2001-465S \Our Docurnegta\Ordmances\01\Gas Well Final Draft 12-04 01 doc
AN ORDINANCE AMENDING CHAPTER 35, ZONING, OF THE CODE OF ORDINANCES
OF THE CITY OF DENTON, TEXAS, BY ADD1NG 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 C~ty of Denton, Texas, ~s a Home Rule Mumc~pahty located ~n Denton
County, Texas, created m accordance w~th the provisions of the Texas Local Government Code
and operating pursuant to the enablmg legislation of the State of Texas, and
WHEREAS, the C~ty Council of Denton, Texas, finds that the dnlhng and production
of gas wathout proper regulations, may affect the health, safety, and general welfare of the pubhc
and may cause ~mmment destruction of property or injury to persons, and
WHEREAS, the C~ty Council of Denton, Texas, deems it necessary to enact a zomng
ordmance to govern the dnlhng and production of gas w~thm the corporate hmlts of the Cxty of
Denton
NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the Code of Ordmances 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 dnlhng and production of gas w~thm the corporate hmlts of the City necessitate reasonable
regulations to prevent ~mm~nent destruction of property or ~njury to persons and to make these
activities conform to the C~ty's comprehensive plan and development regulations This Article
~mplements reasonable regulations to protect the health, safety, and general welfare of the public
and to accomplish the orderly and practical development of m~neral resources
Sec 35-502. Definitions
All teehmcal industry words or phrases related to the dnlhng and production of gas wells not
specifically defined shall have the meanings customarily attnbutable thereto by prudent
operators m the off and gas industry For the purposes of this Article, the following defimt~ons
shall apply unless the context clearly indicates or requires a d~fferent meaning
Abandonment means "abandonment" as defined by the Rmlroad Conumss~on and
includes the plugging of the well and restoration of the drill s~te as reqmred by this Article
Cay means the C~ty of Denton, Texas
DRC means the Development Rewew Committee estabhshed by Sectmn 34-5(b) of
Chapter 34, Subd~ws~on Regulations, of the Denton C~ty Code
Dnlhng means any d~gg~ng or boring of a new well to develop or produce gas or to
~nject gas, water, or any other fired or substance into the earth Dnlhng means and includes the
re-entry of an abandoned well Dnlhng does not mean or ~nclude the re-entry of a well that has
not been abandoned
Drdl Site means the area used for dnlhng, completing, or re-working a well
Exploratton means geologm or geophysmal act~vlt~es, including, but not hm~ted to
surveying and se~smtc exploration, related to the search for od, gas, or other sub-surface
hydrocarbons
Ftre Marshal means the F~re Marshal of the C~ty of Denton, Texas
Ftre Code means the F~re Code, Chapter 29 of the Code of the C~ty of Denton, Texas, as
amended
Gas means gas or natural gas, as such terms are used ~n the rules, regulations, or forms of
the Railroad Comm~as~on
Gas Well means any well drilled for the production of gas or classffied as a gas well
under the Texas Natural Resources Code
Gas Well Permtt means a Gas Well Permit apphed for and ~ssued or demed under th~s
Artmle authonz~ng the dnlhng, production, and operatmn of one or more gas wells
Hazardous Matertals Management Plan means the hazardous matenals management plan
and hazardous materials inventory statements reqmred by the F~re Code
New Well means a new well bore or new hole estabhshed at the ground surface and shall
not mclude the re-working of an ex~stmg well that has not been abandoned
Operatzon &te means the area used for development and production and all related
operational act~mt~es of gas after dnllmg act~wt~es are complete
Operator means, for each well, the person hsted on the Rmlroad 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, admlmstrator, and a fiduciary or
representative of any kind
Petroleum Speclahst means a person familiar with and educated in the oil and gas
industry who has been retmned by the City
Railroad Commission means the Rmlroad Commission of Texas
V/ell 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 Condmons
for Gas Well Drilling and Production
(2) An approved Gas Well Development Plat and a Road Repmr 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
perrmtted 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 Drffiing and Prodnctlon by Specffie 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 hmlts of the City without first obtmnmg 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
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the Clty of Denton, Texas unless dnlhng is permitted by right pursuant to Sec 35-503 of
this Article
(b) An application for a Specific Use Permit or Planned Development Zomng 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, m~neral owner, or the duly authonzed
agent of either the record owner or the mineral owner The Chmrman of the DRC may
reqmre an applicant to submit mformat~on of authority to file an application
(c) The Chmrman of the DRC has the authority to estabhsh requirements for applications in
the Gas Y/ell Development Crtterta Manual No apphcatlon shall be accepted for fihng
until it is complete and the fee established by the C~ty Council of the C~ty of Denton has
