ORD 2003-05i � �, , l ;:
TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2005-05
AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, REGULATING THE
DEVELOPMENT OF OIL AND GAS WELLS WITHIN THE CORPORATE LIMITS OF
THE TOWN OF TROPHY CLUB; PRESCRIBING DEFINITIONS; AUTHORIZING THE
TOWN ENGINEER TO OVERSEE ENFORCEMENT; REQUIRING PERMITS;
PRESCRIBING APPLICATION CONTENTS; AUTHORIZING THE TOWN ENGINEER
OR HIS DESIGNEE TO REVIEW AND REPORT ON ALLAPPLICATIONS; PROVIDING
FOR PROCESSING OF PERMIT APPLICATIONS; PROVIDING LOCATION
REGULATIONS; PRESCRIBING CRITERIA FOR THE ISSUANCE OF A PERMIT;
REQUIRING A SECURITY INSTRUMENT; REQUIRING INSURANCE; PRESCRIBING
PERMIT REGULATIONS; PROVIDING FOR PERMIT SUSPENSION AND
REVOCATION; PROVIDING FOR SUPPLEMENTAL PERMITS REQUIRED FOR DEEP
DRILLING; PROVIDING REGULATIONS FOR THE USE OF STREETS AND ALLEYS;
PRESCRIBING ON-SITE REQUIREMENTS; PRESCRIBING STANDARDS FOR
OPERATIONS AND EQUIPMENT, PRACTICES AND STANDARDS; PRESCRIBING
REQUIREMENTS FOR STORAGE TANKS AND SEPARATORS; REQUIRING
IDENTIFICATION OF FLOW LINES AND GATHERING LINES; PROVIDING A
PENALTY NOT TO EXCEED THE SUM OF x;2,000.00 FOR EACH OFFENSE, AND A
SEPARATE OFFENSE SHALL BE DEEMED COMMITTED EACH DAY DURING OR ON
WHICH A VIOLATION OF THIS ORDINANCE OCCURS OR CONTINUES AND
PROVIDING FOR INJUNCTIVE RELIEF; PROVIDING A CUMULATIVE REPEALER
CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING FOR PUBLICATION; PROVIDING FOR ENGROSSMENT AND
ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town of Trophy CIub, Texas, (the "Town") has the authority and the power
to adopt regulations relating to the control of the public health of its citizens, the Town Council hereby
finds and declares that it is in the interest of the public health, safety and general welfare to establish
the regulations set forth in this ordinance for the regulation of oil and gas well development with the
corporate limits of the Town of Trophy Club;
WHEREAS, The Town Council of Trophy Club, Texas believes that oil and gas drilling
activity, without proper regulations, can pose health and safety hazards to the citizens of Trophy Club,
WHEREAS, The Town Council of Trophy Club, Texas deems it necessary to enact a
permitting system and regulations regarding all activity involving oil and gas exploration,
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
Page 1
SECTION 1
RIN M 011-0
The exploration, development, and production of oil, gas and other mineral hydrocarbons in
the Town is an activity which necessitates reasonable regulations. Such regulations will prevent or
lessen injury or property damage to citizens and make these activities conform to the Town
comprehensive plan and zoning ordinances. This Ordinance implements reasonable regulations for
present and future, mineral activities to protect the health, safety, and general welfare of the public and
accomplish the orderly and practical production of available mineral resources. All
provision/requirements of this ordinance applicable to an Operator are applicable to a Permittee and
all provisions/requirements of this ordinance applicable to a Permitee are also applicable to an
Operator.
SECTION 2
DEFINITIONS
All technical or oil and gas industry words or phrases used herein and not specifically defined
shall have that meaning customarily attributable thereto by prudent operators in the oil and gas
industry. For die purpose of this chapter, the following definitions shall apply unless the context clearly
indicates or requires a different meaning.
A. ABANDONMENT means "abandonment" as defined by the Texas Railroad Comrnission
and includes the restoration of the drill site as required by this Ordinance.
B. COMMISSION means the Texas Railroad Cornrnission.
C. CONSULTANT means a person familiar with and educated in the oil and gas industry who
has been retained by the Town.
D. DESERTION paeans the cessation of are operation at any drill site without compliance with
the provisions of this Ordinance relating to suspended operations, idle wells, or abandonment.
E. DISPOSAL WELL means any well drilled or intended to be drilled, including solutions and
liquids containing solids in suspension, produced from any such well.
F. DRILLING means any digging or boring of a new well to explore, develop, or produce oil,
gas, or other hydrocarbons, or to inject gas, water, or any other fluid or substance into the
earth.
G. DRILLING EQUIPMENT means the derrick, all parts and appurtenances to such structure,
and every piece of apparatus, machinery, or equipment used, erected, or maintained for use in
connection with drilling.
Page 2
H. DRILL SITE means the premises used during the drilling or re -working of a well.
EXPLORATION means geologic or geophysical activities, including seismic surveys, related
to the search for oil, gas, or other subsurface hydrocarbons.
J. GAS means any fluid, either combustible or non-combustible, which is produced in a natural
state from the earth and which maintains a gaseous or rarified state at standard temperature
and pressure conditions, and/or the gaseous components or vapors occurring in or derived
from petroleum or natural gas.
K. GAS WELL means any well drilled, to be drilled, or used for the intent or actual production
of natural gas.
L. IIIGH IMPACT AREA means any residential or commercial neighborhood zone where
there is an existing residential or commercial neighborhood use in the area of the proposed oil
or gas operation.
M. LESSEE means a person who has executed an oil or gas lease or sublease, or the owner of the
land or minerals, or his heirs, who conducts or carries on any oil or gas exploration,
development, and operation thereof, or a person conducting the operation for himself or
others.
N. LESSOR means the owner of surface or mineral rights who has executed a lease.
O. MAINTENANCE means the repair or replacement of any machinery, equipment, apparatus,
structure, facility, or parts used in connection with an oil or gas operation, site, drill site, or any
other work necessary to reduce fire hazards or hazards to employees, public health, safety, and
welfare.
P. NEW WELL means a new well bore or new hole established at the ground surface and shall
not include re -working of an existing well which is not abandoned.
Q. OIL OR GAS OPERATION SITE means the physical location where oil or gas operations
are conducted.
R. OIL WELL means any well drilled, to be drilled, or used for the intended or actual
production of liquid petroleum or petroleum products or enhanced recovery.
S. OPERATOR means any person drilling, maintaining, operating, pumping, or in control of a
well. If the operator is not the lessee under an oil or gas lease of any premises affected by the
provisions of this article, then such lessee shall also be deemed to be an operator. If no oil or
gas lease exists relating to any premises affected by this article, the owner of the fee estate in the
premises shall be deemed an operator.
T. OWNER means a person who owns the legal or equitable title in and to the surfaces of the
drill site or oil or gas operation site.
Page 3
U. PERMIT means a drilling permit issued or sought to be issued under this Ordinance
authorizing the drilling of an oil or gas well or other oil operations.
V. PERMITTEE means a person whom is issued a permit authorizing oil or gas operations, and
his heirs, administrators, executors, successors, and assigns.
