HomeMy WebLinkAbout04-28-08 TC Agenda PacketTOWN OF WESTLAKE, TEXAS
BOARD OF ALDERMEN WORKSHOP
AGENDA
APRIL 28, 2008
WESTLAKE CIVIC CAMPUS - DINING HALL
2600 J. T. OTTINGER ROAD
5:00 P.M.
1. CALL TO ORDER
2. DISCUSS PROPOSED AMENDMENTS TO THE OIL & GAS WELLS
ORDINANCE.
3. REVIEW OF REGULAR AGENDA ITEMS.
CW_\ 11[00t'1►1uI9101M
ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS
LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071
THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE.
CERTIFICATION
I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, Westlake, Texas
and the Westlake Civic Campus, 2600 J.T. Ottinger Road, Westlake, Texas, by Friday, April 25, 2008 by 5:00 p.m.
under the Open Meetings Act, Chapter 551 of the Texas Government Code.
Kim Sutter, TRMC, Town Secretary
If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town
Secretary 48 hours in advance at 817 - 490 -5710 and reasonable accommodations will be made to assist you.
Discussion of Policy Options
Related to Proposed Oil /Gas
Drilling & Pipeline Ordinance Amendment
Desired Policy Outcome:
Harmonizing oil and gas operations in the Town with existing and future land uses,
as well as the comprehensive plan, while preserving the Town's quality of life.
What are the options (i.e. — means to achieve desired policy outcome)?
• Retain current ordinance (no change)
• Retain current ordinance, but adapt more stringent site operation and
application technical requirements
• Oil /gas operations permitted as a use by in all zoning districts with
more stringent site operation and application technical requirements
• Oil /gas operations permitted as a use by right in some zoning districts with
more stringent site operations and application technical standards
• Allow oil /gas operations in all but residential districts by SUP with more
stringent site operation and application technical standards
• Allow oil /gas operations in all zoning districts by SUP with more stringent
site operation and application technical standards that include 1,000 ft
spacing from structures, etc.
4/28/2008 BOA Workshop
Town of Westlake
Proposed Oil & Gas Drilling /Pipeline
ORDINANCE
REVIEW POINTS
Pages 4 — 7 Sec. 56 -32 : Definitions
• Note definition of "pipeline emergency ",
especially Sec. 56 -32(5 ) on page 6
Pages 7 — 8 Sec. 56-34: Road Repair Agreement
• Do we want to insert actual agreement language as in Bedford ordinance?
Pages 8 — 11 Sec. 56-37: Application and Review of Well Permit
Page 9
• Note Sec. 56- 37b(4)
re: transportation route to service the well.
Page 10
• Note Sec. 56- 37b(27)
re: screening, fencing and landscape plan. Are these adequate?
• Note Sec. 56 -37d
re: applicant shall maintain at all times a $15,000 minimum running balance
per approved permit for on -going (i.e. post approval) Town costs associated
with the permit.
• Note Sec. 56 -37e
re: permit is for one year unless extension is granted.
Pages 12 — 14 Sec. 56 -40 : Insurance & Indemnification
Page 13
• Note Sec. 56- 40(6)(b)
re: liability insurance requirements.
Page 14 Sec. 56 -260 : Security
• Note cash bond requirement of $200,000 per pad site to secure well operations,
comply with road repairs agreement, insurance provisions and screening.
Page 14 —15 Sec. 56 -261 : Periodic Reporting
• Note Sec. 56- 261(4)(c)
re: annual reporting requirements
Page 15 Sec. 56 -262: Amended Well Permits
Note cash bond requirement of $200,000 per pad site to secure well
Page 1 of 4 4/28/2008
Town of Westlake
Proposed Oil & Gas Drilling/Pipeline
ORDINANCE
REVIEW POINTS
Pages 16 — 23 Sec. 56 -264: On Site Operation Requirements
Page 16
• Note Sec. 56- 264(a) -(fl
Covers distances from residences, public buildings, hospitals, ROW, erosion
control, floodplain, etc. Should there be a prohibition on siting o parkland?
Areas reserved as public or private open spaces per our zoning ordinance?
Masonry wall required.
Page 18
• Note Sec. 56- 264(s)
Re: on -site chemical and hazardous material storage.
• Note Sec. 56- 265(u)
re: prohibiting salt water or other disposal wells.
Page 22
• Note Sec. 56- 264(yy)(i)(a)
re: remotely monitored access control system requirements.
Page 22 -23
• Note Sec. 56- 264(yy)(2)
re: requirement for security camera
Pages 23 — 25 Sec. 56 -265 : Operations & Equipment Practices & Standards
Page 23
• Note Sec. 56- 265(a)
re: requirement to prevent & control offensive odor, noise, dust, fumes and
vibrations.
• Note Sec. 56- 265(b)
re: lighting controls and standards.
Page 23 -24
• Note Sec. 56- 265(d)
re: noise regulations and noise monitoring within 1,000 feet of a protected uses
as well as requirement for a noise management plan.
Page 25
• Note Sec. 56- 265(5)
re: noise management measures as well as prohibition of compression facilities
in the Town.
Page 2 of 4 4/28/2008
Town of Westlake
Proposed Oil & Gas Drilling /Pipeline
ORDINANCE
REVIEW POINTS
Pages 25 Sec. 56 -266: Reworking of Well
• Note — should we require 30 instead of 20 days notice?
Pages 26 Sec. 56 -268 : Supplemental Drilling
• Note — this deals with additional or directionally drilling of a well not
abandoned. Is this language adequate?
Pages 26 — 27 Sec. 56 -269: Abandonment of Wells & Pipelines
• Note — requirement to plug and clean site within 60 days of abandonment
(abandonment is defined)
See Sec. 56 -35(a)
re: new permit required to drill abandoned well (page 8)
Pages 28 — 29 Sec. 56 -272: Remedies of Town
• Are these adequate?
Pages 29 Sec. 56 -275 : Variance
• Can be granted by BOA.
Pages 30 — 42 ARTICLE III: OIL & GAS PIPELINE STANDARDS
Page 30 -31
• Sec. 56 -323 : General Requirements & Minimum Design Standards
Note Sec. 56- 308(a)(i)(5)
Re: no pipeline permit without SUE for well(s) in Town.
• Note Sec. 56- 308(a)(i)(5)
Re: requirements for such pipelines.
Page 32
• Note Sec. 56- 308(a)(i)(5)W
re: in which pipelines impact future land platted for residential use
Page 41
• Note Sec. 56 -323
re: insurance requirements; are they adequate?
Page 3 of 4 4/28/2008
Town of Westlake
Proposed Oil & Gas Drilling/Pipeline
ORDINANCE
REVIEW POINTS
RELATED FEES
Policy recommendation — fees should be user based /demand driven. That is, fees for the
various permits involved in administering this ordinance should not ne subsidized by any
other Town revenue stream. All fees should be non - refundable.
Page 8 Sec. 56 -36 Seismic Permit Fee $ 250.00
Page 10 Sec. 56- 36(b)(35)(3) Well Permit Fee $ 20,000.00
(per application administration and inspection fee)
Page 13 Sec. 56- 40(a)(5) Insurance Policy Review Fee $ 150.00
Page 15 Sec. 56- 262(i)(a) Amended Well Permit Fee $ 5,000.00
Page 15 Sec. 56- 262(i)(b) Amended Well Permit $ 1,200.00
Reinspection Fee
Page 28 Sec. 56 -271 Technical Advisor Cost $ TBD case by case
(Town may require operator to pay Town's necessary Technical Advisor Cost)
Page XX Sec. xx -xxx Pipeline Permit Fee 6% of contract value
(Recommendation to be added)
Page 4 of 4 4/28/2008
Gas Drilling Ordinance Comparison
Argyle
Arlington
i lleyville
Fort
Cranbury
o
Southlake
Westlake
Westlake
Euless
Worth
enrrent
proposed
Permit Fee
$7500
$1500
$500+
$5 /acre
$3000
$500
$500+
$25 /acre
$3000
$200+
$25 /acre
$10,000
$500
application
$2,500
$10,000
fee
Inspection Fee
included
cost
Cost
$500 annual
$5,000
none
included
annual $2,000
$7,500
$2,000
annual
Gen. liability,
bodily injury
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$10,000,000
$20,000,000
$1,000,000
$1,000,000
and property
damage
Automobile
liability
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$10,000,000
$1,000,000
$1,000,000
insurance
Workers
$1,000,000
$500,000
$1,000,000
$500,000
$1,000,000
$1,000,000
$500,000
$500,000
$500,000
$1,000,000
$500,000
$500,000
co m ens ion
Environmental
n/a
$1,000,000
n/a
$1,000,000
$1,000,000
n/a
$1,000,000
$1,000,000
$1,000,000
$10,000,000
$1,000,000
$1,000,000
pollution policy
Control of well
$5,000,000
$5,000,000
$5,000,000
$5,000,000
$10,000,000
$5,000,000
$5,000,000
$5,000,000
$5,000,000
$10,000,000
$5,000,000
$5,000,000
policy
Excess if
operator has
stand alone
n/a
$5,000,000
n/a
$5,000,000
n/a
n/a
$5,000,000
n/a
$5,000,000
$10,000,000
$5,000,000
$5,000,000
environmental
policy
Excess if
operator does
not have a stand
n/a
$10,000,000
n/a
$10,000000
n/a
n/a
$10,000,000
$10,000,000
$10,000,000
$10,000000
$10,000,000
alone
environmental
policy
Excess liability
n/a
n/a
$10,000,000
n/a
$10,000,000
$10,000,000
n/a
$10,000,000
n/a
$10,000,000
$10,000,000
$10,000,000
insurance
Requires
separate zoning
yes
yes
yes
no
yes
yes
yes
PD
no
I -2 + SUP
0/1 + SUP
SUP
Argyle
Arlington
Colle-* ille
Fort
Granburx
Crape% ine
Hurst
Keller
NRH
Southlake
Westlake
Westlake
e
proposed
Allows drilling on
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
yes
Public land
Road repair
agreement or
yes
yes
no
yes
yes
no
yes
Yes
yes
Yes
yes
yes
contract required
Distance (ft) from
place of public
100 from
assembly, school,
300
600
1000
600
600
1000
600
300
600
1,000
property
600
church, hospital,
lines
etc..
Distance (ft)
100 from
from residential
300
600
1000
600
600
1000
600
500
600
600
property
600
structure
lines
Distance (ft) from
100 from
public right -of-
n/a
75
500
75
200
200
75
100
50
property
250
lines
way.
Distance (ft)
from fresh water
500
200
1000
200
n/a
1000
200
100
500
well
Distance (ft) from
100 from
outer boundary of
300
25
500
n/a
n/a
500
25
100
25
1,000
property
250
tract or lease.
lines
Distance (ft)
from outer
500
25
500
25
n/a
500
n/a
25
25
storage tank or
source of ignition
Distance (ft) from
n/a
100
100
100
n/a
100
100
n/a
600
any other building
Inspection
Staff and
Staff and
Staff and
Staff and
Staff and
Staff and
Staff and
Staff and
Staff and
Staff and
Process
3rd party
3rd
3rd arty
3rd
3rd
party
3rd
3rd arty
3rd
3rd
3rd
TOWN OF WESTLAKE
ORDINANCE NO.
AN ORDINANCE OF THE TOWN OF WESTLAKE, TEXAS ( "TOWN "), AMENDING
CHAPTER 56 OIL AND GAS WELLS, ARTICLE II `DRILLING AND PRODUCTION
OF THE WESTLAKE CODE OF ORDINANCES, REGULATING THE DRILLING AND
PRODUCTION OF GAS AND OIL WELLS WITHIN THE TOWN, TO PROVIDE
REVISED REGULATIONS REGARDING DISTANCE, NOISE AND TECHNICAL
PROVISIONS; ADOPTING COMPREHENSIVE _ _ PIPELINE . REGULATIONS;
PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR
PUBLICATION; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL OF
CONFLICTING PROVISIONS; PROVIDING A CUMULATIVE CLAUSE; AND
ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the Town of Westlake, Texas, is a General Law Municipality located in Tarrant
and Denton Counties, Texas, created in accordance with the provisions of the
Texas Local Government Code and operating pursuant to the enabling legislation
of the State of Texas; and
WHEREAS, on May 24, 2004, the Board of Aldermen of the Town of Westlake adopted
Ordinance Number 458 enacting permit procedures, fees and regulations
regarding the drilling and production of oil or gas wells with the Town limits of
Westlake; and
WHEREAS, the Board of Aldermen has studied revisions to the gas drilling ordinance that
would improve the quality of life for citizens that may work and live near future
drill sites; and
WHEREAS, the Board of Aldermen recommended for the best interests of the citizens of
Westlake, additional noise abatement procedures, site security, signage, and other
revisions that will provide additional protections of surface property rights but
continue to allow access to the minerals; and
WHEREAS, the Board of Aldermen also recommends the adoption of comprehensive
regulations governing the installation and operation of pipelines within the Town
of Westlake; and
WHEREAS, the Board of Aldermen finds that the additional regulations of the development of
gas and other hydrocarbon substances within and under the Town is necessary in
order to protect the surface property rights, to protect the owners of mineral
rights and to provide for the orderly exploration, development, and production of
gas and hydrocarbons; and
WHEREAS, the Board of Aldermen deems it advisable to amend the current regulations for
the drilling, production and redrilling of gas so that these activities may be
conducted in a manner that protects the public health, safety and welfare of the
citizens of Westlake, conforms with established codes and regulations while
Page 2 of 44
Created on 4/25/08
CHAPER 56 GAS AND OIL WELLS ................................................ ............................... 3
ARTICLE II. DRILLING & PRODUCTION ................................. ...............................
3
Sec. 56 -31 Purpose and Intent ..................................................... ...............................
3
Sec. 56 -32 Definitions ................................................................. ...............................
4
Sec. 56 -33 Specific Use Permit Required .................................... ...............................
7
Sec. 56 -34 Road Repair Agreement ............................................. ...............................
7
Sec. 56 -35 Well Permit Required ................................................ ...............................
8
Sec. 56 -36 Seismic Survey Permit Required ............................... ...............................
8
Sec. 56 -37 Application and Review of Well Permit .................... ...............................
8
Sec. 56 -38 Oil and Gas Inspector .............................................. ...............................
11
Sec. 56 -39 Operator's Agent ......................................... ............................... ..........
11
Sec. 56 -40 Insurance and Indemnification ................................. ...............................
12
Sec. 56 -260 Security .................................................................. ...............................
14
Sec. 56 -261 Periodic Reports ..................................................... ...............................
14
Sec. 56 -262 Amended Well Permits ... ............................... .... ...............................
15
Sec. 56 -263 Transfer of Well Permits ........................................ ...............................
16
Sec. 56 -264 On -site Operation Requirements ........................... ...............................
16
Sec. 56 -266 Re- working of Well; Notice .................................. ...............................
25
Sec. 56 -267 Well Inspections................ .................................... ...............................
25
Sec. 56 -268 Supplemental Drilling ........................................... ...............................
26
Sec. 56 -269 Abandonment of Wells and Pipelines .................... ...............................
26
Sec. 56 -270 Clean Up ................................................................ ...............................
27
Sec. 56 -271 Technical Advisor .................................................. ...............................
28
Sec. 56 -272 Remedies of the Town ........................................... ...............................
28
Sec. 95 -273 Enforcement, Right of Entry .................................. ...............................
29
Sec. 56 -274 Public Information ................................................ ...............................
29
Sec. 56 -275 Variance; Appeal Procedure .................................. ...............................
29
ARTICLE III. OIL AND GAS PIPELINE STANDARDS ........... ...............................
30
Sec. 56 -306 Purpose ................................................................... ...............................
30
Sec. 56 -307 Definitions ........... .............................................. ...............................
30
Sec. 56 -308 General Requirements and Minimum Design Standards ......................
30
Sec. 56 -309 New Pipeline Permit Application .......................... ...............................
32
Sec. 56 -3 10 Permit Approval .................................................... ...............................
34
Sec. 56 -311 Public Education .................................................... ...............................
34
Sec. 56 -312 Pipeline Information Reporting Requirements ...... ...............................
35
Sec. 56 -313 Pipeline Markers .................................................... ...............................
37
Sec. 56 -3 14 One Call System ................................................... ...............................
37
Sec. 56 -3 17 Pipeline Repairs and Maintenance ........................ ...............................
39
Sec. 56 -323 Bond and Insurance Required ................................ ...............................
41
Sec. 56 -324 Termination of Permit ............................................ ...............................
42
Page 1 of 44
Created on 4/25/08
minimizing the potential impact of surface property and mineral rights owners;
and
WHEREAS, around the nation there have been safety- related incidents involving pipelines and
the Board of Aldermen deems it prudent to adopt standards for such pipelines in
an effort to protect citizens and property from safety- related incidents; and
WHEREAS, the Board of Aldermen deems it advisable to adopt standards governing the
installation and maintenance of pipelines and, in accordance with
SECTION 121.202 of the Texas Utilities Code, to adopt regulations that establish
"conditions for mapping, inventorying, or relocating pipelines over, under, along,
or across a public street or alley or private residential area in the boundaries of a
municipality"; and
WHEREAS, the regulations set forth in Chapter 56 of the Westlake Code of Ordinances shall
be considered the minimum requirements for the installation and maintenance of
pipelines and the development of gas and other hydrocarbon substances within
and under the Town and shall not relieve any person from any duty imposed by
law to use reasonable care and precautions for the safeguarding of people and the
protection of and noninterference of property rights; and
WHEREAS, the Board of Aldermen finds and declares that the regulations contained herein
are in the best interest of the public health, safety and general welfare.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE
TOWN OF WESTLAKE, TEXAS:
SECTIONI: THAT, the above findings are hereby found to be true and correct and
are incorporated herein in their entirety.