been p,ud Incomplete appheatlons shall be returned less a fee for processing determined
by the Director of Planmng and Development
Sec. 35-505. Standards for Gas Well Drlihng and Production
(a) The drilling and production of a gas well by right or the drilling and production of a gas
well by a Specffie Use Permit or Planned Development Zoning Dmmct required by this
Artmle shall include the following standards
(1) Comphance wtth the Development Plat No dnlhng or production of a gas well
shall begm until a Gas Well Development Plat that has been approved by the Chmrman
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 pubhc facilities,
lncludang water supply, access roads, drmnage, erosion control and other
necessary supporting facilities ~dentffied on the Gas Well Development Plat
b The design, location, and arrangement of all driveways and parking spaces shall
prowde for the safe and convement movement of vehicular and pedestrian traffic
without adversely affecting the general pubhc or adjacent developments
c A Road Repmr Agreement shall be filed m the Department of Englneenng
(2) On-site reqmrements
a A secured entrance gate shall be reqmred Street hght~ng shall be reqmred
pursuant to Section 26-76 of the Utility Code of the Code of the C~ty of Denton,
Texas or the sign ldent~fying the entrance to the drill site or operation site shall be
reflective
b Fences shall not be reqmred on drill sites dunng lmtml dnlhng, completion, or re-
work operations as long as 24 hour on site supervision is prowded
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Fences located on operation sites must remain locked at all times when no one is
present
No refimng 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 mmntalned on a drill site or operation site for the separation of hqulds
from gas Any such dehydrator or separator may serve more than one well Gas
Processing Facilities shall require a Specffic Use Permit
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 ~n two inch (2") lettenng
No person shall place, deposit, or discharge (or cause or permit to be placed,
deposited, or discharged) any ml, naphtha, petroleum, asphalt, tar, hydrocarbon
substance, or any refuse, including wastewater or brine, from any gas operation or
the contents of any container used m connection with any oil or gas operation In,
into, or upon any pubhc right~of-way, storm drain, ditch or sewer, sanitary drmn
or sewer, any body of water, or any private property within the corporate limits of
the City
All production equipment on an operation site shall be painted and malntmned at
all times, including pumping units, storage tanks, buildings, and structures
All electric lines to production facilities shall be located ~n a manner compatible
to those already installed in the surrounding areas or subdivision
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 eqmpment shall be the responsibility of the
operator
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 wathout an easement or right-of-way license from the City, at a price to be
agreed upon, and then only in strict compliance w~th th~s Article, with other
orrhnances of the City, and with the speclficaUons established by the Englneenng
Department
The digging up, breakang, excavating, tunneling, undermining, breaking up, or
damaging of any public street or leaving upon any pubhc street any earth or other
material or obstruction, is prohibited unless the operator has first obtained wntten
permission from the Englneenng Department, and then only in compliance with
specifications established by the department
No Gas Well permit shall be issued for any well to be drilled 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, dnllmg, or production activities unless prior consent is obtmned by
the City Manager, and then only temporarily
(3) Operations and equtpment practtces and standards
a Adequate nuisance prevention measures shall be taken to prevent or control
offensive odor, francs, dust, noise and vibration
b Directional lighting shall be provided for the safety of gas well dnlhng and
production operations and shall be provided so as to not chsturb or adversely
affect adjacent developments
c The operator shall at all times comply with the rules and regulations of the
Rmlroad Commission including but not limited to all appheable Field Rules
d Internal combustion engines may be used in dnlhng 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 Thore 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 Vebacles, 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 right-of-
way) m 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 dunng daylight hours unless the
Operator has notified the Fire Marshal that ffacmg will occur before or after
daylight hours to meet safety requirements
Air, gas, or pneumatic dnlhng shall not be permitted
(4) Storage tanks and separators
a An operator ~s allowed to construct, use, and operate such storage equipment and
separation eqmpment as shown on the typical well s~te, typmal drilling pad, and
typmal pad s~te locations on the development plat approved by the Chmrman of
the DRC
b The use of centrahzed tank batteries ~s permitted as shown on the apphcable Gas
Well Development Plat
c No meters, storage tanks, separation faclhtles, or other aboveground factht~es
shall be placed m the 100-year floodplmn
(5) Flow lines and gathering hnes
