SEC. 51A-12.203. INSURANCE AND SECURITY INSTRUMENTS.

(1) No person shall participate in site preparation or any other seismic survey activities without first obtaining a seismic survey permit issued by the city in accordance with this division.

(2) Seismic surveys may only be conducted with low-impact vibrator systems designed for urban operations. Explosive charges, including dynamite, may not be used in preparing for or conducting a seismic survey.

(3) Seismic surveying is limited to the hours of 8:00 am to 5:00 pm, Monday through Friday, excluding city holidays.

(4) Seismic survey activities must be conducted in accordance with all applicable federal and state laws and regulations, and with all ordinances, rules, and regulations of the city.

(5) Seismic survey activities within public rights-of-way must be conducted in in accordance with a traffic control plan approved by the director of the department of transportation.

(b) Seismic survey permit. A seismic survey permit application must be in writing, signed by the operator or applicant, and submitted to the gas inspector. The operator or applicant shall provide the following information on a form furnished by the city:

(1) the date the operator or applicant submitted the application;

(2) the operator or applicant’s name, address, telephone number, and email address;

(3) the location of the seismic survey;

(4) the date and time the seismic survey will be conducted;

(5) a detailed explanation of the seismic survey methods to be used;

(6) a detailed map of the area being surveyed and the location of all vibration and geophone points;

(7) the date and time the seismic survey will be completed; and

(8) for city property and public rights-of-ways:

(A) an executed access agreement for the use of the specific public rights-of-way or city property; and

(B) a current certificate of insurance for the coverage specified in the access agreement.

(1) The gas inspector shall return incomplete applications to the operator or applicant with a written explanation of the deficiencies.

(2) The gas inspector shall determine whether the seismic survey permit should be issued, issued with conditions, or denied within 45 days after receiving a complete seismic survey permit application. If the gas inspector fails to make this determination within this specified time, the seismic survey permit is deemed denied.

(3) The gas inspector shall issue a seismic survey permit if the application meets the requirements of this division. If the application does not meet the requirements of this division, the gas inspector shall either deny the application or issue the seismic survey permit subject to written conditions if compliance with the conditions eliminates the reasons for denial. If the gas inspector denies a seismic survey permit, the gas inspector shall provide the applicant with a written explanation of the reasons for denial within 30 days.

(d) Appeal.

(1) If the gas inspector denies a seismic survey permit, the gas inspector shall send the applicant, by certified mail, return receipt requested, written notice of the decision and the right to appeal.

(2) The applicant has the right to appeal to the permit and license appeal board in accordance with Article IX of Chapter 2 of the Dallas City Code.

(e) Notice. At least 72 hours before commencing geophysical operations (laying out of geophones), the operator or applicant shall provide written notice via United States mail, or other methods of delivery to each tenant, property owner, and resident within the area to be seismically surveyed. The written notice must include:

(1) general information about the seismic operations to be conducted;

(2) an overview of the seismographic survey process; and

(3) a hotline number to call with questions or complaints related to the seismic survey activities. The hotline number must be adequately staffed with trained personnel during normal working hours. (Ord. 29228)

SEC. 51A-12.202. GAS WELL PERMIT.

(a) In general.

(1) No person shall participate in site preparation, drilling, reworking, fracturing, operation, production, or any other related activity without first obtaining a gas well permit issued by the city in accordance with this article. Each well on an operation site must obtain a separate gas well permit.

(2) A gas well permit is required, in addition to any permit, license, or agreement required under this article, other city ordinances, or state or federal law.

(3) A gas well permit application may not be approved until an SUP is approved. Denial of an SUP is grounds for automatic denial of all related gas well permit applications.

(4) A gas well permit automatically terminates if the operator does not begin drilling within 180 days after the gas inspector issues the gas well permit. The gas inspector may extend the time for an additional 180 day period upon request by the operator and proof that the conditions on the operation site have not substantially changed. Only one extension is permitted.

(5) An existing gas well permit does not authorize reworking of an abandoned well. A new gas well permit is required to rework an abandoned well.

(6) A gas well permit automatically terminates after the well authorized by the gas well permit is abandoned pursuant to this article.

(7) The operator shall complete all drilling activities on the operation site within five years from the date the first gas well permit was issued.

(A) The operator may apply for a one-time, two-year extension from the gas inspector. The request for an extension must be made to the gas inspector in writing at least six months before the fifth year from the date the first gas well permit was issued.

(B) The gas inspector must approve or deny the extension within 45 days after receiving the extension request. The gas inspector must approve the extension if the drilling activities will not adversely impact the neighboring properties or if additional measures required eliminate the reasons for denial.

(C) If the gas inspector denies the request for a one-time, two-year extension, he must provide the operator with a written explanation of the reasons for denial within 30 days.

(D) As a condition of approval of the extension, the gas inspector may require additional measures, as necessary, to minimize the impact of the additional drilling activities upon neighboring properties.

(E) The operator has the right to appeal to the permit and license appeal board in accordance with Article IX of Chapter 2 of the Dallas City Code.

(b) Permit applications. A gas well permit application must be in writing, signed by the operator and filed with the gas inspector. The operator shall provide the following information on a form furnished by the city:

(1) the date the operator submitted the application;

(2) the proposed number of wells on the operation site;

(3) the field name as used by the Texas Railroad Commission;

(4) the proposed well name;

(5) the operator’s name and address;

(6) all surface owners’ names and addresses;

(7) all mineral rights owners’ names and addresses;

(8) the name of a representative with supervisory authority over all gas drilling and production operations and a phone number where they can be reached 24 hours a day;

(9) the name, address, and phone number of a person who is a resident of the State of Texas and is designated to receive notices from the city;

(10) the names of two designated emergency contact persons, their addresses, and phone numbers where they may be reached 24 hours a day;

(11) the names and addresses of tenants, property owners, and residents within 1,500 feet of the boundary of the operation site in accordance with the plans required as part of the gas well permit application;

(12) the address and legal description of the operation site;

(13) the location and a description of all structures and improvements within 1,500 feet of the boundary of operation site;

(14) a description of all fuel sources and public utilities required during drilling and production operations;

(15) a site plan of the operation site that matches the site plan attached to the SUP, was prepared by a licensed surveyor or registered engineer, is drawn to scale, complies with the site requirements in this article, and provides the following information:

(A) the date, scale, north point, name of owner, and name of person preparing the site plan;

(B) the location of existing boundary lines and dimensions of the operation site;

(C) the location of all improvements and equipment, including proposed wells, tanks, pipelines, compressors, separators, and storage sheds;

(D) the zoning of the operation site;

(E) the location of flood plains, and the existing and base flood elevations at the location of any proposed improvement including the well head;

(F) the existing watercourses and drainage features;

(G) off-street parking and loading areas and the surface material used;

(H) ingress and egress points;

(I) existing and proposed streets and alleys;

(J) location, height, and materials of existing and proposed fences;

(K) existing and proposed landscaping;

(L) location and description of signs, lighting, and outdoor speakers;

(M) location and description of all easements, along with the volume and page number where the easement is recorded;

(N) a map of the surrounding area, showing the zoning on all property within 1,500 feet of the boundary of the operation site, and the distance from wells, structures, or equipment to any use, structures, or features that have spacing requirements under Sections 51-4.213(19) or 51A-4.203(b)(3.2);

(O) a tree survey that complies with Article X;

(P) a copy of the SUP ordinance;

(Q) a copy of the Texas Railroad Commission drilling permit and its attached documents, as well as any other permits, disclosures, or reports required by the Texas Railroad Commission;

(R) a copy of the storm water pollution prevention plan and the notice of intent required by the Environmental Protection Agency;

(S) a copy the Texas Commission on Environmental Quality’s determination of the depth of useable-quality ground water;

(16) documentation of the insurance and security instruments required by this article;

(17) an indemnification agreement, approved as to form by the city attorney, stating that the operator agrees to defend the city and its officers and employees against all claims of injury or damage to persons or property arising out of the drilling and production operation;

(18) a notarized statement signed by the operator that the information submitted with the application is true and correct, to the best of the operator’s knowledge and belief;

(19) an air quality management and monitoring plan that includes:

(A) measures and equipment the operator will use to ensure that all site activities and equipment on the operation site comply with applicable emissions limits, applicable laws relating to emissions, and best management practices of the Environmental Protection Agency and the Texas Commission on Environmental Quality regarding air quality;

(B) monitoring techniques the operator will use to measure for and ensure compliance with applicable emissions limits and all applicable laws relating to emissions; and

(C) a categorization of Environmental Protection Agency Tier (Tier 0 to 4) of all diesel equipment that will be used on the operation site during each phase of the drilling and production use;

(20) a communications plan developed to keep tenants, property owners, and residents of protected uses within 2,000 feet of the boundary of the operation site informed that:

(A) documents how the operator will notify, solicit feedback, and respond to concerns about the gas drilling and production use;

