CHAPTER VIII. HEALTH AND WELFARECHAPTER VIII. HEALTH AND WELFARE\Article 3. Oil and Gas Operations

The City hereby finds and declares as a matter of public policy that uncontrolled drilling and production of oil and gas resources would be detrimental to the public health, safety, comfort, convenience, prosperity and general welfare.

(Ord. 1433, Sec. 1)

The purpose of this Article is to establish uniform and reasonable limitations, safeguards and controls of oil and gas operations based upon the following criteria;

(a)   Aiding those owners of land in the economic utilization of the mineral rights until growth and development progresses into the area.

(b)   Protecting existing residential and commercial areas from incompatible land use activities.

(c)   Providing for the orderly growth and development of lands consistent with the master development plan.

(d)   Minimizing any risks to the public health, safety, comfort, convenience, prosperity and general welfare.

(e)   Avoiding undue liability for the City, its residents and businesses.

(f)   Maintaining the City’s character and economic vitality.

(Ord. 1433, Sec. 2)

The following terms as used in this Article shall, unless the context clearly indicates otherwise, have the respective meanings herein set forth. These definitions shall also apply to those portions of the zoning ordinance applicable to special uses and permits for oil and gas exploration and production. To the extent that these definitions may conflict with those contained in the provisions of the zoning ordinance, these definitions shall control. Additional definitions as established by “General Rules and Regulations for the Conservation of Crude Oil and Natural Gas” of the State Corporation Commission of the State of Kansas shall apply to the City code, ordinances and regulations.

(a)   Abandonment ‑ The plugging of a well, removal of equipment and the restoration of the site in compliance with this Article.

(b)   Applicant ‑ The person who represents the owner(s) or operator(s) and seeks, on their behalf, a permit pursuant to the provisions of this Article.

(c)   Berm ‑ See Dike.

(d)   Blowout ‑ The uncontrolled discharge of gas, solid or liquids, or combination thereof from a well.

(e)   Blowout Preventor ‑ A mechanical, hydraulic or pneumatic, or other device, or combination of devices secured to the top of a well casing including valves, fittings and control mechanism connected therewith which can be closed around the drill pipe, or which completely closes the top of the casing and is designed for and capable of preventing blowout.

(f)   Circulating Mud Pit ‑ The working pit from which the drilling muds are continuously recirculated during the drilling process into and from the drilling hole for the purpose of flushing out the drill bit cuttings.

(g)   Code ‑ See City ordinances and regulations.

(h)   Code Administrator ‑ The building official who is charged with the responsibility of administering and/or enforcing the building, electrical, fire, plumbing and health and zoning ordinances of the City, and is synonymous with the fire official or enforcement officer.

(i)    Code Board of Appeals ‑ The board of appeals as set forth in the Uniform Building Code as amended and adopted by the City.

(j)    Corporation Commission ‑ Kansas Corporation Commission (KCC).

(k)   Dike ‑ An embankment of earth designed to contain oil within a defined area.

(l)    Drilling ‑ Boring a hole into the earth for the purpose of extracting hydrocarbons from the earth.

(m)  Drilling Area ‑ The operating location for oil and gas drilling and production equipment, tanks and vehicles.

(n)   Exploratory Drilling ‑ The initial sequence of examining certain locations for oil and/or gas.

(o)   Lease ‑ The physical area to which mineral rights are held.

(p)   Lessee ‑ The possessor of the right to exploit the premises for minerals.

(q)   Lessor ‑ The mineral rights owner.

(r)    Maintenance ‑ The repair and replacement of the parts of a structure to retain the designed safety and effectiveness of the structure including those activities which are both routine and non‑routine, that when performed will minimize the risk of any health, safety, or environmental hazards or nuisances being created.

(s)   Mud ‑ The drilling fluid used and recirculated through the drilling hole as a lubricant.

(t)    NFPA ‑ National Fire Protection Association, which publishes the National Fire Code.

(u)   Owner ‑ The person who owns a legal or equitable title in land.

(v)   Permittee The person who represents the owner or operator and receives on their behalf a permit pursuant to the provisions of this Article.

(w)  Plugging ‑ Putting cement into the well in compliance with this Article and K.S.A. 55‑128.

(x)   Production Drilling ‑ Any activity or drilling which is related to commencing production and shall also include any drilling that is done to facilitate extraction from another well by injection of fluids or gases, and shall also include drilling of disposal wells.