a Each operator shall place an ~dentffy~ng s~gn at each pmnt where a flow line or
gathenng hne crosses a public street or road
b Each operator shall place a warning sign for hnes carrying H2S (Hydrogen
Sulfide) gas as required by the Rmlroad Comm~ssmn
c All flow hnes and gathenng hnes w~thln the corporate hmlts of the C~ty
(excluding City utd~ty hnes and franchise d~stnbut~on systems) that are used to
transport od, gas, and/or water shall be limited to the maximum allowable
operating pressure apphcable to the p~pes ~nstalled and shall be installed w~th at
least the m~mmum cover or backfill specified by the American National Safety
Institute Code, as amended
d Structures shall not be bmlt over flow lines or gathenng lines
(6) Additional safety and environmental requirements
a The dnlhng and production of gas and accessing the gas well s~te shall be ~n
comphance with all state and federal environmental regulations and shall not
occur w~th~n Environmentally Sensitive Areas as shown on the Map adopted by
the C~ty w~thout the consent of the C~ty Counml
b Gas wells may have a target location or bottom-hole location that ~s under an
Enwronmentally Sensitive Area when the gas well ~s drilled dlrect~onally from a
location outside the Enwronmentally Sensitive Area
c Each well shall be eqmpped w~th an automated valve that closes the well ~n the
event of an abnormal change m operating pressure All wellheads shall contain an
emergency shut off valve to the well d~stnbutlon hne
d Each storage tank shall be eqmpped w~th a level control dewce that wall
automatxcally activate a valve to close the well in the event of excess hqmd
accumulation ~n the tank
e All storage tanks shall be equipped with a secondary contmnment system
including hnmg with an impervious material The secondary containment system
shall be of a suffiment height to contmn one-half (1 V2) times the contents of the
largest tank m accordance with the F~re Code, and buried at least one foot (1')
below the surface Drip pots shall be prowded at pump out connection to contmn
the hqmds from the storage tank
f Tank battery facilities shall be eqmpped w~th a remote foam hne and a hghtnlng
arrestor system
g A Hazardous Materials Management Plan shall be on file with the F~re Marshal
h All wells shall be abandoned ~n accordance with the roles 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 m~mmum depth
No structures shall be bruit over an abandoned well
No salt-water disposal wells shall be located w~th~n the City of Denton
k Lining the reserve pit shall be reqmred if the reserve p~t is w~th~n two hundred
feet (200)' of a body of water, creek, or floodphun
(7) Supplemental drdhng
a Supplemental dnlhng to deepen or dlrectmnal drill an ex~stmg well shall be
conducted in accordance with the cond~tmns for the appheable Specific Use
Penmt or Planned Development Zoning D~stnct or underlying zomng
classfficat~on that permits gas development by right The operator shall prowde
the Fire Marshal a copy of addmonal Railroad Commlss~on permits that allow
dnlhng to a deeper depth
b Supplemental dnlhng to deepen or d~rect~onal drill an ex~st~ng well shall be
conducted in accordance with the approved Gas Well Permit for the well on file
with the F~re Marshal
(8) Dnllmg and production of gas wells shall comply with all federal, state, and local
laws applicable to gas well dnlhng, production and operations
Sec 35-506. DRC Recommendations for Specific Use Permits and Planned Development
Zoning Districts
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(a) The Department shall forward all apphcations for Specific Use Permits and Planned
Development Zoning Districts to the DRC for rewew The DRC shall review each
application within 30 days after fihng and shall make recommendations regarding the
apphcat~ons to the Planning and Zoning Commasslon and C~ty 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 lncludmg,
but not hmlted to, recommendations w~th respect to the standards set forth m Section
35-505 oftlus Article
(b) In connection with ~ts rewew of an apphcatlon for a Specific Use Permit or Planned
Development Zomng D~stnet for the dnlhng and production of gas wells, the DRC may
determme that ~t ~s necessary to htrea petroleum spemahst to assist the DRC in
remewmg the apphcat~on If such a determination is made, the DRC will prowde the
operator a written "scope of work" that the DRC proposes for such specmhst The DRC
and the operator will attempt to agree upon the "scope of work", however, the dec~slon
of the DRC shall control If required by the speclahst, the operator will provide a
retmner, otherwise, the operator will pay for the services of the specialist after they are
rendered All work performed by the speclahst shall be itemized on a dtuly basis
(including a description of the work and the amount of time spent), and such ~temlzat~on
shall be provided to the operator w~th each request for payment
(c) The DRC has the authority to estabhsh gmdehnes to use in making recommendataons
for Gas Well Permits or by Specffic Use Permit or Planned Development Zomng
Districts Gmdelmes shall be placed in the Gas Well Development Crtterta Manual
Sec. 35-507 Gas Well Permit Required
(a) Any person, acting for h~msalf or acting as an agent, employee, independent contractor,
or servant for any person, shall not engage m the dnlhng and production of gas wells