(B) identifies how the operator will employ early and continuous engagement, including posted notice in public locations;

(C) establishes how the operator will develop and use advance or near-real-time notice of all significant activities occurring during the well’s life, including drilling, fracturing, flowback, redrilling and refracturing, completion, abandonment, as well as non-routine occurrences including flaring, spills, or emissions events;

(21) a dust mitigation plan detailing measures the operator will implement to mitigate and suppress dust generated at the operation site, including a mud shaker for vehicles exiting the site;

(22) an electricity usage plan showing:

(A) the equipment powered by electricity;

(B) the amount of electricity needed;

(D) whether electricity is generated on site or purchased from a retail electric provider; and

(E) the approximate location of lines, poles, generators, generator fuel tanks, transformers, fuse boxes, and other apparatus necessary to use electric power;

(23) an emergency action response plan approved by the fire marshal that:

(A) establishes written procedures to minimize any hazard resulting from drilling, completion, production, or abandonment of wells, including prompt and effective response to emergencies from:

(i) leaks or releases that may impact public health, safety, or welfare;

(ii) fire, explosions, loss of well control, or blowout at or near the well; and

(iii) natural disasters;

(B) complies with the existing guidelines established by the Texas Railroad Commission, the Texas Commission on Environmental Quality, the Department of Transportation, and the Environmental Protection Agency;

(C) includes maps showing the public rights-of-way to the operation site, and turn-arounds and staging areas for emergency equipment;

(D) includes an effective means of notifying and communicating with local fire, police, and public officials during an emergency, including a detailed plan of how the operator will notify and communicate with city officials responsible for notification and evacuation of residents within one-half mile of the operation site, measured from the boundary of the operation site;

(E) includes the availability of personnel, equipment, tools, and materials at the operation site as necessary in case of an emergency;

(F) outlines measures to be taken to reduce public exposure to injury and the probability of accidental death or dismemberment;

(G) documents emergency shut-down procedures for a gas well and the operation site, if necessary;

(H) establishes a plan for the safe restoration of service and operations following an emergency or incident; and

(I) establishes a follow-up procedure for incident investigation to determine the cause of the incident and the implementation of corrective measures;

(24) an erosion control plan that complies with all city regulations;

(25) a fresh-water fracture pond design plan that includes an engineering design and a landscape and fencing design that includes:

(A) a detailed grading plan prepared by a civil engineer licensed by the state of Texas;

(B) measures that will be taken, such as shallow safety ledges, to prevent drowning;

(D) an open-design black or dark green chain link fence, a minimum of six feet in height, that encloses the fresh-water fracture pond; and

(E) restorative vegetation that complies with Article X;

(26) a hazardous materials management plan that:

(A) complies with the Dallas Fire Code;

(B) includes the formula identifying the non-radioactive tracing or tagging additives that the operator will use in all fracturing fluids on the operation site; and

(27) a hazardous materials inventory statement that:

(A) complies with the Dallas Fire Code;

(B) includes material safety data sheets or an equivalent detailing all hazardous materials that are or will be located, stored, transported, or temporarily used on the operation site, including site preparation, boring, fracturing, completing, reworking, redrilling, refracturing, and production. The material safety data sheets must indicate all types, quantities, volumes, and concentrations of all hazardous chemicals and additives used in these processes; and

(28) a landscape irrigation plan designed by a State of Texas licensed irrigator that includes:

(A) the appropriate type of irrigation for the operation site; and

(B) measures to be taken to adequately irrigate all landscaping, indicating the water source for irrigation;

(29) a noise management plan detailing how the equipment used in the drilling, completion, transportation, or production of a well complies with the maximum permissible noise levels in Section 51A-6.102 and this article, and that:

(A) identifies the noise impacts of gas drilling and production;

(B) provides documentation establishing the ambient noise level in accordance with this article; and

(C) details how the gas drilling and production noise impacts will be mitigated, considering the operation site characteristics, including:

(i) nature and proximity of adjacent development, location, and type;

(ii) seasonal and prevailing weather patterns, including wind directions;

(iii) vegetative cover on and adjacent to the operation site; and

(iv) topography on and adjacent to the operation site;

(30) a pipeline map indicating the location of the nearest gathering station, the alignment of the pipelines connecting the operation site to the gathering station, and a description of how the operator intends to get the gas to market;

(31) a screening and landscape plan that complies with all city screening and landscape requirements and includes:

(A) a schedule detailing the timing of all landscaping and screening installation or, if a SUP has already been approved with a screening and landscape plan, a copy of the approved screening and landscape plan;

(B) the proposed efforts to replace dead or dying screening vegetation; and

(C) a fully-executed third-party landscape maintenance agreement detailing the frequency and scope of the services to be provided;

(32) a security plan that includes details about how the security alarm system requirements in this article will be complied with and provides the location of all security cameras provided on the operation site;

(33) a signage plan that complies with the Texas Railroad Commission regulations, this article, and all other city ordinances, rules, and regulations for the operation site and pipelines;

(34) a spill prevention plan that complies with state and federal regulations, this article, and all other city ordinances, rules, and regulations and includes a plan for effective containment of all materials on site, including containment and mitigation strategies for any failures of temporary or permanent pipes, tanks, secondary containment systems, and water recycling systems;

(35) a surface reclamation plan that includes how the operator, using industry best practices, will:

(A) restore the operation site to allow its use under the city’s comprehensive plan;

(B) control surface water drainage, water accumulation, and measures that will be taken during the reclamation process to protect the quantity and quality of surface and groundwater systems;

(D) backfill, grade, and re-vegetate the operation site;

(E) reconstruct, replace, and stabilize the soil;

(F) reshape the topography; and

(G) employ other methods or practices necessary to ensure that all disturbed areas will be reclaimed;

(36) a site lighting plan that complies with city code, is designed to promote the safety of all gas drilling and production operations, and includes a photometric plan, indicating the type and color of lights to be used and demonstrates how it complies with all Federal Aviation Administration requirements;

(37) a transportation plan that includes a:

(A) traffic impact analysis, including the proposed truck routes, types and weights of trucks and vehicles accessing the operation site; hours of the day that truck and vehicle traffic will be entering and leaving the operation site; days of the week that truck and vehicle traffic will be entering and leaving the operation site; turning movements associated with truck and vehicle traffic; proposed access points; and proposed traffic control devices;

(B) map consistent with any SUP requirements showing the truck routes approved by the gas inspector and identifying all public rights-of-way, private streets, and routes intended for use within the city;

(D) road repair agreement approved as to form by the city attorney and signed by the operator;

(38) a vector control plan detailing all measures:

(A) that will be taken to ensure that a fresh-water fracture pond will not become a site for mosquito harbourage; and

(B) for mosquito abatement activities, including any biological or chemical control applications or water level control measures;

(39) a waste management plan that includes:

(A) recycling, treatment, and disposal methods for all drilling muds and cuttings, flowback water, fracturing fluids, salt water, produced water, solid waste, and any other materials generated from pad site operations;

(B) a copy of the Texas Railroad Commission underground injection control permit if the waste management plan includes an injection method; and

(40) a water management plan that includes a description of the water source to be used, the volumes, and the recycling, reuse, or disposal methods that will be used during drilling and production operations; and

(41) any other information the gas inspector deems necessary.

(1) The gas inspector shall return incomplete applications to the operator with a written explanation of the deficiencies.

(2) The gas inspector shall determine whether the gas well permit should be issued, issued with conditions, or denied within 45 days after receiving a complete gas well permit application. If the gas inspector fails to make this determination within this specified time, the gas well permit is deemed denied.

(3) The gas inspector shall issue a gas well permit if the application meets the requirements of this article and the conditions of the SUP. If the application does not meet the requirements of this article or the conditions of the SUP, the gas inspector shall either deny the application or issue the gas well permit subject to written conditions if compliance with the conditions eliminates the reasons for denial. If the gas inspector denies a gas well permit, the gas inspector shall provide the operator with a written explanation of the reasons for denial within 30 days.

(d) Content of gas well permit. A gas well permit must:

(1) identify the name of the well and its operator;

(2) identify the name, address, and telephone number of the person designated to receive notices from the city;

(3) identify the names, addresses, and phone numbers of the two emergency contact persons;

(4) state the date the permit is issued;

(5) state that the gas well permit will automatically terminate if the operator does not begin drilling within 180 days after the date of issuance unless the gas inspector grants an extension;

(6) state that all drilling activities must cease within five years from the issuance of the first gas well permit issued on the operation site unless a one-time two-year extension is approved;

(7) state that the gas well permit shall automatically terminate after the well is abandoned;

(8) state that the operator shall apply for a new gas well permit before reworking an abandoned well;

(9) incorporate the full text of the indemnity provision from the operator’s submitted indemnity agreement;

(10) incorporate, by reference:

(A) the insurance and security requirements of this article;

(B) the conditions of the applicable SUP;

(D) the rules and regulations of the Texas Railroad Commission, including the field rules;

(E) all other required permits and fees; and

(F) the requirement for annual inspections, periodic reports, emergency reporting, and notice before reworking a well; and

(11) state that the operator shall comply with the most recently submitted and approved site plan, tree survey, hazardous materials management plan, and emergency action response plan. The SUP and the full-sized site plan must be attached to the gas well permit.

