance to applicant at monthly or
other mutually acceptable intervals such owner's share of
estimated expenses of operating the production unit or at
the election of applicant, such owner's share of the
operating expenses may be deducted by applicant from
revenues from production which otherwise would be payable to
such owner as such expenses accrue.
Option No. 2: An unleased mineral owner or lessee may elect
to accept a one-fifth (1/5) royalty based on his
proportionate share of ownership in the unit and accept a
$100.00 per acre payment based on five-fifths (5/5) of his
mineral acres owned in the unit.
If said owner of unleased minerals or lessee, as the
case may be, fails to elect between the options
available to him within thirty (30) days from the date
of posting of the notice required in Section 35-66, he
shall be conclusively presumed to have elected to
accept the provisions of Option No. 2. In the
foregoing Options Nos. 1 and 2, the owners of unleased
minerals or lessees, as the case may be, shall not be
obligated to execute any leases, contracts or Division
orders except making a selection between the options if
desired, in order to receive payments for bonus,
royalties or working interest proceeds as set out in
the options. Anytime a permittee, or his agent for
distributing payments for the proceeds of production,
fails to deliver payments in a timely manner, as may be
prescribed by State law, but in no event over one year
from the date of production, to mineral interests
involuntarily included in a production unit through the
requirements of this Chapter 35, he shall notify the
Petroleum Superintendent of said failure or inability
to deliver such payments. The notification to the
Superintendent shall be delivered within thirty (30)
days after the failure to make payment as prescribed
herein and shall set out the name and address of the
mineral interest owner and give an explanation why the
payment was not delivered as required. No minerals
involuntarily included in a production unit through the
requirements of this Chapter 35 shall be held by a
permittee for a period longer than ninety days after
the cessation of production in paying quantities unless
drilling or workover operations on the unit are taking
place at the end of said ninety (90) days and continued
without cessation unit restoring production in paying
quantities to the unit. A permittee shall acquire no
rights or privileges for the use of, or to represent
the surface of any mineral acreage involuntarily
included in a drilling block or production unit through
the requirements of this Division.
Section 35-66. Notice to owners.
Notice to the owners (whose addresses are known or are ascertainable by use
of ordinary diligence) of the oil and gas interests within the affected drilling
block or blocks which are not under lease to the applicant and which are not
covered by voluntary unitization agreements shall be given as follows:
(1) The applicant shall deliver or send by certified mail
to all such owners, at their last known address, a
written notice which shall include the following:
(a) A legal description of the proposed drilling
block or proposed production unit.
(b) The drilling block number in which the
proposed well is to be located.
(c) Type of interest held by the owner being
notified (royalty under existing lease,
mineral fee, lessee, overriding royalty,
etc.).
(d) A statement of the options available to the
owner being notified, as set out in this
Chapter at subsection (b) of Section 35-65,
if applicable.
(e) Notification that if the owner fails to
notify the applicant in writing within thirty
(30) days from the date of posting of said
notice to each owner of the selection of one
of the available options the owner will be
conclusively presumed to have elected to
accept Option No. 2.
(2) In addition to the individual notification provided for
above, the applicant will cause to be published in one
issue of a daily newspaper published in the City a
notice in substantial compliance with the following
form:
"Notice is hereby given that
of
(name and address of applicant) pursuant to the
provisions of the Oil and Gas Drilling Ordinance of the
City of Corpus Christi, will, on or about the
day of
19 ,
file with the City etroleum Superinten end t an
application for a permit to drill and/or operate a well
upon Corpus Christi Drilling Block No.
a general description of which is as follows
. A map showing
the lands comprising said drilling block and the
exterior boundaries thereof is on file in the office of
the Superintendent and is at said office subject to
examination of all persons during regular office hours.
All interests within said drilling block will be
unitized pursuant to Division 3 of the Oil and Gas
Chapter 35 of the Code of Ordinances of the City of
Corpus Christi. Owners of operating rights in land to
be unitized have the option of (1) participating in the
drilling and production of the well as working interest
owners; or (2) accepting a $100.00 per acre payment in
lieu of the right to be a working interest owner.
Owners who do not notify the applicant in writing of
their election of one of the options available within
thirty (30) days of the date of this publication will
be conclusively presumed to have elected to accept a
payment in lieu of their right to participate as
provided in Section 35-65 of the Code of Ordinances of
the City of Corpus Christi."
Section 35-67. Allocation of production.
Production from such unitized drilling blocks or production units shall be
allocated to tracts which are unitized under the provisions of this Division 3
in the proportions that the surface acreage of each such individual tract has to
the total surface acreage in the drilling block or production unit. Owners of
interests under such tracts shall share in the production allocated to the
individual tracts on the basis of their interest therein. Production from the
drilling block or production unit in which said owner participates shall be
treated as production from all of the tracts within said drilling block or
production unit.
Section 35-68. Contracts between ermittee and other owners.
The permittee and owners of other mineral interests in any drilling block
or production unit shall be able to alter the obligations as set out in this
Division by an agreement made by them in writing, provided such agreement is not
in conflict with other provisions of this Chapter.
Section 35-69 - 35-79. Reserved.
