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HomeMy WebLinkAboutO-1947-348 e . Jv'f /" \ \ ORDI~~NCE NO. 348 AN ORDINANCE REGULATING 'rHE DRILLING" COMPLETION AND o PERA 1. TION OF OIL AND GAS WELLS WITHIN THE LTIvIITS OF THECITY Olil LA PORr.rE~ TEXAS" AND PROVIDING FOR TIfE PUBLIC SAFETY IN CONNECTION THER1WITHJ DECLARING AN EMERGENCY AND PROVIDING THE POLLOWING: ANY VIOLATION I " , OF ANY OF ']!HE TERMS OF' THIS ORDINANCE" WHET~ER HEHEIN DENOMINATED AS UNLAWFUL OR NOT, SHALL BE DEEMED A MISDEMEANOR; AND ANY PERSON CONVICTED OF ANY SUCH VIOLATION SHALL BE FINED IN THI~ SUM NOT EX- CEEDING ONE HUNDRED DOLLARS ($lOO.OO) i AND ANY NATURAL PERSON SO CONVICTED SHALL BE COMMITTED TO JAIL UNTIL SUCH FINE AND TIm COSTS ARE PAID. EACH DAY OF 'rHE CONTINUANCE OF SUCH VIOLATION SHALL BE CONSIDERED A SEPARATE Ol<~ENSE AND BE PUNISHED SEPARATELYj AND ANY PERSON" AGENT OR BlIPLOYEE ENGAGED IN ANY SUCH VIOLATION SHALL ON CONVICTION BE SO PUNISHED THEREFOR. BE IT ORDaINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF LA PORTE, TEXAS: Section 10 The word "person" whereever used in this Ordi- nance means and includes any natural person, corporation, associ- ation, partnership, receiver, trustee, guardian, executor, adminia- trator a~d fidu~i~y or representative of any kindo Section 2. It shall be unlawful for any person to drill or commence to drill a well for oil or gas within the limits of the City of La Porte, Texas, or to work upon or assist in any way in t~e prosecution of the drilling of any such well without a per- mit for the drilling, completion and operation of such well having been first issued by authority of the Board qf Commissioners of th V\ City of La Porte, Texas, in accordance with the privisions of this Ordinance. Section 30 The drilling, completion and operation of only one well ~or oil or gas may be authorized by permit as herein pro- vided, on any drilling block comprising approzimately twenty (20) acres and not less than eighteen (18) acres; and it shall be un- lawful to drill more than one well on each such block; prOVided, I I I . I . i however, that in the event a well is lost or abandoned as a dry hole, the permitee may relocate the well on the drilling block I, ,I 0', e e -2- involved and drill and complete such relocated well under the per-I mit for the first well by filing a plat and certificate showing I the abandonment of the first well and the location of the second wello Section 40 It shall be unlawful to drill any well for oil or gas within any of the streets or alleys of the City of La POJ:'te, Texas, or to- block or encumber or close up any street or alley in any drilling or producing operations except by special peJ:'mit by order of the Board of Commissioners, and then only ternporarilyo Section 5. In the event an application for a permit for the drilling, completion and operation of a well for oil or gas Shllll be made by any person not owning or not holding oil and gas lellses or drilling contracts from the owners of all lots, blocks or parcels of land included on or embraced within a drilling block a permit shall be issued to such applicant, his heirs, successors I and. assign~ only upon the following conditions in addition to such other conditions as may be provided in other sections of this Ordi... nIDlce, to-wit: The applicant shall be free to enter into such conI tracts and agreements with the owners of such other lots, blocks or tracts as he may be able to make. If agreements are not reach- ed with all owners of lots, tracts and blocks within the drilling block, then the oVlner or owners of any given lot or lots, block or blocks, tract or tracts, shall have the right to option by notice to the permitee given in writing witllin thirty (30) days after the Is~luance of a permit !'or a well on the drilling block involved, either (1) to treat his interest as a working interest and contri- but;e toward the actual cost and expense of drilling, completing and operating said well with all necessary appurtenances currently eac:h month in the proportion that the number of square feet in area owned by him in the drilling block, and thereupon receive the same proportion of the oil produced and saved from such well or it!:: value at the well at the option of the permittee and alike proportion of natural gas pl'oduced, saved and utilized or sold, or "'\,'\ h \ I j :j I , / e e -3- the value of same at the well at the option of' the permittee; or (2) to treat his interest as a royalty interest interest and re- ceive, delivered free of cost in the pipe line to which the well I rr..ay be connected, a share of all oil pl"oduc ed and saved from 8uc1;1 I well equal to one-eighth (1/8l of the pl"oportton of the whole I quantity of oil so produced and saved that the number of squar'e feet i.n the area owned by him bears to the number of square feet in such drilling block, or at the election of permittee to receive such proprotion of the value at the well of the oil so produced, and to receive a like proportion of the gas and casinghead gas produced, saved and utilized or sold, or at the election of per- mittee the value at the well of such proportion of gas or casing- head gas produced, saved and utilized or sold, or at the election of permittee the value at the well of such proportion of gas or casinghead gas produced, saved and utIlized or sold. If any owner does not exercise the rights and option above provided, the obli- gat ion shall then be upon the permittee, his heirs, successors and assigns, to malce settlement with such owner on the terms pro- vided in Option 2 above, providing for the payment of a one-eighth '.' .;" (~/8) royalty. If the owner of a lot or lots, block or blocks, - ....