(e) Acceptance of permit. By accepting a gas well permit, the operator expressly stipulates and agrees to be bound by and comply with the provisions of this article. The terms of this article shall be deemed to be incorporated in any gas well permit as if they were set forth verbatim in the gas well permit.

(f) Amendment of permit. If the operator wants to change the original site plan attached to the gas well permit and the SUP, the operator shall first seek a zoning amendment or minor amendment and then apply in writing for a gas well permit amendment. If the operator pays the fee to amend their gas well permit, and the new site plan complies with the requirements of the SUP and this article, the gas inspector shall issue an amended gas well permit.

(g) Transfer of permit.

(1) The gas inspector shall transfer a gas well permit to a new operator if:

(A) the transfer is in writing, approved as to form by the city attorney, signed by both operators, and the new operator agrees to be bound by the terms and conditions of the transferred gas well permit, the SUP, and this article;

(B) all information previously provided to the city as part of the application for the original gas well permit is updated to reflect the new operator;

(D) the operator-transfer fee is paid in full.

(2) The gas inspector shall release the insurance and security provided by the old operator if the requirements of this subsection are met. The transfer does not relieve the old operator from any liability arising out of events occurring before the transfer.

(h) Revocation or suspension of permit.

(1) If the operator violates this article, the gas well permit, or the SUP, the gas inspector shall give written notice to the operator describing the violation and giving the operator a reasonable time to cure. The time to cure must take into account the nature and extent of the violation, the efforts required to cure, and the potential impact on public health, safety, and welfare. The time to cure must not be less than 30 days unless the violation:

(A) could cause imminent destruction of property or injury to persons; or

(B) involves the operator’s failure to take a required immediate action as required by this article.

(2) If the operator fails to correct the violation within the specified time, the gas inspector shall suspend or revoke the gas well permit. The gas inspector shall also report any violations to the Texas Railroad Commission and request that the Texas Railroad Commission take appropriate action.

(3) If a gas well permit is suspended, no person may engage in any activities that were permitted under that gas well permit except for those activities necessary to remedy the violation. If the violation is remedied, the gas inspector shall reinstate the gas well permit, and the operator may resume gas drilling and production.

(4) If a gas well permit is revoked, the operator shall obtain a new gas well permit before resuming gas drilling or production.

(i) Appeal.

(1) If the gas inspector denies, suspends, or revokes a gas well permit, the gas inspector shall send the operator, by certified mail, return receipt requested, written notice of the decision and the right to appeal.

(2) The operator has the right to appeal to the permit and license appeal board in accordance with Article IX of Chapter 2 of the Dallas City Code. (Ord. Nos. 26920; 29228)

SEC. 51A-12.203. INSURANCE AND SECURITY INSTRUMENTS.

(a) In general.

(1) The operator shall provide the insurance required in this section at its own expense.

(2) The operator shall keep the insurance in effect until the gas inspector approves the abandonment and restoration of the operation site.

(3) Companies approved by the State of Texas with an AM Best Rating of A or better and acceptable to the city must issue the insurance.

(4) The operator shall provide the gas inspector with a copy of the certificates of insurance.

(5) Upon the gas inspector’s request, the operator shall provide copies of the insurance policies and all endorsements at no cost to the city.

(6) Failure of the city to request required insurance documentation does not constitute a waiver of the insurance requirement.

(7) Depleting, wasting, or defense within limits provisions are not permitted in any of the insurance required in this section.

(b) Modification of insurance.

(1) The office of risk management may modify the insurance requirements of this section when necessary based upon economic conditions, recommendation of professional insurance advisors, changes in law, court decisions, or other relevant factors.

(2) The operator shall modify the insurance as requested and shall pay the cost of any modifications.

(1) The operator shall require each subcontractor performing work on the operation site to obtain insurance that is appropriate for the services the subcontractor is performing.

(2) The subcontractor shall provide the subcontractor’s insurance at its own expense to the operator and gas inspector.

(3) The subcontractor’s insurance must name the operator as an additional insured.

(4) The subcontractor shall keep the subcontractor’s insurance in effect until the gas inspector approves the abandonment and restoration of the operation site.

(5) Companies approved by the State of Texas with an AM Best Rating of A or better and acceptable to the city must issue the subcontractor’s insurance.

(6) The operator shall provide the gas inspector with a copy of the certificates of insurance for each subcontractor at least 30 days before the subcontractor begins work.

(7) Upon request, the operator shall provide the gas inspector with copies of the subcontractor’s insurance policies and all endorsements at no cost to the city.

(d) Required provisions. All insurance contracts and certificates of insurance must have an endorsement:

(1) stating that the city is an additional insured to all applicable policies;

(2) stating that coverage may not be cancelled, non-renewed, or materially changed in policy terms or coverage without 30-days advance written notice by mail to the:

(A) gas inspector; and

(B) City of Dallas, Director, Office of Risk Management, 1500 Marilla, 6A-South, Dallas, TX 75201;

(3) waiving subrogation against the city, its officers, employees, and elected representatives for bodily injury (including death), property damage, or any other loss to all applicable coverages;

(4) stating that the operator’s insurance is the primary insurance;

(5) stating that liability, duty, standard of care obligations, and the indemnification provision are underwritten by contractual liability coverage that includes these obligations;

(6) identifying the operation site by address; and

(7) identifying the gas inspector as the certificate holder.

(e) Required coverage. Subject to the operator’s right to maintain reasonable deductibles, and subject to a maximum deductible or self-insured retention of $250,000, the operator shall obtain insurance coverage in the following types and amounts:

(1) Workers’ compensation insurance with statutory limits.

(2) Employer’s liability insurance with the following minimum limits for bodily injury by:

(A) accident, $1,000,000 per each accident; and

(B) disease, $1,000,000 per employee with a per-policy aggregate of $1,000,000.

(3) Business automobile liability insurance covering owned, hired, and non-owned vehicles, with a minimum combined bodily injury (including death) and property damage limit of $2,000,000 per occurrence. If the operator is subject to the Motor Carrier Act, endorsement form MCS 90 is required and a copy must be attached to the certificate of insurance.

(4) Commercial general liability insurance covering explosion, collapse, underground blowout, cratering, premises/operations, personal and advertising injury, products/completed operations, independent contractors, and contractual liability with the following minimum combined bodily injury (including death) and property damage limits of:

(A) $2,000,000 per occurrence;

(B) $2,000,000 products/completed operations aggregate; and

(5) Environmental impairment or pollution legal liability insurance covering handling, removal, seepage, storage, testing, transportation, and disposal of materials.

(A) Coverage must include loss of use of property; cleanup cost; and defense, including costs and expenses incurred in the investigation, defense, or settlement of claims in connection with any loss arising from the operation site.

(B) Coverage must apply to sudden and accidental pollution resulting from the escape or release of smoke; vapors; fumes; acids; alkalis; toxic chemicals; liquids or gases; waste material; or other irritants, contaminants, or pollutants.

(C) Coverage must include gradual pollution or pollution legal liability with time element pollution for a minimum combined bodily injury (including death) and property damage limit of $10,000,000 per occurrence.

(D) Coverage must be maintained with a minimum combined bodily injury (including death) and property damage limit of $10,000,000 per occurrence.

(6) Umbrella liability insurance following the form of the primary liability coverage described in Paragraphs (1) through (4) and providing coverage with minimum combined bodily injury (including death) and property damage limit of $25,000,000 per occurrence and $25,000,000 annual aggregate. Increased primary liability limits equivalent to the umbrella liability insurance limits specified will satisfy the umbrella liability insurance requirements.

(A) A copy of the declaration page of the policy must be attached to the certificate of insurance.

(B) Coverage must include explosion, collapse, underground blowout, cratering, sudden and accidental pollution, handling, removal, seepage, storage, testing, transportation, and disposal of materials. A copy of the endorsements providing this coverage must be attached to the certificate of insurance.

(7) Control-of-well insurance to provide coverage for the cost of regaining control of an out-of-control (wild) well including the cost of re-drilling and clean up of an incident with minimum limit of $10,000,000. Coverage must include seepage, pollution, stuck drill stem, evacuation expense of residents, loss of equipment, experts, and damage to property that the operator has in the operator’s care, custody, or control.

(8) If the insurance required in Section 51A-12.203(e)(4)-(6) is written on a claims-made form, coverage must be continuous (by renewal or extended reporting period) for at least 60 months after the gas inspector approves the abandonment and restoration of the operation site. Coverage, including renewals, must contain the same retroactive date as the original policy.

(f) Miscellaneous provisions.