DIVISION 4. PERMIT REQUIREMENTS
Section 35-80. Insurance and bonds.
The holder of any well permit issued hereunder shall obtain and maintain in
force a policy or policies of comprehensive general liability insurance,
including explosion, collapse, underground and environment pollution
endorsements, or comprehensive well control 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 a financial rating of BBBB or
better insurance accordingshallto the ratins provide coverages ford the permittee,m the est Iandance the Guide.
Said
City as an
additional named insured, against claims for bodily injury or property damages
which might be sustained by any member of the public or by the City by reason of
any operations conducted under said well permit, with minimum limits of One
Million Dollars ($1,000,000.00) for bodily injury per occurrence and in the
aggregate, and One Million Dollars ($1,000,000.00) property damage per
occurrence. The aforesaid limits may be obtained trough any combination of
specific, excess, or umbrella coverages. All of said policies shall require
that the insurers provide the City written notice of cancellation of any such
policies not less than thirty (30) days prior to the date of cancellation.
In the sole discretion of the City, a permittee may be allowed to operate,
but not drill, with the foregoing minimum insurance limits reduced to Five
Hundred Thousand Dollars ($500,000.00) if said permittee substantially meets the
following criteria:
1. The permittee has no more than two producing wells
under permit from the City.
2. All well and tank battery locations are remote from
developed areas.
3. All wells are operating by artificial lift or have a
shut-in pressure of 50 pounds per square inch or less.
4. Fences, firewall capacity, and other safety features of
all wells are acceptable.
5. All wells are located inland.
6. The permittee can show that the pumper/gauger can be
readily available in cases of emergency.
In the event a reduction in the minimum liability limits is granted, all of
the other requirements pertaining to the types of insurance coverage and policy
provisions described above shall remain applicable.
The holder of any permit to drill and/or operate a well issued hereunder
shall post a corporate surety bond, executed by the permittee as principal and
by a corporate surety acceptable to the City, as obligee, and conditioned that
the principal named in the bond shall faithfully comply with all of the
provisions of this Chapter and of the permit until the said permit 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 and of this Chapter. The bond
for any well permit with a surface location in a bay area that is accessible
only via marine vessel shall be fifty thousand dollars ($50,000.00) per permit,
the bond for any number of well permits with surface locations on land and
accessible by a land vehicle shall be twenty thousand dollars ($20,000.00) and
the bond for any well permit with a surface location in the Gulf of Mexico shall
be two hundred thousand dollars ($200,000.00). No permit holder shall be
required to post more than a two hundred thousand dollar ($200,000.00) band for
any number of well permits required by this Chapter.
In lieu of bond and insurance for permits, a permittee may be allowed to
post an indemnity agreement with the City conditioned in the same manner as bond
and insurance required hereunder if such permittee files a balance sheet and
financial 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) The City reserves the right to increase the
limits and types of coverages required and will provide sixty (60) days notice
of intent to change coverages or limits to the permit holders.
Section 35-81. Permits required.
It shall be unlawful for any person, acting either for himself or as an
agent, employee, independent contractor or servant of any other person, to
commence to drill, to drill or to operate any well or to assist in the drilling,
completing or operate any well or to assist in the drilling, completing or
operating of any such well for which a permit is required hereunder if a lawful
permit therefor has not been obtained. In addition to the other requirements of
this Division, a new permit is required to reenter any well which has been
plugged and abandoned as though the plugged and abandoned well were a new well
and it shall be unlawful for any person, acting either for himself or as an
agent, employee, independent contractor or servant of any other person, to
reenter such a well without first obtaining a permit therefor. The drilling of
a relief well under emergency circumstances arising in connection with an
existing well, to correct or safeguard 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
Chapter. Any relief well not completed as a producing well within six (6) months
after commencement of drilling operations, unless an extension is obtained from
the City Council, shall be plugged and abandoned.
Any permit issued for the drilling of a well shall be deemed to cover and
include all rigs, flowlines, structures and equipment used in drilling, testing
and completing such well except that a separate permit is required for
production platforms, tank batteries and pipeline header structures in State
Tract areas and for the use of City right-of-ways.
Section 35-82. Application for permit required; fee.
No permit shall be issued except upon application by the owner or owners of
the property right to which the permit relates. No application shall apply for
more than one permit and no permit shall cover more than one subject matter.
All applications for permits shall be in the form prescribed and shall contain
the information and exhibits required by this Chapter. All applications for
permits shall be signed and sworn to before a notary public by the applicant or
some representative of the applicant having due and legal authority to enter
into contracts binding upon the applicant. All applications for permits to
drill a well shall be accompanied by a filing fee of five hundred dollars
($500.00).
When the Superintendent finds that the application has been properly
submitted and is ready for processing in accordance with Section 35-83, then the
aforementioned filing fees will be deposited to the City's account. No refund
is thereafter available to the applicant except in cases where the permit is
denied, in which event one hundred City dollars
e
as a service charge and the balance refunded O
to the appliretainediby the
applicant.