SECTION2: THAT, Article H of Chapter 56, of the Town of Westlake Code of
Ordinances is hereby amended to read as follows:
CHAPER 56 GAS AND OIL WELLS
ARTICLE ll. DRILLING & PRODUCTION
Sec. 56 -31 Purpose and Intent.
The exploration, development, and production and transportation of gas and oil in the Town are
activities that necessitate reasonable regulation to ensure that all property owners, mineral and
surface, have the right to peaceably enjoy their property and its benefits and revenues. It is hereby
declared to be the purpose of this Article to establish safeguards and regulations for operations
related to the exploring, drilling, producing, transporting and storing of gas and oil and other
substances produced in association with gas and oil within the Town to protect the health, safety
and general welfare of the public, minimize the potential impact to property and mineral rights
owners, protect the quality of the environment, and provide for the orderly development of
available mineral resources.
Page 3 of 44
Created on 4/25/08
Sec. 56 -32 Definitions.
All technical industry words or phrases related to the drilling and production of wells not
specifically defined shall have the meanings customarily attributable thereto by prudent operators
in the gas and oil industry. For the purposes of this Article, the following definitions shall apply
unless the context clearly indicates or requires a different meaning.
Administrator: The Town Manager or his or her designated representative.
Abandonment: "Abandonment" as defined by the Railroad Commission and includes the
plugging of the well and restoration of the drill site as required by this Article.
All - weather surface: A surface that consists of a minimum of 6 inches of compacted Class I1 base
rock for grades up to and including 5 percent, and oil and screened for grades up to and including
15 percent, and asphalt or concrete pavement with a non -skid finish for grades exceeding 15
percent to a maximum of 20 percent on a fire apparatus access road.
Ambient noise level: The all encompassing noise level associated with a given environment, being
a composite of sounds from all sources at the location, constituting the normal or existing level of
environmental noise at a given location.
Applicant: A person to whom a permit or certificate for the drilling, operation and production of a
well, or the installation or operation of a pipeline, is issued under this Article, including, but not
limited to, his or her heirs, legal representatives, successors or assigns.
Blowout preventer: A mechanical, hydraulic, pneumatic, or other device or combination of such
devices secured to the top of the well casing, including valves, fittings, and control mechanisms
connected therewith, which can be closed around the drill pipe or other tubular goods which
completely close the top of the casing and are designed to prevent blow outs.
Base flood: The flood having a one percent (1 %) chance of being equaled or exceeded in any
given year.
Building: Any structure used or intended for supporting or sheltering any use or occupancy,
which includes, but is not limited to, all related site work and placement of construction materials
on the site.
Completion of drilling, re- drilling and re- working: The date the work is completed for drilling,
re- drilling, or re- working and the crew is released by completing its work or contracted by its
employer.
Compression facility: Those facilities that compress natural gas after production- related activities
which are conducted and prior to the point where the gas is transferred to a carrier for transport.
Construction: Causing or carrying out any building, bulk head, filling, clearing, excavation or
substantial improvement to land or to the size of any structure.
Town. The Town of Westlake, Texas.
Board of Aldermen: The Board of Aldermen of the Town of Westlake.
Closed ioop mud system: An enclosed suite of solids control equipment used for mud circulation
and intended to .minimize drilling fluid dilution to provide for handling of the drilling wastes so
that reserve pits are not used.
Daytime: The period from 7:00 a.m. to 7:00 p.m.
Dedication: Includes, but is not limited to, a permanent easement or a fee simple acquisition of
land for a specific purpose.
Derrick: Any portable framework, tower, mast and/or structure that is required or used in
connection with drilling or re- working a well for the production of oil and /or gas.
Drilling: Digging or boring a new well for the purpose of exploring for, developing or producing
oil and /or gas or other hydrocarbons, or for the purpose of injecting gas, water, or any other fluid
or substance into the earth.
Drilling equipment: Derrick, draw works, power plant, rotary table, pumps, together with all parts
of an apparatus to such structure, every piece of apparatus, machinery or equipment used in
connection with drilling and operations.
Page 4 of 44
Created on 4/25/08
Drill site: Area used during the drilling, re- drilling or re- working of a well or wells prior to the
reduction and conversion of the area to an operation site.
Environmentally sensitive area: An area under the jurisdiction of the U.S. Army Corps of
Engineers where scientific, ecological, cultural or aesthetic features have been identified by the
Corps of Engineers.
Exploration: Geologic or geophysical activities, including, but not limited to, surveying and
seismic exploration, related to the search for gas and oil or other sub - surface hydrocarbons.
Excavation: Includes, but is not limited to, scraping or grading _a site.
Filling: Includes, but is not limited to, disposal of excavated materials.
Floodplain: Any land area susceptible to a general and temporary condition of partial or complete
base flood inundation of normally dry land areas from overflow of inland waters or from the
unusual and rapid accumulation or runoff of surface waters from any source.
Frac, fracture or fracturing: The process of fracture stimulation of a rock formation, including,
but not limited to, the process of pumping sand laden fluids down a well to stimulate a rock
formation.
Gas: Any fluid, either combustible or noncombustible, which is produced in a natural state from
the earth and which maintains a gaseous or rarefied state at standard temperature and pressure
conditions and/or the gaseous components or vapors occurring in or derived from petroleum or
natural gas or as used in the rules, regulations, or forms of the Railroad Commission.
Habitable structures: Structures suitable for human habitation or occupation, including, but not
limited to, single or multifamily residences, hotels, condominium buildings, buildings for
commercial purposes and enclosed spaces in which individuals congregate for education,
worship, amusement or similar purposes, or in which occupants are engaged at labor, and which
is equipped with means of egress, light, and ventilation facilities. Each building of a
condominium regime is considered a separate habitable structure, but if a building is divided into
apartments, then the entire building, not the individual apartments, is considered a single
habitable structure. Additionally, a habitable structure includes porches, gazebos and other
attached improvements.
Hazardous liquid: Defined by the Railroad Commission at 16 Texas Administrative Code,
SECTION 7.80, Definitions, as amended, shall mean petroleum or any petroleum product, and
any substance or material which is in a liquid state, when transported by pipeline facilities and
which has been determined by the United States Secretary of Transportation to pose an
unreasonable risk to life or property when transported by pipeline facilities. The term shall be
enlarged to include liquefied natural gas and anhydrous ammonia should such materials at any
time be introduced into any pipeline subject to this Article. It shall also include carbon dioxide,
defined at 49 CFR 192.2 as a fluid consisting of more than ninety percent (90 %) carbon dioxide
molecules compressed to a supercritical state.
Hazardous materials management plan: The hazardous materials management plan and
hazardous materials inventory statements required by the Fire Code.
Idled pipeline: A pipeline that has been inactive for at least two (2) years even though there may
be no specific plans to reactivate the pipeline.
Inactive pipeline: A pipeline that has temporarily been taken out of service for a period of at least
six (6) months for hazardous materials or hazardous liquids and one (1) year for natural gas with
the expectation that the pipeline may be reactivated within two (2) years even though there may
be no specific plans to reactivate the pipeline.
Inspector: The oil and gas inspector designated by the Administrator.
Line marker. A marker identifying the location of a buried pipeline, as further defined in 49
CFR 192.707.
Page 5 of 44
Created on 4/25/08
Newpipelines: Pipelines constructed after the effective date of this Article but shall not include (a)
the replacement or repair of any existing pipeline; (b) the realignment of a portion of an existing
pipeline to a position that is not greater than fifty (0) feet from its original position; or (c)
surface appurtenances added to existing pipelines.
New well: A new well bore or new hole established at the ground surface and shall not include the
re- working of an existing well that has not been abandoned unless the re- working involves
drilling to a deeper total depth.
Nighttime: The period commencing at 7:00 p.m. and ending at 7:00 a.m.
Operation site: The area used for development and production of gas and oil and all related
operational activities after drilling activities are complete.
Operations: Activities leading to and supporting the production of oil, gas and/or other
hydrocarbons.
Operator: For each well, the person listed on the Railroad Commission Form W -1 or Form P -4
for a well, that is, or will be, actually in charge and in control of drilling, maintaining, operating,
pumping or controlling any well including, without limitation, a unit operator. If the Operator, as
defined herein, for any well is not the lessee of any premises affected by the provisions of this
Article, then such lessee shall also be deemed to be an Operator. In the event there is no gas and
oil lease relating to any premises affected by this Article, the owner of the fee mineral estate in
the premises shall be deemed the Operator.
Padsite: The area around a well that serves as a foundation for the drilling rig.
Permittee: Any person authorized to act under a permit or a certificate issued by the Town.
Person: An individual, firm, corporation, association, partnership, consortium, joint venture,
commercial entity, the United States government, a state, a municipality, commission, political
subdivision or any international or interstate body or any other governmental entity.
Pipeline: All parts of those physical facilities through which gas, hazardous liquids or chemicals
move in transportation, including, but not limited to, pipe, valves and other appurtenance attached
to pipe, whether or not laid in public or private easement or public or private right -of -way within
the Town.
Pipeline or well emergency: A pipeline or well incident in which any of the following has
occurred or is occurring:
(1) Fire or explosion not initiated by the Owner /Operator as part of its operations (in accordance
with accepted safety practices).
(2) Release of a gas, hazardous liquid or chemical that could adversely impact the environment or
health of individuals, livestock and /or domestic animals, and wildlife, within the Town.
(3) Death of any person or individual directly attributable to the operations of the pipeline or well.
(4) Bodily harm to any person that results in loss of consciousness, the need to assist a person
from the scene of the incident or the necessity of medical treatment in excess of first aid.
(S) Damage to private or public property not owned by the pipeline or well Owner or Operator in
excess of five thousand dollars ($5,000.00) in combined values, as determined by the
Administrator.
(6) The rerouting of traffic or the evacuation of buildings.
Pipeline permit: A permit applied for and issued or denied pursuant to this Article authorizing the
movement of gas, oil, water or other products to or from the location of a well.
Pipeline Review Committee: A committee, consisting of the Town Engineer, Fire Marshal,
Inspector, Town Director of Planning and Development Services and, if necessary, a third -party
technical advisor, appointed to seek resolution of any substantive, non - resolvable technical issues
related to the issuance of a pipeline permit.
Pipeline Owner or Operator: Any person owning, operating or responsible for operating an oil or
gas pipeline for the purpose of transporting oil, gas, or other gasses, or liquids related to the
production of oil, gas or other hydrocarbons.
Practicable: In determining what is practicable, the Pipeline Review Committee shall consider
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the effectiveness, scientific feasibility and commercial availability of the technology or technique.
The Pipeline Review Committee may also consider the cost of the technology or technique.
Protected use: A residence, religious institution, public building, hospital building, day care
facility, park or school.
Railroad Commission: The Railroad Commission of Texas.
Residence: A building used or intended to be used as a place of general abode or dwelling place.
Road Repair Agreement: A written agreement obligating the Operator to repair damage,
excluding ordinary wear and tear, if any, to public streets, including, but not limited to, bridges,
caused by the Operator or its employees, agents, contractors, subcontractors or representatives in
the performance of drilling or production of any wells authorized by the Town.
Specific Use Permit: A permit recommended by the Planning and Zoning Commission and
authorized by the Board of Aldermen for the use of land or structures in accordance to the
provisions in SECTION45 of the Zoning Ordinance.
Westlake 2025 Plan: The Town of Westlake Comprehensive Master Plan, as amended, consisting
of multiple elements, as adopted by the Board of Aldermen.
Street: The entire width between the boundary lines of the street right -of -way that is open to the
use of the public for purposes of vehicular travel.
Street right- of -ivay: Land dedicated by plat, easement or by fee simple, or qualifies as a
prescriptive easement, or prescriptive right -of -way, for the use and construction of a street or
roadway.
Structure: Without limitation, any building, or combination of related components constructed in
an ordered scheme that constitutes a work or improvement constructed on or affixed to land,
including, but not limited to, habitable structures, partially enclosed structures, enclosed tanks,
etc.
Tank battery: point of collection (tanks) and disbursement (tank, meter, lease automated custody
transfer unit) of oil or gas from producing well(s).
Technical advisor: A person(s) familiar with and educated in the oil and gas industry or the law
as it relates to oil and gas matters who may be retained from time to time by the Town.
Unregulated pipeline: Those pipelines within the Town that enjoy exemptions under federal and
state rules that exclude such lines from construction standards, safety standards or reporting
requirements of either or both federal and state governments.
Well. A hole or bore to any horizon, formation, or strata for the purpose of producing gas, oil, or
other hydrocarbons.
Well permit: A permit applied for and issued or denied pursuant to this Article authorizing the
drilling, production, and operation of one or more wells.
Workover operations: Work performed in a well after its completion in an effort to secure
production where there has been none, restore production that has ceased or increase production.
Zoning Ordinance: The Comprehensive Zoning Ordinance of the Town of Westlake, Texas, as it
may be amended.
Sec. 56 -33 Specific Use Permit Required.
The drilling and production of gas and/or oil within the Town shall only be permitted by Specific
Use Permit in accordance with SECTION45 of the Zoning Ordinance. A site plan is required with
the Specific Use Permit application and must include all information required by SECTIONS 40
and 45 of the Zoning Ordinance. — Check for our code numbers.
Sec. 56 -34 Road Repair Agreement.
A road repair agreement shall be submitted in conjunction with the application for Specific Use
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Permit. The agreement must be approved by the Board of Aldermen as a condition of the Specific
Use Permit and signed by the Operator. The Administrator shall have the authority to execute the
road repair agreement.
Sec. 56 -35 Well Permit Required.
(a) No person shall engage in the drilling, production and transport of gas and oil within the Town
without first obtaining a well permit.
(b) An application for a well permit and a pipeline permit must be filed with the Town
concurrently with the application for a Specific Use Permit; provided, however, that the Town
shall not be required to consider the application for the well permit and pipeline permit unless and
until a Specific Use Permit is approved by the Board of Aldermen and all applicable regulations
of this ordinance and all other applicable Town, state or federal regulations are met.
(c) When a well permit has been issued, the permit shall constitute authority for the drilling and
production of gas and oil in accordance with the limitations set forth in this Article. The laying of
pipelines shall require separate permitting in accordance with Division 2 of this Article.
(d) An original well permit shall not, however, constitute authority for the re- entering and drilling
of an abandoned well. Re- entry- and drilling of an abandoned well shall require a new well permit.
(e) In addition to obtaining a well permit and before establishing a drill site and access road, the
Operator must obtain all the necessary permits, including an earth disturbance permit from the
building services department. The applicant shall also be required to demonstrate compliance
with the Town's Tree Preservation Ordinance.
Sec. 56 -36 Seismic Survey Permit Required.
(a) A separate seismic survey permit shall be required for all seismic surveys. The Operator
conducting the seismic survey shall complete and submit a seismic survey application to the
Town containing, at a minimum, the following information:
(1) Applicant name, phone number, address, and, if possible, email address; if the Operator is a
corporation, the state of incorporation, and if the Operator is a partnership, the names and
addresses of the general partners shall be provided.
(2) Location of seismic survey.
(3) Date and time the seismic survey will be conducted.
(4) Detailed explanation of the seismic survey method to be used on site.
(5) Date and time the seismic survey will be completed.
(6) Identify all staging areas.
(7) Demonstrate that the activity will adhere to the requirements of the Town's Tree Preservation
as it may be amended.
(b) Under no circumstances may explosive charges, including, but not limited to the use of
dynamite, be used to conduct a seismic survey. In addition, the seismic survey activity shall be
conducted in accordance with all applicable Town ordinances.
(c) A fee in the amount of $250.00 must accompany each seismic survey permit
application.
Sec. 56 -37 Application and Review of Well Permit.
(a) Every application for a well permit shall be in writing signed by the Operator, or some person
duly authorized to sign on his or her behalf, and filed with the Department of Planning and
Development Services. A separate application is required for each well bore.
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(b) Each well permit application shall contain the following information:
(1) The date of the application.
(2) An accurate legal description of the lease property to be used for the oil and/or gas operation,
the parcel, and the production unit and name of the geologic formation as used by the Railroad
Commission. Property recorded by the plat should reference subdivision, block, and lot numbers,
as applicable.
(3) If a Specific Use Permit has been approved for the proposed oil and gas operation, a list of all
requirements set forth in the Specific Use Permit ordinance and written summary of how those
requirements will be met.
(4) A map showing the proposed transportation route identifying all public and private
roads /routes intended for use within the territorial limits of the Town. The transportation route
must be consistent with the requirements of the Specific Use Permit.
(5) The proposed well name(s).
(6) The surface owner name(s), phone number(s), address(es), and, if possible, email address(es).