W. PERSON means both the singular and plural and means a natural person, corporation,
association, partnership, receiver, trustee, guardian, executor, administrator and a fiduciary or
representative of any kind.
X. PROCESSING means the use of oil operations for gauging, recycling, compressor
repressuring, injection, reinjection, dehydration, stimulation, separation (including but not
limited to separation of liquids from gas), shipping and transportation, and gathering oil, gas,
other hydrocarbon substances, water or any combination thereof.
Y. PROPERTY OWNER means the real property surface record owner(s).
Z. RE -WORKING means reoccupation or re-entry of an existing well within the existing bore
hole or by deepening or sidetrack operations which do not extend more than one hundred
fifty (150') horizontal feet from the existing well bore, or replacement of well liners or casings.
AA. RURAL AREA means an area characterized by open space involving a proposed drill site of
not less than twenty-five (25) acres with no operations to be conducted widen two thousand
feet (2000') of a residence, school, or commercial use as defined by the Town Zoning
Ordinance.
BB. RIGHTS OF WAY means any street, highway, sidewalk, alley, avenue, recessed parking
areas, or other public rights-of-way, including the entire right-of-way.
CC. SEISMIC EXPLORATION mean the exploration of subsurface geologic condition by the
measurement of direct, refracted, and/or reflected or pressure waves within any number of
subsurface geologic units. Seismic exploration typically involves the generation of sound or
pressure waves by the use of explosives or vibration devices and data collection by the use of
geophones or hydrophones.
DD. SUMP or SUMP PIT means an earthen pit, commonly known as a "mudpit", lined or
unlined for the discharge of oil field wastes.
EE. TITLES. When the title of any Town official is used herein, it shall include that named
official and any duly authorized representative or designee.
FF. WELL means a hole(s) or bore(s) to any horizon, formation or strata for the purpose of
producing any oil, gas, liquid hydrocarbon, brine water, sulphur water or for use as an injection
well for secondary recovery or disposal or production of oil, gas, or other hydrocarbons from
the earth.
Page 4
GG. WELL SERVICING means maintenance work performed in any existing we11 before which
does not involve drilling or re -working.
SECTION 3
TOWN ENGINEER EMPOWERED TO OVERSEE ORDINANCE
A. The Town Engineer is authorized and directed to enforce this Ordinance. Whenever
necessary to enforce any provision of this Ordinance, or whenever the Town Engineer has
reasonable cause to believe any condition contrary to this Ordinance exists upon any premise
or in any building for which a permit has been issued, the Town Engineer or his designated
representative may enter such place at any reasonable time to inspect or perform any duty
imposed by this Ordinance. The Town Engineer shall have recourse to every remedy
provided by law and equity to gain entry. No owner or occupant or any other person having
charge, care, custody, or control of any building or premise shall fail or neglect after proper
demand to permit prompt entry by the Town Engineer.
B. The Town Engineer shall determine the necessity of luring a Consultant. The fees incurred
as a result of the Town Engineer and Consultant's review shall be paid by the applicant. The
Town Engineer may require additional or supplemental information before action is taken on
an application. The Town Engineer shall provide applicantwith an opportunity to withdraw an
application prior to engaging the services of a Consultant. The applicant shall be required to
pay to the Consultant a retainer to cover the cost of the services prior to Consultant's
commencement of the work.
SECTION 4.
PERMIT(S) REQUIRED
A. It shall be unlawful and an offense for any person acting either for himself or acting as an
agent, employee, independent contractor, or servant for any person to participate in oil, gas or
other hydrocarbons production activity within the corporate limits of the Town without a
permit having first been issued as provided for by the terms of this Ordinance. Additionally, a
permit shall be required when the primary access to the drilling site is by way of a Town street
or public right-of-way. Applications for such permits shall be available from the Public Works
Department.
B. When a permit has been issued for the mineral exploration or the drilling of a well, such
permit shall constitute sufficient authority for drilling, operation, production, gathering of
production, maintenance, repair, reworking, testing, site preparation consisting of rigs or tank
batteries, plugging and abandonment of the well, and any other activity associated with mineral
exploration. Such permit shall also constitute sufficient authority for the construction and use
of all facilities reasonably necessary or convenient in connection therewith, including gathering
Iines and discharge lines by the Permittee and its employees, agent and contractors. However,
in no case will any issued permit be applicable to more than one well.
Page 5
C. As to all wells, water and/or repressurizing or induction facilities and such other facilities as
may be covered by this Ordinance existing or previously permitted within the corporate limits
of the Town on the effective date of this Ordinance or which are in existence at the time the
land upon which the same are situated is annexed to the Town, no additional permit or filing
fee shall be required.
D. Permits shall be designated by the type of activity and the character of the area. There shall he
the following types of permits: high impact, rural and seismic. Any proposed activity which will
be conducted in more than one designated type of area shall be required to follow the permit
procedure for the most restrictive area included therein.
E. Before filing a site plan or preliminary plat, mineral owner shall notify surface owner by
certified mail, return receipt requested, and show proof of such notice to the Town. Mineral
owner has thirty (30) days before filing to designate such persons oil or gas operation location
on the surface owner's proposed plat or site plan.
F. Applicant shall complete dle application and deliver it and any additional required information
to the Town Secretary. Any costs of processing the application, including any unpaid fees of a
Consultant, shall be paid by applicant prior to the public hearing.
G. All permits require Council approval. Council shall review the application, Town Engineer's
and/or Consultants report and any other related information. Council may require any change
in the operations, plan, design, layout, fencing, screening, lighting, or other matters reasonably
required by the public interest, health, safety or welfare which are consistentwidi the standards
of the zoning districts in which the well is located and those districts which surround the well
site.
SECTION 5
APPLICATION CONTENTS
The application shall include full information, including the following:
(1) Appropriate fee as set by the Town Fee Ordinance in effect and as may be amended from
time to time;
(2) The date of the application;
(3) Name, address and telephone numbers for the mineral lessee, operator/applicant and surface
owner.
(4) For Rural Permits: The names and addresses of all property owners within 2000 feet of the
drill site property perimeter. For High Impact Permits: The names and addresses of all
property owners within 5000 feet of the drill site property perimeter.
(5) Site plan of the proposed operation showing the location of all improvements and
- equipment.
Pap 6
(6) Map showing proposed operation route and roads for equipment, chemicals, or waste
products used or produced by the oil or gas operation.
(7) Description of type, kind, size, and amount of major equipment used before and after
completion of drilling and re -working.
(S) Location and description of all improvements and structures within 500 feet of the well.
(9) Location of compressor, compressor control, or safety devices with explanation of operating
characteristics of each in any application for a permit for a gas repressurizing or injection
facility;
(10) Name of representative with supervisory authority over all oil and gas operation site activities
and a phone number where such person can be reached twenty-four (24) hours a day.
(11) Legal description of the property to be used for the oil or gas operation, the parcel, and the
production unit (plat description or metes and bounds bearings) and name of the geologic
formation as used by the Commission. Property recorded by plat should reference subdivision,
block and lot numbers.
(12) Proposed well name.
(13) Name and address of an individual designated to receive notice.