Section 35-83. 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 and number of the well and the field name;
(3) The location from which the well is to be drilled,
including the distance from state tract or drilling
block boundaries where applicable, and the approximate
bottomhole location of the well;
(4) The vertical depth to which it is proposed that the
well be drilled;
(5) Estimated time of commencement;
tion
(6) Forrwell sapplicationtions for awithin
permitthe
toBay
drillcaawell
Area each app
shall contain an agreement by the applicant to allow
the lessee of state lease tracts adjacent to the
applicansurface
location tin said tcluster area er area to rtolawells from a
bottomhole
on the adjoining state lease tract, and to place the
surface structure for such well within the applicant's
cluster area, to the extent that applicant has the
power to do so; provided, that such lessee shall agree
to indemnify the applicant for any damage caused by
such lessee and further provided that the applicant or
other lessees have not utilized all of the locations
within his cluster area prior to the time that such
lessee notifies applicant of his desire to drill.
(7) The permit application shall include a statement by the
applicant authorizing the City to expend such funds as
may be necessary, under the circumstances, to regain
well control in accordance with the terms and
provisions of Subsection 35-104.
(B) All applications for permits to drill a well shall have attached
thereto the following:
(1) Copies of all permits or authorizations for the
particular well granted by other governmental agencies,
or applications therefore that are pending;
(2) For nonexempt drilling blocks, each application shall
be accompanied by a list of the names and last known
addresses of all record owners of interests in and to
oil, gas and other minerals under the property included
within the drilling block from which the proposed well
is to be produced. Said list shall specify the
fractional share of operating rights within the
drilling block owned by each of said owners. For
example, a fee owner of an entire block owns one
hundred (100) percent of the operating rights, unless
an oil and gas lease has been executed by the fee owner
transferring the operating rights to a lessee, in which
event the lessee would be the owner of one hundred
(100) percent of the operating rights. Likewise, the
owner of an undivided one-half (1/2) interest in and to
a fee simple mineral estate covering one-fourth (1/4)
of the drilling block and on which no oil, gas and
mineral lease has been executed, is the owner of
one-eighth (1/8) of the operating rights in the
drilling block. The applicant shall indicate
separately the percentage of total operating rights
within the drilling block owned or controlled by the
applicant including operating rights acquired by
contract from other operating interest owners.
(3) A certificate from an insurance company that the
applicant has in force insurance complying with the
provisions of this Chapter, and a bond (or indemnity in
lieu thereof) complying with the provisions of this
Chapter;
(4) Each application shall have attached a plat of the area
where drilling is to be conducted showing the proposed
location on surface and at bottomhole, and for
locations in nonexempt land drilling blocks, the metes
and bounds description and plat of the drilling blocks;
(5) Each application to drill shall have attached a copy of
the proposed casing and cementing program for the well
as required by Section 35-100.
(6) A statement by the applicant relieving the City of any
liability for damages which may result from such well
or operations pertinent to such well.
Section 35-84. Routine processing of permit application in full compliance.
Upon receipt of an application for a permit to drill and operate a well,
the Superintendent shall date and set up a file for this application and examine
same for compliance with this Chapter. If the application is for a regular
location and structure in compliance with all requirements of the Chapter, the
Superintendent shall notify the Bay Drilling Committee by mail of the
application and publish a notice of the intention to grant such application and
unless someone files a written protest in opposition to the granting within
seven (7) days from date of publication. If the application is for a regular
location and structure in compliance with all provisions of this Chapter, and no
written protest in opposition to the granting of the permit, based on one or
more of the grounds set forth in Section 35-86 is filed, then the Superintendent
will, within ten (10) days after date of publication of notice, issue a permit.
If a written protest in opposition to the application is filed within seven (7)
days from the date of publication of the notice and the Superintendent
determines that the protest is not well founded, he will after three (3) days
notice to the protestant, issue the permit unless the protestant, within said
three (3) days files notice of appeal to the Bay Drilling Committee and City
Council. In the event the Superintendent has found cause to deny the permit or
in the event of a written protest on grounds which are found to be sufficient by
the Superintendent, followed by the denial of the permit, the Superintendent
shall inform the applicant in writing of the reasons for such denial. The
applicant may then rectify the reason for denial of the permit or appeal to the
Bay Drilling Committee and City Council through the procedure described in
Section 35-85.
Section 35-85. Committee hearing on application other than routine.
The Superintendent shall, within seven (7) days after receipt of an
application for an exceptional location or structure or after denial of a permit
as routine, 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 application for a
permit at which any interested party shall be afforded 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.
Section 35-86. Council action an permit application after hearing.
Not later than thirty (30) days after receiving an application the
Committee shall make a 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 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 Committee'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 recommendation 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 Chapter and in
which the Council determines that additional information pertaining to such
application should be furnished, the Council shall take final action upon such
applications not later than thirty (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.
The City Council shall have the power to refuse any application for a
permit to drill and operate any well at any particular location where by reason
of such particular location and the character and value of the permanent
improvements already erected on or approximately adjacent to the particular
location in question, and the use to which the land and surrounding are adapted
for school, college, university, hospital, park or civic purpose or for health
or safety reasons or any of them, the drilling or operation of such well on the
particular location might be injurious or a disadvantage to the City or to its
inhabitants as a whole, or to a substantial number of its inhabitants or
visitors as a group; or the Council may grant a permit, as it may deem
necessary, on such reasonable conditions as to protect all persons who, and
property which, may be affected by the drilling and production operations. When
the Council refuses to issue a permit for the particular drilling location as
applied for by the applicant, it may, in lieu thereof designate as the drilling
location a different drilling site subject to the applicant obtaining all
requisite leases, contracts and surface permission for the designated
substituted drilling site.
