The following terms used in this chapter are hereby defined to have the meanings set out below:
CIRCULATING MUD PITS: The working pit from which drilling muds are continuously recirculated during the drilling process into and from the drilling hole for the purpose of flushing from the drill bit, cuttings, and as a lubricant to reduce torque, drag, heat, friction and differential sticking during the drilling process.
DISPOSAL WELL: Any well drilled or actually used for injection of saltwater or other substances into the earth at a point other or different than the point of extraction or production thereof from the earth.
MUD: The drilling fluid used and recirculated through the drilling hole as a lubricant to reduce torque, drag, heat, friction and differential sticking and to flush drill bit cuttings from the hole during the drilling process.
MUD PROGRAM: The planned usage of drilling fluid lubricants, specifying with particularity the type, name and physical and chemical composition and characteristics of all ingredients thereof, together with such laboratory and other technical data as may be necessary or required by the building inspector to evaluate the same as pollutive, deleterious or otherwise.
OIL OR GAS WELL: Any well drilled, operated or maintained for the production of oil, gas, casinghead gas or any of them or their byproducts or derivatives.
RESERVE PIT: Any excavation, pit or receptacle designed or actually used to receive, store or hold rocks, drill bit cuttings, shale, sand, freshwater or drilling mud which contains no saltwater, oil, oil derivatives, caustics, acids or other deleterious substances harmful to soil, vegetation or injurious to animal or human life.
SLUSH PIT: Any excavation, pit or receptacle designed or actually used to receive, store or hold waste oil, oil derivatives, sand, saltwater or other waste products or deleterious substances produced or used in the drilling, swabbing, cleaning or reworking of any oil, gas or disposal well. (1991 Code § 14-1)
A. Drilling Permit: It shall be unlawful and an offense for any person or corporation to drill, maintain or operate an oil, gas or disposal well within the corporate limits of the city without first having procured a city drilling permit to do so, as hereinafter provided, and without being in compliance with all applicable ordinances of the city. (1991 Code § 14-2)
B. Annual Permits; Fee; Insurance: Annual permits for the operation, maintenance, cleaning, swabbing and reworking of all completed and operating oil, gas and disposal wells, now existing or hereafter drilled, are hereby required, and shall be issued upon payment of one hundred dollars ($100.00) per year; and upon the filing of copies of liability insurance policies and the restoration and plugging bond in the form and amount required for the issuance of an initial drilling permit; and upon proof of renewal of the restoration and plugging bond for the ensuing year. Such annual fee shall be paid and proof of insurance coverage filed and renewal of said restoration and plugging bond made on the anniversary date of the initial drilling permit, or if no such permit was required or obtained, within sixty (60) days after the effective date hereof. (1991 Code § 14-6)
A. Filing Of Application: Every person desiring to drill, maintain or operate an oil, gas or disposal well in the city shall file an application therefor in writing in the form required by the city clerk-treasurer, signed by the applicant or his agent authorized to sign the same.
B. Identify Location: Such application shall specify the quarter section, township, range and the location within the quarter section thereof so as to identify said well location within a particular ten (10) acre tract.
C. Equipment And Mud Program Specified: All equipment to be utilized in the drilling, operation or maintenance of said well shall be specified in said application with particularity and the "mud program", as that term is defined in section 9-6-1 of this chapter, shall be specified and attached in writing thereto, for approval by the city clerk- treasurer.
D. Inspection And Permit Fee: At the time of filing such application above required, such applicant shall pay to the city clerk-treasurer the sum of three hundred fifty dollars ($350.00) to defray the expenses of inspecting the specified location and drilling operations and, if completed as a producing well, in payment of the annual fee for the initial year of production and operation of said well.
E. Insurance:
1. Such applicant shall also, at said time, file with the city clerk-treasurer a copy of a policy of insurance issued by some corporate insurer licensed to do business within Oklahoma, evidencing current insurance of the owner, his driller, agents and employees, conditioned for the payment of all damages due to injury to persons or damage to property resulting from the drilling, operation or maintenance of the proposed well or any structure, machinery, equipment, pipelines, or appurtenances used in connection therewith, in an amount not less than two hundred fifty thousand dollars ($250,000.00).
2. Such policy shall contain no exclusion from coverage of contamination or pollution of surface or subterranean streams, watercourses, lakes or public or private water supplies.
F. Bond: Such applicant shall further deposit with the city clerk-treasurer cash in the sum of two thousand dollars ($2,000.00) as security for the performance by the owner, his driller, agents and employees, of all acts, construction of all structures and compliance with all requirements of this chapter during drilling operations to be conducted under the city drilling permit for which application is made. Such sum shall be forfeited to the city, in the event of any substantial violation or noncompliance by the owner, driller, their agents or employees with the provisions of this code pertaining to the drilling of said well. Otherwise the same shall be refunded in full to said applicant upon completion of the drilling operation and upon the posting by said applicant of a corporate surety bond in the sum of two thousand dollars ($2,000.00), executed by some insurer licensed to do business within Oklahoma, and conditioned to assure restoration of the surface of the land and plugging of said well upon its abandonment, according to the rules and regulations of the Oklahoma corporation commission and this code. (1991 Code § 14-3)
Owners or operators of oil, gas or disposal wells heretofore drilled and completed within the city shall not be required to procure the initial city drilling permit hereinabove provided; however, it shall be incumbent upon such owners and operators to furnish evidence of liability insurance coverage and post the bond for the restoration of the land and plugging of the well upon its abandonment in the form and amount above required for issuance of a city drilling permit at the time of application for annual permit as hereinafter provided, or within sixty (60) days after the effective date hereof, whichever shall first occur, as a condition of continuing the operation and maintenance of any well heretofore drilled and prior to commencing any swabbing, cleaning or reworking operations of all oil, gas and disposal wells heretofore or hereafter drilled within the city. All existing wells shall also comply with all of the provisions of this chapter. (1991 Code § 14-4)
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