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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 3 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 4 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 8 (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 10 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 11 (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 12 (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 13 (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 14 (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 16 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