(7) The mineral lessee name(s), phone number(s), address(es), and, if possible, email address(es).
(8) Operator /applicant name, phone number, address, and, if possible, email address; if the
Operator is a corporation, the state of incorporation, and if the Operator is a partnership, the
names and addresses of the general partners shall be provided.
(9) Name, phone number, address, and, if possible, email address of the individual designated to
receive notice.
(10) Name of representative with supervisory authority over all oil and /or gas operation site
activities and a twenty -four hour phone number.
(11) Owner and address of each parcel of property within one thousand (1,000) feet of the
proposed drill site.
(12) A site plan of the proposed drill site and operation site depicting the height, size, bulk and
location of all structures and equipment, including, but not limited to, all security cameras,
lighting, utilities, and the floodplain. The site plan shall also depict the location and description of
all improvements and structures one thousand (1000') feet outside of the operation site.
(13) The name, address and twenty -four -hour phone number of the person to be notified in case
of an emergency.
(14) The exact acreage and number of wells included in the permit application.
(15) Copies of all reports required by the Railroad Commission specifically, including a copy of
the approved Railroad Commission Form W I and/or P -4.
(1 b) A signed road repair agreement.
(17) A description of public utilities needed during drilling and operation.
(18) A description of the water source to be used during well fracturing, drilling and /or
operations.
(19) A copy of the approved Railroad Commission permit to drill together including attachments
and survey plats that are applicable to the drill and/or operation sites.
(20) A copy of the storm water pollution prevention plan where required by the Texas
Commission on Environmental Quality, the United States Environmental Protection
Agency, and the Town of Westlake, whichever is more stringent.
(2 1) A copy of the tree protection plan.
(22) A copy of the erosion control plan.
(23) A copy of the hazardous materials management plan. In addition to the hazardous materials
management plan, all material safety data sheets (MSDSs) detailing the hazardous materials that
will be located, stored, transported, and /or used at the drill site shall be provided to the Inspector
and Fire Marshal.
(24) A copy of the emergency response plan.
(25) A copy of the noise management plan, prepared by a noise control engineer or other
qualified person approved by the Inspector, for any equipment used in the drilling, completion, or
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production of a well as required in SECTION56 -46, hereof.
(26) A copy of the signage plan for both the drill site and pipelines. A representative sample of
each sign required to be displayed at the operation and drill site shall be provided.
(27) A copy of a Screening, Fencing and Landscape Plan detailing compliance with all landscape
and screening requirements required by Town ordinance, measures to be taken to adequately
irrigate all landscaping, including indicating the water source for irrigation, and the proposed
efforts to replace dead or dying screening vegetation. In addition to the Screening, Fencing and
Landscape Plan, a fully executed third -party landscape maintenance agreement must be
submitted, detailing the frequency and scope of the landscaping services to be provided.
(28) A copy of the determination by the Texas Commission on Environmental Quality of the
depth of useable quality ground water.
(29) Evidence of insurance and security meeting the minimum levels established by this Article.
(30) All materials required pursuant to Division 2 of this Article governing pipeline installation
and safety.
(3 1) A copy of all applicable right -of -way encroachment agreements.
(32) A dust mitigation plan detailing measures to be implemented to mitigate and suppress dust
generated at the drill site and the private vehicle access route. Brine water, sulphur water, or
water in mixture with any type of hydrocarbon may not be used for dust suppression.
(33) A public education plan addressing the requirements of SECTION 56-55 hereof.
(34) A detailed evacuation plan addressing the evacuation strategy for a public or private school,
hospital, or daycare facility if any such facility will be located within one thousand (1000') feet of
the proposed drill site.
(35) A waste management plan that addresses human, solid, and drilling production waste.
(c) All applications shall be accompanied by a twenty thousand ($20,000.00) dollar
administration and inspection fee.
(d) If the application for a well permit is approved and a permit is issued, the applicant shall at all
times be required to maintain a fund with the Town containing a minimum running balance of
fifteen thousand ($15,000.00) dollars for each permit application approved. The funds shall be
maintained by the Town in a separate interest bearing account from which the Town shall
reimburse itself for the administrative expenses, consulting fees, contracting fees or the funding
of Inspector position(s). In addition, all interest earned shall be credited to the fund balance or
refunded to the Operator if and when the minimum balance is achieved. The Town shall invoice
and notify the applicant, in writing, of any deduction from the application fund and within fifteen
(15) days of receipt thereof, the applicant shall pay to the Town, for deposit into the application
fund, the amount necessary to return the balance to fifteen thousand ($15,000.00) dollars. Upon
final inspection and approval by the Town of a restored site the Town shall return the remaining
account; balance to the applicant or the applicant's approved assign. No well permit shall be
issued if the proposed activities are not in conformance with the approved Specific Use Permit
and associated site plan, provisions of this Article, the Building Code, Fire Code and all other
applicable Town ordinances.
(e) Each well permit issued by the Town shall:
(1) Identify the name of the well and its Operator.
(2) Specify the date on which the Town issued each permit.
(3) Specify the date by which drilling must commence on the well covered by the permit
otherwise the permit expires (such date shall be one (1) year after the date of issuance). A one (1)
year extension of time may be granted if existing conditions are the same and an application for
extension is made to the Planning and Development Services Director prior to expiration of initial
permit.
(4) Specify that if drilling is commenced on the well covered by the permit before the permit
expires, the permit shall continue until the well covered by the permit is abandoned and the site
restored.
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(5) Incorporate, by reference, the indemnity, insurance and security requirements set forth in this
Article and specify that no drilling operations (including the construction of internal private
access roads) shall commence until the Operator has provided such information.
(6) Incorporate, by reference, the requirement for periodic reports.
(7) Incorporate, by reference, the conditions of the applicable Development Plan, and/or Specific
Use Permit.
(8) Incorporate, by reference, the information contained in the permit application.
(9) Incorporate, by reference, the applicable rules, and regulations of the Railroad Commission,
including the applicable "field rules ".
(10) Contain the name, address, and phone number of the person designated to receive notices
from the Town, which person must be a resident of Texas and available to receive notices by
registered or certified mail.
(11) Incorporate, by reference, all permits and fees required by the Town.
(f) A decision to deny an application for a well permit shall be provided to the Operator in
writing, including the reason for the decision. The Operator may appeal any such denial to the
Board of Aldermen.
(g) If an application for a well permit is denied, nothing herein contained shall prevent a new
application from being submitted to the Town for the same well. A new application fee shall
accompany each new application.
(h) If the application for a well permit is approved and a permit is issued, the applicant shall file
notice in the Tarrant County real property records indicating the physical location of the
permitted drill site and the well/bore hole.
Sec. 56 -38 Oil and Gas Inspector.
(a) The Administrator shall designate the Inspector(s) who shall enforce the provisions of this
Article. The Inspector shall have the authority to issue any orders or directives required to carry
out the intent and purpose of this Article and its particular provisions. Failure of any person to
comply with any such lawful order or directive shall constitute a violation of this Article.
(b) The Inspector and Fire Marshal shall have the authority to enter and inspect any premises
covered by the provisions of this Article to determine compliance with the provisions of this
Article and all applicable laws, rules, regulations, standards, or directives of the state. Failure of
any person to permit lawful access to the Inspector or Fire Marshal shall constitute a violation of
this Article.
(c) The Inspector shall conduct inspections of all permitted wells in the Town to determine
compliance with this Article and all regulations of the Railroad Commission.
(d) The Inspector and/or Administrator shall have the authority to request and receive any
records, including any records sent to the Railroad Commission, logs, and reports relating to the
status or condition of any permitted well related to the health, safety and operations of the well.
Failure of any person to provide any such requested material shall be a violation of this Article.
Sec. 56 -39 Operator's Agent.
Every Operator of any well shall designate an agent, who is a resident of the State of Texas, upon
whom all orders and notices provided in this Article may be served in person or by registered or
certified mail. Every Operator so designating such agent shall within ten (10) business days notify
the Town Secretary in writing of any change in such agent or such mailing address unless
operations within the Town are discontinued.
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Sec. 56-40 Insurance and Indemnification.
The Operator shall provide or cause to be provided the insurance described below for each well
for which a well permit is issued, such insurance to continue until the well is abandoned and the
site restored. The Operator must provide to the Town sufficient documentation that the Operator's
insurance complies with the minimum requirements and coverage amounts of this section the
well permit may be issued.
(a) General Requirements: Indemnification and Express Negligence Provisions
(1) Each well permit issued by the Town shall include the following language and
regardless of whether such language is actually included in the well permit it shall be
deemed to be included therein: OPERATOR DOES HEREBY EXPRESSLY AND
IRREVOCABLY RELEASE AND DISCHARGE ALL CLAIMS, DEMANDS,
ACTIONS, JUDGMENTS, AND EXECUTIONS OF ANY AND ALL KINDS WHICH
IT OR ITS SUCCESSORS OR ASSIGNS EVER HAD, OR NOW HAS OR MAY
HAVE, OR CLAIMS TO HAVE, AGAINST THE TOWN OF WESTLAKE, TEXAS,
ITS DEPARTMENTS, AGENTS, OFFICERS, SERVANTS, EMPLOYEES,
SPONSORS, OR VOLUNTEERS, THE INSPECTOR, AND EACH OF THEIR
RESPECTIVE HEIRS, PERSONAL REPRESENTATIVES, SUCCESSORS, AND
ASSIGNS (THE TOWN OF WESTLAKE, TEXAS AND ALL OTHER FOREGOING
PARTIES BEING HEREIN REFERRED TO COLLECTIVELY AS THE
"INDEMNIFIED PARTIES ") CREATED BY OR ARISING OUT OF PERSONAL
INJURIES, KNOWN OR UNKNOWN, -OR 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 WELL PERMIT. OPERATOR AGREES TO FULLY DEFEND, PROTECT,
INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTIES 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 BY THE
INDEMNIFIED PARTIES CAUSED BY OR ARISING OUT OF, INCIDENTAL TO,
OR OTHERWISE IN CONNECTION WITH ANY WORK PERFORMED BY
OPERATOR UNDER A WELL PERMIT, INCLUDING, WITHOUT LIMITATION,
PERSONAL INJURIES AND DEATH IN CONNECTION THEREWITH WHICH
MAY BE MADE OR ASSERTED BY OPERATOR, HIS AGENTS, ASSIGNS, OR
ANY THIRD PARTIES. OPERATOR AGREES TO FULLY DEFEND, PROTECT,
INDEMNIFY, AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM ANY
CLAIMS, LIABILITIES, OR DAMAGES SUFFERED AS A RESULT OF CLAIMS,
DEMANDS, COSTS, OR JUDGMENTS AGAINST THE INDEMNIFIED PARTIES,
CREATED BY OR ARISING OUT OF THE ACTS OR OMISSIONS OF THE TOWN
OF SOUTHEAKF OR ANY OF THE OTHER INDEMNIFIED PARTIES,
OCCURRING ON THE DRILL SITE OR OPERATION SITE IN THE COURSE AND
SCOPE OF INSPECTING AND PERMITTING THE GAS AND OIL WELLS
INCLUDING, BUT NOT LIMITED TO, CLAIMS, LIABILITIES, AND DAMAGES
ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF ANY OF THE
INDEMNIFIED PARTIES, INCLUDING THE SOLE NEGLIGENCE OF ANY
INDEMNIFIED PARTY, OCCURRING ON THE DRILL SITE OR OPERATION SITE
IN THE COURSE AND SCOPE OF INSPECTING AND PERMITTING THE GAS
AND OIL WELLS. IT IS UNDERSTOOD AND AGREED THAT THE INDEMNITY
PROVIDED FOR IN THIS SECTIONIS AN INDEMNITY EXTENDED BY THE
OPERATOR TO INDEMNIFY AND PROTECT THE TOWN OF WESTLAKE,
TEXAS AND THE OTHER INDEMNIFIED PARTIES FROM THE CONSEQUENCES
OF THE NEGLIGENCE OF ANY OF THE INDEMNIFIED PARTIES, WHETHER
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THAT NEGLIGENCE IS THE SOLE OR CONTRIBUTING CAUSE OF THE
RESULTANT INJURY, DEATH, AND /OR DAMAGE. THE FOREGOING IS NOT
INTENDED TO REQUIRE THE OPERATOR TO INDEMNIFY THE INDEMNIFIED
PARTIES FROM THE INDEMNIFIED PARTIES' GROSS NEGLIGENCE OR
INTENTIONAL HARM, IRRESPECTIVE OF WHETHER THAT GROSS
NEGLIGENCE OR INTENTIONAL HARM IS THE SOLE OR CONTRIBUTING
CAUSE OF THE RESULTANT INJURY, DEATH, AND /OR DAMAGE.
(2) All policies shall be endorsed to read "This policy will not be cancelled or non- renewed
without thirty (3 0) days advanced written notice to the owner and the Town of Westlake, Texas,
except when this policy is being cancelled for nonpayment of premium, in which case ten (10)
days advance written notice is required ".
(3) Liability policies shall be written by: (i) carriers licensed to do business in Texas and with
companies with A: VIII or better rating in accordance with the current Best Key Rating Guide, or
(ii) non - admitted carriers that have a financial rating comparable to carriers licensed to do
business in Texas and which are approved by the Town.
(4) Liability policies shall name as "Additional Insured" the Town and other
Indemnified Parties. Waivers of subrogation shall be provided in favor of all Indemnified
Parties.
(5) Copies of the pertinent portion of the insurance policies evidencing all coverage and
endorsements required by this section must be presented to the Town before the issuance of the
well permit, and the acceptance of a policy without the required limits and /or coverage shall not
be deemed a waiver of these requirements. The Town may, in its sole discretion, accept a
certificate of insurance in lieu of a copy of the pertinent portion of the policy pending receipt of
such document by the Town. After the issuance of the well permit, the Town may require the
Operator to provide a copy of the most current insurance coverage and endorsements for review
at any time. An administration fee of $150.00 will be charged to cover the cost of such review.
(6) Claims -made policies shall not be accepted except for excess policies and Environmental
Impairment (or Seepage and Pollution) policies.
(b) Required Insurance Coverage:
(1) Commercial or Comprehensive General Liability Insurance:
a. Coverage should be a minimum Combined Single Limit of Ten Million Dollars
($10,000,000.00) per occurrence for Bodily Injury and Property Damage, with a Twenty Million
Dollar ($20,000,000.00) annual general aggregate. This coverage must include premises,
operations, blowout or explosion, products, completed operations, blanket contractual liability,
underground property damage, underground reservoir (or resources) damage, broad form property
damage, independent contractors' protective liability and personal injury.
b. Underground Reservoir (or Resources) Damage shall be on an occurrence basis, shall not be
limited to sudden and accidental occurrences, shall not have a discovery or reporting limitation
and shall not exclude damage to water tables, formation or strata.
c. Environmental Impairment (or Seepage and Pollution) shall be either included in the coverage
or written as separate coverage. Such coverage shall not exclude damage to the lease site. If
Environmental Impairment (or Seepage and Pollution) Coverage is written on a "claims made"
basis, the policy must provide that any retroactive date applicable precedes the effective date of
the issuance of the permit. Coverage shall apply to sudden and accidental pollution conditions
resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals,
liquids, Gas and oils, waste material, or other irritants, contaminants or pollutants. Coverage shall
be a minimum combined single limit of Ten Million Dollars ($10,000,000.00), per occurrence. A
discovery period for such peril shall not be less than one year after the occurrence.
(2) Automobile Liability Insurance: Minimum Combined Single Limit of Ten Million Dollars
($10,000,000.00) per occurrence for Bodily Injury and Property Damage. Such coverage shall
include owned, non - owned, and hired vehicles_
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(3) Worker's Compensation Insurance: In addition to the minimum statutory requirements,
coverage shall include Employer's Liability limits of at least One Million
Dollars ($1,000,000.00) for each accident. One Million Dollars ($1,000,000.00) for each
employee, and a One Million Dollars ($1,000,000.00) policy limit for occupational disease, and
the insurer agrees to waive rights of subrogation against any of the Indemnified Parties for any
work performed for the Town by the Operator.
(4) Excess (or Umbrella) Liability Insurance: Minimum limit of Ten Million Dollars
($10,000,000.00) covering in excess of the preceding liability insurance policies.
(5) Control of Well Insurance:
a. Minimum limit of Ten Million Dollars ($10,000,000.00) per occurrence, with a maximum
deductible of Two Hundred and Fifty Thousand ($250,000.00) per occurrence.
b. Policy shall cover the cost of controlling a well that is out of control, re- drilling or restoration
expenses, and seepage and pollution damage. Damage to property in the Operator's care, custody,
and control with a sub -limit of Five Hundred Thousand Dollars ($500,000.00) may be added.
SOUTHLAKE TO WESTLAKE CODE CONVERSION STOPS HERE!
Sec. 56 -260 Security.
(a) A cash bond in the amount of Two Hundred Thousand Dollars ($200,000.00) covering each
pad site must be delivered to the Town before the issuance of the well permit for the well.
(b) As to each well, the cash bond shall secure the obligations of the Operator to:
(1) Comply with the road repair agreement and the insurance provisions set forth in this Article;
and
(2) Pay fines and penalties imposed upon the Operator by the Town for any breach of the well
permit or Zoning Ordinance. If fines are not paid within thirty (30) days of issuance, the well
permit may be suspended or revoked by the Town.