(14) Evidence of insurance information as required by this Ordinance.
(15) A survey of the production unit at a scale of 1 inch per 300 feet or greater by a certified
surveyor including:
a. Lengths and bearing of all boundary lines for production.
b. Exact acreage of the production unit.
C. Exact Iocation of die well within production unit with distances of a minimum of two
(2) adjacent boundary lines of the production unit.
d. Length of maximum diagonal within the production unit.
C. Geologic sections of the target production zone.
(16) Proposed bore hole size, casing program and cementing program;
(17) The proposed depth of alae well;
(1 S) Method of well completion;
Page 7
(19) Type of drilling (i.e. vertical shaft, Horizontal shaft, and/or slant bole);
(20) Copies of all reports required by the Texas Natural Resource and Conservation Commission
and Texas Railroad Commission;
(21) Required utilities during and after drilling and completion;
(22) Potential impact on noise, air, Iand, subsurface, and water resources;
(23) Projected life of production well;
(24) Control methods for fire and fugitive oil and gas emissions;
(25) Hours of drilling and completion operation;
(26) Copy ofTexas Department of Water Resources Form TDWR-0051 "Depth of Usable -Quality
Ground Water To Be Protected";
(26) Copies of Commission forms and drilling permit; and
(27) Statement under oath signed by applicant that the information submitted in the application is
true and correct.
SECTION 6
APPLICATION REVIEW
A. The Town Engineer or his designee, will review and report to the Town Council on all
applications received by the Town.
B. The Town Secretary shall forward any application and supporting materials to the 'Town
Engineer or his designee for review.
C. As further provided herein, the Town Engineer or lus designee shall review the application
within 30 days of filing. They will review the nature and location of the proposed oil or gas
operation and make recommendations to the Council about site plan design, construction,
installation, operation, and maintenance of the proposed oil or gas operation and/or storage
facility, and, if applicable, the following:
1. Alternate well Iocation due to adjacent land uses.
2. Air pollution control devices.
3. Noise and odor control devices.
4. Type of pump engine.
Page 8
5. Height of pump equipment.
6. Fire control measures, as required by and all applicable Town Ordinances and Codes.
7. Fencing, visual screening, and/or landscaping as may be required by this Ordinance.
8. Proof of contractual responsibilities of pump site and storage site maintenance.
9. Safety procedures.
10. Special handling, storage, or disposal of sludge/waste.
11. Hours of pumping operation.
12. Gas flaring.
13. Location of storage facilities.
14. Traffic loads or patterns, proposed street development, as required by this Ordinance,
and ingress/egress of vehicular traffic.
15. Water source used during drilling operation.
16. Full line location and route between the well head and storage facilities,
D. Screening and Landscaping.
1. Unless otherwise required, fencing, screening and landscaping shall be within the
discretion of the Town Council based upon the impact to adjacent areas and the
requirements of this Ordinance and the requirements of the Town's Zoning
Ordinance for the district in which the well site is located and surrounding districts.
2. fencing may be required during the drilling operations and/or separate fencing may be
required after completion of the drilling operations.
3. A six foot (6 ) solid screen fence around the entire perimeter of the site may be
required.
4. Any fence should be at least one hundred feet (100') from any well, equipment, or
structure within the site, but no closer than eight hundred feet (800') to any residential
property line.
5. All fencing shall be of a solid neutral color compatible with surrounding uses and shall
be maintained in a neat, orderly, secure condition. Neutral colors for fencing shall
include unobtrusive shades of sand, grey, green, blue, brown, or other colors approved
by the Town Council.
Page 9
6. Upon completion of a well as a commercial producer, any apparatus used in
the production of the well, including pump jacks, shall be enclosed with solid
privacy fence material as to prevent any entry by unauthorized persons and to
prevent well equipment from being seen. The enclosure shall remain locked
at all times unless the well is being serviced by the operator or its service
companies.
7. All sites in high impact areas shall have landscaping and shall be screened by a
fence enclosure constructed of any material compatible with surrounding uses
which effectively screens the site. Such shall be completed within thirty (30)
days after completion of drilling or reworking, or within thirty (30) days after
activation of an idle well in a high impact or urban area.
8. If landscaping or fencing for a rural or seismic application is required by the
Town Engineer or his designee or the Town Council, such shall be completed
within sixty (60) days after completion of drilling or re -working, or within sixty
(60) days after activation of an idle well.
9. Upon permit renewal, if the Town Planner determines the impact of the area
has changed from rural to high impact, screened fencing and Iandscaping shall
be required within thirty (30) days.
E. Before any oil or gas operation begins, all private roads used for access to the site and
the site itself shall be surfaced with crushed rock, gravel, or ore, or oiled and
continuously maintained to prevent dust and mud. Roads shall be at least thirty feet
(30) wide and shall provide for area drainage. These requirements may be altered at
the discretion of the Town Council after consideration of all circumstances, including
but not limited to the following:
Distances from public streets and highways and adjoining and nearby property
owners whose surface rights may or may not be leased by the Operator;
2. The purpose for which the property of such owners is or may be used;
Topographical features;
4. Nature of the soil;
5. Exposure to wind;
F. Upon completionn of review by the Town Engineer or his designee, a written report and
recommendation shall be made to the Town Council. The recommendation and reportmust
be completed within sixty (60) days of receipt of an application. If a consultant is retained,
Consultant will have thirty (30) days from receipt of the consultant's report to issue
Page 10
recommendations. However, taping into account die foregoing provisions, should the Town
Engineer feel that additional time is needed for die Consultant to submit recommendations, a
request for an extension may be submitted to die Town Council.
SECTION 7
PROCESSING OF PERMIT APPLICATIONS
A. High Impact Area Permits.
After a high impact permit application is submitted, the Town Engineer, if deemed
necessary, may retain a Consultant to evaluate the public impact of the proposed
activity. The Consultant shall study the application, proposed site, and proposed
operations or drilling program, and shall draft recommended restrictions or conditions
to be appended to the permit if issued, including but not limited to minimum
separation distance for drilling or other operations, maximum pressures for anticipated
operations, minimum test procedures for equipment, special safety equipment and
procedures, and prohibited operations or techniques. The Consultant shall
recommend noise reduction levels and screening where deemed appropriate. The
recommendation shall be completed and delivered to tie Town Engineer and
applicant widiin thirty (30) days after the consultant is retained. Applicant shall pay for
the cost of Consultant's study and recommendations prior to the public hearing.
2. After the report is received by the Town, the Town Secretary shall cause a notice of
public hearing to be published in the official newspaper of the Town, as designated by
the governing body. In no event will a public hearing be held earlier than 15 days from
the date of publication.
3. All persons with property located within five thousand feet (5000') of the proposed
drill site property perimeter, as shown by the latest Denton County Appraisal District
certified tax rolls, shall be notified of die public hearing by certified mail, return receipt
requested. The applicant shall pay four dollars ($4.00) for each notification letter.
These fees will be paid as part of the application process pursuant to Section V(1). No
notification letter shall be necessary if the applicant files a consent form, supplied by
die Town Secretary, signed and notarized, by each such property owner who would
have received notice pursuant to diis paragraph.
