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HomeMy WebLinkAbout2001-465S \Our Documents\Ordinances\01\Gas Well Final Draft 12-04 01 doe ORDINANCE NO DOl - AN ORDINANCE AMENDING CHAPTER 35, ZONING, OF THE CODE OF ORDINANCES OF THE CITY OF DENTON, TEXAS, BY ADDING ARTICLE XII, REGULATING THE DRILLING AND PRODUCTION OF GAS WELLS WITHIN THE CITY, PROVIDING A PENALTY NOT TO EXCEED $2,000 FOR EACH VIOLATION, PROVIDING A SAVINGS CLAUSE, PROVIDING FOR PUBLICATION, PROVIDING FOR SEVERABILITY, PROVIDING FOR REPEAL OF CONFLICTING PROVISIONS, PROVIDING A CUMULATIVE CLAUSE, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of Denton, Texas, is a Home Rule Municipality located in Denton County, Texas, created in accordance with the provisions of the Texas Local Government Code and operating pursuant to the enabling legislation of the State of Texas, and WHEREAS, the City Council of Denton, Texas, finds that the drilling and production of gas without proper regulations, may affect the health, safety, and general welfare of the public and may cause imminent destruction of property or injury to persons, and WHEREAS, the City Council of Denton, Texas, deems it necessary to enact a zoning ordinance to govern the drilling and production of gas within the corporate limits of the City of Denton NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION 1 That the Code of Ordinances of Denton, Texas, is hereby amended by adding a new article to Chapter 35, to be numbered Article XII, comprising new sections 35-501 through 35-518, which reads as follows ARTICLE XII GAS WELL DRILLING AND PRODUCTION Sec 35-501 Purpose The drilling and production of gas within the corporate limits of the City necessitate reasonable regulations to prevent imminent destruction of property or injury to persons and to make these activities conform to the City's comprehensive plan and development regulations This Article implements reasonable regulations to protect the health, safety, and general welfare of the public and to accomplish the orderly and practical development of mineral resources Sec 35-502. Definitions All technical industry words or phrases related to the drilling and production of gas wells not specifically defined shall have the meanings customarily attributable thereto by prudent operators in the oil and gas industry For the purposes of this Article, the following definitions shall apply unless the context clearly indicates or requires a different meaning Abandonment means "abandonment" as defined by the Railroad Commission and includes the plugging of the well and restoration of the drill site as required by this Article City means the City of Denton, Texas DRC means the Development Review Committee established by Section 34-5(b) of Chapter 34, Subdivision Regulations, of the Denton City Code Drilling means any digging or boring of a new well to develop or produce gas or to inject gas, water, or any other fluid or substance into the earth Drilling means and includes the re-entry of an abandoned well Drilling does not mean or include the re-entry of a well that has not been abandoned Drill Site means the area used for drilling, completing, or re -working a well Exploration means geologic or geophysical activities, including, but not limited to surveying and seismic exploration, related to the search for oil, gas, or other sub -surface hydrocarbons Fire Marshal means the Fire Marshal of the City of Denton, Texas Fire Code means the Fire Code, Chapter 29 of the Code of the City of Denton, Texas, as amended Gas means gas or natural gas, as such terms are used in the rules, regulations, or forms of the Railroad Commission Gas Well means any well drilled for the production of gas or classified as a gas well under the Texas Natural Resources Code Gas Well Permit means a Gas Well Permit applied for and issued or denied under this Article authorizing the drilling, production, and operation of one or more gas wells Hazardous Materials Management Plan means the hazardous materials management plan and hazardous materials inventory statements required by the Fire Code New Well means a new well bore or new hole established at the ground surface and shall not include the re -working of an existing well that has not been abandoned Operation Site means the area used for development and production and all related operational activities of gas after drilling activities are complete Operator means, for each well, the person listed on the Railroad Commission Form W-1 or Form P-4 for a gas well Person includes both the singular and plural and means a natural person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, and a fiduciary or representative of any kind Petroleum Specialist means a person familiar with and educated in the oil and gas industry who has been retained by the City Railroad Commission means the Railroad Commission of Texas Well means a hole or bore to any horizon, formation, or strata for the purpose of producing oil, gas, or other liquid hydrocarbons Sec. 35-503 Gas Well Drilling and Production `By Right" (a) The drilling and production of gas within the corporate limits of the City shall be permitted by right within Agricultural and Industrial Zoning Districts provided that no residential structure or place of assembly, institution or school exists no closer than five hundred feet (500') from the wellhead or within a previously platted residential subdivision where one or more lots have structures and provided that the drilling and production of gas meets the following requirements (1) All applicable standards forth in Sec 35-505 of this Article, Standard Conditions for Gas Well Drilling and Production (2) An approved Gas Well Development Plat and a Road Repair Agreement are on file with the Director, and (3) A Gas Well Permit has been issued by the Fire Marshal (b) The drilling and production of gas within the corporate limits of the City shall be permitted by right within Agricultural and Industrial Zoning Districts if the property owner of a residential structure within two hundred and fifty feet (250') to five