(y)   Production Equipment ‑ All structures necessary and incidental to the production of oil or gas or disposal of brines and mineral water, including but not limited to pipes, tank batteries and pumps.

(z)   Redrilling ‑ The deepening of an existing well and shall also mean the reopening of a well that has been abandoned.

(aa) Reserve Pit ‑ Any excavation, pit or receptacle designed or actually used to receive, store or hold rocks, drill bit cuttings, shale, sand, fresh water, or drilling mud which contains no salt water, oil, oil derivatives, caustics, acids, or other deleterious substances harmful to soil, vegetation or injurious to animal or human life.

(bb) Spill ‑ The unauthorized leaking, pumping, pouring or emptying of oil.

(cc) Structure ‑ That which is built, constructed or erected.

(dd) Sump or Slush Pit ‑ An excavation, pit or water tight container, designed or actually used to receive, store or hold waste oil, oil derivatives, sand, salt water or other waste products or deleterious substances produced or used in the drilling, swabbing, cleaning or reworking of any oil, gas or disposal wells.

(ee) Tract ‑ The physically described area for which oil and gas operations are permitted by the City.

(ff)  Tract Line ‑ The surface boundaries or legal descriptions of the special use permit.

(gg) Well or Wellhead ‑ See drilling.

(Ord. 1433, Sec. 3)

(a)   Procedure. Upon approval of a special use permit by the City Council, an application shall be submitted to drill for and/or produce oil or gas in the City. If the application is in compliance with this Article and all State rules and regulations, the code administrator shall issue a permit.

(b)   Drilling Site ‑ All wells hereafter commenced or drilled within the City limits of the City shall be drilled as nearly as practicable on a location consisting of at least ten (10) acres, more or less. Provided, that the Governing Body at the time of the granting of a license or a permit as herein provided, may permit the variations as may be deemed necessary in the amount of acreage required, the location of the drill site, and the shape of the location, depending upon geographical factors and topographical features of the land embraced by the location. No well shall be drilled within 150 feet of any residence or commercial building or buildings unless the Governing Body shall determine otherwise, based upon a satisfactory showing that all residences or commercial building or buildings will be adequately protected.

(c)   Valid Permit ‑ It is unlawful for any person or persons to commence the operation of any oil or gas operation of any oil or gas production without possession a valid permit issued by the code administrator. Permits are not transferable. The permit card shall be posted on the premises.

(1)   Blanket Permits ‑ in any cases where more than one oil or gas well are to be drilled on any tract of land the permit granted shall apply to all wells on that tract of land.

(2)   The building official shall be responsible for the administration and enforcement of this Article.

(3)   Duration ‑ The permit to drill a well shall be valid only in the event and for so long as the permittee shall faithfully comply with the conditions of this Article and of the permit authorized in accordance therewith, and only so long as there is production from or other lawful use made of the well.

(Ord. 1433, Sec. 4; Code 2014)

(a)   Any person or persons desiring to drill, own, operate or maintain an oil or gas well shall make written application on forms provided by the City.

(b)   An application for a permit shall be accompanied with the following information:

(1)   A statement on forms provided by the City that applicant shall comply with all federal and State regulations.

(2)   Copy of approved Kansas Corporation Commission “intent to drill” application.

(3)   Statement that the property owner or lessee will hold and save the City harmless from any and all claims, damages, expenses and losses arising from the drilling and production of oil and gas.

(4)   Statement of assurance.

(5)   A permit fee as approved by the City Council.

(6)   Fire prevention and spill prevention plans.

(7)   Agreements or statements showing reasonable and adequate plans for the handling and disposal or all drilling fluids, basic sediment, brines and other deleterious substances and wastes that may be produced in connection with the drilling and operation of the proposed well.

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

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

(Ord. 1433, Sec. 5; Ord. 1827, Sec. 4)

(a)   Inspections ‑ The code administrator shall be responsible for performing inspections as necessary to determine conformance with approved plans, conditions and requirements of this Article and the special use permit. Inspections may be performed during exploratory drilling operations, after a well is in production, after a well is abandoned or in response to complaints.

(b)   Authorization to Enter ‑ The code administrator is authorized and directed to enter lands on which a permit for oil and gas exploration and/or production has been granted for the purpose of carrying out inspections and to perform any work required by this Article or the special use permit.