4. At the public hearing, the recommendation of the Consultant and/or Town Engineer
shall be presented and any interested party shall be allowed to speak for or against the
issuance of a permit. After the conclusion of the hearing, the Council shall approve or
deny the permit based upon the criteria herein. The Council may table any application
for up to sixty (60) days and direct that tie Town Engineer provide further
information.
5. After the public hearing, Council may approve or deny the permit based upon the
criteria set forth herein and may add any conditions necessitated by the health, safety,
and welfare of the public, whether or not they are included in the recommendations of
die consultant and/or Town Engineer.
Page l l
B. Rural Permit.
After the Town Engineer's report and recommendations have been received by the
Town, the Town Secretary shall cause a notice of public hearing to be published in the
official newspaper of the Town, as designated by the governing body, which hearing
shall be held at least fifteen (I5) days following such publication at the next available
meeting of the Council. The Council shall consider the application and grant or deny
the permit based upon die criteria set forth herein. The Council may table the
application for a period of up to sixty (60) days to obtain additional data from the
applicant or by ordering a study to be conducted by a Consultant. The cost of such
additional data shall be paid by the permit applicant.
2. All persons with property located within two thousand feet (2000') of the proposed
drill site property perimeter, as shown by the latest Denton County Appraisal District
certified tax rolls, shall be notified of the public hearing by certified mail, return receipt
requested. The applicant shall pay four dollars ($4.00) for each notification letter.
These fees will be paid as part of the application process pursuant to Section V(i). No
notification letter shall be necessary if the applicant files a consent form, supplied by
the Town Secretary, signed and notarized, by such property owners who would have
received notice pursuant to this paragraph.
3. At the public hearing, the recommendation of the Consultant and/or Town Engineer
shall be presented and any interested party shall be allowed to speak for or against the
issuance of a permit. After the conclusion of the hearing, the Council shall approve or
deny the peialiit based upon the criteria herein. The Council may table any application
for up to sixty (60) days and direct that the Town Engineer provide further
information.
4. After the public bearing, Council may approve or deny the permit based upon the
criteria set forth herein and may add any conditions necessitated by the health, safety,
and welfare of the public, whether or not they are included iii the recommendations of
the consultant and/or Town Erigincer.
C. Seismic Permit
A proper seismic application shall include:
a. A letter requesting a geophysical permit describing the proposed system, date
work will begin, and date work will end. A statement, approved by the Town
Attorney, shall be included in the permit relieving die Town of any liability for
damages which may result from such activity.
b. A copy of a valid and existing public liability insurance policy, as required by
this Ordinance.
C. A plat outlining the areas proposed to be covered by die survey.
Page 12
d. A description of the seismic method(s) to be used.
C. Requested time period to conduct onsite seismic testing.
2. The Town Engineer, after receiving authorization from the Town Council, may issue a
permit for the applicant to conduct such seismic or geophysical work if the work will
not create a public nuisance nor be contrary to public safety. The determination shall
include, but shall not be limited to, consideration of the following:
a. Whether the location of the proposed test, considering the geology of the area,
will reasonably be expected to damage waterlines, sewer lines, structures,
dwellings, or other area improvements.
b. Quality of the proposed seismic survey to be used in implementing the
exploration.
SECTION 8
LOCATION REGULATIONS
A. No oil or gas drill site or operation may be located:
1. Within fifty feet (50) of any street, right-of-way, alley, or utility easement.
2. Within one thousand feet (1000) of the property line of a cemetery, park, public or
private water supply well, or residential unit, without a notarized waiver by the
residential unit property owner and the party entitled to occupy the premises.
3. Within one thousand feet (1000) of die property line of any school or hospital.
4. In any public park unless authorized by State law and in compliance with applicable
provisions of this Ordinance.
5. In any Town streets or alleys.
B. No drilling or re -working shall occur within three hundred feet (300) of any oil storage tank,
ignition source, or building.
SECTION 9
CRITERIA FOR GRANTING OR DENYING PERMIT
A. The Council shall review the application, Town Engineer's and/or Consultant's report, and
any other related information and based upon such reports shall set the principal amount of
the security instrument. Granting the permit shall be conditioned on applicant submitting the
security instrument to the Town within thirty (30) days. The Council may require any change
Page 13
in the operations, plan, design, Iayout, fencing, screening, Iighting, or other matters. consistent
with the Town's land use regulations and other applicable health and safety ordinances. The
Council may accept, reject, or modify the recommendations in the interest of securing
compliance with Phis Ordinance, other Town Ordinances, and/or to protect the health, safety,
and welfare of the community.
B. The following criteria shall be used by Council when considering a permit request:
1. That the operations proposed are reasonable under the circumstances and conditions
prevailing in the area;
2. That die operations proposed are consistent with the health, safety, and welfare of the
public when and if conducted in accordance with the permit conditions to be imposed;
and
3. That the impact upon adjacent property and the general public of operations
conducted in compliance with the permit conditions are reasonable and justified,
balancing the following factors:
a. The right of owner(s) of the mineral estate to explore, develop, and produce
the minerals,
b. The availability of alternate drill sites, both presently and at other times during
the lease term.
C. The decision of the Council shall be final and in making its decision, it shall, have the power
and authority to refuse any permit to drill any well at any particular location within the Town,
when by reason of such particular location die drilling of such wells at the location would be
injurious to the health or safety of the inhabitants in the immediate area of the Town or would
not promote orderly growth and development of the Town. Each permit shall:
I . By reference have incorporated therein all the provisions of this Ordinance with the
same force and effect as if tlrrs Ordinance were copied verbatim in such permit.
2. Specify the location of the proposed drill site, well, or injection facility by a metes and
bounds description or by specifying a lot and block number and name of any
applicable addition.
3. Contain and specify that the term of the permit shall be for a period of one year from
the date of the permit.
4. Contain and specify such other terms and provisions as may be necessary in a
particular case to accomplish the purpose of this Ordinance.
5. Contain and specify that no actual operations shall be commenced until the Permittee
has complied with the bond and insurance provisions of this Ordinance.
Page 14
SECTION 10
SECURITY INSTRUMENT
A. A security instrument that covers each well must be delivered to the Town before the
issuance of a permit for a well. Approval by the Town Attorney of such security is required.
The instrument must provide that it cannot be cancelled without at least thirty 30 days' prior
written notice to the Town and, if the instrument is a performance bond, that the bond cannot
be cancelled without at least ten 10 days' prior written notice for non-payment of premium.
The instrument shall secure the obligations of the operator related to the well to:
(1) Repair damage, excluding ordinary wear and tear, if any, to public streets and
infrastructure, including but not limited to bridges, water lines, and other public
infrastructure, 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 Permit;
(3) Compliance with the insurance and security provisions set forth in this Ordinance;
(3) Payment of fines and penalties imposed upon the operator by the Town for any
breach of the well permit.
(4) Compliance with the performance standards set forth in this Ordinance.
(5) Prompt restoration to their former condition any public property damaged by the oil
or gas operation.
(6) Prompt payment of all fees of a Consultant whose services are engaged by the Town
pursuant to Section 3(B) of this Ordinance.