w~thm the corporate hmlts of the C~ty w~thout first obtaining a Gas Well Permit ~ssued
under th~s Article An operator may apply for and obtain a separate permit covenng each
well or a "blanket" permit covenng multiple wells
(b) When a Gas Well Permit has been ~ssued covenng a well, the permit shall constitute
authority for drflhng, operation, production, gathering of production, mmntenance, repmr,
re.working, testing, site preparation consisting of rigs or tank batteries, plugging and
abandonment, and any other act~wty authorized by th~s Article associated w~th dnlhng or
production by the operator and their respective employees, agents, and contractors A
Gas Well Permit shall also constitute authority for the constructmn and use of all
famht~es reasonably necessary or convenient m connection therewith, including gathenng
hnes and d~scharge lines, by the operator and its respective employees, agents,
contractors and subcontractors
(e) A Gas Well Permit shall not be required for exploratmn for gas Exploratmn of gas
means geologic or geophysical activities, ~ncludmg, but not hm~ted to surveying and
seismm exploration, related to the search for od, gas, or other sub-surface hydrocarbons
9
(d) Any well that has been annexed into the City shall be reqmred to meet the reqmrements
of tlus Article and shall apply for a Gas Well Permit on the effecUve date of the
annexation Any well that has obtmned a Gas Well Permit ~ssued by the F~re Marshal
prior to the effective date of th~s Article shall provide all ~nformat~on required for Gas
Well Permits under th~s Article unless the information has been prewously provided to
the Fire Marshal Gas Well Permits issued by the Fire Marshal prior to the effective date
of this Artmle shall comply w~th the following requirements
(1) Standards for Gas Well Dnlhng and Productmn 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 prowded
(5) Notice of Activity reqmrements of Sec 35-513
(e) A Gas Well Permit shall not, however, constitute authority for the re-entenng and dulling
of an abandoned well Re-entry and dnlhng of an abandoned well shall reqmre a new
Gas Well Permit
(0 Apphcat~ons for Gas Well Permits shall be ~n 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 Zomng
D~stnct or Development Plat, and shall ~nclude the ~nformat~on reqmred by the Gas Well
Development Crtterm Manual unless such information has been previously promded to
the C~ty
Sec 35-508 Insurance and Indemmficat~on The operator shall provide or cause to be
provided the msurance described below for each well for which a Gas Well Permit ~s issued,
such insurance to continue until the well ~s abandoned and the site restored The operator may
prowde the reqmred coverage on a "blanket bas~s for multiple wells" Such coverage shall be
approved by the Rtsk Manager for the City of Denton
(a) General Reqmrements Indemnlficat~on and Express Neghgence Provisions
(1) Each Gas Well Permit ~ssued by the F~re 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, agmnst the C~ty of Denton, and/or its departments, it agents, officers, servants,
successors, assigns, sponsors, volunteers, or employees, created by, or arising out of personal
~njunes, known or unknown, and injuries to property, real or personal, or ~n any way incidental
to or m connection with the performance of the work performed by the operator under a gas well
permit and the operator caused by or arising out of, that sequence of events whmh occur from the
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operator under the Gas Well Penmt and work performed by the operator shall fully defend,
protect, lndemmfy, and hold harmless the Cxty of Denton, Texas, and/or its departments, agents,
officers, servants, employees, successors, assxgns, sponsors, or volunteers from and agmnst each
and every clmm, demand, or cause of actxon and any and all hablhty, damages, obhgat~ons,
judgments, losses, fines, penalties, costs, fees, and expenses incurred ~n defense of the City of
Denton, Texas, and/or its departments, agents, officers, servants, or employees, including,
wxthout hmltat~on, personal injuries and death m connection therewith which may be made or
asserted by Operator, its agents, assigns, or any third parties on account of, ansmg out of, or ~n
any way ~nctdantal to or m connection with the performance of the work performed by the
Operator under a Gas Well Permit and, the Operator agrees to mdemmfy 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 habd~tles or damages suffered as a result of
clmms, demands, costs, or judgments against the C~ty and/or, 1ts departments, it's officers,
agents, servants, or employees, created by, or arising out of the acts or omissions of the City of
Denton occurnng on the drill site or operation s~te in the course and scope of mspectxng and
permxttlng 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 V/ELLS IT IS
UNDERSTOOD AND AGREED THAT THE 1NDEMINITY PROVIDED FOR 1N 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 CLAEVIS
ACT
(2) All pohc~es shall be endorsed to mad "th~s policy wall not be cancelled or non-
renewed w~thout 30 days advanced wnttan notice to the owner and the C~ty except when thru
policy Is being cancelled for nonpayment of premm_m, in which case 10 days advance written
notice is reqmred"