~~.,~ :.. , ~ract or tracts, shall exercise Option 1 above IOd treat his in- terest as a working interest, as therein provided, the permittee shall be entitled to reimburse himself for such owner's propor- \I) tionate part of the costs out of such owner's propoertionate part of the oil, gas and casinghead gas or the value thereof before making deliveries of products or settlement for the value thereof. If Option 1 is exercised by the owner of any lot or lots, block o.r blocks, tract or tracts, such owner shall, within the time pro- vided for notice of such election above set forth, file with the City Clerk a bond or other obligation executed by such owner as principal and by an authorized surety co~pany as surety, in which such principal and surety agree, bind and obligate themselves to pay to the permittee, his heirs, successors and assigns currently each month that proportion of the actual and necessary costs and I .1 e e -4- I expenses involved in the drill ing, completion and operat ion of such well that the number of square feet embraced within the lot or lots, block or blocks, tract or tracts of such owner bears to the total number of square feet in such drill~ng block, such bond to be approved by the Mayor and held by the City Clerk for the bene- fit of the beneficiaries therein. Permits shall be issued in all such cases upon. the condition that the permittee, his heirs, suc- cessors and assigns shall make settlement in accordance with the provisions hereof. Section 6. In case there should be filed with the Cit y Clerk and pending at the same time applications for permits to drill on any single drill ing block within the 11m its of the City made by more than one applicant, that application shall be granted if otherwise sufficient, which shall be made by the person holding the greater area of ground within the drilling block by ownership in fee or by lease or other contract authorizing the drilling and operation on land for oil or gas. Section 7. Every application for a permit to drill, com- plete and operate a well for oil or gas shall be in writing, signe I ' by the applicant or by some person duly authorized to sign same on his behalf. It shall be filed with the City Clerk and accompanied with a deposit of One Thousand Dollars ($1,000000) cash as a fee to the City. The application shall state the drilling block, and the particular lot and location in the block where the proposed well is to be located, and shall have attached to it certifiea VI photostatic copies of the deed, oil and gas lease or drilling oon- traot with the owners of land oovering the lot, b100k or traot 1n said drilling block over which applicant has oontrol for oil and gas or certificates of title satisfactory to the Board of Commis- sioners, to the end that the applioation will show what proportion '. I , , and what parts of the drilling block the applicant OWIlS in fee or holds under lease or drilling C'011 tract from the owners. The appl i- cant may withdraw the abstracts or certificates of title after the have been examined by the Board of Commissioners. The application shall also be accompanied by a plat or map of the drilling block~ e e -5- ~howing the designation of the lots, blocks or tracts owned or controlled by the applicant and showing the exact location of the proposed well which location shall be as nearly as practicable in the center of the drilling blocko The application shall also be accompanied by two (2) duly executed bonds, each given by th~ ap- plicant as principal and a sUl'ety company authorized to do busi- ness in the State of rl'exasas surety. One of these bonds shall run to the City of L'a Porte, 'l'exas, for the benefit of the City and all persons, firms and corporations concerned, conditioned that if the permit be e;:r>anted and if drilling operations be commenced there- under, the applicant and his assigns will comply with the terms and conditions of this Ordinance in the drilling and operation of a well; that the appl icant w ill restore the streest and sidewalks and other public placed of' the City which may be disturbed in the o.perations to their former condition will clear the block and lots of all litter, machinery, derricks and buildings erected or used in the drilling or operation of said well whenever the well shall he abandoned or the operation thereof discontinued; and that the applicant or bis assigns will pay any and all damages recoverable at law against him or them suffere~ by any person or corporation as to property in the City from fire or from oil, gas or water claused by or origlm\ting from the operations connected with such w,ello Such bond shall be in the sum of Twenty-fl ve Thousand Dol- lars ($25,000.00); provided, however, that if within thirty (30) days after the drilling and completion of said well no claims have '\i\ i ! bl3en presented against the applicant or his assigns under the term al:Pl condit 10ns of such bond, then the sum of same shall be auto- matically reduced to J?ive 'l'housand Dollars ($5,000000)0 The other bond above provided for shall run to the City of La. Porto, Texas, for the benefit of all persons, firms or corporations owning lots, blocks or tracts of land in said drilling block who have not exe- cuted at the time of the filling of such bond or who shall not exe cute during the term of said bond and prior to the accrual of 1 ia- b:tlity thereunder leases, dl~illlng contract, waiver or other form o.r con tract under which the applicant or his assIgns is or are e e '-6- authorized to operate the premises of said owner for the develop- ment and production of oil and gas, and shall be conditioned upon the settlement or payment by the applicant or his assigns for oil and gas in accoraw1ce with the provisions of this Ordinance. This bond shall be in the sum of Twenty Thousand Dollars (Gao,ooo.OO); provided, however, that the sum of the bond shall be automatically reduced by an amount in proportion to the difference between the total area of the drilling block and the total area owned by the appltcant in fee or covering which he has 1 eases from 0r drilling contracts with or waivers from the owners authorizing operations for the development and production of oil or gas. It is specifi- cally procided that in lieu or any surety bond 01' bonds required to be given hereunder the applicant may file with the City