(7) Prompt repair of any and all damage to Town streets, as determined by the Director of
Public Works, caused by the equipment and vehicles used by Operator/ Permittee.
The Director of Public Works will prepare or cause to be prepared specifications to
be used for repairs. The costs of those specifications shall be paid by the
Operator/Perinittec.
B. The security instrument may be provided for individual wells or on a "blanket" basis for
multiple wells. The amount of the security shall be a minimum of $50,000 for any single
well and a minimum of $100,000 for multiple wells on a "blanket" basis.
C. The security will terminate when the Gas Well Permit is transferred, with respect to the
operator -transferor and if the operator -transferee provides replacement security that complies
with this section, when the well is abandoned and the site restored, and when the Town
Engineer consents in writing to such termination.
Page 15
D. An appeal of the determination of the amount of security required under this Article may be
made to the Planning and Zoning Commission for recommendation to the City Council for
final determination of the amount of security.
E The security instrument provided hereunder shall require the Permittee/Operator to expressly
release and discharge, defend, indemnify and hold harmless from and against all claims,
demands, actions, judgments, and executions which it ever had, or now have or may have, or
assigns may have, or claim to have, against the Town of Trophy Club, and/or its departments,
it agents, officials, officers, servants, successors, assigns, sponsors, volunteers, or employees,
created by, or arising out of personal injuries, known or unknown, and injuries to property,
real or personal, or in any way incidental to or in connection with the performance of the work
performed by the operator under a gas Well permit or caused by or arising out of, that
sequence of events which occur from the operator operating under the Well Permit and die
work performed by the operator, and providing that the Permittee/Operator shall fully release
defend, protect, indemnify, and hold harmless the Town of Trophy Club, Texas, and/or its
departments, agents, officials, officers, servants, employees, successors, assigns, sponsors, or
volunteers from and against each and every claim, demand, or cause of action and any and all
liability, damages, obligations, judgments, losses, fines, penalties, costs, fees, and expenses
incurred in defense of the Town of Trophy Club, Texas, and/or its departments, agents,
officials, officers, servants, or employees, including, without limitation, personal injuries and
death in connection therewith which may be made or asserted by Operator, its agents, assigns,
or any third parties on account of, arising out of, ori any way incidental to or in connection
with the performance of the work performed by the Operator under a Well Permit and, the
Operator agrees to release, defend, indemnify and hold harmless the Town of Trophy Club,
Texas, and/or its departments, and/or its officials, officers, agents, servants, employees,
successors, assigns, sponsors, or volunteers from any liabilities or damages suffered as a result
of claims, demands, costs, or judgments against the Town and/or, its departments, it's officials,
officers, agents, servants, or employees, created by, or arising out of the acts or omissions of
the Town of Trophy Club occurring on the drill site or operation site in the course and scope
of inspecting and permitting the gas wells INCLUDING, BUT NOT LIMITED TO,
CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE SOLE
NEGLIGENCE OFTHETOWN OFTROPHY CLUB OCCURRING ONTHEDRILL
SITE OR OPERATION SITE IN THE COURSE AND SCOPE OF INSPECTING AND
PERMITTING THE WE, LLS. IT IS UNDERSTOOD .AND AGREED THAT THE
INDEMNITY PROVIDED FOR IN THIS SECTION IS AN INDEMNITY EXTENDED
BY THE OPERATOR TO INDEMNIFY AND PROTECT THE TOWN OF TROPHY
CLUB, TEXAS AND/OR ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS,
OR EMPLOYEES FROM THE CONSEQUENCES OF THE NEGLIGENCE OF THE
TOWN OF TROPHY CLUB, 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 TOWN
IN THE COURSE AND SCOPE OF ITS DUTY TO INSPECT AND PERMIT THE
WELL IS LIMITED TO THE MAXIMUM AMOUNT OF RECOVERY UNDER THE
TORT CLAIMS ACT.
Page 16
F. The security instrument may be in the form of an irrevocable letter of credit or bond issued
by a bank or surety approved by the Town. The instrument shall run to the Town for the
benefit of the Town, shall become effective on or before the date the Permit is issued, and
shall remain in effect until the well is abandoned and the site restored.
G. A certificate of deposit may be substituted for the letter of credit or payment bond. The
certificate shall be issued by a bank in Denton County, Texas, shall be approved by the
Town, shall be payable to the order of the Town to secure the obligations of the operator
described above, and shall be pledged to the bank with evidence of delivery provided to the
Town Engineer. The bank shall be instructed of the terms and conditions in this Ordinance
for oil and gas operation security instruments. Interest on the certificate shall be payable to
the operator.
SECTION 11
INSURANCE
Operator shall carry a policy(ies) of insurance issued by an insurance company or companies
authorized to do business in Texas. The insurance policy or policies required as part of the application
shall provide that they shall not be canceled without prior written notice to the Town Secretary at least
thirty (30) days before the effective date of such cancellation. If such insurance policy or policies are
canceled, the permit shall terminate on such date of cancellation and die operator's right to operate
under such permit shall cease until the operator files additional insurance as provided herein. The
policy(ies) in the aggregate shall provide for the following minimum coverages:
A. STANDARD INSURANCE POLICIES REQUIRED
1. Commercial General Liability Policy
2. Automobile Liability Policy
3. Workers Compensation Policy
4. Well Control Insurance
B. GENERAL REQUIREMENTS APPLICABLE TO ALL POLICIES
l . General Liability, Automobile Liability and Well Control insurance shall be written by
a carrier with A: VIII or better rating in accordance with the current Best ley Rating
Guide.
2. Only Insurance Carriers licensed and admitted to do business in the State of Texas will
be accepted.
3. Deductibles shall be listed on the Certificate of Insurance and are acceptable only on
a per occurrence basis for property damage only.
4. Policies must provide coverage on an "Occurrence" basis. Clairns Made Policies will
not be accepted.
Page 17
5. The Town of Trophy Club, its officials, employees and volunteers, are to be added as
"Additional Insured" to the General Liability, Automobile Liability and Well Control
Insurance policy. The coverage shall contain no special limitations on the scope of
protection afforded to the OWNER its officials, employees or volunteers and shall be
on a form approved by Owner.
6. A Waiver of Subrogation in favor of the OWNER with respect to Workers'
Compensation insurance must be included.
7. Each insurance policy shall be endorsed to state that coverage shall not be suspended,
voided, canceled, reduced in coverage or in limits except after thirty (30) days prior
written notice by certified mail, return receipt requested, has been given to the Town
of Trophy Club.
C. COMMERCIAL GENERAL LIABILITY
1. Minimum Combined Single Limit of $5,000,000 per occurrence for Bodily Injury and
Property Damage.
2. Coverage shall be at least as broad as Insurance Services Office Number CG 00 01.
3. No coverage shall be deleted from the standard policy without notification of
individual exclusions being attached for review and acceptance.
D. WELL CONTROL INSURANCE.
1. Minimum limit of $5,000,000 per occurrence.
2. Policy shall cover the Cost of controlling a well that is out of control, Redrilling or
Restoration expenses, Seepage and Pollution Damage. Damage to Property in the
Operator's Care, Custody, and Control with a sub -limit of $500,000 may be added.