hundred feet (500') of the wellhead agrees in writing and provided that the drilling and production of gas meets the requirements of Sec 35-503(a)(1) through (3) and other requirements of this article Sec.35-504. Gas Well Drilling and Production by Specific Use Permit or Planned Development District; Application and Requirements. (a) No person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall engage in drilling or production of a gas well within the corporate limits of the City without first obtaining either a Specific Use Permit as required by this Article and by Sections 35-106 to 35-115 of Chapter 35, Zoning, of the Code of the City of Denton, Texas or a Planned Development Zoning District as required by this Article and by Sections 35-136 to 35-184 of Chapter 35, Zoning, of the Code of R] the City of Denton, Texas unless drilling is permitted by right pursuant to Sec 35-503 of this Article (b) An application for a Specific Use Permit or Planned Development Zoning District for the drilling and production of a gas well shall be filed by the person having legal authority That person is presumed to be the record owner, mineral owner, or the duly authorized agent of either the record owner or the mineral owner The Chairman of the DRC may require an applicant to submit information of authority to file an application (c) The Chairman of the DRC has the authority to establish requirements for applications in the Gas Well Development Criteria Manual No application shall be accepted for filing until it is complete and the fee established by the City Council of the City of Denton has been paid Incomplete applications shall be returned less a fee for processing determined by the Director of Planning and Development Sec. 35-505. Standards for Gas Well Drilling and Production (a) The drilling and production of a gas well by right or the drilling and production of a gas well by a Specific Use Permit or Planned Development Zoning District required by this Article shall include the following standards (1) Compliance with the Development Plat No drilling or production of a gas well shall begin until a Gas Well Development Plat that has been approved by the Chairman of the DRC is on file with the Department that conforms to the requirements of Sec 34- 34, Development Plats of Chapter 34, Subdivision and Land Development of the Code of the City of Denton, Texas a The gas well development plat shall provide for adequate public facilities, including water supply, access roads, drainage, erosion control and other necessary supporting facilities identified on the Gas Well Development Plat b The design, location, and arrangement of all driveways and parking spaces shall provide for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments c A Road Repair Agreement shall be filed in the Department of Engineering (2) On -site requirements A secured entrance gate shall be required Street lighting shall be required pursuant to Section 26-76 of the Utility Code of the Code of the City of Denton, Texas or the sign identifying the entrance to the drill site or operation site shall be reflective b Fences shall not be required on drill sites during initial drilling, completion, or re- work operations as long as 24 hour on site supervision is provided c Fences located on operation sites must remain locked at all times when no one is present d No refining process, or any process for the extraction of products from gas, shall be carried on at a drill site or operation site, except that a dehydrator and separator may be maintained on a drill site or operation site for the separation of liquids from gas Any such dehydrator or separator may serve more than one well Gas Processing Facilities shall require a Specific Use Permit e Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED" in a minimum of four inch (4") lettering shall be posted at the entrance of each drill site and operation site The sign shall include the phone number for emergency services (911), the number for the operator, and the well designation required by the Railroad Commission in two inch (2") lettering f No person shall place, deposit, or discharge (or cause or permit to be placed, deposited, or discharged) any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, or any refuse, including wastewater or brine, from any gas operation or the contents of any container used in connection with any oil or gas operation in, into, or upon any public nght-of-way, storm drain, ditch or sewer, sanitary dram or sewer, any body of water, or any private property within the corporate limits of the City g All production equipment on an operation site shall be painted and maintained at all times, including pumping units, storage tanks, buildings, and structures h All electric lines to production facilities shall be located in a manner compatible to those already installed in the surrounding areas or subdivision i All fire suppression and prevention equipment required by any applicable federal, state, or local law shall be provided by the operator, at the operator's cost, and maintenance and upkeep of such equipment shall be the responsibility of the operator I No operator shall excavate or construct any lines for the conveyance of fuel, water, or minerals on, under, or through the streets or alleys or other land of the City without an easement or right-of-way license from the City, at a price to be agreed upon, and then only in strict compliance with this Article, with other ordinances of the City, and with the specifications established by the Engineering Department k The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any public street or leaving upon any public street any earth or other material or obstruction, is prohibited unless the operator has first obtained written 61 permission from the Engineering Department, and then only in compliance with specifications established by the department No Gas Well permit shall be issued for any well to be dnlled within any of the streets or alleys of the City and/or streets or alleys shown by the Denton Plan, 1999-2020 and no