Commerce Municipal Code Ch. 15.16 Oil Code

Footnotes:

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* For statutory provisions pertaining to gas and oil in general, see Pub. R. C.A., Section 3000 et seq.

This chapter shall be known and may be cited as the "Commerce Oil Code".

(Ord. 58 §1(part), 1962: prior code §3900).

In the manner, and upon the terms and conditions hereinafter set forth in this code, it is lawful for any person, partnership, association of persons, or corporation, 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 Title 19; provided, that all of such operations shall conform with the provisions hereof.

(Ord. 58 §1 (part), 1962: prior code §3901).

Unless the context otherwise requires, the definitions hereinafter set forth shall govern the meaning and the interpretation of these regulations. Words used in the present tense include the future, words in the singular number include the plural and words in the plural number include the singular; the word "shall" is mandatory and not directory.

(1) Abandonment. "Abandonment" is the restoration of the drill site as required by these regulations.

(2) A.P.I. "A.P.I." is the American Petroleum Institute.

(3) Approved. "Approved by the fire chief", "approved type", or "approved design", is and includes improvements, equipment or facilities of a type or design approved by the fire chief.

(4) A.S.M.E. "A.S.M.E". is the American Society of Mechanical Engineers.

(5) Blow-out. "Blow-out" is the uncontrolled discharge of gas, liquid, or solids or a mixture thereof from a well into the atmosphere.

(6) Blow-out Preventer. "Blow-out preventer" is a hydraulic or pneumatic or other device or a combination of such devices secured to the top of a well casing, including valves, fittings and control mechanisms connected therewith designed and capable of preventing a blow-out.

(7) Cellar. "Cellar" is an excavation around or above the top joint of the casing in a well.

(8) Fire Chief. "Fire chief" means the fire chief of the city of Commerce.

(9) Completion of Drilling. A well is completed, for the purpose of these regulations, thirty days after the drilling crew has been released, unless drilling or remedial operations are resumed before the end of the thirty days.

(10) Derrick. "Derrick" is any frame work, tower or mast which is used in connection with the drilling, redrilling or well servicing of, or in, any oil or gas well.

(11) Desertion. "Desertion" is the cessation of operations on the property with the intent to abandon the property without compliance with the provisions of this code.

(12) Division of Oil and Gas. "Division of oil and gas" means the division of oil and gas of the department of natural resources of the state of California, or any other state agency that may in the future be charged with its responsibilities.

(13) Drilling. "Drilling" means digging a hole in the earth formation for a well, as such term is defined herein.

(14) Gas. "Gas" means the gaseous components or vapors occurred in or derived from petroleum or natural gas.

(15) Natural Gasoline Plant. "Natural gasoline plant", or "absorption plant", is a plant for the processing of natural gas for the purpose of extracting gasoline or liquefied petroleum gas from natural gas produced from wells.

(16) Oil. "Oil" is a hydrocarbon which is liquid in its natural state and does not include gasoline or liquefied petroleum gas.

(17) Operator. "Operator" is the person actually in charge and in control of the drilling, maintenance, operation or pumping of a well or lease.

(18) Outer Boundary Line. Where several contiguous parcels of land in one or different ownerships are operated as a single oil or gas lease or operating unit, "outer boundary line" means the exterior limits of the land included in the lease or unit. In determining the contiguity of any such parcels of land, no street, road or alley lying within the lease or unit shall be deemed to interrupt such contiguity.

(19) Person. Person includes anyone defined as such in Section 1.04.060.

(20) Redrilling. "Redrilling" means the drilling of an existing oil well beyond the limits of the existing hole. Except with reference to permit procedure, the provisions of this ordinance relating to drilling shall be equally applicable to redrilling.

(21) Source of Ignition. "Source of ignition" means any flame, arc, spark, or heated object or surface capable of igniting flammable liquids, gases, or vapors.

(22) Structure. "Structure" is that which is built or constructed, including but not limited to a tank, edifice, or building of any kind.

(23) Superintendent. "Superintendent" means the superintendent of building and safety of the city of Commerce.

(24) Tank. A "tank" is a container, covered or uncovered, used in conjunction with the drilling or production of an oil well, for holding or storing liquids at or near atmospheric pressure.

(25) Well. A "well" or "oil well" is a well or hole drilled into the earth for the purpose of exploring for or extracting from the earth oil, gas or other hydrocarbon substances, or a well or hole in the earth by means of and through which oil, gas and other hydrocarbon substances are extracted, produced, or capable of being produced from the earth, or a well or hole for the purpose of secondary recovery or waste disposal. A temporary core or test hole drilled for the purpose of seismic or geophysical operations shall not be considered as a well within the meaning of this code.

(26) Well Servicing. "Well servicing" is remedial or maintenance work performed within any existing well which does not involve drilling or redrilling.

(Ord. 58 §1 (part), 1962: prior code §3902).

(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 fiscal 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 the ordinance codified in this chapter, without first obtaining a written permit therefor to be issued by the fire chief in accordance with the terms of this chapter.