E. AUTOMOBILE LIABILITY
1. Minimum Combined Single Limit of $500,000 per occurrence for Bodily Injury and
Property Damage.
2. The Business Auto Policy must show Symbol 1 in the Covered Autos Portion of the
liability section in Item 2 of the declarations page.
F. WORKERS' COMPENSATION
1. Employer's Liability limits of 100,000.00 for each accident is required.
Page 18
2. Texas Waiver of Our Right to Recover from Others Endorsement, WC 42 03 04 shall
be included in this policy.
G. CERTIFICATES OF INSURANCE
Certificates of Insurance shall he prepared and executed by the insurance company or
its authorized agent, and shall contain provisions
a. The company is licensed and admitted to do business in the State of Texas,
b. Insurance set forth by the insurance company are underwritten on forms which
have been provided by die Texas State Board of Insurance or ISO.
C. Sets Forth all endorsements and insurance coverages according to requirements
and instructions contained herein.
d. Shall specifically set forth (he notice of cancellation, termination, or change in
coverage provisions to die Town of Trophy Club.
C. Original endorsements affecting coverage required by this section shall be
furnished widi the certificates of insurance.
H. The individual designated to receive notice shall be a resident of Texas upon whom all orders
and notices provided in this Ordinance may be served in person or by registered or certified
mail. Every operator shall within ten (10) days notify the Town Secretary in writing of any
change in such individual or mailing address unless operations in the Town are discontinued
and abandonment is completed.
SECTION 12
PERMIT REGULATIONS
In the event of a failure of a Permittee to comply with any provision of this Ordinance, the Town
Engineer shall issue in writing a notice to the Permittee of the nature of die noncompliance and stating
a reasonable time, if compliance has not been made in which the Council may suspend or cancel the
permit.
A. Permit Period.
A permit shall be issued for one (1) year. At the end of such time, if Operator wishes
to continue his oil or gas operation the permit shall be updated by the filing of a
renewal application.
B. Renewal.
I . Operator shall submit an application form for a renewal permit no later than sixty (60)
days before die expiration of such persons permit, and indicate in the application what
Page 19
changes, if any, are requested at the operation site. An inspection and renewal fee as
set by the Town Council shall be paid at the time of reapplication, and Operator shall
only be required to submit documents with his application for changes that occurred at
die operation site.
2. Within fifteen (15) days of the filing of a renewal application, the Town Engineer shall
inspect the oil or gas operation site to determine compliance with dais Ordinance.
3. If no change in operations is proposed or has taken place, or the Operator is re-
working the operation site, and inspection reveals compliance with this Ordinance
during the preceding permit period, the Town Engineer shall issue a renewal permit.
Otherwise, tine renewal application shall be processed as an original application.
4. Upon application for a renewal permit, the Town Engineer can consider the
deterioration of the quality of khe material of which such facility or structure is
constructed, the degree of rust and its appearance, and recommend repainting or other
remedial steps to be taken as a condition of renewal.
5. If any change or addition to die permit information on the application occurs, such
change or addition during the period of the permit shall be communicated to the
Town Secretary and the Town Engineer within ten (10) days of the date of such change
or addition.
SECTION 13
PERMIT SUSPENSION OR REVOCATION
A. The Town Engineer may, in writing, recommend to Town Council the suspension or
revocation of any permit issued under the provisions of this article. Such recommendation
shall be based upon the occurrence of one or more of the following acts or omissions.
Permittee failed, neglected, or refused to perform and comply with the conditions of
the permit.
2. Permittee failed, neglected, or refused to comply with or abide by, or in any way
violated any provision of this Ordinance or any regulation, law, rule, or order either
directly or indirectly, by reason of or in connection with or incidental to the conduct of
such person's oil or gas operation.
3. Any of the Permittee's operations or the continuance thereof upon the premises
covered by the permit pose a hazard to public or private property, to the lives or safety
of persons, or to any legitimate interest of the Town.
4. Any of the Permittee's operations or the continuance thereof upon the premises
covered by the permit constitute a public nuisance.
5. Permittee made any willful misrepresentation of facts in any application for any such
permit or in any report or record required by this Ordinance to be submitted by the
Town.
Page 20
6. Permittee burned or allowed to bum oil, gas, or other hydrocarbons in tlhe Town.
B. Town Council shall consider the Town Engineer's recommendation at a posted public
meeting at which the applicant is allowed to give testimony regarding the proposed revocation
or suspension. Town Council's decision to accept or reject tie Town Engineer's
recommendation shall be based upon the criteria contained in Subsection A of this paragraph,
the infornlation received from the Town Engineer, and the facts and information presented
at the public meeting.
C. No person shall carry on any operations performed under the terms of any permit during any
period of permit suspension or revocation, or pending a judgment of the court upon any
application for writ taken to review the decision or order of the Town in suspending or
revolting such permit; provided, however, nothing herein contained shall be construed to
prevent the performance of such operation as may be necessary in connection with a diligent
and bona fide effort to cure and remedy the default or violation for which the suspension or
revocation of die permit was ordered, or such operation as necessary for the safety of persons
or as required by the Commission.
SECTION 14
SUPPLEMENTAL PERMIT FOR DEEP DRILLING
A. Once any well has either been completed as a producer or abandoned as a dry bole, it shall be
unlawful and an offense for any person to drill such well to a deeper geological formation than
that reached in the prior drilling operations without the Permittee as to such well, obtaining a
supplemental permit after filing a supplemental application with the Town Council specifying:
1. The condition of the well and the casing therein;
2. The depth to which it is proposed that such well will be deepened;
3. The proposed casing and cementing programs to be used in connection with die
proposed deepening operation.
B. In lie event the Council is satisfied that such well may be deepened with the same or greater
degree to safety as existing in the original well, a supplemental permit to the Permittee may be
issued for an additional Filing fee authorizing the deepening and operation of the well to such
specified depth as applied for. In any deeper drilling or any deeper completion of any deeper
production operations, the Permittee shall comply with all provisions contained in this
Ordinance and applicable to drilling, completion, operation and production of a well or wells.
C. If the operator has removed die derrick and drilling equipment from the location, the
supplemental permit shall comply with all requirements specified for permits in iris
Ordinance.
Page 21
SECTION 15
USE OF STREETS AND ALLEYS
A. No Permittee shall make any excavations for any purpose or construct any Imes for
conveyance of fuel, water or mineral on, under or through the streets or alleys or other land of
the Town without an express easement or right-of-way license from the Town, at a price to be
agreed upon, and then only in strict compliance with this Ordinance and any other ordinance
of the Town and the specifications established by the Department of Public Works.
B. The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of any
street as herein defined, or leaving upon any street any earth or other material or obstruction,
shall not be permitted unless such persons shall First have obtained written permission from the
Department of Public Works, and then only in compliance with specifications established by
such Department.
C. No well shall be drilled and no permit shall be issued for any well to be drilled at any location
which is within any of the streets or alleys of the Town and/or streets or alleys shown by the
comprehensive plan of the Town, and no street shall be blocked or encumbered or closed in
any drilling or production operation or for any mineral exploration unless prior consent is
obtained by the Town Council, and then only temporarily.