(3) Lmbfl~ty pohcles shall be written by earners licensed to do business ~n Texas and
with companxes with A VIII or better rating in accordance with the current Best Key Rating
Grade, or w~th nonadmxtted carriers that have a financml rating comparable to carriers hcensed to
do business m Texas approved by the C~ty
(4) Lmb~hty pohmes shall name as "Add~tmnal Insured" the City and its offimals,
agents, employees, and volunteers
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(5) Certfficates of insurance must be presented to the City ewdenc~ng all coverage's
and endorsements reqmred by this Section 35-508, and the acceptance of a certificate without the
reqmred hm~ts and/or coverage's shall not be deemed a waiver of these requirements
(6) Clmms made pollmes will not be accepted except for excess pohe~es or unless
otherwme prowded by th~s Article
(b) Reqmred Insurance Coverage's
(1) Commercml General Lmblhty Insurance
(a) Coverage should be a mammum Combined Single L~mmt of $1,000,000 per
occurrence for Bodily InJury and Property Damage This coverage must include
premises, operations, blowout or explosion, products, completed operatmns,
blanket contractual hablhty, underground property damage, broad form property
damage, independent contractors protective liability and personal injury
(b) Environmental Impamnent (or Seepage and Pollution) shall be e~ther ~ncluded in
the coverage or written as separate coverage Such coverage shall not exclude
damage to the lease site If Environmental Impmrment (or Seepage and Pollution)
Coverage is written on a "claims made" basis, the policy must provide that any
retroactive date apphcable precedes the effective date of the issuance of the
permit Coverage shall apply to sudden and non-sudden pollution conthtlons
resulting from the escape or release of smoke, vapors, fumes, acids, alkahs, toxic
chemicals, liqmds or gases, waste material or other imtants, contaminants or
pollutants
(2) Automobile Lmblhty Insurance Mlmmum Combined Single L~mlt of $500,000
per occurrence for Bodily InJury and Property Damage Such coverage shall include owned,
non-owned, and h~red vehicles
(3) Worker's Compensation Insurance In adtht~on to the mlmmum statutory
reqmrements, coverage shall ~nclude Employer's Liability limits of at least $100,000 for each
accident, $100,000 for each employee, and a $500,000 policy hmlt for occupational disease, and
the msurer agrees to waive rights of subrogation agmnst the C~ty, ItS offimals, agents, employees,
and volunteers for any work performed for the City by the operator
(4) Excess (or Umbrella) Llabthty Insurance Mlmmum limit of $10,000,000
covenng m excess of the preceding msurance pohc~es
(5) Control of Well Insurance
(a) Mammum hmtt of $5,000,000 per occurrence
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(b) Policy shall cover the Cost of controlhng a well that is out of control, Rednlhng
or Restoration expenses, Seepage and Pollution Damage Damage to Property m the
Operator's Care, Custody, and Control with a sub-hmlt of $500,000 may be added
Sec. 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 w~thout at least thirty 30 days' prior written notme to the City and, if
the mstnunent is a performance bond, that the bond cannot be cancelled without at least
ter~ 10 days' prior written notice for non-payment of premium The ~nstmment shall
secure the obligations of the operator related to the well to
(1) Repair damage, excluding ordinary wear and tear, ~f any, to pubhc 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 ofth~s Article, and
(3) Pay fines and penalties imposed upon the operator by the C~ty for any breach of
the Gas Well Permit
(b) The security instrument may be ~n the form of an ~rrevocable letter of credit or payment
bond issued by a bank or surety approved by the C~ty The instrument shall run to the
Clty for the benefit of the City, shall become effective on or before the date the Gas Well
Permit is issued, and shall remmn ~n effect untd the well ~s abandoned and the site
restored
(c) A certificate of deposit may be substituted for the letter of credit or payment bond The
certfficate shall be msued by a bank m Denton County, Texas, shall be approved by the
City, shall be payable to the order of the C~ty to secure the obhgations of the operator
d~scnbed above, and shall be pledged to the bank with evidence of delivery proxnded to
the Director of Planning and Commumty Development Interest on the certificate shall
be payable to the operator
(d) The security instrument may be provided for ~nd~wdual wells or on a "blanket" basis for
multiple wells The amount of the security shall be a mlmmum of $50,000 for any single
well and a mlmmum of $100,000 for multiple wells on a "blanket" basis
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(e) The security will terminate when the Gas Well Permit 1s transferred, w~th respect to the
operator-transferor and ~f the operator-transferee provides replacement security that
complies with this section, when the well ~s abandoned and the s~te restored, and when
the Fire Marshal consents m writing to such termination
(0 An appeal of the determination of the amount of security reqmred under this Article may
be made to the Planning and Zoning Commms~on for recommendation to the City
Council for final detenmnat~on of the amount of security
Sec. 35-511 Rewew Of Applications For Gas Well Permit.