(3) Comply with the conditions of the applicable Specific Use Permit.
(4) Comply with the performance obligations of this Article, including, but not
limited to, the screening requirements.
Sec. 56 -261 Periodic Reports.
(a) The Operator shall notify the Town of any change to the following information within one (1)
business day after the change occurs.
(1) The name, address, or phone number of the Operator;
(2) The name, address, or twenty -four (24) hour phone number of the person(s) with supervisory
authority over drilling, production, or operations activities;
(3) The name, address, or phone number of the person designated to receive notices from the
Town, which person must be a resident of Texas that can be served in person or by registered or
certified mail; or
(4) The Operator's Emergency Action Response Plan including "drive -to maps" from public
rights -of -way to each area covered by the applicable Specific Use Permit and associated site plan.
(b) The Operator shall provide a copy of any "incident reports" or written complaints submitted
to the Railroad Commission or any other state or federal agency within fifteen (15) days after the
Operator has notice of the existence of such reports or complaints.
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(c) Beginning on December 31 st after each well is completed, and continuing on each December
31 st thereafter until the Operator notifies the Town that the well has been abandoned and the site
restored, the Operator shall prepare a written report to the Town identifying any changes to the
information that was included in the application for the applicable well permit that have not been
previously reported to the Town. In addition, the annual report shall include copies of all internal
reports responses to a pipeline or well emergency, copies of operations and maintenance logs and
a copy of the emergency action plan, if updated.
Sec. 56 -262 Amended Well Permits.
(a) An Operator must submit an application to the Town's Planning and Development Services
Department to amend an existing well permit, to commence drilling from a new drill site that is
not shown on (or incorporated by reference as part of) the existing permit, to relocate a drill site
or operation site that is shown on (or incorporated by reference as part of) the existing permit, or
to otherwise amend the existing permit in any manner. The Director of Planning and
Development Services shall review the proposed amendment to determine if an amendment to the
applicable Specific Use Permit shall be required. If an amendment to the applicable Specific Use
Permit is required the application for an amended well permit must be processed as a new well
permit application and shall include all application materials and the appropriate fee set forth in
Section 56 -37 of this Article.
(1) Applications for amended well permits shall be in writing on forms provided by the Town and
signed by the Operator, and shall include the following:
a. An application fee in the amount of five thousand ($5,000.00) dollars. The application fee is
not refundable regardless of the outcome of the application;
b. A description of the proposed amendments;
c. Any changes to the information submitted with the application for the current well permit (if
such information has not previously been provided to the Town);
d. Such additional information as is reasonably required by the Inspector or the Administrator to
demonstrate compliance with the applicable Specific Use Permit and associated site plan and the
provisions of this Article; and
e. Such additional information as is reasonably required by the Inspector or the Administrator to
prevent imminent destruction of property or injury to persons.
(b) If, in the judgment of the Administrator or the Inspector, the activities proposed by the
amendment require an inspection, an inspection fee of $1,200.00 shall be charged. The Operator
must pay the fee before the amended well permit will be processed further.
(e) Incomplete applications shall be returned to the Applicant within 30 business days. The Town
shall return any application as incomplete if there is a dispute pending before the Railroad
Commission regarding the determination of the Operator or where the Operator is in violation of
any federal, state, or local regulation with respect to the proposed activities covered by the
application.
(d) If the activities proposed by the amendment are materially different and, in the judgment of
the Town or the Inspector, might create a risk of imminent destruction of property or injury to
persons that was not associated with the activities covered by the existing permit or that was not
otherwise taken into consideration by the current permit or the applicable Specific Use Permit,
the amendment must be processed as a new well permit application and an amendment to the
applicable Specific Use Permit shall be required.
(e) A decision to deny an amendment to a well permit shall be provided to the Operator in
writing, including an explanation of the basis for the decision. The Operator may appeal any such
denial to the Board of Aldermen.
(f) No amended well permit shall be issued if the proposed activities are not in conformance with
Page 15 of 44
Created on 4/25/08
the approved Specific Use Permit and associated site plan, provisions of this Article, Building
Code, Fire Code and all other applicable Town ordinances.
Sec. 56 -263 Transfer of Well Permits.
(a) A well permit may be transferred upon written request by the Operator with the consent of the
Town:
(1) If the transferee agrees to be bound by the terms and conditions of the current well permit,
road repair agreement and demonstrates compliance with the pipeline regulations set forth in
Division 2 of this Article; Check for correct reference.
(2) If all information previously provided to the Town as part of the current well permit
application is updated to reflect any changes; and
(3) If the transferee provides the insurance and security required by this Article.
(b) The insurance and security provided by the transferor shall be released if a copy of the written
transfer is provided to the Town. The transfer shall not relieve the transferor from any liability to
the Town arising out of any activities conducted prior to the transfer.
Sec. 56 -264 On -site Operation Requirements.
(a) It shall be unlawful to drill, re- drill, deepen, re- enter, activate or convert any well, the center
of which, at the surface of the ground, is located:
(1) Within feet ( `) from any residence or the nearest property line of a residential
subdivision or development and within feet ( from any religious
institution, public building, hospital building, day care facility, park or school which has been
constructed or is on land that has been zoned or land use planned before the date the application
for a well permit has been filed with the Town.
(2) Within feet (`)from any existing storage tank, or source of
potential ignition.
(3) Within feet ( `)of any public street, road, highway, or right -
of -way line.
(4) Within feet ( l) of any building accessory to the operation of
the well.
(S) Within feet ( ` )of a railroad right -of -way.
(6) Within feet ( `)from any fresh water well.
(b) All distances in (a) and (b) above, shall be measured from the proposed well bore in a straight
line, without regard to intervening structures or objects, to the closest exterior point of any object
or structure listed in subparagraphs (1) through (9) above.
(c) Erosion control measures shall be installed in compliance with the plan approved by Board of
Aldermen as a condition of the Specific Use Permit, all applicable Town ordinances and the
Public Works Department.
(d) A drill site or operation site may only be allowed in a floodplain with the approval of the
Town or, where applicable, the U.S. Army Corps of Engineers.
(e) There shall be a locked entrance gate to the drill, production. and operation site.
(f) All facilities used for parking, loading, unloading, driveways and all other vehicular access
shall be constructed of concrete, unless an alternative material is approved by the Board of
Aldermen as a condition of a Specific Use Permit or an approved variance. The surface for such
facilities and drive approach must always be maintained in good condition and repair and meet
the minimum requirements set forth in the Fire Code approved by the Board of Aldermen, as
amended.
Ordinance No. 880,4 21
Page 16 of 44
Created on 4/25/08
(g) A temporary chain -link fence with all- weather screening fabric at least eight (8') feet in height
shall be established around the entire drill site to obscure view of the drilling activities. A secured
entrance gate shall be required. All gates are to be kept locked when the Operator or his
employees are not within the enclosure. A `Knox Padlock" or a "Knox Box with a key" shall be
provided to the Fire Chief to access the drill site to be used only in case of an emergency. In
addition to the foregoing, the applicant shall also be required to comply with the screening
requirements set forth in the Zoning Ordinance.
(h) A masonry perimeter wall of a minimum of eight (8') feet in height shall be required to
enclose and visually screen the well and all associated equipment during post-drilling operations.
The masonry perimeter wall shall have an architectural metal gate that shall remain locked when
the Operator or his employees are not within the enclosure. A `Knox Padlock" or a "Knox Box
with a key" shall be provided to the Fire Chief to access the drill site to be used only in case of an
emergency. In addition to the foregoing, the applicant shall also be required to comply with the
screening requirements set forth in the Zoning Ordinance.
(I) An 8' high foot high chain link fence with barb wire or similar device as approved by Board of
Aldermen shall be installed around all equipment on the pad side and interior to the masonry
screening wall.
(j) The Board of Aldermen may modify the screening requirements set forth in paragraphs (h) -
(j) as a condition of any Specific Use Permit.
(k) No refining process or any process for the extraction of hydrocarbon, products shall be
performed at a drill site or operation site, except that a separator may be maintained for the
separation of liquids from gas and oil. Any such separator may serve more than one well. All
production equipment on an operation site shall be maintained at all times.
(I) No person shall place, deposit, or discharge or cause or permit to be placed, deposited, or
discharged any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, refuse, wastewater,
brine or hazardous substance from any production operation or the contents of any container used
in connection with any production operation in, into, or upon any public right - ofway, storm drain,
ditch or sewer, sanitary drain or sewer, any body of water, or any private property in the Town.
(m) All fire suppression and prevention equipment required by any applicable federal, state, or
local law, including the requirements of the Operator's emergency response plan, shall be
provided by the Operator, at the Operator's cost, and the maintenance and upkeep of such
equipment shall be the responsibility of the Operator. The Operator shall be required to keep
adequate foam fire suppressant equipment and supplies at each drill site.
(n) No Operator shall excavate or construct any lines for the conveyance of fuel, water, oil, gas
and oil or petroleum liquids on, under, or through the streets, alleys or other properties owned by
the Town without an easement or right -of -way license from the Town, at a price to be agreed
upon, and then only in strict compliance with this section, other Town ordinances, and the
specifications established by the Department of Public Works. - ??
Ord n` nce No 880 A 22
(o) The digging up, breaking, excavating, tunneling, undermining, breaking up, or damaging of
any public street or leaving upon any public street any earth or other material or obstruction, is
prohibited unless the Operator has first obtained written permission from the Town, and then only
in compliance with specifications established by the Town.
(p) No well permit shall be issued for any well to be drilled within any of the public street or alley
rights -of -way of the Town and/or future streets shown on the Master Thoroughfare Plan. No
street shall be blocked or encumbered or closed due to any exploration, drilling, or production
activities unless prior consent is obtained from the Town, and then only temporarily.
(q) Annual Meeting with Town Required. Each Operator shall meet annually with representatives
of the Town to review emergency response plans. These reviews shall be in accord with U.S.
Department of Transportation and Railroad Commission requirements and the Operator will:
Page 17 of 44
Created on 4/25/08
(1) Furnish or update a copy of the Emergency Response Plan;
(2) Review the responsibilities of each governmental organization in response to an emergency or
incident;
(3) Review the capabilities of the Operator to respond to an emergency or incident;
(4) IdentifS' the types of emergencies or incidents that will result in or require contacting the
Town; and
(5) Plan mutual activities that the Town and the Operator can engage in order to minimize the
risks associated with well operation.
(r) Blowout prevention. In all cases, blowout prevention equipment shall be used on all wells
being drilled, worked -over or in which tubing is being changed. Protection shall be provided to
prevent blowout during oil and /or gas operations as required by and in conformance with the
requirements of the Railroad Commission and the recommendations of the American Petroleum
Institute. The Operator must equip all drilling wells with adequate blowout preventirs, flow lines
and valves commensurate with the working pressures involved as required by the Railroad
Commission.
(s) Chemical and materials storage. All chemicals and/or hazardous materials shall be stored in
such a manner as to prevent, contain, and facilitate rapid remediation and cleanup of any
accidental spill, leak, or discharge of a hazardous material. Operator shall have all material safety
data sheets (MSDSs) for all hazardous materials on site. All applicable federal and state
regulatory requirements for the proper labeling of containers shall be followed. Appropriate
pollution prevention actions shall be required and include, but are not limited to, chemical and
materials raised from the ground (e.g., wooden pallets), bulk storage, instillation and maintenance
of secondary containment systems, and protection from storm water and weather elements.
(t) Closed loop mud systems. A closed loop mud system shall be used instead of lined reserve
pits.
(u) Disposal Well. No saltwater or other type of disposal well shall be permitted in
the Town.
(v) Drilling. Air, gas, or pneumatic drilling shall not be permitted.
(w) Drilling Fluids. Low toxiTown glycols, synthetic hydrocarbons, polymers, and esters shall be
substituted for conventional oil -based drilling fluids.
(x) Drilling fluid storage pit. No drilling fluid mud, storage or reserve pits shall be located within
the Town, except steel containers used in a closed loop mud system.
(y) Drill stem testing. All open hole formation or drill stem testing shall be done during daytime
hours and in no event may drill stem testing be performed during nighttime hours. Drill stem tests
may be conducted only if the well effluent during the test is produced through an adequate oil
and/or gas separator to storage tanks and the effluent remaining in the drill pipe at the time the
tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the
drill pipe.
(z) Drip pans and other containment devices. Drip pans and other containment devices shall be
placed or installed underneath all tanks, containers, pumps, lubricating oil systems, engines, fuel
and chemical storage tanks, system valves, connections, and any other areas or structures that
could potential leak, discharge, or spill hazardous liquids, semi - liquids, or solid waste materials,
including hazardous waste inseparable by simple mechanical removal processes, and is made up
primarily of natural material.
(aa) Dust, vibrations, odors. All drilling and production operations shall be conducted in such a
manner as to minimize, so far as practicable, dust, 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. All equipment used shall be so constructed and operated so that
vibrations, dust, odor, or other harmful or annoying substances or effect will be minimized by the
operations carried on at any drill 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
Page 18 of 44
Created on 4/25/08
dilapidated, unsightly or unsafe. Proven technological improvements in industry standards of
drilling and production in this area shall be adopted as they become available if capable of
reducing factors of dust, vibration and odor.
(bb) Electric motors. Only electric prime movers or motors shall be permitted for the purpose of
pumping wells. No electric power shall be generated on location. All electrical installations and
equipment shall conform to Town ordinances and applicable national codes.
(cc) Emergency response plan. Prior to the commencement of oil and/or gas drilling, or any other
hydrocarbons production activities, Operator shall submit to the Inspector and Fire Marshal an
emergency response plan as approved by Town. The Emergency Response Plan shall be kept
current with any additions, modifications, and/or amendments concerning all construction related
activities, oil and/or natural gas operations and production. Updated plans
Ordinance No. 880 A 24
shall be submitted to the Inspector and Fire Marshal within two (2) business days after any
additions, modifications, and/or amendments to said plan(s). The Board of Aldermen shall be
informed of any changes to the plan. A copy of the emergency response plan shall be kept on site.
The emergency response plan shall at a minimum provide for prompt and effective response to
emergencies.
(dd) Fire prevention, sources of ignition. Firefighting apparatus and supplies as approved by the
Fire Chief, or his designee, and required by any applicable federal, state, or local law shall be
provided by the Operator, at the Operator's cost, and shall be maintained on the drill site at all
times during drilling and production operations. The Operator shall be responsible for the
maintenance and upkeep of such equipment. Each well shall be equipped with an automated
valve that closes the well in the event of an abnormal change in operating pressure. All well heads
shall contain an emergency shut off valve to the well distribution line.
(ee) Frac or Surface Ponds. Fracturing ponds or surface fresh water ponds are not permitted
within the Town.
(ff) Fresh water wells. Within one hundred twenty (120) days of its completion date, each well
shall be equipped with a cathodic protection system to protect the production casing from external
corrosion. The Inspector may approve an alternative method of protecting the production casing
from external corrosion. The Operator of a well shall provide the Inspector with a "pre- drilling"
and "post - drilling' water analysis and flow rate from any existing fresh water well within two
thousand feet (2,000') of the well. Such water tests shall conform to the following testing
requirements:
(1) Water samples must be collected and analyzed utilizing proper sampling and laboratory
protocol from a United States Environmental Protection Agency or Texas Commission on
Environmental Quality approved laboratory
(2) Well samples shall be analyzed prior to any drilling activity to document baseline water
quality data of the well. A post - drilling sample shall be analyzed within three (3) months after the
drilling begins.
(3) Parameters to be tested for include but are not limited to: methane, chloride, sodium, barium,
and strontium.
If it is found that the fresh water well is no longer in use and without possibility of future use or if
the fresh water well owner objects to having the water well tested, the owner of the fresh water
well may waive the right to have the applicant test the water.
(gg) Gas emission or burning restrictions. No person shall allow, cause or permit gases to be
vented into the atmosphere or to be burned by open flame. No open flaring is permitted.
(hh) Firefighter training. Each Operator shall be required to provide training and instruction to
the Fire Department regarding well safety and emergency management protocol. Fire Department
Page 19 of 44
Created on 4/25/08
training must occur prior to conducting drilling operations under each Operator's first well
permit.
Ordinance No. 880 A 25
(ii) Grass, weeds, trash. All drill and operation sites shall be kept clear of debris, poois of water
or other liquids, contaminated soil, brush, high grass, weeds, combustible trash and other waste
material within a radius of one hundred (100') feet around a pad site and other drill site or
operation site equipment not located on the pad site.
0j) Wells within flight path. All wells intended to be located within the flight path of an airport
shall require Federal Aviation Administration approval and each applicant must submit a fully
executed and recorded avigation easement as part of the well permit application process.
(kk) Hazardous materials plan. A hazardous materials management plan shall be on file with the
Inspector and Fire Marshal. The hazardous materials management plan shall be kept current with
any additions, modifications, and/or amendments to all construction related activities and oil and
natural gas operations and production. Updated plans shall be submitted to the Inspector and Fire
Marshal within two (2) business days. The Board of Aldermen will be notified of any such
changes.