SECTION 16
ON-SITE REQUIREMENTS
A. If a fence is required pursuant to Section VI(D) such fence must remain locked at ail times
when the Permittee or his employees are not within the enclosure.
B. At all times from the start of erection of a derrick, mast, or a pinpole, until the well is
abandoned and plugged or completed as a producer and enclosed as herein provided, the
Permittee shall keep a watchman on duty on the premises at all times when other workers or
Permittee are not on such premises.
C. No refining process or any processes for the extraction of products from natural gas shall be
carried on at the drill site, except that a dehydrator and separator may be maintained on the
drill site for the separation of liquids from natural gas. Any such separator shall serve only one
well.
D. Only electric prime movers or motors shall be permitted for the purpose of pumping wells.
E. Permanent weatherproof signs reading "DANGER NO SMOKING ALLOWED" shall be
posted A the entrance of each well site and tank battery. The sign shall include the emergency
notification number for emergency services (911) and the Operator, drilling block number,
and well and lease designations required by the Commission.
F. No person shall place, deposit, discharge, cause, or permit to be placed, deposited, or
Page 22
discharged, any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, or any refuse
including wastewater or brine, from any oil and gas operation or die contents of any container
used in connection with any oil operation in, into, or upon any public right-of-way, storm
drain, ditch or sewer, sanitary drain or sewer, any body of water, or any private property in the
Town.
G. All production equipment on the site shall be painted and maintained at all times, including
pumping units, storage tanks, buildings and structures.
H. After completion of well servicing or abandonment, owner shall repair all damage to public
property caused by such servicing or abandonment operations.
I. All property on which an oil or gas operation occurs shall at all times be kept free of debris,
pools of oil, water or other liquids, weeds, brush, trash, or other waste material.
J. Drilling mud, cuttings, oil, or liquid hydrocarbons and all other oil field waste derived or
resulting from or connected with the drilling, re -working, or deepening of any well shall be
discharged only into a portable steel tank. Unless otherwise directed by the Commission, waste
materials shall be removed from the operation site no later than every thirty (30) days.
K. At the conclusion of any drilling or re -working operations, the drill site shall be cleaned within
forty-eight (48) hours of all equipment and machinery that is not needed to produce the well.
L. Operator shall at all times comply with all applicable federal, state, and Town requirements.
M. Site development other than drilling shall be conducted only between 7:00 a.m. and 7:00 p.m.
N. All fire suppression and prevention equipment required by the Town Building Inspector/Code
Enforcement Officer, any applicable state law and this or any other Ordinance shall be
provided by the Permittee at the drill site, at the Permittee' s own cost, and maintenance and
upkeep shall be Permittee' s responsibility. Such equipment shall remain on the premises at all
Limes.
O. All oil or gas operations shall be conducted in a careful and orderly manner and the premises
shall at all times be maintained in a neat, clean, and orderly manner. All discarded surplus
materials, supplies, and refuge shall be removed from the operation site no later than every
thirty (30) days.
SECTION 17
OPERATIONS AND EQUIPMENT; PRACTICES AND STANDARDS
A. It shall be unlawful and an offense for any persons to use or operate in connection with the
drilling or reworking of any well within the corporate limits of the Town any wooden derrick
or any steam -powered rig.
— B. All drilling and operation at any well performed by a Permittee under this Ordinance shall be
Page 23
conducted in accordance with the practices of a reasonable and prudent operation as
understood in die Oil and Gas industry. All casing, valves, and blow-out preventors, drilling
fluid, tubing, well head, and well head connections shall be of a type and quality consistent
with such practice. Setting and cementing casing and running drillstem tests shall be performed
in a manner and at a time consistent with the practices of a reasonable and prudent operator.
Each Permittee under this section shall observe and follow the regulations of the Railroad
Commission of die state.
C. An internal combustion engine may be used in the drilling operations of the well, or wells, and
if an internal combustion engine is used, mufflers shall be installed on all engines so as to
reduce noise to not more than 70 decibels it any point of 100 feet beyond the drill site; all of
tie installations to be done in accordance with accepted practices for fire prevention purposes.
For production purposes, only electric power may be used. Drilling operations must be
conducted in such a manner that percolating or ground water will not be adversely affected,
including die prevention of vertical movement of percolating water.
D. All oil drilling and production operations shall be conducted in such a manner as to minimize,
so far as practicable, dust, noise, vibration or noxious odors, and shall be in accordance with
the best accepted practices incident to drilling for the production of oil, gas, and other
hydrocarbon substances.
E. Except in case of emergency, no materials, equipment, tools, or pipe used for drilling or
production operations shall be delivered to or removed from the site except between the hours
of 7:00 a.m, to 7:00 p.m. on any day. On drillstem tests, only one trip will be allowed at night
between 9:00 p.m. and 7:00 a.m. unless an emergency exists.
F. All production equipment used shall be so constructed and operated so that noise, vibration,
dust, odor or other harmful or annoying substances or effect will be minimized by the
operations carried on at any drilling site or from anything incident thereto, to the injury or
annoyance of persons living in the vicinity; nor shall the site or structures thereon be permitted
to become dilapidated, unsightly or unsafe. Proven technological improvements in methods of
production shall be adopted as they, from time to time, become available if capable of
reducing factors of nuisance or annoyance. There shall be no venting of gas into the open air
except as allowed by the Railroad Commission.
G. Storage of Equipment:
1. No drilling equipment, re -working equipment, other portable equipment or idle
equipment which are not essential to the everyday operations of the activity located
thereon shall be stored on the oil or gas operation site.
2. Lumber, pipes, tubing, and casing shall not be left on the site except when drilling or
well servicing operations are being conducted.
3. No person, owner, or operator shall store or park any vehicle or item of machinery
in/on any street, right of way, driveway, alley, or upon any oil or gas operation site
which constitutes a fire hazard or an obstruction to or interference with fighting or
Page 24
controlling fires except that equipment which is necessary for the maintenance of the
site or for gathering or transportation of hydrocarbons fro the site. The Town Building
Inspector/Code Enforcement Officer or Fire Marshal determine whether any
equipment on die site constitutes a fire hazard.
4. All well servicing equipment, including portable pulling masts and gin poles, shall be
removed from die leasehold, oil or gas operation site, or drilling site within fifteen (15)
days after completion of a well servicing operation.
H. No refinery, dehydrating or absorption plant of any kind shall be constructed, established or
maintained on the premises at any time_ This shall not be deemed to exclude a simple gas
separation process.