(a) All applications for Gas Well Permits shall be filed wtth the Department who shall
~mmedlately forward all apphcat~ons to the DRC for review Incomplete apphcatlons
shall be returned to the apphcant, in whmh case the City shall provide a written
explanation of the defiClancles if requested by the apphcant The City shall retmn a
processing fee determined by the Director of Planmng and Development The C~ty may
return any apphcatlon as incomplete ~f there is a dispute pending before the Rtulroad
Commission regarding the determination of the operator
(b) The DRC shall review each apphcation w~th~n 15 days after fihng and shall detenmne
whether the apphcat~on includes all of the ~nformatlon reqmred by this Article, whether
the apphcatlon ~s in conformance with the apphcable Gas Well Development Plat,
applicable Specific Use Permit or Planned Development Zoning District and whether the
application is ~n conformance with the insurance and security reqmrements set forth m
Section 35-508 and Section 35-509 of th~s Artmle The DRC shall forward a written
report regarding ~ts determmatlon to the F~re Marshal, w~th a copy prowded to the
operator
(c) The Fire Marshal shall rewew the apphcatlon and the written report of the DRC and shall
~ssue the Gas Well Permit after rece~mng the DRC report within 10 days unless he
determines that the apphcatlon is incomplete or that the apphcatlon is not in conformance
with the applicable Gas Well Development Plat, apphcable Specific Use Permit, Planned
Development Zoning District The Fire Marshal may employ a techmcal advisor under
the Fire Code
(d) The Fire Marshal may condition the release of the approved Gas Well Permit upon the
operator pmwdlng the secunty reqmred by Section 35-509 of th~s Article and upon the
operator entenng ~nto a Road Reparr Agreement that will obhgate the operator to repmr
damage excluchng ordinary wear and tear, ~f any, to pubhc streets, including but not
hmlted to, bridges caused by the operator or by the operator's employees, agents,
contractors, subcontractors or representatives m the performance of any actlwty
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 w~thln
the t~me hmlts specified above shall not cause the apphcat~on for the permit to be deemed
approved
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(f) Each Gas Well Permat 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 permat,
(3) Specify the date by which dnlhng must commence on at least one well covered by
the permit otherwise the penmt expires (such date shall not be less than one year after the
date of assuance) A one year extension of time may be granted ff existing conthtaons are
the SaiTle,
(4) Specify that if dnlhng ~s commenced on at least one well covered by the permit
before the permit expires, the permit shall continue until the wells covered by the penmt
are abandoned and the s~te restored,
(5) Incorporate, by reference, the insurance and security reqmrements set forth m
Section 35-508 and Sectaon 35-509 of this Article,
(6) Incorporate, by reference, the requirement for periodic reports set forth an Section
35-512 of th~s Article and for Notice of Activitaes set forth in Sec 35-513,
(7) Incorporate the full text of the release of hablhty provisions set forth an Section
35-508(e)(1) of this Artaele,
(8) Incorporate, by reference, the conditaons of the apphcable Development Plat,
applicable Specific Use Penmt or Planned Development Zoning District
(9) Incorporate, by reference, the infonnataon contaaned m the permit application,
(10) Incorporate, by reference, the applicable rules and regulations of the Rmlroad
Commission, anclud~ng the applicable "field rules",
(11) Specify that no dnlhng operations (including the construction of internal private
access roads) shall commence tmtfl the operator has provided the security reqmred by
Section 35-509 of this Article,
(12) Contaan the name, address, and phone number of the person designated to reeeave
notices from the City, which person must be a resident of Texas that can be served in
person or by registered or certafied marl, and
(13) Incorporate by reference all permits and fees required by the F~re Code
(g) The decision of the Fire Marshal to deny an apphcation for a Gas Well Permit shall be
prowded to the operator an writing wathm l0 days after the decasaon, including an
15
explanation of the bas~s for the decision, ~f requested by the operator The operator may
appeal any such denial to the Construction Rewew Board
(h) If an apphcatlon for a Gas Well Permit ~s demed by the Fire Marshal, nothing herein
contained shall prevent a new penmt application from being submitted to the City for the
same well
Sec. 35-512 Periodic Reports
(a) The operator shall notify the F~re Marshal of any changes to the following ~nformation
~mmerhately, within one bus~ness 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) w~th supervisory
authority over drflhng or operations activities,
(3) The name, address, and phone number of the person designated to receive
notices from the City, whmh person must a resident of Texas that can be served m person
or by registered or certified mall, and
(4) The operator's Emergency Action Response Plan ~ncludlng "drive-to-maps" from
pubhc rights-of-way to each drill s~te
(b) The operator shall provide a copy of any 'hncldent 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 notffies the Fire Marshal that the well has