(11) Organic Solvents. Organic solvents, such as trichloroethylene and carbon tetrachioride, shall
not be used for cleaning any element, structure, or component of the drilling rig, platform, and/or
associated equipment, tools, or pipes.
(mm) Pipe Dope. Lead -free, biodegradable pipe dope shall be substituted for American
Petroleum Institute (API) specified pipe dope. Sealant shall be used around pipe threads to ensure
and maintain the integrity of the seal.
(nn) Signs.
(1) A sign shall be immediately and prominently displayed at the gate on the temporary and
permanent site fencing erected pursuant to the requirements of this section. Such sign shall be of
durable material, maintained in good condition and, unless otherwise required by the Railroad
Commission, shall have a surface area of not less than two (2) square feet or more than four (4)
square feet and shall be lettered with the following:
a. Well name and number;
b. Name of Operator,
c. Address of property;
d. The emergency 911 number; and
e. Telephone numbers of two (2) persons responsible for the well who may
be contacted twenty -four (24) hours a day in case of an emergency.
(2) Permanent weatherproof signs reading "DANGER NO SMOKII'JG ALLOWED" shall be
posted immediately upon completion of the drill site fencing at the entrance of each drill site or in
any other location approved or designated by the Fire Chief of the Town. Sign lettering shall be
four (4) inches in height and shall be red on white
Ordinance No. 880 A 26
background or white on a red background. Each sign shall include the emergency notification
numbers of the Fire Department and the Operator, well and lease designations required by the
Railroad Commission.
(3) A "Muster Point" sign shall prominently be posted at the entrance of the drill site and the
Town's Fire Marshal shall be notified of its location. The sign shall be metal and mounted on a
steel post. The sign shall be white in color with red letters that are a minimum of 8" tall. In the
event of a fire or discovery of a fire, smoke, or unauthorized release of flammable or hazardous
materials on any property, the Operator shall immediately report such condition to the Fire
Department and all capable persons on the drill site shall immediately report to the Muster Point.
The Operator shall instruct all persons who go on the drill site of this emergency procedure prior
Page 20 of 44
Created on 4/25/08
to their entrance onto the drill site.
(oo) Storage of equipment. Onsite storage is prohibited on the operation site. No equipment shall
be stored on the drilling or production operation site, unless it is necessary to the everyday
operation of the well. Lumber, pipes, tubing and casing shall not be left on the operation site
except when drilling or well servicing operations are being conducted on the site. The Fire
Marshal shall be the entity that determines whether any and all equipment on the site shall
constitute a fire hazard and must be removed. No refinery, processing, treating, dehydrating or
absorption plant of any kind shall be constructed, established or maintained on the premises. This
shall not be deemed to exclude a conventional horizontal gas separator.
(pp) Storage tanks.
(1) All tanks and permanent structures shall conform to the A.P.I. specifications unless other
specifications are approved by the Fire Marshal. All storage tanks shall be equipped with a
secondary containment system including lining with an impervious material. The secondary
containment system shall be a minimum of three feet (3') in height and one and one -half (1 %)
times the contents of the largest tank in accordance with the Fire Code of the Town, and buried at
least one foot (1 `) below the surface. Drip pots shall be provided at the pump out connection to
contain the liquids from the storage tank.
(2) All tanks shall be set back pursuant to the standards of the Railroad Commission and the
National Fire Protection Association, but in all cases, shall be at least feet `) from
any public right -of -way or property line. Each storage tank shall be equipped with a level control
device that will automatically activate a valve to close the well in the event of excess liquid
accumulation in the tank.
(3) Meters, storage tanks, separation facilities, and other aboveground facilities shall not be
placed in a floodway or within a one hundred (100) year floodplain.
(qq) Surface casing. Surface casing shall be run and set in full compliance with the applicable
rules and regulations of the Railroad Commission.
Ordinance No. 880 A 27
(if) Valves. Each well must, have a shutoff valve to terminate the well's production. The Fire
Department shall have access to the drill site to enable it to close the shut -off valve in an
emergency. These valves shall be painted red and signed to show they are shut off valves.
(ss) Waste disposal.
(1) Drilling mud, cuttings, liquid hydrocarbons and all other field waste derived or resulting from
or connected with the drilling, re- working or deepening of any well shall be discharged into an
aboveground self - contained tank. All disposals must be in accordance with the rules of the
Railroad Commission and any other applicable local, state or federal agency. Unless otherwise
directed by the Railroad Commission, waste materials shall be removed from the site and
transported to an off -site disposal facility not less often than one (1) time every thirty (30) days.
Water stored in on -site tanks shall be removed as necessary.
(2) All waste shall be disposed of in such a manner as to comply with the air and water pollution
control regulations of the state, this Article, and any other applicable ordinance of the Town.
(tt) Watcliperson. The Operator must keep a watchman or security personnel on -site during the
drilling or re- working of a well when other workmen are not on the premises.
(uu) Environmentally Sensitive Areas. The drilling and production of gas and oil and accessing
the drill site or operation site shall not occur within environmentally sensitive areas. Wells may
have a target location or bottom -hole location that is under an environmentally sensitive area
when the well is drilled directionally from a location outside the environmentally sensitive area.
(vv) Heavy Vehicles. Access to all operational wells shall be limited to state or federal highways
within the Town and to those routes otherwise designated in Article IV, Chapter 118 of the
Westlake Town Code, governing the transportation of heavy vehicles on Town streets.
(ww) Hydrogen Sulfide. If a gas or oil field in the Town is identified as a Hydrogen Sulfide (H2S)
Page 21 of 44
Created on 4/25/08
field or if a well is producing Hydrogen Sulfide (H2S) gas, the Operator shall immediately cease
operation of that well or facility.
(xx) Bond for Surface Restoration. The surface locations of all dry wells and/or abandoned
operations must be restored as nearly as possible to its original condition. The Town shall require
the Operator to submit a performance bond to cover the costs of any clean -up necessary. The
amount of the performance bond shall be determined by the Administrator, taking into account
the scope of the restoration project and the cost of materials.
(yy) Security System.
(1) Alarm system. Within ten (10) days of completion of the periineteffencing, all sites shall have
a fully operational security system that meets the following requirements:
Ordinance No. 880 A 28
(a) Remotely Monitored Access Control System. All vehicular gates in the
perimeter fencing shall be secured by a permitted, remotely monitored
control access system. The system shall meet the following requirements:
1. Monitoring. The system shall be monitored by central monitoring facility capable of
monitoring security related alarm systems and meeting all required state and federal guidelines.
The central monitoring facility shall be staffed and operational at all times.
2. Access control. Gate access shall be secured by an access control system with an unlocking and
re- locking mechanism that requires a card, numeric code, or other identification device for gate
operation. The system shall record the identity of the entering party and the date and time of such
entry.
3. Intrusion detection system. The system shall include a gate closure contact sensor that will be
activated when the gate closure sensor is violated in any manner by non - identified access. The
system shall be equipped to signal a control panel which activates an on -site audible signal and
registers at the monitoring facility when an access breach is detected.
4. Open gate detection. The security system shall include an open gate detection alarm to notify
the monitoring facility if the gate closure sensors, once accessed, are not closed and thereby
reactivated within five (S) minutes of being opened.
5. Exit sensor. Gates shall be equipped with a motion sensor, weight sensor or other device to
unarm the gate for vehicles exiting the site.
(b) Personnel exit gate. An exit -only gate for personnel shall be provided near the vehicular gate
entrance.
(c) Response to alarms. The alarm system shall be permitted with the Town of Southake Police
Department (SPD) in accordance with the Town's alarm Ordinance. The monitoring facility shall
notify the Operator and the SPD in case of security breach at the drill site. The Operator shall
respond with an authorized representative on site within forty five (4) minutes of notification of
alarm. Fines for false alarms shall be as follows:
Number per calendar year Finej).er each
1-3$500.00
4-9$1000 * 00
10 -15 $150.00
16 -20 $2000.00
21+ $2000.00 and suspension of Gas Well Permit
Ordinance No. 880 A 29
(2) Security Camera(s). At all times after the perimeter fence is in place, a minimum of one (l )
security camera shall be mounted inside the perimeter fence. Signs shall be posted on the fencing
of the site to indicate that any activity on the site may be recorded by video surveillance. The
location of the security camera and picture resolution of the recordings shall be subject to the
approval of the Police Chief. Camera systems shall be maintained in proper operating condition
Page 22 of 44
Created on 4/25/08
and shall meet the following criteria:
(a) capture clear video images of all traffic entering and exiting the gate(s);
(b) capture clear video images of all production equipment located on the site;
(c) be equipped with motion detection technology;
(d) be equipped with panning technology to pan immediately to any motion detected on the site;
(e) show the date and time of all activity on the footage; and
(f) be capable of being viewed at the monitoring facility.
Operator shall maintain video data for a period of 400 hours, At the request of the
Town, the Operator shall produce to the Town any recorded views of the fenced area.
Data from videos may only be requested by the Administrator or law enforcement
officials.
(zz) Tank battery equipment. All tank battery facilities shall be equipped with a remote foam line
arrestor system. A sign shall be erected to clearly indicate the location of the foam line arrestor
system. All connections and the sign for the remote foam line arrestor system shall meet industry
specifications and be approved by the Fire Marshal's office.
(aaa) Three pipe system. The three pipe system to extract oil and gas (see Illustration _) shall be
utilized. Water storage tanks shall not be permitted on the pad site except for oil and gas
separators used during drilling and fresh water tanks used during fracturing.
(bbb) Utility lines. All utility lines run to the Operation and/or Drill site shall be buried.
56 -265 Operations and Equipment Practices and Standards.
(a) Adequate nuisance prevention measures shall betaken to prevent or control offensive odor,
fumes, dust, noise and vibration.
(b) No person shall permit any lights located on any drill site or operation site to be directed in
such a manner so that they shine directly on public streets, adjacent property or property in the
general vicinity of the drill site or operation site. Site lighting shall be shielded and directed
downward and internally so as to avoid glare on public streets and buildings within
Ordinance No. 880 A 3 0
three hundred (300') feet. In addition, all operations shall meet the Town's Lighting Ordinance
693 -13, as amended and Federal Aviation administration approval is required where applicable.
(c) The Operator shall at all times comply with the rules and regulations of the Railroad
Commission including but not limited to all applicable Field Rules.
(d) Noise.
(1) No well shall be drilled, redrilled or any equipment operated at any location within the Town
in such a manner so as to create any noise which causes the exterior noise level when measured at
the nearest protected use receiver's/receptor's property line or one hundred (100) feet from the
nearest protected use structure (as measured to the closest exterior point of the building),
whichever is closer to the receiver /receptor, that exceeds the ambient noise level:
a. by more than ten (10) decibels during fracturing operations;
b. by more than five (5) decibels during nighttime hours during backflow operations; and
c. by more than five (5) decibels during daytime hours and more than three (3) decibels during
nighttime hours for all activities not addressed in paragraphs a. and b., above.
(2) The Operator shall be responsible for establishing and reporting to the Town the pre - drilling
ambient noise level prior to the issuance of a well permit. Once the drilling is complete, the
Operator shall be required to establish a new ambient noise level prior to the installation of any
new noise generation equipment. In lieu of the foregoing, the Town may elect to perform the
required noise testing and establish the ambient noise level, which must be adhered to.
(3) Adjustments to the noise standards as set forth above in subSECTION(1) of this
subSECTIONmay be permitted in accordance with the following:
Permitted Increase Duration of Increase
(dB ",minutes)* (minutes)*
Page 23 of 44
Created on 4/25/08
5 15
105
15 1
20 less than 1
*Cumulative minutes during any one hour
(4) All workover operations shall be restricted to daytime hours.
(5) The exterior noise level generated by the drilling, redrilling or other operations of all wells
located within one thousand (1000') feet of a protected use shall be monitored
Ordinance No. 880 A 31
when requested by the Town, to ensure compliance. The cost of such monitoring shall be borne
by the Operator.
(6) Acoustical blankets, sound walls, mufflers or other alternative methods as approved by the
Inspector may be used to ensure compliance. All soundproofing shall comply with accepted
industry standards and subject to approval by the Fire Marshal.
(7) The sound level meter used in conducting noise evaluations shall meet the American National
Standard Jnstitut &s standard for sound meters or an instrument and the associated recording and
analyzing equipment which will provide equivalent data.
(8) A citation may be issued for the failure to immediately correct the violation upon notice of
violation by the Town or the Inspector.
(9) During nighttime operations the operation of vehicle audible back -up alarms shall be
prohibited or replaced with approved nonauditory signaling systems, such as spotters or flagmen.
Deliveries of pipe, casing and heavy loads shall be limited to daytime hours, except for
emergency situations. The Derrick Man and Driller shall communicate by walkie- talkie or other
non disruptive means only when the Derrick Man is in the derrick. Horns may not be used to
signal for connection or to summon crew (except that a horn may be used for emergency purposes
only). The Operator shall conduct onsite meetings to inform all personnel of nighttime operations
noise control requirements.
(10) A noise management plan shall be required and shall detail how the equipment used in the
drilling, completion, transportation, or production of a well complies with the maximum
permissible ambient noise levels of this Article. The noise management plan must be approved by
the Director of Planning and Development Services and must:
a. Identify operation noise impacts;
b. Provide documentation, if applicable, establishing the ambient noise level prior to and after the
installation of the noise - generation equipment verifying compliance with this section; and
c. Detail how the impacts will be mitigated. In determining noise mitigation, specific site
characteristics shall be considered, including but not limited to the following:
1. Nature and proximity of adjacent development, location, and type;
2. Seasonal and prevailing weather patterns, including wind directions;
3. Vegetative cover on or adjacent to the site;
4. Topography; and
Ordinance No., 8$,kA 32
5. Operation and site noise management measures which may include, but not be limited to: use
of critical grade mufflers on generators and motors; use of structural noise curtains, walls, or
enclosures; and best management practices by limiting or eliminating noisier operations, such as
tripping, deliveries of pipe, casing and heavy loads, use of horns for communication, and
operation of vehicle audible back -up alarms during nighttime hours.
(e) In parallel to gas and oil gathering pipeline, a flow back line may be installed to handle water
and gas and oil flow back following well fracture treatment.
(f) Except in the case of an emergency, well servicing operations and any deliveries to the site
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shall be scheduled to occur during daytime hours. The time limits set forth herein do not apply
during the well drilling and well completion process.
(g) The Operator shall immediately notify the Town of any substantial accumulations of dirt,
dust, mud or other debris deposited on Town thoroughfares by vehicles involved in the well
drilling or servicing or pipeline installation process. The Operator shall be responsible for
removing accumulations of dirt, dust, mud or other debris from the Town thoroughfares on a
daily basis. If for safety or other reasons, the Town elects to perform the removal, the cost of such
removal shall be paid by the Operator.
(h) Within 30 days of the completion of the well, within 30 days of re- working a well, or within
such timeframe as determined by the Administrator, the area around the well shall be cleaned up
and cleared of all material and equipment, holes or excavations filled, and the land graded and
returned to its original condition including replanting of vegetation to match the surrounding area.
(i) The drilling rig shall be removed from the site within 30 days of the completion of all drilling
activities indicated on the applicable well permit.
0) No person shall place, deposit, or discharge or cause or permit to be placed, deposited, or
discharged any oil, naphtha, petroleum, asphalt, tar, hydrocarbon substance, refuse, wastewater,
brine or hazardous substance from any production operation or the contents of any container used
in connection with any production operation in, into, or upon any public right - ofway, storm drain,
ditch or sewer, sanitary drain or sewer, any body of water, or any private property.
(k) Compression facilities shall be prohibited in the Town.
(1) Truck shakers shall be installed along the private access road to remove mud from vehicles
prior to entering the public right -of -way:
Sec. 56 -266 Re- working of Well; Notice.
Any person who intends to re -work a well using a drilling rig or to fracture stimulate a well after
initial completion shall give written notice to the Town at least twenty (20) days before the
activities begin. The notice shall identify where the activities will be conducted and shall
describe the activities in reasonable detail, including but not limited to the duration of the
activities and the time of day they will be conducted. The notice must also provide the address
and twenty -four (24) hour phone number of the person conducting the activities. The person
conducting the activities shall post a sign, in English and Spanish, on the property giving the
public notice of the activities, including the name, address, and twenty-four (24) hour phone
number of the person conducting the activities. No well shall be re- worked without the approval
of the Inspector. If the Inspector determines that an inspection is required, the actual cost of the
inspection shall be assessed against the respective Operator's application fund balance required
by SECTION56 -256 of this Article.
Sec. 56 -267 Well lnspections.
(a) The following inspections shall be required:
(1) Surface Casing. An Operator must set and cement sufficient surface casing to protect all
usable - quality water strata, as defined by state law. The Operator shall notify the Inspector in
writing at least seventy-two (72) hours prior to setting and cementing surface casing. In addition,
the following shall be required:
a. Centralizers must be used at an interval of one (1) centralizer per one hundred (100') feet, or
ten (10) centralizers per one thousand (1,000') feet.
b. New surface casing is required.
c. Proper floating equipment shall be used.
d. Class "H" or Class "C" cement with accelerators shall be used.