Clerk his personal undertaking or undertakings, which shall be in the same amount and shall contain the same conditions as hereinbefore provided with respect to surety bonds and which undertaking or un- dertakings shall be secured by United States G-ovcrnment securities or securities of the state of Texas or of counties or municipali- ties in the state of Texas, having a par value equal to the amount of the surety bond or bonds in lieu of which such undertaking or undertakings is or are given, which securities shall be deposited in escrow in a national bank jointly selected by the City Clerk and the ap~licant or his assigns attached to a copy of the written undertaking for which they are to be held as securityo Section 8. Notice of the filing of each application for permit shall be given by the applicant as follows: At least ten (10) days prior to the date of hearing on the application, a copy of notice in the fore hereina.fter prescribed shall be sent by re- gistered mail to each owner and lesses of lots, blocks and tracts in said dril11ng block not (owned by or under lease to the appli- cant, addressed to the last known address of such land and lease owners if known to the applicant; and a copy of such notice shall likewise be published at the cost of the applicant in every issue of the official paper of the City of La Porte, Texas, for ten (10) \ll Q e e \ 1 -7- days prior to the liate or such hearing. If the orfic1al paper be I published weekly, the publication shall be made in one issue there- . of for the period of time prescribed. Such notice shall state the lot and block number on which the a.pplicant is asking for a permit to drill and the date and place of heuring, andshall be in WOI'QS and figures as follows: "Notice is hereby given that , acting under and pursuant to the terms and provisions of AN ORDI- NANCE REGULATING THE LIMITS OF' THE Crry OF LA PORTE, TE.,'l{A3, AND PROVIDING FOR TIlE PUBLIC SAli'ETY IN CONNECTIO~ THEREVHTH, being Or- dinance No. , did, on the day of .-' 19_, file with the City Clerk of the City of La Porte, an appli- cation for a permit to drill a well for oil and/or gas upon Lot' No. ./- , Block No. , La Porte Townsite, in Drilling Dis- trict No. , as defined by Ordinance No. . A hear- i118 upon such application will be held in the office of the City Clerk ef the City of La Porte, Texas, at on the day of , 19_, at M" . Proof of such no- tice shall be made by the applicant by filing with the City Clerk an affidavit of the printer or publisher of tIle paper in which the notice is published containing a copy of the notice and stating the issue in which, an4 per'iod of time during which, the notice was published, and an affidavit of the applicant showing the date and to whom and the addresses to which the notice was mailed by the applicant, and proof that such a.dd.resses are the last address- es of the persons involved known to the applicanto .0\/\ I At the time fixed in said notice, a hearing on such appli- cation shall be held. in the office of the City Clerk. Section 90 The Board of Commissioners shall have the po- wer, and reserves the authority, to refuse any appltcation for a permit when, by reason of the location of the proposed well and the character and value of the permanent improvements already e- rected on the drilling block in question or adjacent thereto, and the use to which the land and surroundings are adapted for civic purposes, or for 3an~tary reasons, the drilling of an oil or gas e e -8- well will be a s~~ious disadvantage to either the health, safety, morals or welfare of the City and its inhabitantsj but when a per- mit shall be refused fo~ any of these reasons, but not otherwise, the deposit in cash as a fee made with the application shall be re- turned to the applicant. Except as hereinbefore provided, if an application be found by the Board of Commissioners to comply in all respects with the terms of this Ordinance, the City Clerk shall be authorized to issue a permit for the drilling, completion and operation of the well applied for. The granting and issuance of a permit for a well on a drilling block as provided in this Or- dinance shall automatically operate as a rejection and denial of all other pending application or applications for a well or wells upon the drilling block involved, or any portion or portions thcreofo Section 100 No permit shall be granted or issued for the drilling of a well except ~pon ground owned by the applicant or held by him under oil and gas lease or drilling contract from the owner, giving the owner's permission or authority to drill the well; and when a permit shall have been issued, the same shall terminate and become inoperative without any action on the part of the Board of Commissioners unless within ninety (90) days from the date of issue actual drilling of the well shall llave been com- mencedj and after the drilling of the well shall have commenced, the cessation of drilling operations prior to the completion of the well for a period of six (6) months shall ope~ate to terminate and cancel the permit and the well shall be considered as abandon- \1 cd for all purposes of this Ordinance and it shall be unlawful thereafter to continue the operation or drilling of such well without the issuance of another permitj provided that if said well shall be completed as a producer and shall thereafter cease to produce the permittee shall have the right to conduct deepening or reworking operations on said well within six (6) months after cessation of production without haVing to procure a new licenseo If and when any permit shall terminate and become inoperative as . e -9- in this section provided, or if and whe!! the permittee or his, as- signs shall file with the Board of Commissioners written notice of hil3 or their electinn to surrender his or their permit and abandon the premises covered thereby, then, if 110 claims under the bond or bonds, undertaking or undertakings shall have been filed within thtrty (30) days, the City Clerk, shall return the