(1) The city’s approval, disapproval, or failure to act regarding any insurance supplied by the operator or a subcontractor does not relieve the operator or subcontractor of full responsibility or liability for damages and accidents. Bankruptcy, insolvency, or the insurance company’s denial of liability does not exonerate the operator or the subcontractor from liability.

(2) If an insurance policy is cancelled or non-renewed, the gas inspector shall suspend the gas well permit on the date of cancellation or non-renewal and the operator shall immediately cease operations until the operator provides the gas inspector proof of replacement insurance coverage.

(g) Performance bond or irrevocable letter of credit. Before issuance of a gas well permit, the operator shall give the gas inspector a performance bond or an irrevocable letter of credit approved as to form by the city attorney.

(1) A bonding or insurance company authorized to do business in Texas and acceptable to the city must issue the performance bond. A bank authorized to do business in Texas and acceptable to the city must issue the irrevocable letter of credit.

(2) The performance bond or irrevocable letter of credit must list the operator as principal and be payable to the city.

(3) The performance bond or irrevocable letter of credit must remain in effect for at least six months after the gas inspector approves the abandonment of the well.

(4) Except as otherwise provided, the amount of the performance bond or irrevocable letter of credit must be at least $50,000 per well.

(A) After a well is completed, the operator may request that the gas inspector reduce the existing performance bond or irrevocable letter of credit to $10,000 per well for the remainder of the time the well produces without reworking. The gas inspector shall reduce the existing performance bond or irrevocable letter of credit if the operator has fully complied with the provisions of this article and the conditions of the SUP, and the gas inspector determines that a $10,000 performance bond or irrevocable letter of credit is sufficient.

(B) If the gas inspector determines the operator’s performance bond or irrevocable letter of credit is insufficient, the gas inspector may require the operator to increase the amount of the performance bond or irrevocable letter of credit to a maximum of $250,000 per well.

(5) Cancellation of the performance bond or irrevocable letter of credit does not release the operator from the obligation to meet all requirements of this article, the gas well permit, and the SUP. If the performance bond or irrevocable letter of credit is cancelled, the gas well permit shall be suspended on the date of cancellation and the operator shall immediately cease operations until the operator provides the gas inspector with a replacement performance bond or irrevocable letter of credit that meets the requirements of this article.

(6) The city may draw against the performance bond or irrevocable letter of credit or pursue any other available remedy to recover damages, fees, fines, or penalties due from the operator for violation of any provision of this article, the SUP, or the gas well permit. The performance bond or irrevocable letter of credit may also be used to mitigate public losses (i.e. damage to infrastructure, loss of sales tax, etc.) related to the loss of control of a well.

(h) Road repair security instrument. Before issuance of a gas well permit, the operator shall give the gas inspector a road repair performance bond or an irrevocable letter of credit approved as to form by the city attorney. The road repair security instrument is in addition to the performance bond or irrevocable letter of credit required by Section 51A-12.203(g).

(2) The performance bond or irrevocable letter of credit must list the operator as principal and be payable to the city.

(3) The performance bond or irrevocable letter of credit must remain in effect for at least six months after the department of public works completes the final inspection of the right-of-way.

(4) The department of public works shall determine the amount of the performance bond or irrevocable letter of credit based upon, among other factors, the estimated cost to the city of restoring the right-of-way.

(6) The city may draw against the performance bond or irrevocable letter of credit or pursue any other available remedy to recover damages, fees, fines, or penalties related to the damage of the right-of-way covered by Section 51A-12.204(p).

(i) Well plugging bond. Before issuance of a gas well permit, the operator shall give the gas inspector a well plugging bond.

(1) A bonding or insurance company authorized to do business in Texas and acceptable to the city must issue the well plugging bond.

(2) The well plugging bond must list the operator as principal and be payable to the city.

(3) The well plugging bond must remain in effect for at least six months after the gas inspector approves the abandonment of the well.

(4) Except as otherwise provided in this subsection, the amount of the well plugging bond must be at least $50,000 per well.

(5) Cancellation of the well plugging bond does not release the operator from the obligation to meet all requirements of this article, the gas well permit, and the SUP. If the well plugging bond is cancelled, the gas well permit shall be suspended on the date of cancellation and the operator shall immediately cease operations until the operator provides the gas inspector with a replacement well plugging bond that meets the requirements of this subsection.

(6) The city may draw against the well plugging bond or pursue any other available remedy to recover damages, fees, fines, or penalties due from the operator for violation of any provision of this article, the SUP, or the gas well permit. The well plugging bond may also be used to mitigate public losses (i.e. damage to infrastructure, loss of sales tax, etc.) related to the loss of control of a well. (Ord. Nos. 26920; 28424; 29228; 30239; 30654)

SEC. 51A-12.204. OPERATIONS.

(a) In general.

(1) Operations must be conducted in accordance with the practices of a reasonable and prudent gas drilling operation in the State of Texas.

(2) The layout of an operation site must comply with the site plan attached to the gas well permit and the SUP.

(3) No refining, except for gas dehydrating and physical phase separation, may occur on the operation site.

(4) Only freshwater-based mud systems are permitted.

(5) No person may add any type of metal additive into drilling fluids.

(6) Salt-water or produced-water disposal wells, also known as injection wells, are prohibited.

(7) Unless otherwise directed by the Texas Railroad Commission, the operator shall remove waste materials from the operation site and transport them to an off-site disposal or recycling facility at least once every 30 days.

(8) No air, gas, or pneumatic drilling is permitted.

(9) Salt water, produced water, or other wastewater collection or transportation pipelines must be approved by city council as part of a required SUP for a gas drilling and production use.

(10) Landfarming is prohibited.

(11) Lift and line compressors are permitted as part of the gas drilling and production use.

(12) The operation site must be kept clear of dilapidated structures, debris, pools of water or other liquids, contaminated soil, brush, high grass, weeds, and trash or other waste material.

(13) See Sections 51-4.213(19)(E) or 51A-4.203(b)(3.2)(E) for additional spacing, fencing, and slope requirements.

(b) Dust, vibrations, and odors.

(1) To prevent injury or nuisances to persons living and working in the area surrounding the operation site, the operator shall conduct all drilling and production in a manner that minimizes dust, vibrations, or odors, and in accordance with industry best practices for drilling and production of gas and other hydrocarbons.

(2) The operator shall adopt proven technological improvements in industry standards for drilling and production if capable of reducing dust, vibration, and odor.

(3) If the gas inspector determines that the dust, vibrations, or odors related to the gas drilling and production use present a risk of injury or have become a nuisance to persons living and working in the area, the gas inspector shall require the operator to adopt reasonable methods for reducing the dust, vibrations, and odors.

(4) Brine water, sulphur water, or water mixed any type of hydrocarbon may not be used for dust suppression.

(c) Electric lines. Electric lines to the operation site must be located in a manner compatible with those already installed in the surrounding area.

(d) Equipment, structures, and operations.

(1) In general.

(A) American Petroleum Institute. All equipment and permanent structures must conform to the standards of the American Petroleum Institute unless other specifications are approved by the fire marshal.

(B) Maintenance. All equipment and structures must be maintained in good repair and neat appearance.

(C) Painting. Unless a specific color is required by federal or state regulations, all equipment and structures must be painted with a neutral color approved by the gas inspector.

(D) Removal of rig and equipment. The drilling rig and associated drilling equipment must be removed from the operation site within 30 days after completion of each well unless other wells on the operation site are in the drilling phase.

(2) Drip pans and other containment devices. Drip pans or other containment devices must be placed underneath all tanks, containers, pumps, lubricating oil systems, engines, fuel and chemical storage tanks, system valves, and connections, and any other area or structures that could potentially leak, discharge, or spill hazardous liquids, semi-liquids, or solid waste materials.

(3) Engines.

(A) Electric motors must be used during drilling unless the operator submits a report to the gas inspector and the gas inspector determines that electric motors cannot be used.

(B) Only electric motors may be used during production.

(C) Electric power may be generated on the operation site but may not be sold for off-site use. All electrical installations and equipment must comply with city, state, and federal rules and regulations.

(4) Fire prevention equipment.

(A) The operator, at the operator’s expense, shall provide fire-fighting apparatus and supplies as approved by the fire department and required by city, state, and federal rules and regulations on the operation site at all times during drilling and production. The operator shall be responsible for the maintenance and upkeep of the fire-fighting apparatus and supplies.

(B) If the chief of the fire department makes a written request to the operator, the operator shall provide training and instruction to the fire department and other emergency responders about well safety, emergency management protocol, and all information specific to the well operations or emergency management activities at the operation site. The training must occur within 30 days after the written request is made.

(5) Mud pits.

(A) Only closed-loop drilling fluid systems are permitted.

(B) Low toxicity glycols, synthetic hydrocarbons, polymers, and esters must be substituted for conventional oil-based drilling fluids.

(6) Tanks.