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e. The Operator shall circulate cement to surface; if not, the Operator shall cement with one (1)
inch tubing and top off.
f. The Operator shall wait on cement a minimum of twelve (12) hours prior to commencing
further drilling operations.
g. The Operator shall test the blowout preventer before drilling out of surface casing to one
thousand (1,000) psi.
(2) Completion. The Operator shall notify the Inspector in writing at least seventy- two (72) hours
prior to starting completion procedures such as fracturing and perforating. The well must be
equipped with a blowout preventer or x -mas tree in place before this operation is commenced. If a
bridge plug is set over a producing formation prior to additional completion, it must be pressure -
tested to a sufficient pressure to ensure that it is not leaking.
(3) Pipeline. The Operator shall notify the Inspector in writing at least seventy -two (72) hours
prior to the first sale.
(4) Final Inspection. After the site has been cleaned up and screened, the Operator shall notify the
Inspector for a final inspection. Prior to the final inspection, the Operator must provide the Town
with geographic coordinates of the well bore, using the North American Datum 1983 (NAD 83),
Texas State Plane - North Central Zone (4202), in United States feet.
(5)Radiation monitoring and mitigation — to be added by Westlake
(b) The Inspector shall conduct periodic inspections at least every six (6) months of all permitted
wells in the Town to determine that the wells are operating in accordance with the requirements
of this Article and all regulations of the Railroad Commission. The actual cost of each inspection
shall be assessed against the respective Operator's application fund balance required by
SECTION56 -256 of this Article.
Sec. 66 -268 Supplemental Drilling.
(a) Supplemental drilling to deepen or directionally drill a well that has not been abandoned shall
be conducted in accordance with the conditions of the applicable Specific Use Permit and
associated site plan and the well permit for the well.
(b) The Operator shall provide the Town with a copy of additional Railroad Commission permits
that allow drilling to a deeper depth.
Sec. 56 -269 Abandonment of Wells and Pipelines.
(a) Upon abandonment of a well or drill site, within sixty (60) days, the well shall be plugged in
accordance with Railroad Commission standards, the site shall be cleaned and cleared of all
material and equipment, holes or excavations filled, and the land graded and returned to its
original condition including replanting of vegetation to match the surrounding area. All well
casings shall be cut and removed to a depth of at least ten (10) feet below the surface.
Additionally, the Operator shall mark the exact location of plugged and abandoned wells with a
steel marker not less than four inches in diameter set in cement and extending at least four feet
above mean ground level. The Operator name, lease name and well number and location, shall be
welded, stamped or otherwise permanently engraved into the marker's metal. A plugged and
abandonment marker may not be removed without the approval of the Board of Aldermen.
(b) Structures may be built no closer to an abandoned well than is permitted pursuant to state law,
including, but not limited to, the applicable rules and regulations of the Railroad Commission.
(c) Within sixty (60) days after abandonment of a pipeline, the line must be purged and plugged
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in accordance with the rules and regulations of each governmental agency with jurisdiction over
the activity, including, but not limited to, the Railroad Commission, Environmental Protection
Agency, and the Texas Commission on Environmental Quality. The Operator shall also be
required to comply with the provisions of Division 2 of this Article, governing pipeline safety and
operations.
(d) Abandonment of a drill site must be approved by the Inspector and approval requires
completion of the following by the Operator:
(1) The derrick and all appurtenant equipment thereto shall be removed from the drill site;
(2) All equipment, materials, and other surface installations shall be removed from the drill site;
(3) All concrete foundations, piping, wood, guy anchors and other foreign materials regardless of
depth, except surface casing, shall be removed from the site;
(4) All holes and depressions shall be filled with clean, compactable soil;
(5) All waste, refuse or waste material shall be removed from the drill site; and
(6) All other requirements of this Article have been met, including, but not limited to, restoration
of the drill site.
(e) In accordance with SECTIONS 6 -267 of this Article, the Operator shall request a final
inspection of a well intended to be abandoned and furnish the following information to the
Inspector:
(1) A copy of the W -3A "Notice of Intention to Plug & Abandon" and `W -3
Plugging Record" forms on the same date these forms are submitted to the Railroad
Commission; and
(2) A notice of intention to abandon under the provisions of this SECTIONand stating the date
such work will be commenced. Abandonment may then be commenced on or subsequent to the
date so stated and shall take no longer than forty -five (45) days once commenced.
(f) All abandoned wells or drill sites shall meet the most current abandonment requirements of the
Railroad Commission and this Article prior to the issuance of any building permit for
development of the property.
(g) The Director of Planning and Development Services shall indicate the location of each
plugged and abandoned well on the Town's land use map.
Sec. 56 -270 Glean Up.
(a) Cleanup after tivell servicing. After the well has been completed, or plugged and abandoned,
the Operator shall clean the drill site or operation site, complete restoration activities and repair
all damage to public property caused by such operations within thirty (30) days.
(b) Clean -up after spills, leaks and malfunctions. After any spill, leak or malfunction, the
Operator shall remove or cause to be removed to the satisfaction of the Fire Marshal and the
Inspector all waste materials from any public or private property affected by such spill, leak or
malfunction. Clean -up operations must begin immediately. The owner shall be subject to criminal
citation and a fine of up to two thousand ($2000.00) a day per violation for each day the violation
is permitted to continue.
(c) Painting. All production equipment shall be painted and maintained at all times, including
wellheads, pumping units, tanks, and buildings or structures. When requiring painting of such
facilities, the Director of Planning and Development Services shall consider the deterioration of
the quality of the material of which such facility or structure is constructed, the degree of rust,
and its appearance. Paint shall be of a neutral color, compatible with surrounding uses. Neutral
colors shall include sand, gray and unobtrusive shades of green, blue and brown, or other neutral
colors approved by the Director of Planning and Development Services. Notwithstanding the
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foregoing, the Board of Aldermen may require the use of specific paint colors, on a case -by -case
basis, as part of the applicable Specific Use Permit.
(d) Blowouts. In the event of the loss of control of any well, Operator shall immediately take all
reasonable steps to regain control regardless of any other provision of this Ordinance and shall
notify the Administrator and Fire Marshal as soon as practicable. If the Administrator or Fire
Marshal, in his opinion, believes that danger to persons and property exists because of such loss
of well control and that the Operator is not taking or is unable to take all reasonable and necessary
steps to regain control of such well, the Administrator or Fire Marshal may then employ any well
control expert or experts or other contractors or suppliers of special services, or may incur any
other expenses for labor and material which they deem necessary to regain control of such well.
The Town shall then have a valid lien against the interest in the well of all working interest
owners to secure payment of any expenditure made by the Town pursuant to such action of the
Administrator or Fire Marshal in gaining control of said well.
Sec. 56 -271 Technical Advisor.
The Town may from time to time employ a technical advisor or advisors who are experienced and
educated in the oil and gas industry or the law as it pertains to oil and gas matters. The function of
such advisor(s) shall be to advise, counsel or represent the Town on such matters relating to oil
and gas operations within the Town as the Town may want or require and the effect thereof, both
present and future, on the health, welfare, comfort and safety of the citizens of the Town. In the
event such technical advisor(s) is employed for the purpose of advising, counseling or
representing the Town relative to an Operator's unique and particular set of circumstances, case
or request relating to this Article, then the cost for fees or charges assessed pursuant to this
Article shall be borne entirely by Operator. Prior to the employment of a technical advisor, the
Town shall inform the Operator of the intended scope of work and the estimated costs and
expenses. The employment of a technical advisor shall be approved by the Board of Aldermen.
Sec. 56 -272 Remedies of the Town.
(a) If an Operator or his/her officers, employees, agents, contractors, subcontractors or
representatives fails to comply with the conditions of the applicable Specific Use Permit and
associated site plan or any requirement of a well permit (including any requirement incorporated
by reference as part of the permit), or any applicable provisions of this Article or any other Town
ordinances, the Town shall endeavor to give written notice to the Operator specifying the nature
of the alleged failure and giving the Operator a specified time to cure, taking into consideration
the nature and extent of the alleged failure, the extent of the efforts required to cure, and the
potential impact on the health, safety, and welfare of the community. If circumstances warrant
proceeding without notice, no notice shall be required. In any case, failure to give such notice
shall not prohibit the Town from pursuing any available remedy.
(b) If the Operator does not cure the alleged failure within the time specified by the Town, the
Town may notify the Railroad Commission and request that the Railroad Commission take
appropriate action. In addition, the Town may pursue all other remedies allowed by law,
including, but not limited to, the following:
(1) The Administrator may suspend the well permit until the alleged failure is cured; and
(2) The Administrator may revoke the well permit if the Operator fails to initiate and diligently
pursue a cure; and
(3) The Administrator may seek recourse against the security delivered pursuant to this section;
and
(4) A criminal citation may be issued for violation of the Specific Use Permit, this Article, or any
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other ordinance or order of the Town
(c) The Operator may appeal a decision to suspend or revoke the well permit to the Board of
Aldermen in accordance with the provisions of SECTION56 -275 of this Article.
Sec. 95 -273 Enforcement, Right of Entry.
The Administrator, Fire Marshal and the Inspector are authorized and directed to enforce this
Article, the terms and conditions of any approved Specific Use Permit, and the provisions of any
well permit. Whenever necessary to enforce the foregoing, or whenever there is reasonable cause
to believe there has been a violation of any.of the foregoing, Administrator, Fire Marshal and/or
the Inspector may enter upon any property covered by this Article at any reasonable time to
inspect or perform any duty or requirement imposed by this Article. If entry is refused, the Town
shall have recourse to pursue every remedy provided by law and equity to gain entry.
Sec. 56 -274 Public Information.
(a) Public lgfurrnution regarding well Permit activity.
(1) After approval of a permit application, the Operator shall submit to the Inspector an accurate
written timeline account of all planned operational events associated with the permit. The account
must be updated weekly and must thoroughly describe the events that will occur. Events to be
documented shall include, but are not limited to, site preparation and grading, site construction of
the drilling rig and accessory structures, the expected amount of time spent drilling on site, all
casing installation, testing, disassembly of the drilling rig, pipeline installation, fracture
stimulation, maintenance, installation of production facilities, site cleanup, and production.
(2) The Operator shall submit an educational letter detailing operations within fifteen (15) days of
approval of the well permit to all property owners within 2,000 feet of the permitted bore hole(s).
If multiple wells are permitted, the Operator may consolidate information regarding each well
into a single letter. The letter shall detail typical operations associated with oil and gas drilling
activity with an intended audience of the general public. The topics to be detailed shall include,
but are not limited to, site preparation, site development and construction, drilling, casing,
fracturing, pipeline construction, production, transportation, and general weekly, monthly, and
yearly maintenance of the operation site.
(3) At least once each calendar year, the Operator shall attend a Town -wide Westlake Program
for the Involvement of Neighborhoods ("SPIN') meeting and respond to citizen questions and
complaints. The Director of Planning and Development Services shall notify each Operator of the
time and date of the annual SPIN meeting that the Operator shall attend.
Sec. 56 -275 Variance; Appeal Procedure.
(a) An Applicant for a permit or other approval required by this Article may apply for a variance
from the requirements of this Article by submitting to the Director of Planning and Development
Services a written request for variance. The request must include the following:
(1) Description of the requested variance and an explanation of why it should be granted; and
(2) Description of alternatives considered and why each is not the preferred alternative; and
(3) Description of the economic consequences if the variance is not granted; and
(4) Description of how the level of health, safety and welfare of the public will be maintained if
the variance is granted; and
(5) A site plan of the site visually depicting the requested variance if the request for the variance
involves the location or orientation of persons or property.
(b) The Director of Planning and Development Services shall review the application and may
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place the variance request on the Board of Aldermen agenda for consideration. In considering the
variance the Board of Aldermen may take into account the following:
(1) Whether the operations proposed are safe and reasonable under the circumstances and
conditions prevailing in the area, considering the particular location and the character of the
improvements located there;
(2) How the operations proposed compare to available alternatives;
(3) Whether the operations proposed would conflict with the orderly growth and development of
the Town;
(4) The economic consequence if the variance is not granted;
(5) Whether the operations proposed adequately protect the health, safety and welfare of the
public; and
(6) Whether the operations proposed provide acceptable access for fire personnel and fire fighting
equipment.
(c) Approval of a variance requires that a minimum of Board of Aldermen members vote in
favor of the approval. The details of each action granting or denying the requested variance shall
be recorded and entered in the files of the Town Secretary, and the Director of Planning and
Development Services shall forward a letter to the Applicant stating whether the Board of
Aldermen has approved or denied the variance request and listing any conditions placed upon an
approval.
(d) If within 45 days of receiving the request for a variance, the Director of Planning and
Development Services does not place the variance request on the agenda for Board of Aldermen
consideration the variance request shall be considered routine in nature and shall be deemed
approved.
ARTICLE Ill. OIL AND GAS PIPELINE STANDARDS
Sec. 56 -306 Purpose.
It is hereby declared to be the purpose of this Division to establish reasonable and uniform
limitations, safeguards, and regulations for present and future operations related to transporting
oil and gas and other substances produced in association with oil and gas, within the corporate
limits of the Town to protect the healthy, safety and general welfare of the public; minimize the
potential impact to property and persons; protect the quality of the environment; and encourage
the safe and orderly transport of oil and gas resources.
Sec. 56 -307 Definitions.
The words and phrases used in this Division are specifically defined in SECTION56 -252 of this
Article. All technical industry words or phrases related to the transportation of oil, gas,
hydrocarbons, and other substances produced in association with oil, gas and other hydrocarbons
not specifically defined shall have meanings customarily attributable thereto by prudent
Operators in the oil and gas industry.
Sec. 56 -308 General Requirements and Minimum Design Standards.
(a) A pipeline permit is required as follows:
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(1) It shall be unlawful for any person, acting either for himself or as an agent, employee,
independent contractor or servant of any other person, to commence to construct, install, operate
or reconstruct a pipeline or any SECTIONof a pipeline or to operate any pipeline or to assist in
the construction, installation, operation or reconstruction of a pipeline if a lawful pipeline permit
has not been obtained.
(2) Any applications to construct, lay, rework, wrap or otherwise lower or replace existing
pipelines or install monitoring or recovery wells shall be submitted to the Town in a form
prescribed by the Town.
(3) Each application for a pipeline permit shall be accompanied by five (5) paper sets and one (1)
electronic set of plans showing the dimensions and locations of the pipelines and related items or
facilities within the subject right -of -way or easement, as well as all proposed lift stations, pumps
or other service structures related to such pipeline and the location, type and size of all existing
utilities, drainage, right -of -way and roadway improvements. The plans must additionally show
the elevation and location of all known public utilities within fifteen feet (15') of the centerline of
the proposed pipeline.
(4) Within thirty (30) days after the date of filing of said application and plans, the Town shall
send notice to the applicant as to whether the application will be accepted for processing and the
total charge due. If the application is rejected, reasons for rejection of the application shall be
provided in writing.
(5) No pipeline permit may be issued unless and until a Specific Use Permit is approved by the
Board of Aldermen for the well or wells within the Town, intended to be served by the pipeline.
(b) No pipeline for the transportation of gas, oil or hydrocarbons from wells to be drilled shall be
constructed or laid except on rights -of -way or easements owned by the owners or Operators of
wells or third party pipeline companies, or upon designated drilling tracts and upon rights -of -way
or easements necessary to connect future wells to present lines.
(c) In order to enable the holder of each pipeline permit to move gas, oil, water or other products
to or from the location of a well, the holder of each pipeline permit shall apply to the Town for an
easement on, over, under, along or across the Town streets, sidewalks, alleys and other Town
property for the purpose of constructing, laying, maintaining, operating, repairing, replacing and
removing pipelines so long as production or operations may be continued under any pipeline
permit issued pursuant to this Division; provided, however, such permittee shall:
(1) Not interfere with or damage existing utilities including but not limited to: water, sewer or gas
lines, storm drains, electric lines or the facilities
of public utilities located on, under or across the course of such right -of- way.
(2) Furnish to the Inspector a site plan showing the location of such pipelines for the transport of
gas, oil or hydrocarbons. Said site plan shall conform to the Town's standards for site plans,
pursuant to SECTION40 of the Zoning Ordinance, as amended.
(3) Construct such lines or cause same to be constructed out of new pipe.
(4) Grade, level and restore such property to the same surface condition, as nearly practicable, as
existed before operations were first commenced.
(5) All required agreements pursuant to this division shall be completed, reviewed, and resolved
by the Town Engineer, Town Attorney, Administrator, and, by Board of Aldermen, prior to the
determination of any pipeline permit as being administratively complete.
(d) Pipeline trenches shall be backfilled and compacted to ninety five percent (95%) standard
density proctor in eight inch (8 ") lifts and pipelines shall be constructed so as to maintain a
minimum depth of eight feet (8') below the finished grade except in public rights- of -way, where
minimum cover to the top of the pipe shall be at least eight feet (8') below the bottom of any
adjacent roadside ditch. Public roads shall not be crossed by open cut. During the backfill of any
pipeline excavations, `Buried Pipeline" warning tape shall be buried one foot (1') above any such
pipeline to warn future excavators of the presence of a buried pipeline.