bond or bonds, undertaking or undertakings and/or security or securities thereto- fOl~e furnished by the permittees in conneotion with such permit; and if claims are filed within such time, upon the satisfaction or defeat of such claims such bond or bonds, W1dertaking and/or se- CUI"ity or securities shall thereupon be returned to the permittee or his assigns. Section ll. Neither this Ordinance nor any permit issued her"eunder shall be interpreted to grant any right or 1 icense to thEl permittee to enter upon or occupy in any respect in drill ing or production operations, any land except by tne written consent of the owner; nor shall it limit or prevent the free "right of any lot owner to contract for the amount of royalty to be paid with reS1pect to his own land or other cohsideration therefor, or for , damages, rights or privileges with respect theretoo Section 120 In operations under a permit, the permittee or his assigns must observe the following rules, and the failure to observe same shall be unlawful, to-wit: (a) All peMlanent oil tanks or battery of tanks must be sur'rounded by a dike or ditch of at least the capacity of the tank V\ or battery of tankso (b) No flow tank, unless it is en~irely buried, or other oil tank of any size, shall hereafter be placed nearer than one I power Planr hur.ldred fifty (l50) feet to any derrick, rig, building, or boiler of any description. (c) No field working tank haVing a capacity of ten thou- sand (10,000) barrels or more shall hereafter be bui.lt nearer than tWCI hundred (200) feet (measured from shell to shell ) to any othe' like tank or' tankso (d) Printed signed reading: "DANGEROUS, NO SMOKING AL- . e -lO- LOWED", or similar words, shall be posted in conspicuous place!s on each producing drilling unit. (e) All permittees' premises shall be kept clear of high grass, weeds and combustible trash, within a radius of one hundred (100) feet around an oil tank, tanks or producing wells. (f) Open earthen storage for oil is prohibited. (g) All oil tanks, where there is a gas ha"ard, shall be gas tight a~Q provided with proper gas vents. (h) No forge or open light shall be placed inside the derrick of a well showing oil or eaSe (i) Boilers must be equipped with steam lines for fight- ing fire and must not be set nearer than one hundred (lOO) feet to any producing well. (j)' All oil and gas pipe lines laid upon or across a pub- lic road or hifflway must be buried to a reasonably safe depth. (k) Wherever available and practicable, electric lights and power shall be installed in congested drilling areas. (1) A minimum of nine hundred (900) feet of surface cas- ing shall be set and cemented with sufficient cement to fill the annular space back of the casing to the surface. Cementing shall be by the pump and plug method. Cement shall be allowed to stand a minimum of forty-eight (48) hours before drilling the plug. The p~sition of the oil ho~izon shall be determined by coring or test- ing and the producing string swung and cemented at the top thereof (m) A blow-out preventer, control head and other con- nections for keeping the well under control at all times shall be installed as soon as surface casine is set. The blow-out preven- ter on the second string shall be tested against pump pressure at least once every twenty-four (24) hours. All control equipment shall be in good working order and condition at all times. (n) All wells shall be equipped with a Bardenhead with a working pressure of not less than two thousand (2,000) pounds per square inch. The Bradenhead shall not be welded; and the same shall be equipped with the prope~ pipe connection and vavle ac- cessible at the surface. \/) 1 j I ! .1 !i .. . e -11- (0) No boiler or electric lighting generator shall be placed or remain nearer than one hundred fifty (150) feet to any producing well or oil tank. (p) Any rubbish or debris that might constitute a fire hazard shall be removed to a distance of at least one hundred (100) feet from the vicinity of wells, tanks and pump stations. All waste shall be tiurned of disposed of 1n such manner as to a- v'oid creating a fire hazard or poluting streams or fresh water strata. (q) All well heads, pits and tank batteries shall be B.dequately protected with "man-proof II fencing. Section 13. Any violation of any of the terms of this Ordinance, whether herein denominated as unlawful or not, shall be deemed a misdemeanor; and any person convicted of any such vio- lation shall be fined in the sum not exceeding One Hundred Dollars ($100.00); and any natural person so convicted shall be com~itted to jail until such fine and the costs are paid. Each day of the continuance of such violation shall be considered a sepal"'ate of- fense and be punished separately; and any person, agent or employ- ee engaged in any such violation shall on conviction be so p'lUlish- ed therefor. Section 140 Any and all Ordinances of the City which are in conflict with any of the terms of this Ordinance be and the sam are to the extent of the conflict hereby rcpealedo Section 15. If any part of this Ordinance or any require- ment thereunder shall be held by a court of competent jurisdiction such invalidity shall not affect the validity of any other part or other requirement herein. Section l6. That an Cl.\(H'~';)l1ey e:.r.ists constituting an imperative public necessity that the rule requiring Ordinances to be read at three several meetings be suspended and tIlis Ordinance take effect and be in force from and after its passage and ap- proval, and it is so ordainedo 'Vl 19470 . -12- e Passed and approved this" the 3rd day of November" A. Do ATrET't Clerk of e, Tex.El~. (" no ~. ..... \ II La La Porte" - f I ' ,.:' .f 11 ~ r .1 I I ,I ,. .. hole, the permitee may relocate the well on ths drilling block Section 3. The drilling, completion ~nd operation of only one well for oil or gas may be authorized by permit as herein pro- vided, on any drilling block comprising approBimately twenty (20) acres and not less than eighteen (18) acres; and it shall be un- lauful to drill more than one well on each such block; provide,i, however, that in the event a well is lost or abandoned as a dr:y . ~---" ~ , Ordinance. trator a~d fiduci~y or representative of any kind. Section 2. It shall be unlawful for &ny person to dri.ll or commence to drill a well for oil or gas within the limits elf the City of La Porte, Texas, or to work upon or assist in any way in the prosecution of the drilling of any succ well without a per- mit for the drilling, completion and operatio~ of such well having been first issued by authority of the Board of Commissioners af th City of La Porte, Texas, in accordance with tbe privisions of this .......