(c) Each permit shall be renewed on the thirtieth day of June of the year following the year in which it was granted or renewed unless such well has been abandoned prior thereto.

On or before the fifteenth day of June of each year subsequent to the effective date of the ordinance codified in this chapter, 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.

(d) No additional permit shall be required for well servicing, redrilling or use of any well for injection purposes.

(e) 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 hereinafter provided.

(Ord. 58 §1 (part), 1962: prior code §3903).

(a) Any person desiring any permit hereunder shall file a written application therefor with the fire chief on forms furnished for that purpose which shall contain and be accompanied by the following:

(1) 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.

(2) Bond. Except as hereinafter provided in this subsection, every application for a permit required by this chapter 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 two thousand dollars 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 expenses incurred by it by reason of the failure of the permittee to fully comply with the provisions of this code.

In lieu of filing such bond for each well, a blanket bond in the amount of ten thousand dollars to cover all operations under this code of a single permittee may be filed. A rider to the blanket bond shall be filed with the city identifying each well not then subject thereto and to be covered by such blanket bond.

Each bond shall be kept and maintained in full force and effect until terminated or superseded as hereinafter provided.

(3) Permit Fees.

A. A fee of one hundred dollars shall accompany each application for a permit to cover the drilling of a new well.

B. A fee of eight dollars shall be paid annually for the operation and maintenance of each well.

(b) Issuance of Permit. The application shall be approved and permit granted by the fire chief 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 of Commerce.

(c) Each 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 operation.

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.

(Ord. 52 §1 (part), 1962: prior code §3904).

The applicant, as principal, and the surety under any bond filed hereunder may have the bond terminated and cancelled if and when the applicant, or the assignee of any permit granted hereunder, shall furnish a new bond therefor.

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 the bond or rider thereto was given, subject to compliance with the applicable provisions of this chapter.

(Ord. 52 §1 (part), 1962: prior code §3905).

(a) Location of Wells. Well location shall be in accordance with the requirements of the state of California. No wells shall be drilled within three hundred feet of any building which is classified, according to the building code, as a Group A, B, C, D, E, H or I occupancy. No wells shall be drilled within one hundred feet of any building which is classified, according to the building code, as a Group F, G or J occupancy. Well location shall also be in accordance with the requirements of the zoning ordinance.

(b) Derricks. All derricks and masts hereafter erected for drilling or redrilling shall be at least equivalent to the American Petroleum Institute Standards 1A, 14th Edition and 4D, 3rd Edition.

(c) Signs. 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.

In lieu of the aforesaid sign, 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 the leasehold or operating unit are posted with a sign not less than eighteen inches by twenty-four 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) Blow-out Petroleum. Protection shall be provided to prevent the blow-out of a well, during drilling and redrilling operations, in accordance with the requirements of the State of California, Petroleum Safety Orders—Drilling and Production Section 6691 of the Administrative Code of California.

(e) Sump Fencing. All sumps or sump holes not attended twenty-four 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 fire chief. There shall be no aperture below the 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. Means shall be provided to keep such cellars covered.

(g) Removal of Equipment. All drilling equipment shall be removed from the premises within sixty days following the completion, abandonment or desertion of any well. With respect to all wells drilled subsequent to the enactment of this chapter, all derricks shall be removed from the premises within sixty days following the completion, abandonment or desertion of any well. Once any well drilled subsequent to the enactment of this code is a producing well, it shall be serviced with a portable derrick and such derrick shall be removed from the premises within sixty 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.

(Ord. 52 §1 (part), 1962: prior code §3906).

A well shall be considered properly abandoned for the purposes of this code when:

(1) A copy of the division of oil and gas notice of intention to abandon furnished to the division of oil and gas is mailed to the fire chief;

(2) The well has been abandoned in accordance with the requirements of the division of oil and gas;

(3) 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, 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;

(4) The fire chief has inspected and certified in writing that the well has been properly abandoned in accordance with the provisions hereof.

(Ord. 52 §1 (part), 1962: prior code §3907).

Whenever, in the opinion of the fire chief, desertion has occurred, he shall so certify in writing to the city council. Within two weeks after receipt of such certification, the city council shall set the time and place for a public hearing, which hearing shall be held not more than thirty days, nor less than fifteen days, from the date when the city council has set the hearing, for the purpose of determining whether or not desertion has occurred. Within two days after the setting of the hearing, a certified copy of the resolution of the city council calling such hearing shall be served upon operator by the fire chief.

Service shall be deemed complete when the resolution is deposited in the United States mail, postage prepaid, and directed to operator at his last known address. Notice of hearing shall also be published at least once in a newspaper of general circulation in the city.

At the hearing, the city council shall hear and review all evidence concerning the alleged desertion and shall make a determination thereon.

If the city council makes a determination that desertion has occurred, the city may, in addition to any other proceeding provided for by law, proceed against and collect from the bond filed by the operator and with the proceeds thereof the city may perform or cause to be performed whatever work or services as are necessary to abandon properly any well and restore the premises in accordance with the provisions of this chapter.

(Ord. 52 §1 (part), 1962: prior code §3908).