street shall be blocked or encumbered or closed due to any exploration, drilling, or production activities unless prior consent is obtained by the City Manager, and then only temporarily (3) Operations and equipment practices and standards a Adequate nuisance prevention measures shall be taken to prevent or control offensive odor, fumes, dust, noise and vibration b Directional lighting shall be provided for the safety of gas well drilling and production operations and shall be provided so as to not disturb or adversely affect adjacent developments c The operator shall at all times comply with the rules and regulations of the Railroad Commission including but not limited to all applicable Field Rules d Internal combustion engines may be used in drilling operations if they have mufflers that will reduce noise to not more than 90 decibels at any point 300 feet from the boundary of the drill site or operation site Only electric motors shall be used for the purpose of pumping gas wells e There shall be no venting of gas into the open air in residential areas except as allowed by the Railroad Commission and as approved by the Fire Marshal f Vehicles, equipment, and machinery shall not be placed or located on a drill site or operation site (or on any public street, alley, driveway, or other public nght-of- way) in such a way as to constitute a fire hazard or to unreasonably obstruct or interfere with fighting or controlling fires g Only Light Sand Fracture Technology or technologies approved by the Fire Marshal in accordance with the Fire Code City shall be used to fracture stimulate a well h Fracmg operation shall be scheduled to occur during daylight hours unless the Operator has notified the Fire Marshal that fracing will occur before or after daylight hours to meet safety requirements Air, gas, or pneumatic drilling shall not be permitted (4) Storage tanks and separators ri a An operator is allowed to construct, use, and operate such storage equipment and separation equipment as shown on the typical well site, typical drilling pad, and typical pad site locations on the development plat approved by the Chairman of the DRC b The use of centralized tank batteries is permitted as shown on the applicable Gas Well Development Plat c No meters, storage tanks, separation facilities, or other aboveground facilities shall be placed in the 100-year floodplain (5) Flow lanes and gathering Imes a Each operator shall place an identifying sign at each point where a flow line or gathering line crosses a public street or road b Each operator shall place a warning sign for lines carrying H2S (Hydrogen Sulfide) gas as required by the Railroad Commission c All flow lines and gathering lines within the corporate limits of the City (excluding City utility lines and franchise distribution systems) that are used to transport oil, gas, and/or water shall be limited to the maximum allowable operating pressure applicable to the pipes installed and shall be installed with at least the minimum cover or backfill specified by the American National Safety Institute Code, as amended d Structures shall not be built over flow lines or gathering lines (6) Additional safety and environmental requirements a The drilling and production of gas and accessing the gas well site shall be in compliance with all state and federal environmental regulations and shall not occur within Environmentally Sensitive Areas as shown on the Map adopted by the City without the consent of the City Council b Gas wells may have a target location or bottom -hole location that is under an Environmentally Sensitive Area when the gas well is drilled directionally from a location outside the Environmentally Sensitive Area c Each well shall be equipped with an automated valve that closes the well in the event of an abnormal change in operating pressure All wellheads shall contain an emergency shut off valve to the well distribution line d Each storage tank shall be equipped with a level control device that will automatically activate a valve to close the well in the event of excess liquid accumulation in the tank All storage tanks shall be equipped with a secondary containment system including lining with an impervious material The secondary containment system shall be of a sufficient height to contain one-half (1 ''/:) times the contents of the largest tank in accordance with the Fire Code, and burred at least one foot (I') below the surface Drip pots shall be provided at pump out connection to contain the liquids from the storage tank Tank battery facilities shall be equipped with a remote foam line and a lightning arrestor system g A Hazardous Materials Management Plan shall be on file with the Fire Marshal h All wells shall be abandoned in accordance with the rules of the Railroad Commission, however, all well casings shall be cut and removed to a depth of at least ten feet (10') below the surface unless the surface owner submits a written agreement otherwise Three feet (3') shall be the minimum depth No structures shall be built over an abandoned well No salt -water disposal wells shall be located within the City of Denton k Lining the reserve pit shall be required if the reserve pit is within two hundred feet (200)' of a body of water, creek, or floodplain (7) Supplemental drilling Supplemental drilling to deepen or directional drill an existing well shall be conducted in accordance with the conditions for the applicable Specific Use Permit or Planned Development Zoning District or underlying zoning classification that permits gas development by right The operator shall provide the Fire Marshal a copy of additional Railroad Commission permits that allow drilling to a deeper depth Supplemental drilling to deepen or directional drill an existing well shall be conducted in accordance with the approved Gas Well Permit for the well on file with the Fire Marshal (8) Drilling and production of gas wells shall comply with all federal, state, and local laws applicable to gas well drilling, production and operations Sec 35-506. DRC Recommendations for Specific Use Permits and