Section 35-87. Permits for production structures or facilities in marine areas
and on state tracts.
All applications for permit to construct and maintain a production
structure or facility shall be processed by the same manner described in
Sections 35-85 and 35-86 of this Chapter and shall include the following:
(1) The names of all parties who will own an interest in the
production structure or facility;
(2) The proposed location of the structure or facility;
(3) Insurance certificate and bond or indemnity agreement as provided
in Section 35-80 except that only the insurance endorsements
pertinent to the type installation shall be required;
(4) Drawings or blueprints accurately reflecting the dimensions of
structures or facilities, and equipment to be installed;
(5) A statement as to the purpose of the structure or facility and
the activities to be carried out thereon;
(6) In Marine Recreation Areas:
(a) An agreement by the applicant that it will take and
handle on fair and reasonable terms at such production
platform or facility all hydrocarbon production brought
to such platform or facility from any well having a
surface location within a radius of three (3) miles
from such platform or facility;
(b) An agreement by the applicant that it will treat all
lessees within the three (3) mile radius of such
production platform or facility in as equal a manner as
possible; that in the event production is submitted for
handling at such platform or facility in greater value
or of differing quality than the facilities are capable
of handling, or should separate facilities be required
for marketing purposes, the applicant will install, or
permit other lessees to install, additional facilities
thereon (including enlargement of dimensions if
necessary) so as to provide for the handling of all
production brought to such platform or facility; and
(c) An agreement by the applicant that in the event it is
unable to reach an agreement with any other lessee
desiring to have production handled at such production
platform or facility as to fair and reasonable terms
for handling such production or for the enlargement of
such platform or facilities, then the applicant will be
willing to submit such dispute to arbitration under the
rules of the American Arbitration Association and be
bound by any decision rendered thereunder.
(7) A filing fee in the amount of five hundred dollars ($500.00).
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.
(8) A statement by the applicant relieving the City of any liability
for damages which may result from the construction or existence
of such production structure or facility.
Section 35-88. Seismic surveys.
No geophysical work will be permitted except upon proper application and
the payment of a five hundred dollar ($500.00) 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
intended to begin the work, and also the anticipated date of
completion. 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 certificate
of comprehensive general liability insurance in amounts and with
endorsements as may be determined by the Superintendent to be
commensurate with the survey type and location applied for.
(3) A plat outlining the areas proposed to be covered by the survey.
(4) The term of a seismic permit shall be for three (3) months. The
Superintendent may grant one extension of time for an additional
three (3) months for cause.
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 contrary to
the public safety. The determination shall include the consideration of the
following factors:
(a) The location of the point relative to surrounding
improvements, pipelines, wells;
(b) The quantity and nature of the proposed seismic survey
to be used in implementing the exploration;
(c) The pendency of other activities at and adjacent to the
point of exploration.
Section 35-89. No permit approval by default.
Regardless of any time period suggested or prescribed in this Chapter, no
inaction or failure to act by the Council shall constitute its action or
approval by default.
Section 35-90. Issuance of permit.
Any permit issued hereunder shall be issued over the signature of the City
Manager or Assistant City Manager or Superintendent. 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 Superintendent.
Section 35-91. Tenure of permits.
Any permit except seismic survey permits 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 as the use of the facility for which the permit is granted
shall not be completely removed or in the case of a permit to drill a well in
search of oil and/or gas, until such time as the well is plugged and abandoned
in compliance with the requirements of Division 6 of this Chapter and a release
of the permit is issued by the Superintendent. Upon written application, the
Superintendent 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.
Section 35-92. Transfer of permit.
Any permit issued hereunder may be transferred, provided that the
transferee meets all of the requirements of this Chapter, including the posting
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 transferee whether or not the
transferee meets the requirements of this Chapter. The transferor shall
nevertheless be liable for all obligations under the permit accruing prior to
the effective date of the transfer.
Section 35-93. 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, administrators,
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 Chapter and to furnish
annually to the Superintendent current certificates of
insurance and endorsements corresponding to those required
herein;
(b) To indemnify and save harmless the City, its employees
agents or assigns and to promptly pay on behalf of same all
claims, judgments, awards, penalties, fees, costs or
expenses including costs of defense for any or all claims of
whatever nature arising out of or in connection with the
issuance of or work being performed under this permit.
Claims include but are not limited to those alleged to have
arisen out of personal or bodily injury, property damage,
deprivation, inverse condemnation, death or environmental
impairment as well as failing in anyway to comply with the
provisions of this Chapter.
(c) To fully comply with all of the terms and requirements of
the permit and of this Chapter 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 equipment, 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 City and hazards to
navigation.
Section 35-94. Amending drilling permit.
The holder of an unexpired and unused drilling permit may, with payment of
a one hundred dollar ($100.00) service charge, apply for an amended drilling
permit for the purpose of changing the surface location.