been abandoned and the s~te restored, the operator shall prepare a written report to the
Fire Marshal identifying any changes to the information that was Included ~n the
application for the apphcable Gas Well permit that have not been previously reported to
the City
See 35-513 Notice of Aetlwt~es Any person who intends to re-work a well using a dnlhng
rig, to fracture stimulate a well after initial completion, or to conduct seismic exploration
~nvolwng explosive charges shall g~ve written not,ce to the City at least 10 days before the
activities begin The notice shall identify where the act~wt~es will be conducted and shall
describe the activities m reasonable detail, ~ncludmg but not limited to the duration of the
activities and the time of day they will be conducted The notice must also prowde the address
and 24-hour phone number of the person conducting the act~vmes The person conducting the
actiwt~es will post a sign on the property glwng the public notice of the actiwties, including the
name, address, and 24-hour phone number of the person conducting the activities If the City
determines that an inspection by the F~re Marshal ~s necessary, the operator will pay the C~ty's
customary charge for the inspection
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Sec 35-514 Amended Gas Well Permits
(a) An operator may submit an apphcatlon ~o the F~re 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 s~te or
operation site that is shown on (or incorporated by reference as part of) the ex~st~ng
penmt, or to otherwise amend the ex,sting permit
(b) Applications for amended Gas Well Permits shall be in writing, shall be on forms
promded by the Department of Planning and Community Development, shall be s~gned
by the operator, and shall include the following
(1) The apphcat~on fee as set by City ordinance,
(2) A description of the proposed amendments,
(3) Any changes to the Information submitted with the apphcatlon for the ex~stlng
Gas Well Permit (if such information has not previously been prowded to the City),
(4) Such addlt~onal lnformat~on as is reasonably required by the F~re Marshal to
demonstrate comphance with the apphcable Development Plat, applicable Specific Use
Permit or Planned Development Zoning District, and
(5) Such add~tlonal reformation as is reasonably required by the F~re Marshal to
prevent ~mmment destruction of property or injury to persons
(c) All apphcat~ons for amended Gas Well Permits shall be filed with the Department of
Planning and Community Development, and the department shall immedmtely fonvard
all apphcatlons to the Fire Marshal for review Incomplete applications may be returned
to the applicant, in which case the City shall prowde a written explanatxon of the
defimenc~es, however, the C~ty may retmn a processing fee as determined by the Fire
Marshal The City may return any application as incomplete if there as a d~spute pending
before the Railroad Commlssxon regarding the determination of the operator
(d) If the activities proposed by the amendment are not materially different from the
activities covered by the ex~stmg Gas Well Permit, and if the proposed activihes are m
conformance with the apphcable Development Plat, applicable Specific Use Permit,
Planned Development Zomng Dmtnct, then the F~re Marshal shall approve the
amendment w~th~n 10 days after the application is filed
(e) If the act~vltles 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 wah the apphcable Development Plat, apphcable Specffie Use Permit or
Planned Development Zoning D~stnct, then the F~re Marshal shall approve the
amendment within 30 days after the application is filed If, however, the act~wtles
17
proposed by the amendment are materially d~fferent and, an the judgment of the F~re
Marshal, maght create a risk of ~mmanent destruction of property or anjury to persons that
was not assocmted w~th the act~mtaes covered by the exastmg penmt or that was not
otherwise taken rote consaderataon by the exasting permat, the Fare Marshal may reqmre
the amendment to be pmcassed as a new Gas Well Permit apphcat~on
(f) The failure of the Fare Marshal to review and ~ssue an amended Gas Well Penmt wathln
the tame hmats specffied above shall not cause the apphcatlon for the amended penmt to
be deemed approved
(g) The decasaon of the F~re Marshal to deny an amendment to a Gas Well Penmt shall be
promded to the operator an wntmg within 10 days after the decision, ~ncludlng an
explanatnon of the basis for the demsmn The operator may appeal any such demal to the
Caty Council
See 35-515. Transfer Of Gas Well Permats A Gas Well Permit may be transferred by the
operator wathout the consent of the Caty ffthe transfer is ~n writing signed by both parties, If the
transferee agrees to be bound by the terms and conditions of the transferred permit, if all
mformat~on previously provided to the City as part of the apphcat~on for the transferred permat as
updated to reflect any changes, if the transferee promdes the insurance and security required by
Section 35-508 and Section 35-509 of thas Artmle The ~nsurance and security prowded by the
transferor shall be released ~f a copy of the written transfer is prowded to the City The transfer
shall not relieve the transferor from any hablhty to the Caty ansang out of any actavltaes
conducted prior to the transfer
See 35-516. Remedies Of The Caty.
