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In the manner, and upon the terms and conditions set forth in this code, it shall be lawful for any person to drill a well, or wells, for and to produce oil, gas and other hydrocarbon substances, or any thereof, and to conduct any other lawful operations, including the installation and maintenance of any derrick, drilling and producing equipment and appurtenant structures or machinery proposed or intended to be used, or used for, or in connection with the drilling for or production of oil and gas on or from any land within any portion of the city which is zoned to permit such operations, and on any other land where such operations may be authorized pursuant to the provisions of the zoning ordinance of the city; provided, that all of such operations shall conform with the provisions of this chapter.
('81 Code, § 5.40.030) Penalty, see Ch. 13
DRILLING PERMIT
(A) A permit shall be required to drill, own, operate or maintain an oil well. Each oil well permit shall be valid only for the calendar year for which issued.
(B) It is unlawful for any person to construct, commence to construct, or maintain or use within the city, any derrick or other structure, equipment or machinery proposed or intended to be used, or used for, or in connection with the drilling for or production of oil, gas and other hydrocarbon substances, after the effective date of this code, without first obtaining such written permit therefor to be issued by the Building Inspector in accordance with the terms of this code.
('81 Code, § 5.40.040(A-B)) Penalty, see Ch. 13
(A) (1) Each permit shall be renewed on December 31 of the year following the year in which it was granted or renewed unless such well has been abandoned prior thereto.
(2) On or before December 15 of each year subsequent to the effective date of this code, the owner of any and all wells previously drilled and not heretofore abandoned shall make application for a permit covering the operation and maintenance thereof.
(B) No additional permit shall be required for well servicing, redrilling or use of any well for injection purposes.
('81 Code, § 5.40.040(C-D))
In the event of any change of ownership of any oil or gas well after a permit has been granted to cover the drilling thereof, or to cover the operation and maintenance of an existing well, the permit and all rights and obligations pertaining thereto may be assigned and transferred to such new owner as provided in § 120.033.
('81 Code, § 5.40.040(E))
Any person desiring any permit required by § 120.015 shall file a written application therefor with the Building Inspector on forms furnished for that purpose which shall contain and be accompanied by the following:
(A) Description. The name or number and location of the proposed or existing well as such well may be identified and described in notices filed with the Division of Oil and Gas shall accompany each application.
(B) Bond.
(1) Except as provided in this division, every application for a permit required by this code for which a bond is not on file shall be accompanied by a faithful performance bond, on a form approved by the City Attorney, in the sum of $2,000 for each well. Such bond shall be conditioned that the principal named in the bond shall faithfully comply with all of the provisions of this code. The bond shall secure the city against all costs, charges and expense incurred by it by reason of the failure of the permittee to fully comply with the provisions of this code.
(2) In lieu of filing such bond for each well a blanket bond in the amount of $10,000 to cover all operations under this code of a single permittee may be filed. A rider to such blanket bond shall be filed with the city identifying each well not then subject thereto and to be covered by such blanket bond.
(3) Each such bond shall be kept and maintained in full force and effect until terminated or superseded as provided in § 120.033.
(C) Permit fees.
(1) A fee in an amount to be established by resolution of the City Council shall accompany each application for a permit to cover the drilling of a new well.
(2) A fee in an amount to be established by resolution of the City Council shall be paid annually for the operation and maintenance of each well.
(D) Issuance of permit.
(1) The application shall be approved and permit granted by the Building Inspector within five days after receipt of any application which conforms with the provisions and requirements of this code. No permit shall be issued which would conflict with any provision of the zoning ordinance or building code of the city.
(2) Each such permit covering the drilling of any well shall include the installation and use of all temporary structures, steel derrick or portable mast, tanks, equipment and facilities necessary or convenient for such operations.
(3) Each such permit covering the operation and maintenance of any oil well shall include the installation and use of all structures, tanks, equipment and facilities necessary or convenient for the temporary field storage, separating, gauging, handling and shipping of oil, gas and other substances produced from or injected into any well customarily used in connection with such operation.
('81 Code, § 5.40.050)
(A) The applicant, as principal, and the surety under any bond filed under this chapter may have such bond terminated and cancelled if and when the applicant, or the assignee of any permit granted under this chapter, shall furnish a new bond therefor.
(B) Any bond or rider thereto shall be terminated and cancelled upon the final and permanent cessation or abandonment of all operations in connection with any well or wells for which such bond or rider thereto was given, subject to compliance with the applicable provisions of this chapter.
('81 Code, § 5.40.060)
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