Any holder of a permit may, upon application and without charge, obtain an
amended permit from the Superintendent for the purpose of changing bottomhole
location, depth or direction of hole from the same surface location. When the
permittee desires to form a production unit as provided for in Division 3, an
amended permit may be secured from the Superintendent, without any fee, upon
application and submittal of the requirements contained in said Division 3.
Section 35-95 - 35-99. Reserved.
DIVISION 5. DRILLING, COMPLETION AND PRODUCTION REQUIREMENTS
Section 35-100. Blowout prevention: Land and Bay areas.
The bore hole of any well while being drilled or reworked shall at all
times contain drilling fluid of a weight and viscosity which a reasonably
prudent operator would use to keep the well under control.
In areas where pressure conditions are unknown, or are known to be high, a
pressure control system consisting of sufficient conductor pipe and a diverter
mechanism shall be installed. The operator shall file the plan, for approval by
the Petroleum Superintendent, with the drilling permit application. For land
wells drilled to depths less than nine thousand (9,000) feet, the length of
surface casing shall in no case be less than eleven -hundredths (0.11) of the
length of the next string of pipe proposed to be set and two dual controlled,
fluid operated blowout preventers shall be used for all drilling or completion
operations involving the use of drill pipe or tubing after the surface casing
has been set. For all land wells drilled to depths below nine thousand (9,000
feet and all wells located in marine areas except the Gulf of Mexico, the length
of surface casing shall in no case be less than fifteen -hundredths (0.15) of the
length of the next string of pipe proposed to be set and the minimum blowout
preventer stacks to be installed on the surface casing before drilling out or
working over shall consist of one set equipped with blanks, one set equipped
with rams, one hydrill type and a choke manifold. Any exception to Railroad
Commission of Texas Statewide Rule 13A as amended January 1, 1983, shall be
approved by the Petroleum Superintendent.
Section 35-101. Blowout prevention: Gulf of Mexico.
Railroad Commission of Texas, Rules 13(E) Texas offshore casing, cementing,
drilling and completion requirements (Reference Order No. 20-59, 200 effective
May 1, 1969) shall be made a part of this Chapter and any violation of said rule
shall also be a violation of this Chapter.
Section 35-102. Pits and drilling mud disposal in marine areas.
The use of earthen pits for reserve mud or waste material such as drilling
mud, contaminated mud, drill stem test returns and the like shall not be
permitted. However, earthen pits may be used for storage of fresh water and for
drill cuttings only. An exception to any requirement of this section may be
granted by the City Council upon such conditions as the Council may provide.
The disposal of drilling mud into the marine areas of the City to the
extent that drilling mud would be apparent at the shoreline shall be prohibited.
Section 35-103. Noise.
All operations subject to this Chapter 35 shall also be subject to
compliance with the Chapter 31 requirements for noise abatement.
Section 35-104. Wild well control.
In the event of the loss of control of any well the operator shall
immediately take all reasonable steps to regain control of such well, regardless
of any other provisions of this Chapter, and shall notify the Superintendent as
soon as practicable after the occurrence of such loss of well control
endangering persons or property. If and when the Superintendent certifies in
writing to the City Secretary that, in his opinion, (a) danger to persons or
property exists because of such loss of well control, briefly describing the
same, and (b) the operator is not taking, or is unable to take, all reasonably
necessary steps to regain control of such well, the Superintendent may employ
any well control expert or experts or other contractors or suppliers of special
services, or may incur any other expense for labor or material which the
Superintendent deems necessary to regain control of such well. The City shall
have a valid lien against the interest in the well of all working interest
owners who have voluntarily joined in the drilling of such well, to secure
payment of any expenditure made by the City pursuant to any such action of the
Superintendent in regaining control of such well.
Section 35-105. Gas well testing and flaring.
The Department of Petroleum Inspection must be notified a minimum of one
hour prior to the commencement of any gas well back pressure test program
wherein gas is released to the atmosphere either in a natural state or by
flaring. The Petroleum Inspection Department and Fire Department shall have the
authority to specify the hours during which testing or flaring may be performed
and impose any restrictions deemed necessary to protect the public health,
welfare and environment during testing or flaring.
Section 35-106. Wellheads.
All wells drilled or completed after the effective date will be equipped
with casingheads, tubingheads and wellhead connections which conform to API
standards. The casingheads used on such wells shall have working pressure
ratings of not less than three thousand pounds per square inch (3,000 psi).
Tubingheads and wellhead connections used on such wells shall have working
pressure ratings in excess of the well's shut in surface pressure. All such
wells having a surface shut in pressure of three thousand pounds per square inch
(3,000 psi) or less shall be equipped with at least one master valve and one
wing valve. All wells having surface shut in pressures in excess of three
thousand pounds per square inch (3,000 psi) shall be equipped with at least two
(2) master valves and one wing valve, and no such well shall have threaded
connections between the surface safety valve and the christmas tree.
Section 35-107. Subsurface safety valves.
