(a) (1) For the purpose of this section, a drilling block is defined as a tract of land containing 320 acres, plus or minus 10% tolerance thereof, all ownerships within which are contiguous and enclosed within the boundary line of such block.
(2) All of the requirements of the Railroad Commission for the formation of a drilling block, or "gas unit" or "production unit" shall apply to formation of a drilling block in the city. The formation of such drilling blocks in undeveloped portions of the city shall be accomplished by the private contract of the parties in interest, save and except drilling permits shall not be issued for any such block where the boundaries of same are so drawn as to exclude any tract or ownership from feasible inclusion in any present or future drilling block or feasible participation in production in any present or future block, until it be shown that the owner of such tract or ownership has been extended opportunity for such inclusion and participation on the most favorable terms offered to any other owner therein and has refused the same. The purpose of this clause is to protect the rights of such ownerships to participation in some drilling block, and to avoid so far as possible the necessity of granting additional permits for drilling, on sites of less than 320 acres plus or minus 10% tolerance, as exceptions to the general spacing rule herein established, and the consequent hazards to the public health, safety, and welfare.
(b) Drilling blocks shall be formed within the developed portion of the city, however, in the manner and with boundaries as shown on the attached Official Drilling Plat of the city; and the same are hereby created and declared to exist as therein shown. It is further provided, by way of identification and description only, that the same shall be five (5) in number, designated, bounded, and with surface acreage as shown on the plat and the field notes thereto appended.
(Ord. 39817, passed 10-2-79)