(A) Gas well operations must use tanks for storing liquid hydrocarbons. Tanks must be portable, closed, and made of steel or fiberglass. If the gas inspector discovers condensate or liquid hydrocarbons, the gas inspector may require that tanks have a remote foam line.

(B) All tanks must have a vent line, flame and lightning arrestor, pressure-relief valve, and level-control device. The level-control device must automatically activate a valve to close the well to prevent the tank from overflowing.

(C) Tanks must have a secondary containment system that is lined with an impervious material. The secondary containment system must be high enough to contain one-and-one-half times the contents of the largest tank in accordance with the Dallas Fire Code.

(D) Drilling mud, cuttings, liquid hydrocarbons, and other waste materials must be discharged into tanks in accordance with the Texas Railroad Commission rules and other city, state, or federal rules and regulations.

(E) Temporary flowback tanks must be removed from the operation site within 90 days after completion of a gas well unless:

(i) the gas inspector extends the time period for no more than 30 additional days; or

(ii) other wells on the operation site are in the drilling phase.

(F) The top of any tank may not exceed the required fence height.

(7) Wells.

(A) Each well must have an automated valve that closes the well if an abnormal change in operating pressure occurs. All wellheads must also have an emergency shut-off valve to the well distribution line.

(B) Surface casing must be run and set in full compliance with the Texas Railroad Commission and the Texas Commission on Environmental Quality.

(e) Emergencies.

(1) In general.

(A) The emergency action response plan that complies with the Dallas Fire Code must be kept current.

(B) A copy of the current emergency response plan must be kept on the operation site at all times.

(C) Updates to the emergency action response plan must be submitted to the gas inspector, the fire chief, and the fire marshal within two business days after any additions, modifications, or amendments are made.

(D) The operator shall also conduct an annual review and provide updates of the emergency action response plan that must be approved by the fire marshal.

(2) Compliance with emergency action response plan. In emergencies, the operator shall comply with the current emergency action response plan submitted to the gas inspector.

(3) Loss of control.

(A) If the operator loses control of a well, the operator shall immediately take all necessary steps to regain control regardless of other provisions of this article.

(B) If the gas inspector believes that the loss of control of a well creates a danger to persons and property and the operator is not taking the necessary steps to regain control, the gas inspector is authorized to:

(i) take the necessary steps to regain control; and

(ii) incur expenses for labor and materials necessary to regain control.

(f) Environmental requirements.

(1) In general.

(A) All federal, state, and local rules regarding protection of natural resources must be strictly followed.

(B) The operator shall ensure that ground and fresh-water wells are not contaminated by gas drilling and production operations or any related activities.

(D) The operator shall use industry best practices in recycling and reusing hydraulic fracturing fluids and flowback water.

(2) Air quality.

(A) Gasses vented or burned.

(i) Except as permitted by the Texas Railroad Commission and the fire marshal, the operator shall not vent gases into the atmosphere or burn gases by open flame.

(ii) At no time may a well flow or vent directly into the atmosphere without first directing the flow through separation equipment or into a portable tank.

(iii) If venting or burning of gases is permitted, the vent or open flame must be located at least 300 feet from any structure that is necessary to the everyday operation of wells.

(B) Reduced emissions.

(i) Internal combustion engines and compressors, whether stationary or mounted on wheels, must be equipped with an exhaust muffler or comparable device that suppresses noise and disruptive vibrations and prevents the escape of gases, fumes, ignited carbon, or soot.

(ii) After fracturing or re-fracturing is completed, the operator must employ appropriate equipment and processes as soon as practicable to minimize natural gas and associated vapor releases into the environment.

(iii) All salable gas must be directed to a sales line as soon as practicable or shut in and conserved.

(iv) All wells that have a sales line must employ reduced-emission completion techniques unless the gas inspector determines that reduced-emission completion techniques are not feasible or would endanger the safety of personnel or the public.

(v) Vapor recovery equipment is required in accordance with state and federal rules and regulations.

(i) If an operation site receives two or more notices of violation for emissions or air quality violations during any 12 month period, as determined by the Texas Commission on Environmental Quality or the Environmental Protection Agency, within 30 days after receiving the second notice, the operator shall submit to the gas inspector an emissions compliance plan.

(ii) The emissions compliance plan must include:

(aa) 24-hour monitoring techniques the operator will use to demonstrate that the operation site complies with applicable emissions limits and all applicable laws relating to emissions;

(bb) activities and equipment the operator will immediately employ to ensure that the operation site complies with applicable emissions limits and all applicable laws related to emissions; and

(cc) quarterly reporting to the gas inspector for a period of 12 months of documented compliance.

(3) Baseline assessments.

(A) Air.

(i) Before gas drilling activities begin on an operation site, the operator shall perform a baseline test of air quality on the operation site.

(ii) The baseline air quality test must be collected and analyzed by a qualified third party using proper sampling and laboratory protocol from an Environmental Protection Agency or a Texas Commission on Environmental Quality approved laboratory.

(iii) The minimum baseline air quality results must include benzene, toluene, ethylbenzene, xylenes, ozone, hydrocarbons (e.g. methanes, ethanes, propanes), nitrogen oxides, volatile organic compounds, sulfer dioxides, naphthalenes, acroleins, and formaldehyde.

(iv) The baseline air quality test results must be provided to the gas inspector within 30 days after the baseline testing is conducted.

(v) The operator is responsible for the cost and fees associated with baseline testing of air quality.

(B) Natural gas.

(i) Within 30 days after the first well enters production on an operation site, the operator must provide to the gas inspector a written extended natural gas analysis.

(ii) The extended natural gas analysis must be performed by a qualified third party laboratory and must include findings for benzene and hydrocarbons.

(iii) The operator is responsible for the cost and fees associated with an extended natural gas analysis.

(i) Except as otherwise provided in this paragraph, before gas drilling activities begin, the operator shall perform a baseline test of all water wells within 2,000 feet of a well bore and all surface water within 750 feet of a well bore.

(ii) Water samples must be collected by a third party consultant and analyzed using proper sampling and laboratory protocol from an Environmental Protection Agency or Texas Commission on Environmental Quality approved laboratory.

(iii) The minimum baseline water test results must include TDS, Chlorides, VOCs and TPH, dissolved gases (methane, ethane), TPH fractioned, SVOC’s, and HAP.

(iv) The baseline water test results must be provided to the gas inspector within 30 days after the baseline testing is conducted.

(v) If the operator documents to the satisfaction of the gas inspector that permission to access private property to conduct the required baseline testing is not granted, water baseline testing is not required for that water well or surface water.

(vi) The operator is responsible for the cost and fees associated with baseline testing of all water wells and surface water.

(4) Chemical and hazardous materials storage.

(A) The purpose of this paragraph, the hazardous materials management plan, and the hazardous materials inventory statement, including the materials safety data sheets, is to minimize the:

(i) risk of unwanted releases, fires, or explosions involving hazardous materials; and

(ii) consequences of an unsafe condition involving hazardous materials during normal operations or in the event of an abnormal condition.

(B) The operator shall comply at all times with the hazardous materials management plan, the hazardous materials inventory statement, and the material safety data sheets.

(C) The hazardous materials management plan, the hazardous materials inventory statement, and all material safety data sheets must be kept current.

(D) A copy of the current hazardous materials management plan, the hazardous materials inventory statement, and all material safety data sheets must be kept on the operation site at all times.

(E) Updates to the hazardous materials management plan and the hazardous materials inventory statement must be submitted to the gas inspector, the fire chief, and the fire marshal within two business days after any additions, modifications, or amendments are made.

(F) If a hazardous material that is not identified on a material safety data sheet filed with the fire department is being introduced to the operation site, a new or updated material safety data sheet must be provided to the fire department and the gas inspector at least seven days in advance of the hazardous materials being introduced onto the operation site.

(G) If hazardous materials are removed from the operation site or quantities have changed from a previously submitted material safety data sheet, updated copies of the material safety data sheets must be provided to the fire department and gas inspector within two business days.

(H) All chemicals and hazardous materials must be stored in accordance with the hazardous materials management plan and in such a manner as to prevent release, contain, and facilitate rapid remediation and cleanup of any accidental spill, leak, or discharge of a hazardous material.

(I) Containers must be properly labeled in accordance with federal, state, and local regulations.

(J) The operator shall take all appropriate pollution prevention actions, including raising chemicals and other materials above grade (for example, placing chemicals and other materials on wood pallets); installing and maintaining secondary containment systems; and providing adequate protection from storm water and other weather events.

(5) Cleanup after spills, leaks, and malfunctions.

(A) After any spill, leak, or malfunction, the operator shall remove, to the satisfaction of the fire marshal, the gas inspector, and the office of environmental quality all waste materials from any public or private property affected by the spill, leak, or malfunction. Cleanup operations must begin immediately.