All wells with surface locations on State Tracts and all wells with a
surface shut-in pressure in excess of 3,000 psi shall be equipped with a
subsurface safety valve. On wells with surface locations in the Gulf of Mexico,
this valve shall be inspected or tested every two years and a report of same
filed with the Petroleum Inspection office. On all other wells, this valve
shall be pulled and inspected annually and written confirmation of the
inspection shall be filed with the Petroleum Inspection office. In the event
that the Railroad Commission of Texas waives the requirement for a subsurface
safety valve in a well on state owned tracts, then, upon written request for
waiver from the operator for the same well, the Petroleum Superintendent shall
evaluate the flow and pressure in that well and using appropriate engineering
guidelines to prevent pollution he may waive the requirement for a subsurface
safety valve.
Section 35-108. Surface safety valves.
A surface safety valve shall be installed on all wells with a surface shut
in pressure greater than 3,000 psi.
Section 35-109. Storage facilities.
Steel storage tanks shall be used for the storage of liquid hydrocarbons
and shall be constructed, installed and maintained in a good and workmanlike
manner. All such steel tanks installed after the effective date, shall meet the
minimum quality and design standards of API standard 12B bolted steel tanks or
API standard 12D welded steel tanks including recommended pressure and vacuum
relief valves. All such tanks shall be equipped with a vent line and at the
point where gas is vented to the atmosphere from said vent line a flame arrested
shall be installed. Each tank or tank battery, as the case may be, shall be
surrounded by an earthen fire wall located at such a distance from the tanks and
of sufficient height to hold and retain at least one and one-half (1 1/2) times
the maximum capacity of the largest tank within the storage facilities. An
operator may use, construct and operate steel conventional separators and such
other appurtenances as are reasonably necessary for treating oil, condensate, or
gas at each tank battery location. Such facilities shall be constructed and
maintained so as to meet or exceed API standards. Each oil and gas separator
shall be equipped with both a regulation pressure relief safety valve and a
bursting head.
Section 35-110. Fired vessels.
No fired vessel or open flame shall be located nearer than one hundred and
fifty (150) feet from any land well or storage tank.
Section 35-111. Well structures, well guards and fences.
1. Land - All wells and production facilities shall be adequately
protected by a fence constructed so as to prevent easy entry when required by
the Superintendent; however, any wellhead, tank batter, pumping unit or
equipment appurtenant thereto located on any lease, tract or farm, which is
adequately fenced in its entirety will require no additional fencing. Safety
precautions normally taken by reasonably prudent operators shall be observed.
Fences to prevent easy entry shall be approved by the Superintendent.
2. All Marine Areas except Gulf of Mexico - Well structures shall have
maximum dimensions of 12 feet width by 22 feet length including boat landings.
The use of timber for walkways shall be prohibited. All timbers used for other
purposes shall be bolted on each end and all metal used shall be galvanized.
3. Bay Recreation Area only - Well guard (pig pens) shall be constructed
of metal treated to withstand corrosion, be painted a conspicuous color and have
maximum horizontal dimensions of 12 feet by 12 feet and be no taller than the
christmas tree they protect.
4. Gulf of Mexico Recreation Area - Well structures shall have an exposed
perimeter of 170 feet or less (heliport decks constructed directly over such
structures are excepted and may have a perimeter greater than 170 feet).
Permits for exceptional well structure having a perimeter greater than 170 feet
may be granted by the City Council after a public hearing is held by the Bay
Drilling Committee, to determine the impact on island utilization and
development relative to the size and location of the structure applied for.
Section 35-112. Pumping units.
In all marine areas, those units commonly referred to as pumping units
employing sucker rods, whether beam or hydraulic type, are hereby prohibited.
On land areas, pumping units shall be permitted but only electric prime movers
shall be used for the purpose of pumping wells unless a waiver of this provision
is obtained from the Superintendent.
Section 35-113. Prevention of pollution.
No person shall permit any salt water (except in marine areas), crude oil,
gas or other petroleum product to spill over, overflow, leak, drain out, escape
or accumulate in any sewer or about the premises, or on any surface, or in any
open surface pit or ditch, or handle any hydrocarbon in any manner or amount
which creates a potential fire hazard, or permit any condition which may pollute
any surface or subsurface water or damage any publicly owned land. All surface
areas utilized by an operator for production of oil and gas shall be kept clear
of high grass, weeds and combustible trash or other rubbish or debris.
Section 35-114. Signs.
A11 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 Trespassing", emergency
notification phone numbers, and offshore heliport identification, no other
signs, billboards, or advertisements shall be erected, posted or allowed.
Section 35-115. Aids to navigation.
In the marine areas of the City, well structures, platforms and pipeline
risers that are required by the United States Coast Guard to have navigation
lights shall also be required by this Chapter to have navigation lights in
accordance with and conformable to the applicable United States Coast Guard
requirements and regulations, and within the Corpus Christi Bay Recreation Area,
all production platforms shall use a quick flashing red signal and all other
surface structure shall be lighted with a quick flashing white signal. No other
lights except working lights shall be permitted. In the Gulf of Mexico, fog
signals in accordance with and conformable to the applicable United States Coast
Guard requirements and regulations shall be required by this Chapter.
Section 35-116. Protection and painting of structures.