(a) If an operator (or ats officers, employees, agents, contractors, subcontractors or
representataves) foals to comply wath any reqmrement of a Gas Well Permit 0ncludang
any reqmrement incorporated by reference as part of the permat), the Fire Marshal shall
give written notace to the operator spemfy~ng the nature of the alleged foalure and g~vlng
the operator a reasonable time to cure, taking ~nto consideration the nature and extent of
the alleged foalure, the extent of the efforts mqarred to cure, and the potential impact on
the health, safety, and welfare of the community In no event, however, shall the cure
penod be less than 30 days unless the alleged foalure presents a risk of ammment
destmctaon of property or injury to persons or unless the alleged foalure anvolves the
operator's foalure to promde penothc reports The Fire Marshal may assue a Stop Work
Order under the Fare Code
(b) If the operator does not cure the alleged failure w~thln the time spemfied by the Fare
Marshal, the Fire Marshal may notafy the Roalroad Comm~ssaon and request that the
Railroad Commass~on take appropriate action (w~th a copy of such notme promded to the
operator), and the City may pursue any other remedy avoalable under thru Artacle
18
(c) If the operator does not cure the alleged failure within the t~me specified by the Fire
Marshal, the F~re Marshal may upon recommendation of the Construction Advisory
Board
(1) Recommend to the C~ty Council that the Gas Well Permit be suspended until the
alleged fmlure is cured, or,
(2) If the operator fails to lmtlate and diligently pursue a cure recommend to the City
Council that the Gas Well Permit be revoked
(d) The dec~sxon of the F~re Marshal to recommend suspension or revocation of a Gas Well
Penmt shall be provided to the operator ~n 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 appheation a new Gas Well
Permit for the same well
See 35-517.. Enforcement, Right of Entry The Fire Marshal is authorized and directed to
enforce th~s Article and the provismns of any Gas Well Permit Whenever necessary to enforce
any prows~on of th~s Article or a Gas Well Permit, or whenever there ~s reasonable cause to
beheve there has been a wolatlon of th~s Article or a Gas Well Permit, the Fire Marshal, or h~s
designated representative, may enter upon any property covered by this Article or a Gas Well
Permit at any reasonable t~me to ~nspeet or perform any duty ~mposed by th~s Article If entry ~s
refused, the City shall have recourse to every remedy provided by law and eqmty to gmn 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 th~s Article,
(2) fml 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 ($2,000 00) per day, subject to applicable State law Each day a violation occurs
constitutes a separate violation
SECTION 2 All rights and remedies of the C~ty of Demon, Texas, are expressly saved
as to any and all wolat~ons of the prows~ons of any other ordinance affecting gas dnlhng and
production which existed at the time of the effective date of this Article, and, as to such accrued
v~olatlon$ and all pending litigation, both civil and criminal, whether pending ~n 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 lntentaon of the City Council that ff any sectaon,
paragraph, sentence, clause, or phrase of this Ordinance as declared unconstatutional or otherwase
illegal by the vahd judgment or decree of any court of competent jurisdiction, such event shall
not affect any of the remammg phrases, clauses, sentences, paragraphs, and sections of flus,
sance the same would have been enacted by the Caty Council without such unconstitutional or
illegal phrase, clause, sentence, paragraph, or section
SECTION 4 Th~s Artacle shall be cumulative of all prowsaons of ordinances of the C~ty
except where the provasxons of this Article are an darect conflict wath the provasaons of such
ordanances, m which event the conflactlng provisions of such ordinances are hereby repealed
SECTION 5 This Ordinance shall become effectave 14 days from the date of its passage,
and the C~ty Secretary ~s hereby d~reeted to cause the captaon of this Artacle to be pubhshed
twace in the Denton Record-Chromcle, a daily newspaper pubhshed In the Caty of Denton,
Texas, within 10 days from the date of ItS passa/~i/~/o ~[~~J'/3U/t
PASSED AND APPROVED this the ~ day of ,200!
EULINE BROCK, MAYOR
ATTEST',
JENNIFER WALTERS, CITY SECRETARY
API~tl{OYED AS TO LEGAL FORM
2O