(B) If the operator fails to begin cleanup operations immediately, the city may:

(i) contact the Texas Railroad Commission to facilitate the removal of all waste materials from the property affected by the spill, leak, or malfunction; or

(ii) employ any cleanup experts, other contractors, suppliers of special services, or may incur any other expenses for labor and material that the gas inspector deems necessary to clean up the spill, leak, or malfunction.

(6) Depositing materials. The operator shall not deposit any substance (oil, naphtha, petroleum, asphalt, brine, refuse, wastewater, etc.) into or upon a right-of-way, storm drain, ditch, sewer, sanitary drain, body of water, or public or private property.

(7) Erosion control practices. Berms that are at least one-foot high and two-feet wide, or equivalent erosion devices, must be installed to prevent lot-to-lot drainage. Any damages to adjacent properties from sedimentation or erosion must be repaired immediately.

(8) Flood plain. All gas drilling and production operations must comply with the flood plain regulations in Article V.

(9) Water.

(A) The operator shall set surface casing in accordance with state and local rules and regulations to ensure groundwater protection.

(B) The operator shall:

(i) give the gas inspector 72- hour’s notice before setting the well casing;

(ii) allow access to the operation site during surface casing installation; and

(iii) allow access to all relevant reports associated with the setting of the surface casing.

(g) Fresh-water fracture ponds.

(1) In general.

(A) Fresh-water fracture ponds are permitted on an operation site.

(B) Except as otherwise provided in this subparagraph, additives, oil and gas waste by-products, and salt water are not permitted in a fresh-water fracture pond. Vector control additives are permitted in a fresh-water fracture pond.

(C) The fresh-water fracture pond must permanently hold sufficient water to prevent a nuisance or vector control problem.

(D) The fresh-water fracture pond must comply with the Drainage Design Manual of the city of Dallas and all other city, state, and federal rules and regulations.

(E) Artificial liners are not permitted.

(F) Fresh-water fracture ponds must be maintained in a manner using best management practices to ensure the integrity of the fresh-water fracture pond. For purposes of this subparagraph, “best management practices” means structural, nonstructural, and managerial techniques that are recognized to be the most effective and practical means to control water storage in open pits in an urban or suburban setting.

(2) Removal and restoration.

(A) Removal.

(i) The operator shall remove the fresh-water fracture pond from the operation site within five years after the date the first gas well permit is issued. The operator may apply for a one-time, two-year extension from the gas inspector.

(ii) The request for an extension must be made to the gas inspector in writing at least six months before the fifth year from the date the first gas well permit was issued.

(iii) The gas inspector must approve or deny the extension within 45 days after receiving the extension request.

(iv) As a condition of approval of the extension, the gas inspector may require additional measures, as necessary, to minimize the impact of continued use of the fresh-water fracture pond, associated with the drilling activities, upon neighboring properties.

(v) The gas inspector must approve the extension if the fresh-water fracture pond will not adversely impact the neighboring properties or if additional measures required eliminate the reasons for denial.

(vi) If the gas inspector denies the request for a one-time two-year extension, the gas inspector must provide the operator with a written explanation of the reasons for denial within 30 days.

(vii) The operator has the right to appeal to the permit and license appeal board in accordance with Article IX of Chapter 2 of the Dallas City Code.

(B) Restoration. The operator is responsible for:

(i) removing the fresh-water fracture pond;

(ii) grading, leveling, and restoring the area to the same surface condition, as nearly as practicable, that existed before the fresh-water fracture pond was constructed; and

(iii) restoring the vegetation in accordance with the landscape design provided in the fresh-water fracture pond design plan.

(h) Fracturing.

(1) Notice.

(A) The operator shall send written notice to the gas inspector of the operator’s intent to begin fracturing. The notice must identify the well and estimate the duration of fracturing. The written notice to the gas inspector must be provided at least 15 days before fracturing begins.

(B) If the operation site is located within 1,500 feet of a protected use, measured from the boundary of the operation site in a straight line without regard to intervening structures or objects to the nearest protected use, the operator shall post a sign adjacent to the main gate of the operation site informing the public when fracturing will begin and the estimated duration of fracturing. This sign must be posted at least 10 days before fracturing begins.

(C) The operator, at his own expense, shall provide written notification of the date that fracturing will begin and the estimated duration of fracturing to each property owner and registered neighborhood association within 1,500 feet of the boundary of the operation site, measured from the boundary of the operation site in a straight line without regard to intervening structures or objects to the nearest protected use, as shown by the current tax roll. The written notification must be sent by United States mail at least 10 days before fracturing begins.

(2) Tracing or tagging additives.

(A) The operator shall add non-radioactive tracing or tagging additives into all fracturing fluids used on an operation site.

(B) The operator shall provide the formula identifying the non-radioactive tracing or tagging additives in writing as part of the hazardous materials management plan.

(D) If the operator changes or amends the non-radioactive tracing or tagging additives, the hazardous materials management plan must be amended and submitted to the fire marshal and the gas inspector at least seven days before introducing the changed additives onto the operation site.

(i) Glare. The operator shall comply with the glare regulations in Section 51A-6.104.

(j) Hours of operation.

(1) Construction activities. Except as otherwise provided in this paragraph, construction activities involving excavation of or alteration to the operation site or repair work on any access road may only occur during daytime hours. City council may expand the hours of operations for these construction activities as part of the required SUP for a gas drilling and production use if the city council finds that the expanded hours of operation will not adversely affect nearby properties.

(2) Drill stem testing. All open hole formation or drill stem testing may only occur during daytime hours. Drill stem tests may be conducted only if the well effluent produced during the test is produced through an adequate gas separator to storage tanks and the effluent remaining in the drill pipe is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe before the tool is closed.

(3) Fracturing.

(A) Except as otherwise provided in this subparagraph, fracturing activities may only occur during daytime hours. In an emergency situation, the gas inspector may expand the hours of operation for fracturing activities until the emergency is resolved.

(B) Flowback operations may occur 24 hours per day.

(4) Loudspeakers. Unless required by state or federal laws or regulations, loudspeakers are permitted during daytime hours only.

(5) Reworking. Except as otherwise provided in this paragraph, reworking or work-over operations may only occur during daytime hours. In an emergency situation, the gas inspector may expand the hours of operation for the reworking or work-over operations until the emergency is resolved.

(6) Truck traffic. Except as otherwise provided in this paragraph, truck deliveries and removal of equipment and materials associated with drilling, fracturing, or production, well servicing, site preparation, or other related work conducted on the operation site may only occur during daytime hours. In cases of fires, blowouts, explosions, other emergencies, or where the delivery of equipment is necessary to prevent the cessation of drilling or production, truck deliveries and removal of equipment may occur 24 hours a day.

(k) Hydrogen sulfide. If a gas or oil field is identified as a hydrogen sulfide field in accordance with the Texas Railroad Commission, Texas Commission on Environmental Quality, or the Environmental Protection Agency rules and regulations, or if a well is producing hydrogen sulphide gas in excess of applicable Texas Railroad Commission, Texas Commission on Environmental Quality, or the Environmental Protection Agency rules and regulations, the operator shall stabilize and immediately cease operation of that well or facility.

(l) Incident reports.

(1) Reporting. The operator shall immediately notify the gas inspector and fire marshal of incidents occurring on the operation site, including blowouts, fires, spills, leaks, or explosions; incidents resulting in injury, death, or property damage; or incidents resulting in product loss from a storage tank or pipeline.

(2) Written summary of incident. The operator shall give a written summary of the incident to the gas inspector and fire marshal by 5:00 p.m. on the first business day after the incident.

(3) Follow-up report. The operator shall give a follow-up report to the gas inspector and fire marshal within 30 days after the incident. The follow-up report must be signed and dated by the operator or the operator’s representative and must include:

(A) the operator’s name and location of the operation site;

(B) the phone number, address, and e-mail address of the person with supervisory authority over the operation site;

(D) the duration of the incident (an incident ends when it no longer poses a danger to persons or property);

(E) an explanation of how the incident was brought under control and remedied; and

(F) a full description of any internal or external investigations or inquiries related to the incident, the findings of those investigations or inquiries, and the actions taken as a result of those findings.

(m) Noise.

(1) Conflicts. Except as otherwise provided in this subsection, the noise regulations in Section 51A-6.102 apply.

(2) Pre-drilling noise levels.

(A) Before the gas well permit may be issued, the operator shall establish and report to the gas inspector the continuous 72-hour pre-drilling ambient noise levels.

(B) The 72-hour time span must include at least one, 24-hour reading during either a Saturday or Sunday. The timeframe for this noise study must be designed to avoid the influence of wind interference on the noise study.

(C) The operator shall submit a proposed ambient noise level study plan to the gas inspector for approval before conducting the noise study. The proposed noise level study plan must contain a proposed testing schedule and other details as required by the gas inspector.

(D) The gas inspector shall determine if subsequent noise studies are needed to reevaluate ambient noise conditions.