-.. , Section 1. The word wpersonBU whereev(:-)r used in this Ordi- nance means and includes any natural person, corpora.tion, assc)ci- ation,p pat" tn.ership, receiver, trustee, guardia.n, executor, adnlinia ARE PAID. EACH DAY OF THE CONTINUANCE OF SUC:I VIOLATION SHAIJ~ BE CONSIDERED A SEPARATE Oli""'FENSE AND BE PUNISHED SEPARATELY; AND AJ\'!Y PERSON, AGENT OR EMPLOYEE ENGAGED IN ANY SUCH VIOLATION SHALL ON CONVICTION BE SO PUNISHED THEREFOR. BE IT ORDAINED BY THE BOARD OF COMMIS,3IONERS O? THE CITY OF LA PORTE, TEXAS: J' '- -'" ~ ~,t ~. ----, 'l I ORDINANCE NO. ;48 AN ORDINANCE REGULATING. THE DRILLING" CO!iPLETION A11D OPERA TION OF OIL A!\ID GAS WELLS WITHIl'! THE LIUITS O.P THECITY OF LA :?ORl'E TinS, AND PROVIDING FOR TIfE PUBLIC SAFETY IN CONNECTION THE.'1:~":HTH D~CLARING AN ElAERGENCY AND PROVIDING THE 1410LLOWING: ANY VIOIJ~TIOl~ OF A~\lY OF THE TERMS OF THIS ORDINANCE, WH.'ET~1 HE.3EIN DENm,UN1LTED AS UI\.1LAWFUL OR NOT, SHALL BE DEEl\~ED A MISDEViEANOR; P..~1D ANY PE:~ON CONVICTED OF ANY 8UCH VIOLATION SHALL BE FlNE~ IN TEE 8UM NOT EX- CEEDING ONE HUND::mD DOLLARS ($100.00) j AND ANY NATURAL PERSON SO C01~VICTED SHALL BE COMI\1ITTED TO JAIL UNTIL SUCH FINE AND TIIE G03TS e '" ,.- '---...... /" . :} ~' { . , Section 5. In the event an app1icati~n for a permit for the drilling, completion and operation of a well fOl" oil or gi!1S shall be made by any person not owning or not holding oil and gas leases or drill ing contracts from the owners of all lots, blol~ks or parcels of land included on or embraced wi';hin a drill ing block a permit shall be issued to such applicant, his heirs, succeS~iOJ:'>S and assigns only upon the following condltiono in addition to such other conditions as may be provided in other oections of this Ordi nancel! to,,\'lit: The applicant shall be free to enter into SUCll con tracts and agreements with the owners of such other lots, blocku or tracts as he may be able to make. If agreements are not re:ach.. ad with all owners of lots, tracts and blocks within the drill.ing block, then the owner or owners of any given lot or lots, block or blocks, tract or tracts, shall have the right to option by notice to the permitee given in writing within thirt~' (3D) days after ths 1suuance of a permit for a well on the drilling block involved, either (1) to treat his interest as a working interest and contri- bute toward the aotual cost and expe~se of drilling, completln~ and operating said Viell \vi th all necessary app.J.rtenances currently each month in the proportion that the number of square feet in area owned by him 1n the drilling block, and thereupon receive the same proportion of the oil produoed and saved from such well OJ? its value at the \VeIl at the option of the permittee and a likE~ proportion of natural gas produced, saved and 1ltilized or soldJ or Porte, Texas, or to block or encumber or close up any street or alley in any drilling or producing operation~ except by special perm1.t by order of the Board of Commissioners, and then only tempora.rily. Section 4. It shall be unlawful to drill any well for oil or gas within any of the streets or alle~"s of the City of La well. involved and drill and complete such relocatCld well under thE! per- mit for the f.irst well by fil ing a plat and {}ert1ficate showi.nr:; the abandonment of the first well and the 10Lation of the second -2- . , j ! _....,- ~, ..--..-/ - . .......---/ .-' ,. ~. ~.- :- . , shall be entitled to reimburse himself for such o\'mer's propol'. tionate part of the costs out of such owner's propoertionate part of the oil, gas and Casinghead gas or the value thereof beforEI making deliveries of products or settlement for the value ther'eof. If Option 1 is exercised by the owner of any lot or lots, bloc,k or blocks~ tract or tracts, such owner shall, within the time pro- vided for notice of such election above set fc,rth, file with the City Clerk a bond or other obligation executed by such owner as pr~ncipal and by an authorized surety company as surety, in which such principal and surety agree, bind and obligate themselves to pay to the permittee, his heirs, successors and assigns currently each ffionth that pr~portion of the actual and necessary costs and .- gation shall then be upon the permittee, his :h.eirs, sUccessor:~ and assigns, to make settlement with such ownGr on the terms pro- vided in Option 2 above, providing for the payment of a one-eigh'!:ib (liB} royalty. If the owner of a lot or lots" block or blockfl, t.r~ct or tracts, shall exercise Option 1 above gnd treat his in.. terest as a working interest, as therein prov~.ded, the permitt.ee . r-_ --....... ' does not exercise the rights and option above provided, the ob11.. the value of same at the well at the option of the permittee; or (2) to treat his interest as a royalty interE.lst interest and re- ceive, delivered free of cost in the pipe liLe to which the well ms.y be connected, a share of all oil produced and saved from st1ch well equal to one-eighth (l/S) of the proportion of the whole quantity of oil so produced and saved that tte number of square feet in the area owned by him bears to the number of square feet in such drilling block~ or at the election of permittee to receive such proprotion of the value at the well of t~e oil so produced, and to receive a like proportion of the gas and casinghead gas produced, saved and utilized or sold, or at the election of per- mittee the value at the well of such proporti~n of gas or casing- head gas produced, saved and utilized or sold, or at the elec'~ion of permittee the value at the well of such pr:Jportion of gas c)r casinghead gas produced, saved and uti.lized or solde If any owner -; , .':.