(e) In all cases in which one or more residential lots in a proposed subdivision are crossed or
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come by or come within one hundred feet (100'), of any existing oil or gas pipeline or pipeline
easement, the subdivider shall, prior to and as a condition of Town approval of the subdivision,
execute the following waiver and hold harmless agreement, which shall be duly acknowledged in
the manner provided by law, and which shall thereafter be recorded in the appropriate deed or
other permanent county records:
"(Subdivider Name), by and through its duly undersigned and authorized officer, does hereby
state that it fully realizes that it is applying for a permit from the Town of Westlake to build
within one hundred feet (100') of an existing oil or gas pipeline or pipeline easement, and that the
Town of Westlake considers building near such pipeline or pipeline easement to have certain
inherent dangers, including, but not limited to, explosion and release of noxious, toxic and
flammable substances. For the aforementioned reasons (Subdivider Name) hereby RELEASES
and agrees to forever HOLD HARMLESS the Town of Westlake, Texas, its officers, officials,
employees, successors and assigns from all liability in any way arising from the building, use or
habitation of (structure described in the said permit)."
(f) In all cases in which one or more residential lots in a proposed subdivision are crossed or
come by or come within one hundred feet (100') of any existing oil or gas pipeline or pipeline
easement, the subdivision shall provide a note on the face of the development plan and record plat
stating that the subdivision is crossed or is located within one hundred feet (100') of an existing
oil or gas pipeline.
(g) Construction, repair and/or maintenance of all pipelines, gathering lines, and production lines
shall meet or exceed the minimum criteria established by the statutory or regulatory requirements
of the state and federal governments for oil and gas pipelines.
(h) Transmission pipelines, gathering lines, and production lines within the Town limits shall be
constructed in accordance with this Division and shall be designed and constructed to the latest
standards mandated by the United States Department of Transportation (DOT) and Railroad
Commission for pipelines operating within a Class 3 location in accordance with 49 CFR 192.
111.
(i) Pipelines subject to this Division shall be constructed with an automated pressure monitoring
system that detects leaks and shuts off any line or any SECTIONof line that develops a leak. In
lieu of such system, the pipeline Operator may have 24 hour pressure monitoring of the pipeline
system which provides monitoring of the pipeline within the Town limits. Any monitoring
systems) shall be keyed to or required to notify the Town's emergency response providers in
order to provide them with immediate notice of any leak.
0) Construction of the pipeline must commence within six (6) months of approval by the Town or
otherwise the pipeline permit expires. A one -year extension of time may be granted if existing
conditions are the same, as determined by the Director of Planning and Development Services.
Once construction has commenced, the pipeline permit shall continue (i) until the pipeline
covered by the pipeline permit is complete and the site restored, or (ii) one year has elapsed since
the approval date of the pipeline permit, whichever occurs first.
(k) The Administrator may require that sections of proposed pipeline be constructed at deeper
depths based upon future Town infrastructure needs. The Administrator may also require that a
pipeline relocated should it conflict with the proposed alignment and depth of a gravity dependent
utility.
Sec. 56 -309 New Pipeline Permit Application.
(a) At least forty-five (45) days prior to the scheduled commencement of the construction of a
new pipeline, the pipeline Owner or Operator shall submit an application and pay a fee in the
amount of , for a pipeline permit to the Town pursuant to its intention to construct the
pipeline and shall submit the following information in the application for a pipeline permit:
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(1) The name, business addresses and telephone numbers of the pipeline Owner or Operator.
(2) The names, titles and telephone numbers of the following:
a. The person submitting the application and petition for the pipeline construction;
b. The person designated as the principal contact for the submittal;
c. The person designated as the twenty-four hour emergency contact; and
d. The person or firm that will operate the pipeline.
(3) The origin point and the destination of the segment of the pipeline to be constructed.
(4) A text description of the general location of the planned pipeline.
(S) A description of the substance to be transported through the pipeline.
(6) A copy of the substance material safety data sheet (MSDS).
(7) The maximum allowable operating pressure on the pipeline, along with the Specified
Minimum Yield Strength (SMYS) of the pipe, its pressure class, and design calculations in
accordance with 49 CFR 192.105, assuming a Class 3 or better location.
(8) The normal operating pressure range of the pipeline, not to exceed the maximum allowable
operating pressure as designated above.
(9) Engineering plans, drawings and /or maps with summarized specifications showing the
horizontal pipeline location, pipeline covering depths, and location of shutoff valves (the location
of shutoff valves must be known in order for emergency responders to clear area for access
valves.) To the extent that information can be obtained, drawings shall show the location of other
pipelines and utilities that will be crossed or paralleled within fifteen (15') feet of the proposed
pipeline right -of -way.
(10) A description of the consideration given to matters of public safety and the avoidance, as far
as practicable, of existing inhabited structures and congregated areas.
(11) Detailed cross SECTIONdrawings for all public street right -of -way and easement crossings
(12) Methods to be used to prevent both internal and external corrosion.
(13) A binder or certificates of all bonds and insurance as required under this Division.
(14) All application materials required pursuant to the Town's Tree Preservation Ordinance, as it
may be amended, including a tree survey measured from the outer edge of any improvements,
construction areas, development, equipment, materials, temporary roads, access easements,
and /or built structures, extending twenty-five (25) feet, without regard to intervening structures or
objects.
(15) A proposed alignment strip map showing name and address of all affected property owners.
(b) If the application for a pipeline permit is approved and a permit is issued, the pipeline Owner
or Operator shall at all times be required to maintain a fund with the Town containing a minimum
running balance of fifteen thousand ($15,000.00) dollars for each permit application approved.
The funds shall be maintained by the Town in a separate non- interest bearing account from which
the Town shall reimburse itself for the administrative expenses, consulting fees, contracting fees
or the funding of Inspector position(s). The Town shall invoice and notify the pipeline Owner or
Operator, in writing, of any deduction from the application fund, and, within fifteen (15) days of
receipt thereof, the pipeline Owner or Operator shall pay to the Town, for deposit into the
application fund, the amount necessary to return the balance to fifteen thousand ($15,000.00)
dollars. The Town shall return the remaining account balance to the applicant or the applicant's
approved assign if the pipeline subject to the pipeline permit is disconnected from all sources or
supplies of gas, hazardous liquids and chemicals, and capped or sealed at the ends and /or
removed in accordance with the provisions of this Division. No pipeline permit shall be issued if
the proposed activities are not in conformance with this Article and all other applicable Town
ordinances, state and federal law.
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Sec. 56 -3 10 Permit Approval.
(a) The applicant shall submit an application as described in SECTION56 -308. Any application
submitted that is determined to be administratively incomplete shall be returned to the applicant
within ten (10) business days of the submittal date along with a letter documenting the
deficiencies of the application, if any.
(b) After the submission of an administratively complete application, an administrative
conference may be conducted to seek resolution of any substantive, nonresolvable technical
issues. The conference shall be conducted with the Pipeline Review Committee, which shall
consist of the Town Engineer, Fire Marshal, Inspector, Town
Ordinance No. 880 A 45
Director of Planning and Development Services and, if necessary, a third- party technical advisor.
The costs associated with the technical advisor shall be borne by the applicant. A quorum of at
least three (3) members must be present to conduct a conference with at least one (1) of the
members present at the conference having emergency management expertise. Any decision by the
Pipeline Review Committee is final.
(c) From time to time the Town may need to obtain an independent study or analysis of an
application or petition to construct a new pipeline. The Town, upon approval by the Board of
Aldermen after recommendation by the Pipeline Review Committee, shall engage duly qualified
independent consultant(s) or contractor(s) to conduct such special studies or analyses as required
to fully evaluate and act upon an application for a new pipeline. The actual cost for said
consultant or contractor, including the cost of any inspections deemed necessary by the Pipeline
Review Committee or otherwise required by this Division, shall be billed directly to the pipeline
Owner or Operator's fund balance established pursuant to SECTION56- 309(b), of this Article.
(d) The pipeline Owner or Operator shall give notice forty-eight (48) hours prior to the
commencement of pipeline construction to all residents and business establishments that are
located within five hundred feet (500') of the proposed centerline of the pipeline.
(e) Upon completion of pipeline construction the pipeline Owner or Operator shall provide the
Town with as -built or record drawings of the pipelines within sixty (60) calendar days. Accuracy
of the record drawings shall meet a survey level of one foot (1') to fifty thousand feet (50, 000 ).
The scale of the record drawings shall be a minimum of 1" = 40'. The drawings shall also be
supplied in as DFF digital file format with the location tied to one (1) nearby GPS (global
positioning system), Town monument. If the new pipeline length exceeds one thousand feet
(1,000') within the Town the pipeline shall be tied to at least two (2) GPS Town monuments.
(#) Any change in service of a pipeline not previously addressed by this Division to gas,
hazardous liquid or chemical service must be reviewed in accordance with the new pipeline
review procedure outlined herein, as if it were new pipeline construction.
(g) A preconstruction conference with the Pipeline Review Committee shall be required prior to
the commencement of pipeline construction.
Sec. 56 -311 Public Education.
(a) In keeping with the Natural Gas Pipeline Safety Act of 1968 and 49 CFR
192.614, "Damage Prevention Program," 49 CFR 192.615, "Emergency Plans," the
Hazardous Liquids Safety Act of 1979, and 49 CFR 195.408, "Communications," 49 CFR
195.440, "Public Awareness," and the Community Right -to -Know Act, 40 CFR Parts
350 -374:
(1) Each pipeline Owner or Operator shall maintain a public education program that is
communicated to residents and business establishments within one thousand feet (1,000') of the
centerline of a pipeline.
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Created on 4/25/08
(2) Pipeline information communicated pursuant to subSECTION(1) shall contain the following
subjects:
a. Pipeline location;
b. Material transported within the pipeline;
c. Pipeline markers;
d. How to recognize a pipeline;
e. How to report a pipeline emergency;
f. Contact information regarding underground utility locations;
g. Additional requirements for excavations near a home or business; and
h. Response needs during a pipeline, emergency, including instructions for sheltering in the event
of an emergency.
(3) Public education information shall be communicated at least annually in both English and
Spanish.
(4) The Town shall notify all property owners within one thousand feet (1,000') of the proposed
pipeline, in writing, by U.S. regular mail, of the proposed construction date of the pipeline. The
actual cost of said notice shall be billed directly to the pipeline Owner or Operator's fund balance
established pursuant to SECTION56- 3090), of this Article.
Sec. 56 -312 Pipeline Information Reporting Requirements.
(a) Each pipeline Owner or Operator shall provide to the Inspector, the Fire Marshal, and the
Police Chief the names, mailing addresses and telephone numbers of at least two (2) primary
persons, officers or contacts available on a twenty-four hour basis and at least two (2) alternative
persons, officers or contacts to be reached in the event that the primary contacts are unavailable
who:
(1) Can initiate appropriate actions to respond to an emergency;
(2) Have access to information on the location of the closest shutoff valve to any specific point in
the Town; and (3) Can furnish the common name of the material then being carried by the
pipeline.
Any change in the above information must be provided to the Town by contacting the Inspector
prior to such change.
(b) Every Owner or Operator of a pipeline subject to this Division shall be required to present to
the Town a safety report and file with the Town an annual verified safety report in letter form on
or before June 30 of each year to cover a reporting period of June 1 through May 31. Said written
safety report shall contain the following information and said information shall be presented to
the Inspector by every Owner or Operator of a pipeline subject to this Division:
(1) A statement that the pipeline has no outstanding safety violations as determined in an
inspection or audit by either the Railroad Commission and /or the U.S. Department of
Transportation with regard to any pipeline operating within the Town. Alternatively, if there are
any safety violations as determined by the Railroad Commission and/or the U.S. Department of
Transportation that have not been corrected, these shall be described to the Town with an action
plan to correct the safety violations. Said action plan shall include a timeline for corrective action
and the individual or firm responsible for each action.
(2) Evidence that the pipeline Owner or Operator has current liability insurance covering each
respective pipeline in the minimum amount of five million dollars ($5,000,000.00). Insurance
carriers must be licensed to conduct business in the state and possess at least an "A" rating by the
A.M. Best Company.
(3) A statement that the pipeline information specified in subSECTION(a) is correct.
Alternatively, in the event that the required information on file with the Town is no longer
correct, updated or corrected information shall be submitted within five (5) calendar days of the
Page 35 of 44
Created on 4/25/08
change and the updated information shall be submitted with the annual safety report.
(4) Owners or Operators of any unregulated pipeline who have no reporting responsibility to the
Railroad Commission or the U.S. Department of Transportation and who may otherwise operate
outside the safety regulations of either of these agencies shall additionally provide the following
pertaining to the preceding reporting period of June 1 through May 31:
a. Copies of internal reports of responses to pipeline emergencies, as pipeline emergency is
defined in this
Article;
b. Current operations and maintenance logs; and
c. Current emergency action plan.
(5) A log of all the maintenance and monitoring activities conducted on all lines subject to this
Division for the reporting period shall be made available upon request by the Town.
(6) The designated Owner or Operator shall submit the annual safety report with respect to all
pipelines subject to the ordinances of the Town of Westlake. The safety report and verification
shall be executed by an officer or a person who is authorized to sign such safety report letter and
make verification. The prescribed form of verification on the safety report letter shall read:
Verification
I, NAME, TITLE, of OWNER/OPERATOR, am authorized to make and have made the
foregoing annual safety report letter to the Town for oil and gas pipelines. Any attachments made
to this letter are true and correct copies of originals and the information provided in this letter is
true and correct to the best of my knowledge and is information based on the standard of inquiry
and investigation as would be made by a reasonably prudent pipeline Owner or Operator within
the Town of South lake.
Signature of Officer or Person Authorized to Sign Letter
STATE OF TEXAS §
COUNTY OF [Place Where Safety Letter is Prepared] §
The foregoing annual safety report letter was swom to
and subscribed before me by (signatory of letter) on this day of ,20_
Signed:
Notary Public for the State of Texas
Printed Name:
My Commission Expires:
Ordinance No. 880 A 49
(7) The actual administrative costs incurred by the Town in reviewing the annual safety letter
shall be billed directly to the pipeline Owner or Operator's fund balance established pursuant to
SECTION56- 309(b), of this Article.
(8) A copy of all initial or follow -up reports provided to the U.S. Department of Transportation or
the Railroad Commission on unsafe pipeline conditions, pipeline emergencies or pipeline
incidents within the Town must be filed concurrently with the Town. In addition, any initial or
follow -up reports filed with state and federal environmental regulatory agencies pertaining to
pipeline releases within the Town must be filed concurrently with the Town.
(9) Upon written request, the pipeline Owner or Operator shall make available during normal
business hours and at the pipeline Owner or Operator's local office, documents for review that are
required for submittal to or to be maintained on file for the U.S. Department of Transportation
and the Railroad Commission such as:
a. Operations and maintenance;
b. Employee training;
c. Annual inspection;
d. Repair records;
e. Operating records; and
Page 36 of 44
Created on 4/25/08
f. Insurance.
In the case of unregulated pipelines, the Town may request any such additional information that
the Town deems necessary, in the best interests of the Town, and necessary to protect the public
health, safety and general welfare.
Sec. 56 -313 Pipeline Markers.
(a) In accordance with U.S. Department of Transportation and Railroad Commission
requirements, pipeline Owners or Operators shall place and maintain permanent line markers as
close as practical over the pipeline(s) at each crossing of a public street, utility easement or
railroad. Marker(s) shall also be maintained along each pipeline that is located above ground in an
area accessible to the public. The markers shall be of permanent type construction and contain
labeling identifying the:
(I) Pipeline Owner or Operator;
(2) Twenty- four -hour contact telephone number; and
(3) A general description of the product transported in the pipeline; i.e., natural gas, oil,
petroleum.
(b) No person shall tamper with, deface, damage or remove any pipeline marker, except the
pipeline Owner or Operator.
(c) Upon specific reasonable request of the Owner of a real property on which a residence is
located and through which a pipeline traverses, the pipeline Owner or Operator shall install
temporary pipeline markers or flagging to reduce the possibility of pipeline damage or
interference, in accordance with this Division.
(d) The material, design, color, size and content of each line marker shall subject to Board of
Aldermen approval prior to installation.
Sec. 56 -314 One Call System.
(a) The Owner or Operator of any pipeline that transports gas, oil, liquids or hydrocarbons that is
located in the Town shall be a member in good standing with the One Call system or other
approved excavation monitoring system as required by state law. The Owner or Operator of any
pipeline that transports gas, oil, liquids or hydrocarbons subject to this Division shall contract for
service with the selected underground utility coordinating system for a minimum of five (5) years
unless there is an agreement to change to an alternate system between the Town and the pipeline
Owners or Operators. Said services shall be maintained without interruption for the life of the
pipeline permit. The selected underground utility coordinating system may be different that the
one used by the Town for other underground utility services.
(b) Prior to beginning any excavation, trenching or digging using powered equipment or hand
tools that may damage a pipeline, any person within the Town shall be required to contact the
One Call System and any other appropriate underground utility coordinating systems and
determine if there are any pipelines or public utilities in the vicinity of the proposed activities.
(c) If physical contact is made with a pipeline during any excavation, trenching or digging, the
pipeline company must be notified by the person or agency making the physical contact with the
pipeline for any necessary pipeline inspection or repair.