(E) The operator is responsible for all costs and fees associated with establishing and reporting the continuous 72-hour pre-drilling ambient noise levels.

(3) Noise levels. An operator may not drill, re-drill, or operate any equipment in such a manner so as to create any noise that causes the exterior noise level, when measured at the nearest property line of the tract upon which the nearest protected use or habitable structure is located, or at a point that is 100 feet from the nearest protected use or habitable structure, whichever is closer to the well, to:

(A) exceed the ambient noise level by more than:

(i) 10 dB during fracturing operations;

(ii) five dB during daytime hours that do not include fracturing operations; and

(iii) three dB during all other hours;

(B) create pure tones where one-third octave band sound-pressure level in the band with the tone exceeds the arithmetic average of the sound-pressure levels of two contiguous one-third octave bands by:

(i) five dB for center frequencies of 500 hertz and above;

(ii) eight dB for center frequencies between 160 and 400 hertz; and

(iii) 15 dB for center frequencies less than or equal to 125 hertz; or

(i) 16 hertz octave band: 65 dB;

(ii) 32 hertz octave band: 65 dB; and

(iii) 64 hertz octave band: 65 dB.

(4) Adjustments.

(A) Adjustments to the noise regulations in this subsection are permitted intermittently as follows:

Permitted increases (dBA)	Duration of increase in minutes (cumulative during any 1 hour period)
5	15
10	5
15	1
20	Less than 1

(B) The time period of monitoring will be continuous over a minimum of one hour and will use the A-weighting network reported in decibel units. Data must be recorded and reported as Leq, which means an average measure of continuous noise that has the equivalent acoustic energy of the fluctuating signal over the same period.

(5) Continuous monitoring.

(A) If a proposed gas well is within 1,500 feet of a protected use, measured from the gas well in a straight line, without regard for intervening structures or objects, to the closest protected use, the operator shall comply with the following additional noise abatement measures:

(i) Exterior noise levels, including pure tone and low frequency data, must be continuously monitored to ensure compliance. The continuous noise level monitoring data must also include an audio recording to help identify the source of sound level spikes throughout the logging period.

(ii) The continuous noise monitoring equipment must be capable of wireless transmission of real-time noise and audio data. Access to this real-time data must be made available to the gas inspector.

(iii) The noise readings must also be submitted to the gas inspector on a weekly basis in an electronic format or other format specified by the gas inspector. The weekly report must contain all noise data, including pure tone and low frequency readings. The report must state whether the operation site is in compliance with the noise requirements in this subsection and Section 51A-6.102.

(B) If the report indicates that the operation site is not in compliance with the noise regulations in this subsection or Section 51A-6.102, the report must state the measures that are being taken to bring the operation site into compliance and the timeframe for implementing these remedial measures.

(D) Continuous monitoring must occur at:

(i) the protected use property line or 100 feet from the nearest protected use, whichever is closer to the noise source; or

(ii) a location approved by the gas inspector.

(6) Blankets and other noise reduction methods.

(A) When required. If a gas well is within 2,000 feet of a protected use, measured from the gas well in a straight line, without regard for intervening structures or objects, to the closest point of the protected use, the operator shall provide noise reduction blankets along the perimeter of the operation site that faces the protected uses.

(B) Height. Minimum height for a noise reduction blanket is 30 feet, except that the city council may reduce the minimum noise reduction blanket height as part of the SUP for a gas drilling and production use if the city council determines that the proposed noise mitigation at the perimeter of the operation site is adequate.

(i) Noise reduction blankets must be constructed of a fire-retardant material approved by the fire marshal.

(ii) The gas inspector may require the operator to use noise reduction blankets that meet a standard of sound transmission class (STC) 30 or greater when necessary.

(D) Timeframe.

(i) Except as otherwise provided in this paragraph, if drilling, fracturing, or well completion operations cease for a period longer than 90 days, the operator shall immediately remove all perimeter noise blankets and all supporting structures. The gas inspector may grant a one-time, 30-day extension per well.

(ii) The gas inspector may waive the 90-day removal requirement for an operation site that has sufficient natural, vegetative, or topographical screening that prevents the view of the perimeter noise reduction blankets from city streets or protected uses.

(iii) To ensure compliance with the noise reduction blanket removal requirements, the operator shall provide written notice to the gas inspector within 48 hours after ceasing drilling, fracturing, or well completion operations.

(E) Other noise reduction methods.

(i) Acoustic blankets, sound walls, mufflers, or other methods of noise mitigation may be used to ensure compliance with this subsection and Section 51A-6.102.

(ii) Additional methods of noise mitigation must be approved by the gas inspector.

(iii) All soundproofing must comply with accepted industry standards and is subject to approval by the fire marshal.

(n) Periodic updates and reports.

(1) Required updates.

(A) Except as otherwise provided in this division, other city ordinances, or an SUP, the operator shall notify the gas inspector in writing of any changes to the following information within seven days after the changes are made:

(i) the name, address, or phone number of the operator; and

(ii) the name, address, or phone number of the person designated to receive notices from the city.

(B) Except as otherwise provided in this division, other city ordinances, or an SUP, the operator shall notify the gas inspector in writing within one business day of any changes to the name, address, or 24-hour phone number of the person with supervisory authority over the gas drilling or production operation site.

(C) Except as otherwise provided in this division, other city ordinances, or an SUP, if the conditions on the operator site or the operations of the gas drilling and product use change or any other updates or changes are made that are not reflected on a required plan, the operator shall provide an update to each affected plan to the gas inspector within 30 days of the change.

(D) The operator shall submit a yearly written report to the gas inspector identifying any other changes to the information provided in the gas well permit application not previously reported to the city.

(E) The operator shall notify the gas inspector in writing that a well has been completed within 72 hours after completion.

(2) Reports.

(A) The operator shall give the gas inspector a copy of any complaint submitted to the Texas Railroad Commission within 30 days after the operator receives notice of the complaint.

(B) On a monthly basis, the operator shall give the gas inspector a copy of any new or amended permits, disclosures, and reports required by the Texas Railroad Commission and Texas Commission on Environmental Quality.

(o) Reworking.

(1) At least 10 days before reworking begins, the operator shall send written notice to the gas inspector of the operator’s intent to rework a well. The notice must identify the well, describe the activities involved in the reworking, and estimate the duration of the activities.

(2) The operator shall pay the reworking fee before the operator begins reworking the well.

(3) If a well is already abandoned, a new gas well permit is required to rework.

(p) Rights-of-way. For purposes of this subsection, rights-of-way means those rights-of-way located along the truck routes shown on the operator's approved transportation plan and incorporated by reference into the gas well permit.

(1) Periodic inspections. The operator shall periodically inspect the rights-of-way to determine if damage has occurred.

(2) City notifying operator. If the department of public works determines that the rights-of-way have been damaged, the gas inspector shall notify the operator in writing of the damage.

(3) Repairs. The operator shall repair the damage to the rights-of-way within 10 days after discovering or receiving notice of the damage. Repairs must be made in accordance with the current standards of the department of public works. At least two days before making the repairs, the operator shall notify the department of public works of the operator's intent to begin repairs. The operator shall have all necessary permits before repairing the rights-of-way.

(4) City making repairs and invoicing operator.

(A) If the operator fails to make repairs within 10 days after discovering or receiving notice of the damage, the director of public works may make the necessary repairs and invoice the operator. The operator shall pay the amount due within 30 days after the invoice date.

(B) If the director of public works determines that the damages to the rights-of-way affect the immediate health and safety of the public, the director of public works may make the repairs without first requesting that the operator make the repairs. The director of public works shall invoice and the operator shall pay the amount due within 30 days after the invoice date.

(C) If required by state law, the director of public works shall employ a competitive bidding process before making the repairs to the rights-of-way.

(5) Final inspection. After the gas inspector approves the abandonment and restoration of the operation site, the operator shall notify the director of public works and request an inspection of the rights-of-way. After inspection, the director of public works shall notify the operator of any needed repairs. Repairs must be made in accordance with this article.

(q) Security.

(1) Personnel.

(A) During drilling, fracturing, or reworking of a well, at least one person designated by the operator must be on the operation site at all times to oversee the activities and monitor safety.

(B) An operator shall provide an off-duty certified peace officer to direct traffic at the entrance to the operation site when high truck traffic is accessing the site, including during the construction of the operation site and fresh-water fracture pond, drilling, fracturing, flowback, and any reworking activities that requires a rig. The off-duty certified peace officer must ensure that all traffic entering and exiting the operation site is using the approved transportation route. A written record must be maintained of any violators and must be available on-site for inspection by the gas inspector.

(2) Security system. Within 10 days of completion of the temporary perimeter fencing, the operator shall install a fully operational security system that complies with the Dallas Fire Code and meets the following requirements.

(A) Remotely monitored control access system. The operator shall install and maintain at all vehicular gates a permitted, remotely monitored control access system. The control access system must meet the following requirements:

(i) Monitoring. The control access system must be monitored by a facility capable of monitoring security-related alarm systems and meeting all required state and federal guidelines. The monitoring facility must be staffed and operational at all times.