--," ,--/ -3- :e .. . holds under lease or drilling ~ontract from the ouners. The appli cant lnay withdraw the abstracts or certificates of title after the have been examined by the Board of Oommissioners. The app11cati~n shall also be accompanied by a plat or map of the drilling block, ~ /2ii " ;' said drilling block over which applicant has control for oil B.n6 gas or certificates of title satisfactory to the Board of Co~mis- sioners, to the end that the application will show what proportion and what parts of tIle drilling block the applicant owns in ~ee or tract with the owners of land covering the lot, block or tract in operation on land for oil or gas. Section 7. Every application for a permit to drill, com- plete and operate a well for oil or gas shall be in writing, signe by the applicant or by some person duly autho~ized to sign same on his behalf. It shall be filed with the City Clerk and accompanied with a deposit of One Thousand Dollars ($1,000.00) cash as a fee to the City. The application shall state the drilling block, and the particular lot and location in the block v,here the proposed well is to be located, and shall have attachec to it certified photostatic copies of the deed, oil and gas lease or drilling con- '.~....--.. 'o' . /.~. ,e Clerk and pending at the same time applications for permits to drill on any single drilling block v1ithin the limits of the C1'ty made hy more than one applicant, that application shall be granted if otherwise sufficient, which shall be made l:Jy the person holding the greater area of ground within the drilling block by ownersh~p in fee or by lease or other contract authorizing the drilling and ,_....--/ cessors and assigns shall make settlement in accordance with ~~e provisions hereof. Section 6. In case there should be filed with the City ,- ." - ..e such cases upon the condition that the permittae, his heirs, s'~c- expenses involved in the drilling, completion ~nd operation of suc uell that the number of square feet embraced ~ith1n the lot or lots, block or blocks, tract or tracts of such owner bears to ':;he total number of square feet in s1.1ch drilli,ng block, such bond ~~o be approved by the Mayor and held by the 01 ty ,:nerk for the .berle... fit of the beneficiaries therein. Permits shall be issued in all -4- ~.. . . anii conditions of. such bond, then the sum of sa.me sha~l be auto... matically reduced to Five Thousand Dollars ($0,000.00). The clt:'lSr bond above provided for shall run to the City of La ~orte, Te,,:as, for the benefit of all persons" firms or corporations owning lots, blocks or tracts of land in said drill ing block who have no~ elXG= cuted at the time of the filling of such bond or who shall not. exe cute during the term of said bond and prior to the accrual of l~a- bL.ity thereunder leases" drilling contract, rralver or other f'ol'l{d of con tract under VJhich the applicant or his f...ssigns is or are. .t.. and other public placed of the City which may be disturbed in the operations to their former condition will clear the block and lots of all litter, machinery, derricks and buildings erected or uflEld in the drilling or operation of said well whenever the well shall be abandoned or the operation thereof discont lnued; an& that 1ihe applicant or his assigns will pay any and all damages recover~lble at law against him or them suffered by any pepson or corporatton as to property in the City from fire or from oil" gas or wateII ca.used by or originating .from the operations connected T:-.Ii th stlch well. Such bond shall be in the sum of Twenty-five Thousand I~l- la:rs ($25,000.00); provided" however, that if within thirty (ZiO) days after the drilling and completion of said well no claims have been presented against the applicant or his assigns under the term . . '-....:.:... / a well; that the appl icant w Ul restore the sijreest and s ide1.7Ellks the permit be granted and if drilling operations be commenced ther~- under" the applicant and his assigns will comply ~ith the ternls and conditions of this Ordinance in the drilling and operation of .. ,. "'"----' e all persons, firms and corporations concerned, conditioned thut if showing the designation of the lots, blocks o.~ tracts owned 0]:' contr::>lled by the applicant and showing the e:ract location of the proposed well which location shall be as nearly as practicablc! in the center of the drilling block. The application shall also bg acco~panied by two (2) duly executed bonds, each given by the ap- plicant as principal and a surety company aut:~lorized to do bu~~i- ness 1n the State of Texasas surety. One of ;hese bonds shall run to the City of La Porte, Texa.s" for the benefit of the City a.nd -5- ...J _./ . . --....... . ,. ----.... ." \ . . ----.". .. e ...---............ " .- . . -6... authorized to operate the premises of said owner f~r the develop= ment and production of oil and gas, and shall be conditioned upon the sett13ment or payment by the applicant or 111s assigns for oil and gas iLl accordance \1ith the j,:>roviaions of this Ordinanceg This bond shal:~ be in the sum of Twenty Thousand Dollar's (~20" 000.00) ; provided" ~owever, that the sum of the bond sha1l ~e automatically reduced b;'T an amount in proportion to the difference between the total area of the drilling block and the total area o~ned by the applicant in fee or covering which he has leases f!'ori~ nr drill ing contracts ~ith or waivers from the owners authorizing operations for the development and production of oil or ga~. It is specifi- c&lly prooided that in lieu or any surety bond or Donds required to be given hereunder the applicant may file with t~o City Clerk his perso~lal undertal{ing or undertakings, which shall be in the same amou~lt and shall contain the same conditions as hereinbefore provided ',ilith respect to surety bonds and which undertaking or un- dertaking~ shall be secured by United States Government securities or securities of the state of Texas or of counties or municipali- ties in the State of Texas, having a par value equal to the amount of the su!