Sec. 56 -3 15 Inactive and Idled Pipelines.
(a) Inactive Pipelines
(1) All reporting records specified in SECTION56 -311 shall be maintained and kept current on
inactive pipelines.
Ordinance No, 880 A 51
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(2) Inactive pipelines shall be purged of gas, hazardous liquids, and chemicals, and physically
isolated if such action does not adversely effect the pipeline Owner or Operator's right -of -way
easement and does not prevent the pipeline Owner or Operator from maintaining the physical
integrity of the pipeline. These pipelines shall be maintained to prevent deterioration.
(3) The means used to physically isolate, if such action is taken, the inactive pipeline shall be
included in the information retained on file with the Town for reporting as specified in
SECTION56 -311.
(b) Idled Pipelines
(1) An entry shall be made to the required reporting records as required in SECTION56 -311 that
the pipeline has been idled.
(2) Idled pipelines shall be purged, disconnected from all sources or supplies of gas, hazardous
liquids and chemicals, and capped or sealed at the ends.
(3) Reactivation of idled pipelines shall require notification of the Town pursuant to the standards
and requirements specified in SECTION56-
311. Reactivation shall require pressure testing for integrity and compliance with Railroad
Commission and/or United States Department of Transportation regulations.
Sec. 56 -316 Emergency Response Plans and Emergency Incident Reporting.
(a) Each pipeline Owner or Operator shall maintain written procedures to minimize the hazards
resulting from an emergency. These procedures shall at a minimum provide for:
(1) Prompt and effective response to emergencies:
a. Leaks or releases that can impact public health, safety or welfare;
b. Fire or explosions at or in the vicinity of a pipeline or pipeline easement; or
c. Natural disasters;
(2) Effective means to notify and communicate required and pertinent information to local fire,
police, and public officials during an emergency;
Ordinance No. 880 A 52
(3) The availability of personnel, equipment, tools and materials as necessary at the scene of an
emergency;
(4) Measures to be taken to reduce public exposure to injury and probability of accidental death
or dismemberment;
(5) Emergency shut down and pressure reduction of a pipeline;
(6) The safe restoration of service following an emergency or incident;
(7) A follow -up incident investigation to determine the cause of the incident and require the
implementation of corrective measures.
(b) Each pipeline Owner or Operator shall meet annually with the Inspector and
Fire Marshal to review emergency response plans. These reviews shall be in accord with
U.S. Department of Transportation and Railroad Commission requirements and the
Owner or Operator will:
(1) Furnish or update a copy of the emergency response plan described in subSECTION(a);
(2) Review the responsibilities of each governmental organization in response to an emergency or
incident;
(3) Review the capabilities of the pipeline Owner or Operator to respond to an emergency or
incident;
(4) Identify the types of emergencies or incidents that will result in or require contacting the
Town; and
(5) Plan mutual activities that the Town and the pipeline Owner or Operator can engage in to
minimize risks associated with pipeline operation.
(6) At this meeting, the Town shall provide the pipeline Owner or Operator with a list of
additional contacts that shall be made in the event of a pipeline emergency or incident. The Town
will inform the pipeline Owner or Operator of the emergency response groups that will be
Page 38 of 44
Created on 4/25/08
contacted through 911.
(c) Upon discovery of a pipeline emergency or incident, the following communications are to be
initiated by the affected pipeline Owners or Operators:
(1) A general description of the emergency or incident;
Ordinance No. 880 A 53
(2) The location of the emergency or incident;
(3) The name and telephone number of the person reporting the emergency or incident;
(4) The name of the pipeline Owner or Operator;
(5) Whether or not any hazardous material is involved and identification of the hazardous
material so involved; and
(6) Any other information as requested by the emergency dispatcher or other such official at the
time of reporting the emergency or incident.
(d) The pipeline Owner or Operator shall contact any other emergency response groups that are
necessary that may not be activated through the county 911 system.
(e) The pipeline Owner or Operator shall contact the Southiake Fire Services immediately after
the discovery of any pipeline emergency_
(0 Notwithstanding any provision in this Division, each pipeline,_ containing natural gas which
contains hydrogen sulfide in concentrations of more than one hundred (100) parts per million,
shall be constructed with an audible alarm system that will provide an alarm to the general public
in the event of a leak from any pipeline, gathering or flow line subject to this Division. Said
audible alarm system shall be of a type and design approved by the Town.
(g) Within two (2) years of the effective date of the;pipeline permit and every two (2) years
thereafter, the pipeline Owner or Operator shall conduct an on -site, emergency drill that includes,
but shall not be limited to, the personnel operating the pipeline, local law enforcement personnel,
and officials of the Town.
(h) Notwithstanding the foregoing, all incidents involving well safety or integrity that do not rise
to the level of a pipeline emergency shall additionally be reported to the Town by completing an
incident report on forms prepared by the Town. Incident reports must be filed by the pipeline
Owner or Operator within twenty -four (24) hours of discovering the incident.
Sec. 55 -3 17 Pipeline Repairs and Maintenance.
(a) All repairs and maintenance are to be performed in accordance with U.S. Department of
Transportation and Railroad Commission mechanical integrity requirements. This requirement
applies to all pipelines covered by this Division, unregulated as well as those operating under
federal miles.
(b) If non - emergency repairs necessitate excavation of the pipeline, prior
Ordinance No. 880 A 54
notification is required to occupants of business establishments and residential dwellings located
within five hundred feet (500') from the centerline of the pipeline to be excavated.
(c) Above - ground non - emergency repairs that are not routine maintenance necessitate prior
notification to occupants of businesses and residential dwellings located within five hundred feet
(5 00 ) from the centerline of the pipeline SECTIONto be repaired.
(d) Without limitation of the methods of giving the notice required in subsections (b) and (c),
notice shall be by U.S. regular mail, postage prepaid mailed at lease five (5) days prior to
commencing any non - emergency repair.
(e) Inspection of the interior of all pipelines subject to these standards shall follow United States
Department of Transportation and Railroad Commission rules.
Page 39 of 44
Created on 4/25/08
Sec. 56 -3 18 No Grant of Town Easement, No Assumption of Responsibility by Town.
(a) Nothing in this Division grants permission for the use of any street, way or property of the
Town, and any such use shall be subject to the Town at its sole discretion.
(b) Nothing in this Division shall be construed as an assumption by the Town of any
responsibility of an Owner or Operator of a pipeline not owned by the Town, and no Town
officer, employee or agent shall have authority to relieve an Owner or Operator of a pipeline from
their responsibility under this Division or by any other law, ordinance or resolution.
Sec 56 -3 19 Protection and Painting of Structures.
All pipeline risers and all appurtenances related to pipeline construction and operations composed
of materials generally protected or painted shall be protected and painted and shall be repainted at
sufficiently frequent intervals to maintain same in good condition. It shall be a violation of this
Division for any pipeline riser and /or appurtenances related to pipeline construction and
operations to be in a state of disrepair or to have chipped, peeling or unpainted portions thereof.
Sec. 56 -320 Waiver/Hold Harmless Agreement Required for Issuance of Building Permit.
Any person, firm or corporation wishing to obtain a building permit for the erection, construction,
reconstruction or expansion of any structure, of which any portion of such erection, construction,
reconstruction or expansion would occur within one hundred feet (100') of an existing oil or gas
pipeline or pipeline easement, shall, prior to and as a condition of the issuance of such building
permit, execute the following waiver and hold harmless agreement, which shall be duly
acknowledged in the manner provided by law, and which shall thereafter be notarized and
recorded in the appropriate deed or other permanent county records:
flydinim,o IJn RRfl 4
"I, (Applicant's Name), do hereby state, on my oath, that I fully realize I am applying for a permit
from the Town of Westlake to build within one hundred feet (100') of an existing oil or gas
pipeline easement; that I am fully aware of the dangers inherent in building near such pipeline or
easement, including, but not limited to, explosion and release of noxious, toxic and flammable
substances; and, further, that I do hereby RELEASE and agree to forever HOLD HARMLESS the
Town of Southiake, Texas, its officers, officials, employees, successors and assigns from all
liability in any way arising from the building, use or habitation of the structure described in the
said permit"
Sec. 56 -321 Street and Right -of -way Use.
(a) In the event an oil or gas pipeline is placed within any public right -of -way under the
jurisdiction of the Town, the Owner /Operator shall comply with the right -of- way use regulations
as provided in the Town of Westlake Code of Ordinances and obtain an appropriate franchise or
license for the use of such right -of -way.
(b) To the extent that the provisions of this Division conflict with the Town's right -of -way use
ordinance, this Division shall apply.
Sec. 56-322 Violations.
(a) Any pipeline Owner or Operator subject to this Division, who shall have failed to comply with
this Division, shall be deemed to maintain a nuisance and the Town may take such measures to
remedy such nuisance, including, but not limited to, revocation of the pipeline Owner or
Operator's pipeline permit.
(b) It shall be a violation of this Division for a person to knowingly make a misrepresentation of
any information to be reported pursuant to this Division. It shall also be a violation of this
Division if the person makes such misrepresentation as a result of failure to exercise such due
diligence of investigation or inquiry, as would a reasonably prudent pipeline Owner or Operator
conducting business in the jurisdiction of the Town.
(c) Each violation of any section, subSECTIONor part of this Division shall be a separate offense.
Each day of ongoing violation shall be a separate offense, and shall carry with it a fine of not less
Page 40 of 44
Created on 4/25/08
than one thousand dollars ($1,000.00) per day nor more than two thousand dollars ($2,000.00) per
day.
(d) The Town shall be entitled to injunctive relief or any other appropriate relief in a court of
appropriate jurisdiction to prevent violation of or to compel compliance with this Division.
Ordinance No. 880 A 56
Sec. 56 -323 Bond and Insurance Required.
(a) In the event that a pipeline permit is issued for a pipeline or other operations under this
Division, no actual operation shall be commenced until the permittee shall file with the Town
Secretary a bond and a certificate of insurance as follows:
(1) No person shall begin the construction or operation of any pipeline until he has filed with the
Town Secretary a duly executed bond executed by the applicant as principal with an AM Best
"A" rated surety company that is acceptable to the Town and is licensed to conduct business in
the state as surety, payable to the Town and the policy shall name the Town as an additional
insured and such surety company shall maintain an A.M. Best "A" rating for the policy period.
Said bond shall include conditions that the applicant, its heirs, assigns and successors will do the
following:
a. Comply with the terms and conditions of the application and this Division in the construction,
operation and maintenance of the pipeline and related structure(s).
b. That all streets and sidewalks and all other public places and all public utilities that may be
injured or damaged in the operation will be restored to their former condition.
c. That all litter, machinery, buildings, trash, and waste used, accumulated or allowed in the
construction of any pipeline will be removed within ten (10) days of the completion of said
construction.
d. That all litter, machinery, buildings, trash, and waste used, accumulated or allowed in the
operation of any pipeline will be removed within (10) days of the completion of said operations.
e. Such bond shall be in the sum of $1,000,000.00 and before the pipeline permit shall be issued,
the bond shall be approved by the Town and filed with the Town Secretary. Such bond shall
become effective upon the granting of the pipeline permit and shall remain in full force and effect
until all work under the terms of such pipeline permit has been completed. Such bond may later
be amended to include other pipelines, under provisions of other applications, or other permits.
(2) In addition to the bond required in subSECTION(a)(1) above, each person desiring to
construct a pipeline or to conduct any other work
Ordinance No. 880A 57
under the provisions of this Division shall be required to carry public liability insurance with a
carrier rated "A" or better by A.M. Best in a minimum amount of $1,000,000.00 for one person
and $5,000,000.00 for one accident and property damage insurance in the amount of
$10,000,000.00 for one accident, which shall remain in full force and effect and be carried so
long as such pipeline is operated. A certificate of insurance shall be furnished annually by the
permittee or the subsequent Owner and Operator of such pipeline showing that such insurance is
and continues in effect.
(3) Permittee shall provide and maintain in full force and effect during
the term of its permit insurance with the following minimum limits:
a. Worker's compensation at statutory limits;
b. Employer's liability, including bodily injury by accident and by disease, for $500,000.00
combined single limit per occurrence and a twelve -month (12- month) aggregate policy limit of
$1,000,000.00;
c. Commercial general liability coverage, including blanket contractual liability, products and
completed operations, personal injury, bodily injury, broad form property damage, operations
Page 41 of 44
Created on 4/25/08
hazard, pollution, explosion, collapse and underground hazards for $5,000,000.00 per occurrence
and a twelve -month (12- month). aggregate policy limit of $10,000,000.00; and
d. Automobile liability insurance (for automobiles used by the permittee in the course of its
performance under the pipeline permit, including employer's non - ownership and hired auto
coverage) for $2,000,000.00 combined single limit per occurrence.
(b) The Town shall adjust the above minimum liability limits every five (S) years during the term
of the pipeline permit, or sooner as determined by Board of Aldermen, to compensate for the
effects of inflation and with the objective to reestablish the value of coverage required as of the
effective date of this Division.
(c) Each policy or an endorsement thereto, except those for worker's compensation and
employer's liability, shall name the Town and its officers, officials, employees, successors and
assigns as additional insured parties, but limited to risks indemnified pursuant to this Division. If
any such policy is written as "claims made" coverage and the Town is required to be carried as an
additional insured, then the permittee shall purchase policy period extensions so as to provide
coverage to the Town for a period of at least two (2) years after the last date that the pipeline
permit is in
Ordinance No. 880 A 58
effect. No deductible shall exceed ten percent (10 %) of the minimum limits of liability or one
percent (1 %) of the consolidated net worth of the permittee and its permitted affiliates, whichever
is greater.
(d) Permittee shall assume and bear any claims or losses to the extent of deductible amounts and
waives any claim it may ever have for the same against the Town and its officers, officials,
employees, successors and assigns in respect of any covered event.
(e) All such policies and certificates shall contain an agreement that the insurer shall notify the
Town in writing not less than thirty (30) days before any material change, reduction in coverage
or cancellation of any policy. Permittee shall give written notice to the Town within five (S) days
of the date upon which total claims by any party against permittee reduce the aggregate amount of
coverage below the amounts required by the pipeline permit.
(f) Each policy must contain an endorsement to the effect that the insurer waives any claim or
right in the nature of subrogation to recover against the Town, its officers, officials, employees,
successors and assigns.
(g) Each policy must contain an endorsement that such policy is primary insurance to any other
insurance available to the Town as an additional insured with respect to claims arising thereunder.
(h) The Board of Aldermen may modify the requirements of this SECTION56 -323, as it deems
appropriate, in order to account for the risk and possible threat to the public health, safety and
general welfare posed by the operation of pipelines within the Town.
Sec. 56-324 Termination of Permit.
Any violation of the provisions of any or all sections of this Division shall be grounds for the
termination of any pipeline permit. The termination of any oil and gas pipeline permit shall
require the immediate cessation of all operations subject to the pipeline permit and shall require
the pipeline Owner or Operator to reapply for a new pipeline permit in full accordance with the
provisions of this Division.
SECTION3: This ordinance shall be cumulative of all provisions of ordinances of the Town of
Westlake, Texas, except where the provisions of this ordinance are in direct conflict with the
provisions of such ordinances, in which event the conflicting provisions of such ordinances are
hereby repealed.
Ordinance No. 880 A 59
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Created on 4/25/08
SECTION 4: It is hereby declared to be the intention of the Board of Aldermen that the
phrases, clauses, sentences, paragraphs and sections of this ordinance are severable, and if any
phrase, clause, sentence, paragraph or SECTIONof this ordinance shall be declared
unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such
unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs
and sections of this ordinance, since the same would have been enacted by the Board of
Aldermen without the incorporation in this ordinance of any such unconstitutional phrase, clause,
sentence, paragraph or section.
SECTIONS: Any person, firm or corporation who violates, disobeys, omits, neglects or
refuses to comply with or who resists the enforcement of any of the provisions of this ordinance
shall be fined not more than Two Thousand Dollars ($2,000.00) for each offense. Each day that a
violation is permitted to exist shall constitute a separate offense.
SECTION6: All rights and remedies of the Town of Westlake are expressly saved as to
any and all violations of the provisions of Ordinance No. 480, as amended and Ordinance 880, as
amended, or any other ordinances affecting oil, gas and hydrocarbon drilling, production,
development, and transportation 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.
Ordinance No. 880 A 60
SECTION 7: The Town Secretary of the Town of Westlake is hereby directed to publish
the proposed ordinance or its caption and penalty together with a notice setting out the time and
place for a public hearing thereon at least fifeteen(15) days before the reading of this ordinance,
and if this ordinance provides for the imposition of any penalty, fine or forfeiture for any
violation of any of its provisions, then the Town Secretary shall additionally publish this
ordinance or its caption and penalty in the official Town newspaper.
SECTION 8: This ordinance shall be in full force and effect from and after its passage
and publication as required by law, and it is so ordained.
PASSED AND APPROVED ON THIS 19TH DAY OF MAY 2008.
ATTEST:
Scott Bradley, Mayor
Page 43 of 44
Created on 4/2/08
Kim Sutter, TRMC, Town Secretary Thomas E. Brymer, Town Manager
APPROVED AS TO FORM:
Stan Lowry, Town Attorney
Page 44 of 44
Created on 4/25/08