Planned Development Zoning Districts (a) The Department shall forward all applications for Specific Use Permits and Planned Development Zoning Districts to the DRC for review The DRC shall review each application within 30 days after filing and shall make recommendations regarding the applications to the Planning and Zoning Commission and City Council A copy of all recommendations shall be provided to the operator The DRC may make recommendations regarding any aspect of the proposed gas well development including, but not limited to, recommendations with respect to the standards set forth in Section 35-505 of this Article (b) In connection with its review of an application for a Specific Use Permit or Planned Development Zoning District for the drilling and production of gas wells, the DRC may determine that it is necessary to hire a petroleum specialist to assist the DRC in reviewing the application If such a determination is made, the DRC will provide the operator a written "scope of work" that the DRC proposes for such specialist The DRC and the operator will attempt to agree upon the "scope of work", however, the decision of the DRC shall control If required by the specialist, the operator will provide a retainer, otherwise, the operator will pay for the services of the specialist after they are rendered All work performed by the specialist shall be itemized on a daily basis (including a description of the work and the amount of time spent), and such itemization shall be provided to the operator with each request for payment (c) The DRC has the authority to establish guidelines to use in making recommendations for Gas Well Permits or by Specific Use Permit or Planned Development Zoning Districts Guidelines shall be placed in the Gas Well Development Criteria Manual Sec. 35-507 Gas Well Permit Required (a) Any person, acting for himself or acting as an agent, employee, independent contractor, or servant for any person, shall not engage in the drilling and production of gas wells within the corporate limits of the City without first obtaining a Gas Well Permit issued under this Article An operator may apply for and obtain a separate permit covering each well or a "blanket" permit covering multiple wells (b) When a Gas Well Permit has been issued covering a well, the permit shall constitute authority for drilling, operation, production, gathering of production, maintenance, repair, re -working, testing, site preparation consisting of rigs or tank batteries, plugging and abandonment, and any other activity authorized by this Article associated with drilling or production by the operator and their respective employees, agents, and contractors A Gas Well Permit shall also constitute authority for the construction and use of all facilities reasonably necessary or convenient in connection therewith, including gathering lines and discharge lines, by the operator and its respective employees, agents, contractors and subcontractors (c) A Gas Well Permit shall not be required for exploration for gas Exploration of gas means geologic or geophysical activities, including, but not limited to surveying and seismic exploration, related to the search for oil, gas, or other sub -surface hydrocarbons 9 (d) Any well that has been annexed into the City shall be required to meet the requirements of this Article and shall apply for a Gas Well Permit on the effective date of the annexation Any well that has obtained a Gas Well Permit issued by the Fire Marshal prior to the effective date of this Article shall provide all information required for Gas Well Permits under this Article unless the information has been previously provided to the Fire Marshal Gas Well Permits issued by the Fire Marshal prior to the effective date of this Article shall comply with the following requirements (1) Standards for Gas Well Drilling and Production requirements of Sec 35-505 (2) Insurance and Security requirements of Sec 35-508 and Sec 35-509 (3) Periodic reports as required by Sec 35-512 of this Article (4) Road Maintenance Agreement unless already provided (5) Notice of Activity requirements of Sec 35-513 (e) A Gas Well Permit shall not, however, constitute authority for the re-entering and drilling of an abandoned well Re-entry and drilling of an abandoned well shall require a new Gas Well Permit (f) Applications for Gas Well Permits shall be in writing, shall be on forms provided by the Department, shall be signed by the Operator, shall include the application fee, shall include a copy of the applicable Specific Use Permit or Planned Development Zoning District or Development Plat, and shall include the information required by the Gas Well Development Criteria Manual unless such information has been previously provided to the City Sec 35-508 Insurance and Indemnificat►on The operator shall provide or cause to be provided the insurance described below for each well for which a Gas Well Permit is issued, such insurance to continue until the well is abandoned and the site restored The operator may provide the required coverage on a "blanket basis for multiple wells" Such coverage shall be approved by the Risk Manager for the City of Denton (a) General Requirements Indemnification and Express Negligence Provisions (1) Each Gas Well Permit issued by the Fire Marshal shall include the following language Operator does hereby expressly release and discharge, all claims, demands, actions, judgments, and executions which it ever had, or now have or may have, or assigns may have, or claim to have, against the City of Denton, and/or its departments, it agents, officers, servants, successors, assigns, sponsors, volunteers, or employees, created by, or ansing out of personal injuries, known or unknown, and injuries to property, real or personal, or in any way incidental to or in connection with the performance of the work performed by the operator under a gas well permit and the operator caused by or ansing out of, that sequence of events which occur from the 10 operator under the Gas Well Permit and work performed by the operator shall fully