>ety bond or bonds in 1 ieu of which such undertaking or undertakings is or are given; which securities shall be deposited in escrow in a national bank jointly selected by the City Clerk and the ap~llcant or his assigns attached to a copy of the written undertakine for which they aX'e to be held as secur-:;. ty. Section 8. Notice of the filing of each application for permit shall be given by the applicant as fo1lo~sg At least ten (10) days prior to the date of hearing on the application, a copy of notice in the fore hereinafter prescribed shall be sent by re= gistered oa11 to each owner and lasses of lots, blocks and tracts in said dpilling block not .owned by or under lease to the appli~ cant, addressed to the last known address of such land and lease owners if known to the applicant; and a copy of such notice shall likewise De published at the cost of the applicant i~ every i~sue of the official paper of the City of La Porte, Texas, for ten (10) pu~poses. or for sanltary reasons, the drill1~g of an 011 or ga3 the character and value of the permanent improvements already e.. rected on the drilling block in question or adjacent thereto, ~1d th.3 use to which the land and surroundings are adapted for ci~,1.~ pct'mit when, by reason of the location of the proposed well and Vier, and reserves the authority, to refuse an:1 application fOl~ Ii tice shall be made by the applicant by filing with the City Clel'k an affidavit of the printer or publisher of the paper in which 1ihe notice is published containing a copy of the notice and stating the issue in which, and period of time during which, the notice was published, and an affidavit of the applicunt shorling the da1;e and to whom and the addresses to which the notice was mailed by the applicant, and proof that such addresses are the last addre:~s... es of the persons involved known to the applicant. At the time fixed in said notice, a hearing on such appli- cat ion shall be held, in the office of the C i t'll Clerk. . Section 9. The Board of Commissioner3 shall have the po- day of M!l 0 Proof of such nc)- , 19_, at Clerk @f the City of La Porte, Texas, at on the ine; upon such app1 icat ion will be held in the office of the C it:y trict No. , as defined by Ordinance No. A heal'- . I Block No. hoo. , La Porte Townsite, in Drill ing Di~l- 19_, file with the City Cler~ uf the City of La ?orte, nn appli- cation for a permit to drill a well for oil €or.d/ar gas upon Lot' dinance No. , did, on the ,__J da y 0 f NANCE REGULATING THE LII\UTS OF THE CITY OF LA PORTE, TEXA3, AND PROVIDING FOR THE PUBLIC SAFETY IN CONNECTION THERE'fHTH, being Or- acting under and pursuant to the terms and provisions of AN ORDI- and figures as follows; tDNotice is hereby given that -' to drill and the date and place of hearing, andshall be in wOl'd~ lot and block number on which the applicant is asking for a permit days prior to the liate of such hearing. If tJ'.e official paper be published weekly, the publication shall be made in one issue the.re of fo~ the period of time prescribed. Such notice shall state t~e -7- . . .. .. . ' / - - ~/ e / ..........-/ . . "- .-/ Section 10. No permit shall be granted or issued for the drilling of a well except upon ground owned by the applicant ()r held by him under oil and gas lease or drilli~g contract from the oflner, giving the owner r S permission or autho..:....ity to drill th4~ well; and when a permit shall have been issued, the same shall terminate and become inoperative without any action on the PW?t of the Board of Commissioners unless within ninety (90) days :f'rJm the date of issue actual drilling of the well shall have been CI)m~ menced; and after the drilling of the well sh!).ll have C0T11\'11enC4~d. the cessation of drilling ~perations prior to the completion of the \11ell for a period of six (6) months shall operate to terrll:Ln,ate " and cancel the permit and the vlell shall be considered as abandon.. Gd for all purposes of this Ordinance and it ,lhall be unlawful thereafter to continue the operation or dril1:lng of such well without the issuance of another permit; provided that if said w4!ll shall be completed as a producer and shall thereafter cease tC) produce the permittee shall have the right to conduct deepenirlg or rei"lorking operations on said well within s::x (6) months aft;eJ:" cessation of producti:m without having to procure a neW' licenEleo If and when any permit shall terminate and become inoperative af>> tl1.ereof. mo~als or welfare of the City and its inhabitants; but ~hen a per- mit ~hall be refused fo~ any of these reasons, but not otherwise, the ~oposit in cash as a fee made with the application shall be re turned to the applicant. Except as hereinbefore provided, if an application be found by the Board of Commissioners to comply in aJl respects with the terms of this Ordinance, the City Clerk shall be authorized to issue a permit for the drilling, completion and operation of the well applied for. The g~anting and issulance of a permit for a well on a drilling block as provided in thil3 ~r- dinance shall automatically operate as a rejection and denial of all other pending application or applications for a well or wl9l1s upon the drilling block involved, or any portion or portions well ~ill be a s~rious disadvantage to either the heslth, safety, -8- . . ,. " ./ . e ,/ . -, " . I " / -~ --' '.' (d) Print ed signed reading: "DANGEROUS, NO Str.0KING A1~- or boiler of any description. (c) No field working tank having a capacity of ten tho'.l- sand (10,000) barrels or more shall hereafter be built nearer t:~ t\VO hundred (200) feet (measured from shell t.) shell } to any othe