(c)   Fire Prevention and Protection Plan Guidelines ‑

(1)   The guidelines in this Section establish the process and the minimum standards in the preparation, review and implementation of a fire prevention and protection plan and are in addition to any existing local law, policies and procedures. The plan guidelines pertain to health, safety and environmental protection in addition to fire protection and prevention and shall minimize the potential hazards associated with the drilling for oil and gas and the storage of oil, and to control and eliminate any fire or risk of fire as promptly as possible.

(2)   Plan Required ‑ Any and all owners or operators who have received a special use permit to drill for oil and gas shall prepare a fire prevention and protection plan or amendment in accordance with this Section as part of the application for the permit.

(3)   Plan Amendment ‑ Amendments to the plan shall be made as necessary to retain a comparable level of safety for any changes, additions or intensification of drilling or production activities, whether in design location, construction, installation, operation or maintenance.

(4)   Plan Evaluation and Revision ‑ An applicant shall review and evaluate the plan at least once every five (5) years and make the revisions as are necessary to include more effective prevention and control technology if the technology will significantly reduce the likelihood of a fire or fire hazard, and has been field proven at the time of review.

(5)   The fire prevention and protection plan shall include the following:

(A)  Waste Control and Combustible Materials ‑

(i)         No person shall allow or cause to be allowed the discharge of any liquid containing crude petroleum or its products into or upon any street, public highway, drainage channel or ditch, storm drain or flood control channel.

(ii)        No person shall allow or cause to be allowed any oil, waste oil, refuse or waste material to be on the surface of the ground whether under, around or near any well, pump, boiler, oil storage tank or building.

(iii)       All land within 25 feet of any oil well, flammable liquid tank or other appurtenance to any well, shall at all times remain free and clear of dry grass, rubbish or other combustible debris.

(iv)       No person shall lay or maintain any pipe or pipelines for the transportation of oil or any other substance in or across the streets, alleys or other public places of the City without having first obtained a franchise ordinance granting permission to do so. All pipelines shall thereafter be laid, maintained and operated in accordance with the terms of the franchise. No City street shall be used to serve wells outside the City without first obtaining a franchise ordinance granting permission to do so.

(v)        It shall be the responsibility of the persons drilling an oil or gas well or installing crude oil transmission lines to determine the location of utility lines including cable TV, telephone lines, gas lines, water lines, sewer lines and any other existing pipelines. The transmission lines shall be installed a minimum of two (2) feet from utility lines and in accordance with existing regulations. The immediately repair of the utility lines or pipe lines damaged in the process of drilling an oil or gas well for the installation of crude oil transmission lines shall be the responsibility of the applicant.

(B)  Sources of Ignition ‑

(i)         In locations where flammable vapors may be present, precautions shall be taken to prevent ignition by eliminating or controlling sources of ignition. Sources of ignition may include open flame, internal combustion engines, smoking, cutting and welding, hot surfaces, frictional heat, spark (static, electrical and mechanical), spontaneous ignition, chemical and physical‑chemical reaction and radiant heat. The precautions shall include but are not limited to the following:

Smoking ‑ None shall be permitted within fifty (50) feet of any well, tank or area contaminated by oil or waste gas.

Soundproofing Material ‑ Soundproofing material shall be noncombustible.

Drilling Equipment ‑ All engines used during drilling operations shall use accepted methods to prevent the escape of flames, sparks, ignited carbon and soot.

Production Pumps ‑ All pumps used for the production of oil shall be electrically powered, which power shall not be generated on the lease.

Test Production Pumps ‑ All pumps used for test production shall either be electrically powered (not generated on the lease), gasoline or L.P. gas internal combustion powered engines using the accepted methods to prevent the escape of flames, sparks, ignited carbon and soot.

(C)  Contingency Plan

(i)         All drilling permit applicants shall submit an emergency procedures plan. The plan shall be designed to minimize the risk to persons, property and the community welfare from a fire or fire hazard by having available or having procedures and access to, persons and equipment capable of controlling and eliminating the fire or fire hazard. The procedure shall be posted at the drilling or production site.

(ii)        During emergencies when public services manpower, which includes fire, police or public works and their equipment are required to be at a location for a period of more than four (4) hours, the owner and/or the lessee shall be responsible for reimbursing the City for extended costs at a predetermined hourly rate.

(D)  Plan Standards ‑ The standards for design, location, construction, installation, maintenance and operation of all plumbing, electrical equipment, storage tanks or other equipment shall be in accordance with the adopted Plumbing Code, National Electrical Code, NFPA 30, Uniform Building Code and sound engineering practices.