defend, protect, indemnify, and hold harmless the City of Denton, Texas, and/or its departments, agents, officers, servants, employees, successors, assigns, sponsors, or volunteers from and against each and every claim, demand, or cause of action and any and all liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses incurred in defense of the City of Denton, Texas, and/or its departments, agents, officers, servants, or employees, including, without limitation, personal injuries and death in connection therewith which may be made or asserted by Operator, its agents, assigns, or any third parties on account of, arising out of, or in any way incidental to or in connection with the performance of the work performed by the Operator under a Gas Well Permit and, the Operator agrees to indemnify and hold harmless the City of Denton, Texas, and/or its departments, and/or its officers, agents, servants, employees, successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result of claims, demands, costs, or judgments against the City and/or, its departments, it's officers, agents, servants, or employees, created by, or arising out of the acts or omissions of the City of Denton occurring on the drill site or operation site in the course and scope of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TO, CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE NEGLIGENCE OF THE CITY OF DENTON OCCURRNG ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS WELLS IT IS UNDERSTOOD AND AGREED THAT THE INDEMINITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED BY THE OPERATOR TO INDEMNIFY AND PROTECT THE CITY OF DENTON, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYES FROM THE CONSEQUENCES OF THENEGLIGENCE OF THE CITY OF DENTON, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, OR EMPLOYEES, WHETHER THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE RESULTANT INJURY, DEATH, AND/OR DAMAGE LIABILITY FOR THE SOLE NEGLIGENCE OF THE CITY IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE GAS WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE TORT CLAIMS ACT (2) All policies shall be endorsed to read "this policy will not be cancelled or non - renewed without 30 days advanced written notice to the owner and the City except when this policy is being cancelled for nonpayment of premium, in which case 10 days advance written notice is required" (3) Liability policies shall be written by earners licensed to do business in Texas and with companies with A VIII or better rating in accordance with the current Best Key Rating Guide, or with nonadmitted carriers that have a financial rating comparable to carriers licensed to do business in Texas approved by the City (4) Liability policies shall name as "Additional Insured" the City and its officials, agents, employees, and volunteers 11 (5) Certificates of insurance must be presented to the City evidencing all coverage's and endorsements required by this Section 35-508, and the acceptance of a certificate without the required limits and/or coverage's shall not be deemed a waiver of these requirements (6) Claims made policies will not be accepted except for excess policies or unless otherwise provided by this Article (b) Required Insurance Coverage's (1) Commercial General Liability Insurance (a) Coverage should be a minimum Combined Single Limit of $1,000,000 per occurrence for Bodily Injury and Property Damage This coverage must include premises, operations, blowout or explosion, products, completed operations, blanket contractual liability, underground property damage, broad form property damage, independent contractors protective liability and personal injury (b) Environmental Impairment (or Seepage and Pollution) shall be either included in the coverage or written as separate coverage Such coverage shall not exclude damage to the lease site If Environmental Impairment (or Seepage and Pollution) Coverage is written on a "claims made" basis, the policy must provide that any retroactive date applicable precedes the effective date of the issuance of the permit Coverage shall apply to sudden and non -sudden pollution conditions resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste material or other irritants, contaminants or pollutants (2) Automobile Liability Insurance Minimum Combined Single Limit of $500,000 per occurrence for Bodily Injury and Property Damage Such coverage shall include owned, non -owned, and hired vehicles (3) Worker's Compensation Insurance In addition to the mimmum statutory requirements, coverage shall include Employer's Liability limits of at least $100,000 for each accident, $100,000 for each employee, and a $500,000 policy limit for occupational disease, and the insurer agrees to waive rights of subrogation against the City, its officials, agents, employees, and volunteers for any work performed for the City by the operator (4) Excess (or Umbrella) Liability Insurance covering in excess of the preceding insurance policies (5) Control of Well Insurance (a) Minimum limit of $5,000,000 per occurrence 12 Minimum limit of $10,000,000 (b) Policy shall cover the Cost of controlling a well that is out of control, Rednllmg or Restoration expenses, Seepage and Pollution Damage Damage to Property in the Operator's Care, Custody, and Control with a sub -limit of $500,000 may be added See.35-509. Security (a) A security instrument that covers each well must be delivered to the Fire Marshal before the issuance of the Gas Well Permit for the well The instrument must provide that it cannot be cancelled without at least thirty 30 days' prior written notice to the City and, if the instrument is a performance bond, that the bond cannot be cancelled without at least tell 10 days' prior written notice for non-payment of premium The instrument shall secure the obligations of the operator related to the well to (1) Repair damage, excluding ordinary wear and tear, if any, to public streets, including but not limited to bridges, caused by the operator or by the operator's employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the Gas Well