(ii) Access control. Gate access must 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 must record the identity of the entering party and the date and time of such entry.

(iii) Intrusion detection system. The control access system must include a gate closure contact sensor that activates when the gate closure sensor is violated by non-identified access. The control access system must be equipped to signal a control panel that activates an on-site audible signal and registers at the monitoring facility when an access breach is detected.

(iv) Open gate detection. The control access system must include an open gate detection alarm that notifies the monitoring facility if the gate closure sensors, once accessed, are not closed and is reactivated within five minutes after being opened.

(v) Exit sensor. The operator shall equip all gates 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 must be installed for personnel near the vehicular gate entrance.

(i) The operator shall obtain an alarm permit for the alarm system from the police department in accordance with the city’s alarm ordinance.

(ii) The monitoring facility must notify the operator and the police department in case of a security breach at the operation site.

(iii) The operator shall respond on-site with an authorized representative within 45 minutes after notification of an alarm.

(iv) The gas inspector may suspend the gas well permit if more than 20 false alarms occur at an operation site in any calendar year.

(D) Automated audible alarm system. The operator shall install and maintain an audible alarm system at each operation site to provide warnings in case of a substantial drop in pressure, fire, or the release of any gas or oil.

(3) Security cameras.

(A) The operator shall at all times after the temporary perimeter fence is installed have:

(i) an adequate number of 24-hour operating security cameras to ensure coverage of the operation site, inside the perimeter fence; and

(ii) post signs on the perimeter fence indicating that any activity on the operation site may be recorded by video surveillance.

(B) Cameras must be maintained in proper operating condition and must:

(i) capture clear video images of all traffic entering and exiting the gates;

(ii) capture clear video images of all production equipment located on the operation site;

(iii) be equipped with motion detection technology;

(iv) be equipped with panning technology to pan immediately to any motion detected on the operation site;

(v) show the date and time of all activity on the video footage; and

(vi) be capable of being viewed at a monitoring facility.

(C) The operator shall maintain continuous video data for at least 672 hours. Upon request, the operator shall provide to the gas inspector any recorded views of the fenced area.

(D) Data from videos may only be requested by the gas inspector or law enforcement officials.

(r) Signs. All signs must be printed on durable, reflective, waterproof material. Signs must remain legible until the operation site is abandoned and restored pursuant to this article.

(1) Informational sign. The operator shall prominently display a sign on the fence adjacent to the main gate that lists the following:

(A) well names and numbers;

(B) name of the operator;

(D) the emergency 911 number;

(E) the telephone numbers of the two people who may be contacted 24 hours a day in case of an emergency; and

(F) the contact number for the office of the gas inspector.

(2) No smoking signs. The operator shall prominently display signs reading, “Danger, No Smoking Allowed,” in both English and Spanish adjacent to all gates and any other locations required by the fire marshal. Sign lettering must be a minimum of four inches in height and be red on a white background or white on a red background.

(s) Spacing.

(1) Gas wells. Gas wells must be spaced at least:

(A) 1,500 feet from any existing fresh-water well;

(B) 25 feet from any property line;

(D) 75 feet from all rights-of-way; and

(E) 100 feet from any structure that is not used for the everyday operation of the well.

(2) Tanks and tank batteries.

(A) Tanks and tank batteries must be spaced at least:

(i) 100 feet from any combustible structure; and

(ii) 25 feet from all rights-of-way and property lines.

(B) The Dallas Fire Code may require additional spacing depending on the size of the tank.

(3) Measurement. Spacing is measured from the center of the well bore at the surface of the ground in a straight line, without regard to intervening structures or objects, to the closest point of the use, structure, or feature creating the spacing requirement.

(t) Soil.

(1) In general.

(A) It is an offense to contaminate any soil above regulatory thresholds and fail to expeditiously remediate the contaminated soil.

(B) Except as otherwise provided in this subsection, before any drilling activities may occur on an operation site, soil sampling must be conducted by a licensed third-party contractor retained by the city to establish a baseline study of soil conditions on the operation site and property within 2,000 feet of the boundary of the operation site.

(C) Soil samples must be collected and analyzed using proper sampling and laboratory protocol set forth by the Environmental Protection Agency or the Texas Commission on Environmental Quality. The results of the analyses must be given to the gas inspector with a copy of the report provided to the operator and other property owners whose soil was sampled.

(D) The operator is responsible for the cost and fees associated with pre-drilling and post-drilling soil sampling collection and analysis.

(2) Baseline.

(A) The licensed third-party contractor retained by the city must collect and analyze a minimum of five soil samples at locations across the operation site with at least two samples at or adjacent to any proposed equipment to be used on the operation site and analyzed in accordance with this subsection.

(B) If permission to access private property and conduct the baseline study is granted, a minimum of five soil samples must be collected at locations across each property located within 2,000 feet of the boundary of the operation site and analyzed in accordance with this subsection. If permission to access private property and conduct the baseline study is not granted, a baseline study of soil conditions is not required for that property.

(i) a description of the point samples and GPS coordinates of each location;

(ii) planned equipment above the sampled area, if applicable;

(iii) methodology of sample collection;

(iv) description of field condition;

(v) summary of laboratory data results compared to the minimum acceptable soil sampling criteria;

(vi) copies of all laboratory data sheets;

(vii) drawings of sample points; and

(viii) analysis of the following: TPH, VOCs, SVOCs, chloride, barium, chromium, and ethylene glycol.

(3) Post-drilling.

(A) After the drilling of each well, the licensed third-party contractor retained by the city must collect and analyze soil samples across the operation site and analyzed in accordance with this subsection.

(B) Additionally, the city, using its licensed third-party contractor, may conduct soil sampling during inspections to document soil quality at the operation site.

(4) Abandonment. When the operation site is abandoned in accordance with the Texas Railroad Commission requirements and Section 51A-12.205 and after the equipment for that well is removed from the operation site, the operator shall collect soil samples of the abandoned operation site to document that the final conditions are within regulatory requirements.

(5) Remediation. If prohibited amounts of a hazardous substance are found at the operation site, the operator shall remediate the location within 30 days. After the operator remediates the operation site, the city, using its licensed third-party contractor, must collect and analyze soil samples at locations on the operation site as are necessary to determine compliance.

(u) Storage and vehicle parking. The only items that may be stored and vehicles that may be parked on the operation site are those that are necessary to the everyday operation of the well and do not constitute a fire hazard. The fire department shall determine what constitutes a fire hazard.

(v) Vector control. The operator must comply with the vector control plan approved as part of the gas well permit and all city ordinances, rules, and regulations regarding mosquito larvae within a fresh-water fracturing pond or elsewhere on the operation site. (Ord. Nos. 26920; 28424; 29228; 29557; 30239; 30654; 31314)

SEC. 51A-12.205. ABANDONMENT AND RESTORATION.

(a) Abandonment of a well. The operator shall abandon each well after production has ceased on that well. A well is considered abandoned if the Texas Railroad Commission approves the abandonment, and the operator provides the gas inspector with a copy of the Texas Railroad Commission’s approval.

(b) Abandonment and restoration of the operation site. The operator shall abandon and restore the operation site within 60 days after production has ceased on all wells located on the operation site. An operation site is not considered abandoned until the gas inspector conducts an inspection of the operation site and approves the abandonment and restoration. The gas inspector shall approve the abandonment and restoration of the operation site if:

(1) the operation site is restored to its original condition, as nearly as practicable, in accordance with the surface reclamation plan;

(2) all wells located on the operation site are plugged and all well casings are cut and removed to a depth of at least three feet below surface;

(3) all equipment is removed from the operation site;

(4) the operator provides the gas inspector with a copy of the Texas Railroad Commission’s approval of the abandonment for each well located on the operation site;

(5) the abandonment complies with the Dallas Fire Code; and

(6) soil sampling has been conducted in accordance with this division and all required remediation is completed in accordance with state and federal regulations, this article, and all other city ordinances.

(1) No building permit may be issued for any construction on or redevelopment of the operation site until the gas inspector approves the abandonment and restoration of the operation site.

(2) No structure may be built over a vertical shaft of an abandoned well. (Ord. Nos. 26920; 29228)

Division III. Regulated Pipelines.

Disclaimer: This Code of Ordinances and/or any other documents that appear on this site may not reflect the most current legislation adopted by the Municipality. American Legal Publishing provides these documents for informational purposes only. These documents should not be relied upon as the definitive authority for local legislation. Additionally, the formatting and pagination of the posted documents varies from the formatting and pagination of the official copy. The official printed copy of a Code of Ordinances should be consulted prior to any action being taken. For further information regarding the official version of any of this Code of Ordinances or other documents posted on this site, please contact the Municipality directly or contact American Legal Publishing toll-free at 800-445-5588.

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