All well heads and appurtenances thereto, all well structures, all tank
batteries, all pipeline risers and all production facilities and platforms and
equipment situated thereon, and composed of materials generally protected or
painted, shall be protected and painted and shall be repainted at sufficiently
frequent intervals to maintain same in good condition. Within the Corpus
Christi Bay Recreation Area, well structures shall be painted a conspicuous
color and production platforms shall be painted an inconspicuous color.
Section 35-117. Annual well inspections, fee.
There is hereby levied an annual inspection fee of fifty dollars ($50.00)
for every well that has been spudded but not plugged and abandoned on January
1st of each year and for which a permit is required by this Chapter, 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 Chapter. The Superintendent will prepare an annual well inspection report
which shall be submitted to the operators prior to January 1st of each year.
Section 35-118 - 35-129. Reserved.
DIVISION 6. SHUT-IN WELLS AND PLUG AND ABANDONMENTS.
Section 35-130. Wells to be abandoned.
All wells within the city which are not producing oil or gas on a regular
basis will, with the exceptions noted below, be plugged and abandoned.
Exceptions:
(A) Welis located on state tracts wherein the permittee holds a valid
lease on minerals penetrated by such wells.
(B) Wells in use as water supply wells.
(C) Welis in use as salt water or waste disposal wells which are
operating under a valid permit from the governmental agency
having authority, including but not limited to the permit
required in this Chapter.
(D) Welis used as injection or observation wells in secondary
recovery, pressure maintenance or other improved recovery
operations where such operations are conducted under a valid
permit from the Railroad Commission.
(E) Wells capable of producing oil or gas on a regular basis which
are shut-in due to lack of market or because of transfer of
allowable permitted by the Railroad Commission.
(F) Any well on which drilling, reworking, recompletion, or well
servicing operations are in progress and continued with no
cessation of more than ninety (90) consecutive days.
(G) Land wells where, within ninety (90) days of the effective date,
or within ninety (90) days of the well's ceasing to produce oil
or gas on a regular basis, the owner thereof files with the
Superintendent an application for exception which include the
following:
(1) A surety bond in the amount of four thousand five
hundred dollars ($4,500.00) with good and sufficient
corporate surety payable to the City, providing that
the principal will plug said well in accordance with
the provisions of this Chapter. In lieu of said bond,
cash in the amount of four thousand five hundred
dollars ($4,500.00) may be deposited with the City on
the same conditions. A bond conditioned as provided in
Section 35-80 shall also be filed unless such bond so
conditioned is already on file and in effect.
Operators that have indemnity agreements or two hundred
thousand dollars ($200,000.00) bonds posted under
Section 35-80 are not required to post in -lieu of
plugging bonds. The bond shall be released when the
well is plugged and abandoned, or when the
Superintendent has been satisfied that the well is
again producing oil or gas on a regular basis, or when
it meets one of the conditions of exemption listed in
paragraphs (0), (E) and (F) of this Section.
Acceptance, or continuation beyond an initial three
year period, of "in -lieu of plugging" bonds shall be
permitted only for those wells which have not been
plugged and abandoned where the operator and principal
on the bond still holds a valid lease on the minerals
penetrated by such well. The operator, when posting a
bond, or continuing a band beyond the initial
three-year period, shall provide the Petroleum
Inspection Department with evidence that he does in
fact own or control minerals penetrated by the well.
In cases where the mineral lease has expired and wells
have not been plugged, then the operator and the surety
will be notified at least three months prior to calling
on the bond so that sufficient time will be permitted
for the operator or surety to adequately plug and
abandon the well or the City will in fact plug and
abandon the well and charge the cost to the surety.
(2) A certificate of public liability insurance in the
amounts set out in Section 35-80.
Section 35-131. Abandonment procedures.
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, the procedures outlined in this Division, and/or any other
agency having jurisdiction in connection with the abandonment or plugging of
such well. The operator shall submit to the Superintendent's 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.
Section 35-132. Plugging methods to be used.
(A) When the producing or protective casing is left in the well, a cement
plug of sufficient volume to fill one hundred (100) feet shall be set in the
producing or protective casing so that the center of the plug is opposite the
surface casing shoe. Minimum fifty (50) feet cement plugs shall be set near the
surface in the
producing or protective casing and in the annulus between the
surface casing and producing or protective casing. The required location of
either plug set in the protective or production casing must be confirmed by
tagging and confirmation that the annulus is plugged, either by tagging or
successfully holding a 500 psi pressure test, is required.
(B) Where there is no producing or protective casing above 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 upward 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 near the surface. If a retainer is set near the
surface casing shoe as in method (C) below, then tagging of the plug is not
required.
(C) 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 prevent the
above described method of abandonment, then the following procedure will be
used. A packer or cement retainer shall be set near 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 fifty (50) feet below the shoe of
the surface casing and fill that portion up to twenty (20) feet above the packer
or retainer with the cement.
(D) Where well conditions prevent plugging of the well in accordance with
above paragraphs (A), (B) and (C) 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) Whenever operations under 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 preventer to close off around the casing to be
pulled shall be installed prior to shooting or 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
this 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
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 less than 9.5# per gallon during
all casing and tubing operations. Periodic checks will
be made of the mud fluid during displacing operations.
(5) Operator shall have a 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 are
complied with and to insure that other provisions of
this Chapter are complied with.