Permit, (2) Comply with the insurance and security provisions set forth in Section 35-508 and Section 35-509 of this Article, and (3) Pay fines and penalties imposed upon the operator by the City for any breach of the Gas Well Permit (b) The security instrument may be in the form of an irrevocable letter of credit or payment bond issued by a bank or surety approved by the City The instrument shall run to the City for the benefit of the City, shall become effective on or before the date the Gas Well Permit is issued, and shall remain in effect until the well is abandoned and the site restored (c) A certificate of deposit may be substituted for the letter of credit or payment bond The certificate shall be issued by a bank in Denton County, Texas, shall be approved by the City, shall be payable to the order of the City to secure the obligations of the operator described above, and shall be pledged to the bank with evidence of delivery provided to the Director of Planning and Community Development Interest on the certificate shall be payable to the operator (d) The security instrument may be provided for individual wells or on a "blanket" basis for multiple wells The amount of the security shall be a minimum of $50,000 for any single well and a minimum of $100,000 for multiple wells on a "blanket" basis 13 (e) The security will terminate when the Gas Well Permit is transferred, with respect to the operator -transferor and if the operator -transferee provides replacement security that complies with this section, when the well is abandoned and the site restored, and when the Fire Marshal consents in writing to such termination (f) An appeal of the determination of the amount of security required under this Article may be made to the Planning and Zoning Commission for recommendation to the City Council for final determination of the amount of security Sec. 35-511 Review Of Applications For Gas Well Permit. (a) All applications for Gas Well Permits shall be filed with the Department who shall immediately forward all applications to the DRC for review Incomplete applications shall be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies if requested by the applicant The City shall retain a processing fee determined by the Director of Planning and Development The City may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the operator (b) The DRC shall review each application within 15 days after filing and shall determine whether the application includes all of the information required by this Article, whether the application is in conformance with the applicable Gas Well Development Plat, applicable Specific Use Permit or Planned Development Zoning District and whether the application is in conformance with the insurance and security requirements set forth in Section 35-508 and Section 35-509 of this Article The DRC shall forward a written report regarding its determination to the Fire Marshal, with a copy provided to the operator (c) The Fire Marshal shall review the application and the written report of the DRC and shall issue the Gas Well Permit after receiving the DRC report within 10 days unless he determines that the application is incomplete or that the application is not in conformance with the applicable Gas Well Development Plat, applicable Specific Use Permit, Planned Development Zoning District The Fire Marshal may employ a technical advisor under the Fire Code (d) The Fire Marshal may condition the release of the approved Gas Well Permit upon the operator providing the security required by Section 35-509 of this Article and upon the operator entering into a Road Repair Agreement that will obligate the operator to repair damage excluding ordinary wear and tear, if any, to public streets, including but not limited to, bridges caused by the operator or by the operator's employees, agents, contractors, subcontractors or representatives in the performance of any activity authorized by or contemplated by the approved Gas Well Permit (e) The failure of the DRC or the Fire Marshal to review and issue a Gas Well Permit within the time limits specified above shall not cause the application for the permit to be deemed approved 14 (f) Each Gas Well Permit issued by the Fire Marshal shall (1) Identify the name of each well and its operator, (2) Specify the date on which the Fire Marshal issued each permit, (3) Specify the date by which drilling must commence on at least one well covered by the permit otherwise the permit expires (such date shall not be less than one year after the date of issuance) A one year extension of time may be granted if existing conditions are the same, (4) Specify that if drilling is commenced on at least one well covered by the permit before the permit expires, the permit shall continue until the wells covered by the permit are abandoned and the site restored, (5) Incorporate, by reference, the insurance and security requirements set forth in Section 35-508 and Section 35-509 of this Article, (6) Incorporate, by reference, the requirement for periodic reports set forth in Section 35-512 of this Article and for Notice of Activities set forth in Sec 35-513, (7) Incorporate the full text of the release of liability provisions set forth in Section 35-508(e)(1) of this Article, (8) Incorporate, by reference, the conditions of the applicable Development Plat, applicable Specific Use Permit or Planned Development Zoning District (9) Incorporate, by reference, the information contained in the permit application, (10) Incorporate, by reference, the applicable rules and regulations of the Railroad Commission, including the applicable "field rules", (11) Specify that no drilling operations (including the construction of internal private access roads) shall commence until the operator has provided the security required by Section 35-509 of this Article, (12) Contain the name, address, and phone number of the person designated to receive notices from the City, which person must be a resident of Texas that can be served in person or by registered or certified mail, and (13) Incorporate by