like tank or tanks. e respect to his own land or other conslderatio:'l therefor, or for . damages, rights or privileges with respect th~)reto. Section 12. In operations under a permit, the perm::.t1:iea or his ass igns must observe the following rules, and the failur'3 to observe same shall be unlawful, to-wit: (a) All permanent oil tanks or batte~:oy ':)f tanks must ba surrounded by a dike or ditch of at least the capacity of the tan 01' battery of tanks. (b) No flow tank, unless it is antirzly buriad, or othJr oil tank of any size, shall hereafter be plac.sd nearer than one hUl1drod fifty (150) feet to any derrick, rig,ll building" poural" pIa e - Section 11. Neither this Ordinance nor any permit iSBuad hereunder shall be interpreted to grant any rIght or license 1:;0 -I;he permittee to enter upon or occupy in any respect in dr ill :i.n.3 or pr:>duction operations, any land except by 'i.ihe \"lritten cons 4;)n't of the owner; nor shall it limit or prevent the free right of a::lY lot owner to con tract for the amount of royal'~y to be paid wi1:;h or his assigns. e fore furnished by the permittees in connectio:.l with such perm:Lt; and if claims are filed vii thin such time, upon the satisfactic)n :::>r defeat of such claims such bond or bonds, undertaking and/oJ:" sa,. curity or securities shall thereupon be returned to the permittee . -9- ./' in this section provided, or if and when the j)ermittee or his,a.3.... siens shall file vlith the B:>ard of Oomrnissionors written noti(~e of his or their electinn to surrender his or thelr permit and abEUlcion the premises covered thereby, then, if no clalms under the bond or bends, undertaking or undertakings shall have been filed .11 thtn thirty (30) days, the City Clerk, shall retura the bond or bondi3,p undertaking or undertakings and/or security OJ." secux'ities theJ?e'to- '. .',-J . . , e ,r-- .- -10.. /-_.~ ---'\ e . LO\'lEDI1, or similar words, shall be posted in conspicuous place-s on each pr~ducing drilling unit. (e) All permittees' premises shall be kept clear of high grass, weeds and combustible trash, within a radius of one hundred (100) feet around an oil tank, tanks or producing wells. (f) Open earthen storage for oil is prohibited. (g) All oil tanks, where there is a gas ha9,ard, shall be gas tight nnd provided with proper gas vents. (h) No forge or open light shall be placed inside the derrick of a well showing oil or gas. (i) Boilers must be equipped with steam lines for fight- ing fire ~ld must not be set nearer than one hundred (100) feet to any producing well. (j) All oil and gas pipe lines laid upon or across a pub~ lie road 0:'" b.ie;hway must be buried to a reasonably safe depth. (k) \Vherever available and practicable, electric lights and power shall be ir-stalled in congested drilling areas. (1) A minimum of nine hundred (900) feet of surface cas- e ing shall be set and cemented with sufficient cement to fill the annular spgce back of the casing to the surface. Cementing shall be by the .~)ump and plug method. Cement shall be allorJed to stand a minimum of forty-eight (48) hours before drilling the plug. The pas it ion of the oil ho~izon shall be determined by coring or test- ing and tho producing string swung and cemented at the top thereof (m) A blow-out preventer, control head and other con- nections f~r keeping the well under control at all ti~es shall be ..r.- .'. e 1~stalled as soon as surface casine is set. ~he blow=out preven- - tel" on the second strine shall be tested against pump pressure at least once every twenty-four (24) hours. All control equipment shall be in good workinG order and condition at all t:i:.nes. {ni All wells shall be. equipped ~ith a Bardenhead with a working ?ressure of not less than two thousand (2,000) pounds per square inch. The Bradenhead shall not be welded; and the same shall be equipped with the proper pipe connection and vavle ac- r-~. " cessible a'~ the surface. , . . -'''~ I' -ll- (0) No boiler or electric lighting generator shall be placed or remain nearer than one hundred fifty (l50) feet to any producing ~ell or oil tank. (p) Any rubbish or debris that mie~t constitute a fire hazard shall be removed to a distance of at least one hundred (lOO) feet from the vicinity of wells, tanks and pump stations. All waste shall be tiurned of disposed of in such manner as to a- void creating a fire hazard or poluting streams or fresh water strata. .~ e (q) All well heads, pits and tank batteries shall be adequately protected with nman-proof~ fencing. Section l3. Any violation of any of the terms of this O~dinance, whether herein denominated as unlawful or not, shall be deemed a misdemeanor; and any person convicted 0f any such vio~ lation shall be fined L~ the sum not exceeding One Hundred Dollars (elOO.OO); and any natural person so convicted shall oe com~ittea to jail until such fine and the costs are paid. Each day of the continuance of such violation shall be considered a separate of- fense and be punished separately; and any person, agent ~r employ- ee engaged in any such violation shall on conviction ~e so punish~ ad therefor. .'/-""'.. :tt e ,..........--..... ,,----..... '\ .e' - Se~tion 14. Any and all Ordinances of the City which are in conflict with any of the terms of this Ordinance be and the sam are to the extent of the conflict hereby repealed. Se~tion l5. If any part of this Ordinance or any require- ment there'xnder shall.be held by a court of competent jurisdiction suc~ invalidity shall not affect the validity of any other part or other requirement herein. Seetion 16. That an <,;;lG':',-;.Jnu! e:.(lsts constitutir..g an imperative public necessity that the rule requir1n~ Ordinances to be read at three several meetings be suspended and this Ordinance take effect and be in force from and after its pasoag3 and ap- preval, and it is so ordained. . ....~... -12- . !~ " . 1947. PE:,ssed and approved this, the 3rd day of l\::>vember, A. D. -t La ,.--,.. e ~~. . . .." -........" - '. t:::.~ """ ....., t.. y 01' La porte, -_..--"