CHAPTER V. BUSINESS REGULATIONSCHAPTER V. BUSINESS REGULATIONS\ARTILCE 6. OIL AND GAS WELLS

It is unlawful for any person, firm or corporation to drill or commence operating for the drilling of a well for oil and gas purposes at any place within the city limits, without first having obtained from the governing body of the city, a license or permit for the commencement of such operations, and for the drilling of such well. The applicant for such permit, shall, at the time of making application therefor, deposit with the city clerk a fee of one thousand dollars and in the event such permit is granted, said fee shall be retained by the city, but if such permit is denied, said fee shall be returned to the applicant.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

No such permit shall be granted by the governing body until the applicant therefor shall have submitted satisfactory evidence as follows:

(a)   The applicant has a valid oil and gas lease or leases signed by the person or persons owning at least fifty-one percent of the territory in the area attributable to or which might be attributed to the location where it is proposed to drill said well, which said lease shall contain a provision or shall be accompanied by an agreement in writing, providing for the pooling of all royalties and rents arising from said leases or from production on said acreage to be distributed among all of the property owners in the area or territory attributable to the wells or wells which may be drilled under said lease, which said distribution shall be made to the respective property owners, including leasing property owners and nonleasing property owners, in accordance with the number of square feet owned by each property owner in said area or territory;

(b)   An agreement with the lessors and with the lessee or lessees giving to the city the option to purchase all natural gas produced from said leasehold estate;

(c)   A map or plat of the area covered by said oil and gas lease, showing the proposed location of each well, together with the written consent of the owner of the land on which said well is proposed to be located, consenting to the drilling of said well on said land, which said map or plat shall also show the location of all residences, buildings and other structures in the immediate vicinity of such proposed location;

(d)   A map or plat of the area covered by the oil and gas lease showing the proposed location of each well, together with the written consent of the owner of the land on which the well is proposed to be located, consenting to the drilling of the well on such land, which map or plat shall also show the .location of all residences, buildings and other structures, including municipal water supply wells, in the immediate vicinity of such proposed location;

(e)   The applicant must agree to provide protection to all persons who might be affected with such drilling operations, including the handling of slush, drilling mud, sediments, salt water and other material produced in connection with drilling such well. An artificial liner shall be placed in all pits receiving oil, salt water or refuse accumulated during drilling operations. Any fluid remaining in such pits shall be removed immediately upon completion of drilling operations;

(f)    The applicant shall agree that no crude oil shall be stored within the city limits unless agreed to in writing by all parties involved including the applicant, the property owner, the city, and the owners of existing buildings located within three hundred feet of the storage site;

(g)   The applicant shall agree that, in the event the well is nonproductive, all tools, equipment and machinery used in connection with the drilling thereof shall be removed within sixty days after completion thereof, and the premises restored to their original condition;

(h)   Any tank or tank battery for storage of oil within the city shall be protected by dikes of sufficient height to prevent oil from escaping in the event of the leaking or bursting of said tanks;

(i)    No oil or gas well will be drilled within one hundred feet of a municipal water supply well.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

No person shall drill or operate any oil or gas well in or near a populated area or an area occupied by buildings and other structures, until he has deposited with the city a good and sufficient bond in the amount of ten thousand dollars, conditioned that the applicant will comply with the provisions of this article.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

No such permit shall be granted by the governing body and no oil or gas well shall be drilled or operated within the city until the operator files with the city clerk of the city a certification of insurance insuring the operator against bodily injury to persons in an amount not less than one hundred thousand dollars for each person and three hundred thousand dollars for each accident and insuring said operator against damages to property including city utility lines in an amount not less than fifty thousand dollars for each accident and further insuring said operator against bodily injury from motor vehicle and trucking operations in an amount not less than one hundred thousand dollars for each person and three hundred thousand dollars for each accident against property damage including damage to city streets, alleys and utility lines by reason of motor vehicle and trucking operations in an amount not less than fifty thousand dollars for each accident or incident. Evidence of such insurance shall be kept on file with the city clerk of the city continuously so long as any such well or wells are being drilled or operated within the city.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

All oil and gas wells hereafter commenced or drilled within the city limits of the city shall be drilled as nearly as practicable in the center of a ten-acre square geographical location; provided, that the governing body of the city, at the time of the granting of the license provided for in this article, may merit such variations as may be deemed necessary in the amount of acreage required, and the location of the drill site, depending upon geographical factors, upon the location of houses and other buildings, and the area available which might be attributed to such proposed well.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

The governing body of the city may from time to time and shall upon the application of any interested person, make a determination of the territory which is to be included in each drilling location within the limits of the city, which said determination shall follow the standard ten-acre geographical locations as nearly as practicable, but in making such determination said governing body shall not be required to split or divide any platted lot or lots, and the area or territory to be attributed to the well or wells under a particular lease or leases shall be the territory described in the drilling permit issued therefor.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

The entire drilling rig for any oil or gas well, together with its equipment, shall be fenced and adequate measures shall be taken to protect persons and property from blowing oil.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

A retaining wall constructed of seven-inch or eight-inch pipe shall be placed around the pumping unit of an oil or gas well or, in lieu thereof, a reinforced concrete curb may be erected which shall be approved by the utilities director and the area therein shall be filled with char or crushed rock.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

Pumping units of oil or gas wells shall be surrounded or enclosed with a six-foot chain link fence, and on top of such fence there shall be a protruding extension of three barbed wires at a forty-five degree angle to the outside, and the construction and erection of such fence shall be subject to such plans and specifications as may be approved by the utilities director.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

All pumping units at an oil or gas well must be electrically driven with power belt shield unless otherwise agreed to in writing by the parties involved.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

All pumping units at an oil or gas well must be kept in a clean, tidy condition and must be kept well-painted in a manner satisfactory to the governing body.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

All salt water produced from any oil or gas well in the city shall be disposed of according to regulations promulgated by the Kansas Corporation Commission and the Kansas Department of Health and Environment. In no case shall salt water be disposed of by surface means including brine disposal ponds or any other disposal on the land surface.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

It is unlawful for any person to lay or maintain any pipe or pipelines for the transportation of oil or any other substance in or across the streets, alleys, or other public places of the city without having first obtained a franchise ordinance granting permission to do so. All such pipelines shall thereafter be laid, maintained and operated in accordance with the terms of said franchise.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

Any oil or gas well drilled within the city shall be constructed in accordance with applicable regulations of the Kansas Corporation Commission and the Kansas Department of Health and Environment. Any person, firm or corporation before commencing drilling operations shall notify the appropriate representatives of said commission and department as to the date when drilling operations will commence.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

It is the responsibility of persons drilling an oil or gas well or installing crude oil transmission lines to determine the locations of utility lines including cable TV and telephone lines and any existing pipelines. Such transmission lines shall be installed two feet from utility lines and in accordance with existing regulations. The immediate repair of such utility lines or pipelines damaged in the process of drilling an oil or gas well or the installation of crude oil transmission lines shall be the responsibility of said persons.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)

At the time of the granting of any permit or license, under the provisions of this article the governing body may make such additional requirements by resolution as it may deem necessary for the protection and safety of persons and property in the territory likely to be affected by the drilling of said well.

(Ord. 782; Code 1974, Chapter 5.26; Code 2014)