reference all permits and fees required by the Fire Code (g) The decision of the Fire Marshal to deny an application for a Gas Well Permit shall be provided to the operator in writing within 10 days after the decision, including an 15 explanation of the basis for the decision, if requested by the operator The operator may appeal any such denial to the Construction Review Board (h) If an application for a Gas Well Permit is denied by the Fire Marshal, nothing herein contained shall prevent a new permit application from being submitted to the City for the same well Sec. 35-512 Periodic Reports (a) The operator shall notify the Fire Marshal of any changes to the following information immediately, within one business day after the change occurs (1) The name, address, and phone number of the operator, (2) The name, address, and 24-hour phone number of the person(s) with supervisory authority over drilling or operations activities, (3) The name, address, and phone number of the person designated to receive notices from the City, which person must a resident of Texas that can be served in person or by registered or certified mail, and (4) The operator's Emergency Action Response Plan including "dnve-to-maps" from public rights -of -way to each drill site (b) The operator shall provide a copy of any "incident reports" or written complaints submitted to the Railroad Commission or any other state or federal agency within 30 days after the operator has notice of the existence of such reports or complaints (c) Beginning on December 31st after each well is completed, and continuing on each December 31st thereafter until the operator notifies the Fire Marshal that the well has been abandoned and the site restored, the operator shall prepare a written report to the Fire Marshal identifying any changes to the information that was included in the application for the applicable Gas Well permit that have not been previously reported to the City Sec 35-513 Notice of Activities Any person who intends to re -work a well using a drilling ng, to fracture stimulate a well after initial completion, or to conduct seismic exploration involving explosive charges shall give written notice to the City at least 10 days before the activities begin The notice shall identify where the activities will be conducted and shall describe the activities in reasonable detail, including but not limited to the duration of the activities and the time of day they will be conducted The notice must also provide the address and 24-hour phone number of the person conducting the activities The person conducting the activities will post a sign on the property giving the public notice of the activities, including the name, address, and 24-hour phone number of the person conducting the activities If the City determines that an inspection by the Fire Marshal is necessary, the operator will pay the City's customary charge for the inspection t� Sec 35-514 Amended Gas Well Permits (a) An operator may submit an application to the Fire Marshal to amend an existing Gas Well Permit to commence drilling from a new drill site that is not shown on (or incorporated by reference as part of) the existing permit, to relocate a drill site or operation site that is shown on (or incorporated by reference as part of) the existing permit, or to otherwise amend the existing permit (b) Applications for amended Gas Well Permits shall be in writing, shall be on forms provided by the Department of Planning and Community Development, shall be signed by the operator, and shall include the following (1) The application fee as set by City ordinance, (2) A description of the proposed amendments, (3) Any changes to the information submitted with the application for the existing Gas Well Permit (if such information has not previously been provided to the City), (4) Such additional information as is reasonably required by the Fire Marshal to demonstrate compliance with the applicable Development Plat, applicable Specific Use Permit or Planned Development Zoning District, and (5) Such additional information as is reasonably required by the Fire Marshal to prevent imminent destruction of property or injury to persons (c) All applications for amended Gas Well Permits shall be filed with the Department of Planning and Community Development, and the department shall immediately forward all applications to the Fire Marshal for review Incomplete applications may be returned to the applicant, in which case the City shall provide a written explanation of the deficiencies, however, the City may retain a processing fee as determined by the Fire Marshal The City may return any application as incomplete if there is a dispute pending before the Railroad Commission regarding the determination of the operator (d) If the activities proposed by the amendment are not materially different from the activities covered by the existing Gas Well Permit, and if the proposed activities are in conformance with the applicable Development Plat, applicable Specific Use Permit, Planned Development Zoning District, then the Fire Marshal shall approve the amendment within 10 days after the application is filed (e) If the activities proposed by the amendment are materially different from the activities covered by the existing Gas Well Permit, and if the proposed activities are in conformance with the applicable Development Plat, applicable Specific Use Permit or Planned Development Zoning District, then the Fire Marshal shall approve the amendment within 30 days after the application is filed If, however, the activities 17 proposed by the amendment are materially different and, in the judgment of the Fire Marshal, might create a risk of imminent destruction of property or injury to persons that was not associated with the activities covered by the existing permit or that was not otherwise taken into consideration by the existing permit, the Fire Marshal may require the amendment to be processed as a new Gas Well Permit application (f) The failure of the Fire Marshal to review and issue an amended Gas Well Permit within the