Section 35-133. Cutting off casing.
When a well with a surface location on a state tract is plugged, then the
casing shall be cut off and removed from the depth prescribed by the Corps of
Engineers. When a well with a surface location that is not on a state tract is
plugged, then the casing shall be cut off a minimum of five (5) feet below the
surface of the ground and a one-half (1/2) inch steel plate welded over the top.
A two (2) inch collar shall then be welded to the plate. A two (2) inch
galvanized pipe shall be screwed into this collar so as to extend upwards five
(5) feet above the surface. The Petroleum Inspection Department will provide a
certificate to be attached to the two (2) inch riser and it shall be unlawful to
remove such riser unless a permit to remove same is approved by the Petroleum
Inspection Department.
Section 35-134. Clearing locations.
All well surface structures except those required by Section 35-133.or other
equipment appurtenant to a well including flowlines located in state tracts, all
production platforms, and all other structures, platforms, facilities or
equipment for which a permit has been issued by the City hereunder shall be
removed by the party to whom the permit was issued or transferred upon the
permanent cessation of same. Shell mats laid on the floor of the bay need not
be removed upon abandonment. All pits and excavations must be backfilled and
firewalls leve led. In marine locations, immediately upon the removal of such
structures, platforms, facilities, or equipment, it is required that a sweep
across the structure site be made to confirm that there are no navigational
hazards extending above the bay floor. The operator shall notify the
Superintendent's office of the time and place of the sweep operation, said
•
notification to be no less than two hours in advance of the operation. Written
confirmation that the sweep has been conducted and that all navigational hazards
have been removed must be submitted to the Superintendent's office.
Section 35-135. Permit release.
Upon satisfactory completion of the requirements of Sections 35-131 through
35-134 for times permitted by a specific permit, the Superintendent shall issue
a release of such permit.
SECTION 2. 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.
SECTION 3. If for any reason any section, paragraph, subdivision,
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, paragraph, subdivision, clause, phrase, word
or provision of this ordinance 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.
That the foregoing ordinance read for firs time and pgsfed to its
second reading on this the mday of / 19 by the
following vote:
Luther Jones
Betty N. Turner
David Berlanga, Sr.
Welder Brown
Leo Guerrero
Dr. Charles W. Kennedy
Joe McComb
Frank Mendez
Mary Pat Slavik
That the foregoing ordinance read for sego time and pged to its
third reading on this the day of / �__ , 19 O r , by the
following vote:
Luther Jones
Betty N. Turner
David Berlanga, Sr.
Welder Brown
Leo Guerrero
Dr. Charles W. Kennedy
Joe McComb
Frank Mendez
Mary Pat Slavik
That the foregoing ordinancg was.read for the th rd time and passed finally
on this the /1 day of
Luther Jones
Betty N. Turner
David Berlanga, Sr.
Welder Brown
, 19 jj , by the following vote:
Leo Guerrero
Dr. Charles W. Kennedy
Joe McComb
Frank Mendez
Mary Pat Slavik
PASSED AND APPROVED, this the J/ day of
ATTEST:
/-14C20
Secretary MAYOR
THE CIYOFCORPUS CHRISTI, TEXAS
aazi, ig
APPROVED:
,kg,kDAY OF
J. BRUCE A
By
111AtxmL
Assi5
, 1974/:
ITY ATTORNEY
y At o-ney
1817
r ..
OF G
OFF ORDINANCE „,1
NO 18177
I AMENDING CHAPTER 35, q(4
AND GAS WELLS, OF THP
CITY CODE TO CONSOLI-
DATE THE FOUR ARTICLES,.
I OF THE CHAPTER, EACH FOR
1 DIFFERENT GEOGRAPHIC.
AREAS, INTO ONE SET O
REGULATIONS FOR ALL AR -1
EAS AND AMENDING THE
I AREA OUTSIDE OF THE CITY
UMITS TO 8E REGULATED
AND AMENDING THE METH -
1 ODS FOR PERMITTING AND
UNITIZATION AND PROVID-
ING FOR INCREASED PUSU0
DUIRE Y INSURANCE RE
O PROVIDINGNTS; AND
ISEVERABILITYCA
I Was passed and approved
by the City Council of the Coy
I of Corpus Christi, Texas on ri
the 11th day of April, 1984
iThe 541 text of 'said ordinances
.ls available to the public in ;the
,Offce of the City Secretary
-0-88 G. Read
City Secretarya
Corpus Chnsb lBYss.
•
STATE OF TEXAS, lam:
County of Nneces.
PUBLISHER'S AFFIDAVIT i C7191)
Before me, the undersigned, a Notary Public, this day personally came
MARGARET RAMAGE
who being first duly sworn, according to law, says that he is the
COMMUNITY RELATIONS SUPERVISOR
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 PASSAGE OF ORDIN� NO. 18177 AMENDING CHAPTER 35, OIL AND GAS
of which the annexed is a true co p Caller -Times Publish
Co.
py, was ublish
ed in
on the 16 dey 19 8., and once each..._da?'._. _... _thereafter for... one
_ ..? ..._._._Times.
Margaret Ramage _
Subscribed and sworn to before me tbis_._._18th da
EDNA KOSTER