(d)   Spill Prevention Control ‑ in order to prevent discharged oil from dispersing to the surrounding area, earth dikes or berms shall be provided around all storage tank batteries adequate to hold seventy-five percent (75%) of the tank’s capacity.

(1)   Guidelines ‑ This Section established the process for preparation, review and implementation of a spill prevention control program.

(2)   Plan Required ‑ Any and all owners or operators who have received a special use permit to drill for oil and/or gas shall prepare and submit a plan. The plan shall be updated to reflect changes in operations from drill to production and filed as an amendment to the initial plan. The plan shall be filed before commencing operations.

(3)   Contingency Plan ‑ to provide for contingencies, the owner or operator shall provide names, addresses and telephone numbers of individuals capable of controlling, eliminating and cleaning up all discharge. The individual’s name and telephone number shall be posted at the site.

(e)   Safety, Security and Maintenance

(1)   Fencing or other safety precautions adequate to protect livestock and people shall be provided. Fencing can be either around the property as a whole or around each separate well. The adequacy of fencing shall be determined by the administrator.

(2)   All storage tank openings shall be secured to prevent children from entering.

(3)   All pumping units at an oil or gas well must be kept in a clean, tidy condition and must be kept well painted in a satisfactory manner.

(f)   Insurance

(1)   Prior to receiving a permit for any oil or gas operation, the owner or operator shall file with the City a copy of a certificate of insurance stating the following minimum amounts:

(A)  Worker’s compensation payable within statutory limits.

(B)  General liability and property damage with limits not less than $1,000,000 for each occurrence and $1,000,000 aggregate.

(2)   The certificate shall also state that the policy shall not be canceled or amended or changed without giving the City thirty (30) days written notice. The insurance shall be continued until the operation has ceased and all activities insured by the policy and all wells properly plugged in accordance with State regulations.

(Ord. 1433, Sec. 6)

(a)   All drilling equipment not necessary to production shall be removed from the site within thirty (30) days after termination of drilling activity. All production related equipment shall be removed from a site within 60 days after production of a well has ceased.

(b)   All land disturbed during drilling or production shall be restored wherever practical to original grade and stabilized if necessary.

(c)   A copy of the approved State completion report and/or the notice of abandonment shall be filed for each well.

(d)   Within 90 days of well completion or abandonment, the owner or lessee shall submit an approved copy of the State affidavit of completion and plugging reports.

(Ord. 1433, Sec. 7)

Any lawful non‑conforming well within the City as of the date of passage of Ordinance 1433 may continue as a non‑conforming use. The use shall comply with the intent of this Article and must obtain a permit.

(Ord. 1433, Sec. 8)

Upon violation of the conditions of any permit, license, authorization or any other provisions of this Article, the City Council may, upon a hearing after five (5) days written notice by mail or personal service to a person committing the violation or if the address of the permittee or licensee is unknown and he or she cannot be found in the City after the expiration of five (5) days from the date of publication of notice of any hearing in the City’s official newspaper, revoke the permit, license or authorization, providing, however, that if in the judgment of the City Council restitution is made for any damage occasioned by the violation, together with adequate provisions to prevent any further violation by the permittee or licensee, the City Council may waive revocation of any permit or license, but the same shall not affect the right of the City to revoke the permit for future violations including violations of the same type or kind and shall not affect any penalty otherwise provided for the violation of this Article.

(Ord. 1433, Sec. 9)

(a)   Any person who shall violate any of the provisions of this code, violate or fail to comply with any order made thereunder, and from which no appeal has been taken, or who shall fail to comply with such an order as affirmed or modified by the environmental officer or other proper City authority or by a court of competent jurisdiction, within the time fixed herein, shall severally for each and every such violation and noncompliance, respectively be guilty of a Class C violation as prescribed by the Public Offense Code of this City. The imposition of one penalty for any violation shall not excuse the violation or permit it to continue; and all such persons shall be required to correct or remedy such violations within a 24 hour period of time, each 24 hour period of time that prohibited conditions are maintained shall constitute a separate offense.

(b)   The application of the above penalty shall not be held to prevent the enforced removal of prohibited conditions.

(Ord. 1769, Sec.7)

It is understood that the officers of any corporation applying for a permit hereunder shall be personally liable to the City and shall be personally responsible for complying with all of the terms and conditions of this Article.

(Ord. 1433, Sec. 11)