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(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)
DRILLING AND OPERATING REQUIREMENTS
(A) Location of wells. Well location shall be in accordance with the requirements of the state. No wells shall be drilled within 100 feet of any building used for human occupancy, except any building owned by the operator or his lessor, or any owner who consents in writing to such location, or building incidental to the operation of the well, or any building located on land the surface of which is under development for oil and gas purposes. Well location shall be in accordance with the requirements of the state and the zoning ordinance of the city.
(B) Derricks. All derricks and masts hereafter erected for drilling or redrilling shall be at least equivalent to the American Petroleum Institute Standards 4A, 15th Edition and 4D, 4th Edition.
(C) Signs.
(1) A sign having a surface area of not less than two square feet and no more than six square feet bearing the current name and number of the well and the name or insignia of the operator shall be located and maintained at every well in a place where it will be fully visible at all times, from the commencement of drilling operations until the well is abandoned.
(2) In lieu of the sign mentioned in subdivision (1) of this division and in the event there are more than two producing wells on one leasehold or one operating unit, it shall be sufficient if the entrances to such leasehold or operating unit are posted with a sign not less than 18 inches by 24 inches bearing the name of the operator together with the name or designation of the lease together with an openly visible sign on each producing well designating the particular number thereof.
(D) Blowout prevention. Protection shall be provided to prevent the blowout of a well, during drilling and redrilling operations, in accordance with the requirements of the state, Petroleum Safety Orders—Drilling and Production of Cal. Code of Regs. Title 17, §§ 1722 et seq.
(E) Sump fencing. All sumps or sump holes not attended 24 hours per day shall be enclosed by a steel chain-link-type fence not less than five feet in height, or a substitute approved by the Building Inspector. There shall be no aperture below such fence greater than four inches. Fencing of the outer boundaries of one leasehold or one operating unit shall be deemed to be compliance with this provision. Fence gates shall be kept locked at all times when unattended by a watchman or serviceman.
(F) Well cellars. Except during drilling and servicing operations, well cellars shall be kept reasonably free from water, oil, drilling fluids, or other substances and means shall be provided to keep such cellars covered.
(G) Removal of equipment. All drilling equipment shall be removed from the premises within 60 days following the completion, abandonment or desertion of any well. With respect to all wells drilled subsequent to the enactment of the ordinance codified in this chapter all derricks shall be removed from the premises within 60 days following the completion, abandonment or desertion of any well. Once any well drilled subsequent to the enactment of the ordinance codified in this chapter is a producing well, it shall be serviced with a portable derrick and such derrick shall be removed from the premises within 60 days following the completion of such servicing operations.
(H) Surfacing of roads. Private roads leading to well sites shall be surfaced in such a manner as to prevent undue amounts of dust from being carried onto adjacent property or the public streets.
(I) Sanitary facilities. Suitable and adequate sanitary toilet facilities shall be installed during all drilling operations and maintained in a clean and sanitary condition.
('81 Code, § 5.40.070) Penalty, see Ch. 13
A well shall be considered properly abandoned for the purposes of this code when:
(A) A copy of the Division of Oil and Gas “Notice of Intention to Abandon” furnished by the Division of Oil and Gas is mailed to the Building Inspector; and
(B) The well has been abandoned in accordance with the requirements of the Division of Oil and Gas; and
(C) The site has been cleared of all drilling or producing equipment and left in a clean condition, which shall include draining and backfilling of any sump used in connection with the well and removal of concrete, pipe and other foreign materials from the surface of the ground, and the surface of the land, insofar as practicable, left in a neat and orderly condition; and
(D) The Building Inspector shall have inspected and certified in writing that such well has been properly abandoned in accordance with the provisions of this chapter.
('81 Code, § 5.40.080)
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