time limits specified above shall not cause the application for the amended permit to be deemed approved (g) The decision of the Fire Marshal to deny an amendment to a Gas Well Permit shall be provided to the operator in writing within 10 days after the decision, including an explanation of the basis for the decision The operator may appeal any such denial to the City Council See 35-515. Transfer Of Gas Well Permits A Gas Well Permit may be transferred by the operator without the consent of the City if the transfer is in writing signed by both parties, if the transferee agrees to be bound by the terms and conditions of the transferred permit, if all information previously provided to the City as part of the application for the transferred permit is updated to reflect any changes, if the transferee provides the insurance and security required by Section 35-508 and Section 35-509 of this Article The insurance and security provided by the transferor shall be released if a copy of the written transfer is provided to the City The transfer shall not relieve the transferor from any liability to the City ansing out of any activities conducted prior to the transfer Sec 35-516. Remedies Of The City. (a) If an operator (or its officers, employees, agents, contractors, subcontractors or representatives) fails to comply with any requirement of a Gas Well Permit (including any requirement incorporated by reference as part of the permit), the Fire Marshal shall give written notice to the operator specifying the nature of the alleged failure and giving the operator a reasonable time to cure, taking into consideration the nature and extent of the alleged failure, the extent of the efforts required to cure, and the potential impact on the health, safety, and welfare of the community In no event, however, shall the cure period be less than 30 days unless the alleged failure presents a risk of imminent destruction of property or injury to persons or unless the alleged failure involves the operator's failure to provide periodic reports The Fire Marshal may issue a Stop Work Order under the Fire Code (b) If the operator does not cure the alleged failure within the time specified by the Fire Marshal, the Fire Marshal may notify the Railroad Commission and request that the Railroad Commission take appropriate action (with a copy of such notice provided to the operator), and the City may pursue any other remedy available under this Article 18 (c) If the operator does not cure the alleged failure within the time specified by the Fire Marshal, the Fire Marshal may upon recommendation of the Construction Advisory Board (1) Recommend to the City Council that the Gas Well Permit be suspended until the alleged failure is cured, or, (2) If the operator fails to initiate and diligently pursue a cure recommend to the City Council that the Gas Well Permit be revoked (d) The decision of the Fire Marshal to recommend suspension or revocation of a Gas Well Permit shall be provided to the operator in writing at least ten (10) days before any action by the City Council (e) If a Gas Well Permit is revoked, the operator may submit an application a new Gas Well Permit for the same well Sec 35-517. Enforcement, Right of Entry The Fire Marshal is authorized and directed to enforce this Article and the provisions of any Gas Well Permit Whenever necessary to enforce any provision of this Article or a Gas Well Permit, or whenever there is reasonable cause to believe there has been a violation of this Article or a Gas Well Permit, the Fire Marshal, or his designated representative, may enter upon any property covered by this Article or a Gas Well Permit at any reasonable time to inspect or perform any duty imposed by this Article If entry is refused, the City shall have recourse to every remedy provided by law and equity to gain entry Sec.35-518. Penalty (a) It shall be unlawful and an offense for any person to do the following (1) engage in any activity not permitted by the terms of a Gas Well Permit issued under this Article, (2) fail to comply with any conditions set forth in a Gas Well Permit issued under this Article, or (3) violate any provision or requirement set forth under this Article (b) Any violation of this Article shall be punished by a fine of not more than Two Thousand Dollars (52,000 00) per day, subject to applicable State law Each day a violation occurs constitutes a separate violation SSECTION 2 All rights and remedies of the City of Denton, Texas, are expressly saved as to any and all violations of the provisions of any other ordinance affecting gas drilling and production which existed at the time of the effective date of this Article, and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, 19 under such ordinances, the same shall not be affected by this Article but may be prosecuted until final disposition by the courts SECTION 3 It is hereby declared the intention of the City Council that if any section, paragraph, sentence, clause, or phrase of this Ordinance is declared unconstitutional or otherwise illegal by the valid Judgment or decree of any court of competent Jurisdiction, such event shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this , since the same would have been enacted by the City Council without such unconstitutional or illegal phrase, clause, sentence, paragraph, or section SECTION 4 This Article shall be cumulative of all provisions of ordinances of the City except where the provisions of this Article are in direct conflict with the provisions of such ordinances, in which event the conflicting provisions of such ordinances are hereby repealed SECTION 5 This Ordinance shall become effective 14 days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this Article to be published twice in the Denton Record -Chronicle, a daily newspaper published in the City of Denton, Texas, within 10 days from the date of its passage , �jp )PASSED AND APPROVED this the `t`� day of 6y(a, 2001 ATTEST; JENNIFER WALTERS, CITY SECRETARY BY44 AP OVED AS TO LEGAL FORM HERBERT L PROUTY, QITY ATTORNEY m 20 EULINE BROCK, MAYOR