I. All electric lines to production facilities shall be located in a manner compatible to those
already installed in the surrounding area or subdivision_
SECTION 18
STORAGE TANKS AND SEPARATORS; TYPES AND REQUIREMENTS
A. It shall be unlawful and an offense for any person to use, construct or operate in connection
with any producing well within the Town limits, any crude oil storage tanks, with the exception
of two low -type tanks for oil storage, not exceeding a 500 -barrel capacity for each well
connected thereto or, in the alternative, low type tanks of sufficient capacity to hold 24 hours
of production from such well; die tanks must be constructed and maintained as closed tanks
and properly vented. A Permittee may use, construct and operate a steel conventional
separator, heater treater, vapor recovery unit and such other tanks and appurtences as are
necessary for treating oil with each such facilities, to be so constructed and maintained
according to American Petroleum Institute standards. Each oil/gas separator shall be equipped
with both a pressure relief safety valve and burst plate. All such tanks shall be placed above
ground, and the tanks shall be placed upon a suitable earth or concrete pad.
B. The use of a central tank battery is permitted so long as not more than two tanks as specified
are used for each well connected to the battery plus one 500 -barrel water tank.
C. The tank or tanks shall be enclosed widen a conventional type fire wall constructed of
compacted earth; sufficient water shall be used during the fire wall construction to assure
adequate compaction.
D. The fire wall enclosing die tanks shall have a minimum capacity equal to two times the volume
of the tanks enclosed.
E. It shall be unlawful and an offense for any person to Iocate a storage tank or separator site
wid-iin 300 feet of any residence or commercial or public building within the Town.
Page 25
SECTION 19
PLOW LINES AND GATHERING LINES
A. Each Permittee shall place an identifying sign at each point where a flow line or gas gathering
line crosses any public street or road.
B. Each Permittee shall also place a warning sign at each point where a line carrying F12S
(Hydrogen Sulfide) gas crosses any public street or road.
C. No Permittee shall make any excavation for any purposes or construct any lines for
conveyance of fuel, water, or minerals, on, under, or through the streets and alleys of the
Town without express permission of the Town Engineer, in writing, and then only in strict
compliance widh tis code and any applicable ordinance of the Town; provided, however,
emergency repairs may be made without such permission when in the good faith opinion of
the Permittee, the delay required to obtain written permission would involve a hazard to
person or property.
D. The gathering lines and flow lines hereinafter installed in the corporate limits of the Town, for
the purpose of transporting oil, gas and/or water in conjunction with the operation of any well,
tank, or tank battery, injection or gathering system are hereby limited to a maximum operating
gauge pressure of 250 psi unless otherwise specifically approved by the Town Engineer. The
location of any such gathering lines and flow lines, if not specified in the permit, must be
specifically approved by tie Town Engineer.
E. The pipeline shall be tested prior to being placed in service.
F. The companies responsible for any and all pipelines now existent or hereinafter installed
within the corporate limits are hereby required to furnish the Town an "as built" plot plan
showing the location of all their facilities for permanent record with the Town.
G. All pipeline within the corporate limits, excepting the utility lines of the Town and the
distribution system of any Gas Company who holds a franchise with the Town, designed or
utilized to transport oil, gas, or water in connection with the production and transportation of
oil and/or gas or for repressurizing operations shall hereafter be installed with the minimum of
cover or backfill specified by the then applicable American National Safety Institute code for
such pipelines.
H. The Town Engineer is authorized to approve a lesser cover or specify a greater cover or
backfill in special cases when in his/her opinion, such variation is advisable and/or will not
increase the degree of hazard.
I. The requirements for construction in public right-of-way must conform to such ordinances of
the Town regulating such construction.
J. The digging up, breaking, excavating, tunneling, undermining, Breaking up, damaging of any
street as herein defined, or leaving upon any street any earth or other material or obstruction,
shall not be permitted unless such persons shall first have obtained written permission from
Page ` 6
the Director of Public Works, provided, however, that emergency repairs may be made
without such permission when in the good faith opinion of the Operator/Permittee the delay
required to obtain the written permission would involve a hazard to a person or property.
Operator/Premittee shall be responsible for repair and reconstruction of all streets damaged
and for all costs associated therewith.
SECTION 20
PROHIBITED CONDUCT/ PENALTY CLAUSE
A. It shall be unlawful and an offense for any person to:
1. Engage in any activity not permitted by the terms of a Permit issued under
this Ordinance;
2. Fail to comply with any conditions set forth in a permit issued under this
Ordinance; or
I Fail to comply with any provision or requirement of this Ordinance.
B. Except as specifically provided otherwise, a any person violating any of the provisions of this
Ordinance shall be deemed guilty of a Class C misdemeanor upon conviction and shall be
fined, except as otherwise provided herein, in a sum not to exceed two thousand dollars
(,$2,000.00) for each offense, and a separate offense shall be deemed committed upon each
day during or on which a violation occurs or continues,
C. If die governing body of the Town of Trophy Club determines that a violation of this
Ordinance creates a threat to the public safety, the Town may bring suit in the district court
of the county in which the person who committed the offense resides or has an office to
enjoin die person, firm, partnership, corporation, or association from engaging in the
prohibited activity. The Town of Trophy Club is not required to give bond as a condition
to the issuance of injunctive relief.
SECTION 21
CUMULATIVE REPEALER
That this Ordinance shall be cumulative of all other Ordinances and shall not repeal
any of the provisions of such Ordinances except for those instances where there are direct
conflicts with the provisions of this Ordinance. Ordinances or parts thereof in force at the
time this Ordinance shall take effect and that are inconsistent with this Ordinance are hereby
repealed to the extent that they are inconsistent with this Ordinance. Provided however, that
any complaint, action, claim or lawsuit which has been initiated or has arisen under or
pursuant to such Ordinance on the date of adoption of this Ordinance shall continue to be
governed by the provisions of that Ordinance and for that purpose die Ordinance shall remain
in full force and effect.
SECTION 22
SAVINGS
That all rights and remedies of the Town of Trophy Club are expressly saved as to any
and all violations of the provisions of any Ordinances affecting oil and gas drilling and/or
Page 27
development which have accrued at the time of the effective date of this Ordinance; and, as to
such accrued violations and all pending litigation, both civil and criminal, whether pending in
court or not, under such Ordinances, same shall not be affected by this Ordinance but may be
prosecuted until final disposition by the courts.
SECTION 23
SEVERABILITY
If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance or
application thereof to any person or circumstance is held invalid or unconstitutional by a Court
of competent jurisdiction, such holding shall not affect die validity of the remaining portions of
this Ordinance, and the Town Council hereby declares it would have passed such remaining
portions of this Ordinance despite such invalidity, which remaining portions shall remain in
full force and effect.
SECTION 23
PUBLICATION
The Town Secretary of the Town of Trophy Club is hereby directed to publish, the
Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the
Texas Local Government Code.
SECTION 25
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross and
enroll this Ordinance by copying the exact Caption, Penalty and Effective Date in the minutes
of the Town Council and by filing this Ordinance in the ordinance records of the Town.
SECTION 26
EFFECTIVE DATE
That this Ordinance shall be in full force and effect from and after its date of passage,
in accordance with law, and it is so ordained.
PASSED AND APPROVED by the Town Coyne it of the T� Trophy Club,
Texas this 17th day of March, 2003. ,/ 1
awn of Tr pliy Club, Texas
Page 28
ATTEST,:-,
Town Secretary
Town of Trophy Club, Texas r a`®
APPROVED AS TO FORM:
Town Attorney
Town of Trophy Club, Texas
Page 29