The permittee shall notify the fire chief in writing of the sale, assignment, transfer, conveyance, or exchange of any well within thirty days after the sale, assignment, transfer, conveyance, or exchange. The new owner thereof shall succeed to all the rights and obligations of the permittee under the permit applicable to the well, upon the filing by the new owner of a faithful performance bond as herein provided to cover its future operation and maintenance of such well. The notice shall contain the following:

(1) The name and address of the person to whom the well is sold, assigned, transferred, conveyed or exchanged;

(2) The name and location of the well;

(3) The date of sale, assignment, transfer, conveyance or exchange;

(4) The date when possession was relinquished by the former permittee.

(Ord. 52 §1 (part), 1962: prior code §3909).

(a) Storage Capacity—Maximum Tank Capacity for each Producing Oil Well. If oil or other liquid storage facilities are established incidental to a producing well on a drill site, storage facilities shall not exceed a total of two thousand barrels per well.

(b) Skim Ponds. Any open, accessible, surface or subsurface installation used for the disposal of permitted waste liquids shall be fenced in accordance with the preceding fencing provision.

(c) Location of tanks shall be in accordance with Section 15.202 and Table 15.202 of the fire code. (Title 16).

(d) Spacing between tanks shall be in accordance with Section 15.203 of the fire code.

(e) Foundations and supports shall be in accordance with Section 15.204 of the fire code.

(f) Stairs, platforms and walkways shall be in accordance with Section 15.205 of the fire code.

(g) Dikes, diversion walls and catchment basins shall be in accordance with Section 15.206 of the fire code.

(h) Design and construction of tanks shall be in accordance with Section 15.207 of the fire code.

(i) Vents shall be in accordance with Section 15.208 of the fire code.

(j) Tank valves shall be in accordance with Section 15.209 of the fire code.

(k) Loading by Truck from Production Tank Sites.

A. Location. Tank vehicle loading racks, loading platforms or movable loading spouts or arms dispensing flammable liquids shall be separated from tanks, warehouses, other buildings, public streets and nearest line of property that may be built upon by a clear distance of not less than twenty-five feet, measured from the nearest position of any fill stem. Buildings for pumps or for shelter of loading personnel may be part of the loading rack or plat-form. No person shall load or unload, or permit the loading or unloading of a tank vehicle unless such vehicle is located outside of any public street right of way.

B. Loading and Unloading Operations. During the loading or unloading of a tank vehicle, a qualified person shall be at the loading or unloading controls. Provision shall be made for the safe disposal of the oils released by overflow and from loading spouts or lines.

(Ord. 52 §1 (part), 1962: prior code §3910).

(a) Materials and design shall be in accordance with Section 15.301 of the fire code.

(b) Protection against corrosion shall be in accordance with Section 15.302 of the fire code.

(c) Supports shall be in accordance with Section 15.303 of the fire code.

(d) Valves shall be in accordance with Section 15.304 of the fire code.

(Ord. 52 §1 (part), 1962: prior code §3911).

(a) Electrical Equipment. All electrical equipment used, installed or maintained within fifty feet of a drilling well and within twenty-five feet of a producing well, shall be installed and maintained in accordance with the electrical code (Chapter 15.08).

(b) Internal Combustion Engines, Storage Tanks, Fired Equipment and Open Flames. No internal combustion engine, storage tanks, boiler, fired equipment or open flames, except welding supervised by the production foreman, drilling foreman, drilling engineer, drilling supervisors, or safety supervisors, shall be located closer than twenty-five feet to a producing well nor closer than one hundred feet to a drilling well. Internal combustion engines (and their fuel tanks) used in the drilling, production and servicing of oil wells are exempt from the above provisions. During drilling operations, on a drill site of two acres or less in area where two or more wells are drilled and drilling and production equipment are located on such sites, the provisions in this subsection relating to distances of storage tanks may be altered at the discretion of the fire chief after consideration of the special features such as topographical conditions; nature of occupancy and proximity to buildings on adjoining property and height and character of construction of such buildings; capacity and construction of proposed tanks and character of liquids to be stored; degree of private fire protection to be provided, and facilities of the fire department to cope with flammable liquid fires.

(c) Muffling Exhaust. The engines used in connection with the drilling of any oil well or in any production equipment of any oil well shall be equipped with an exhaust muffler to prevent excessive or unusual noise. Means shall be provided on all engines used during drilling operations to prevent the escape of flames, sparks, ignited carbon and soot.

(d) Flammable Waste Gases and Vapors. Flammable waste gases or vapors escaping from a production drill site shall be burned or controlled in a manner approved by the fire chief to prevent hazardous concentrations reaching sources of ignition or otherwise endangering the area.

(1) Flares. Approved means of ignition shall be provided whenever hydrocarbon gases are released to the air through flares.

(2) Venting. Gases or vapors not burned may be discharged to the atmosphere at not less than twenty feet vertically above grade and not less than twenty-five feet horizontally from any source of ignition and at locations that do not create a hazard to the general area.

(e) Waste Control of Drill Site.

(1) No person shall permit or cause to be permitted the discharge of any liquid containing crude petroleum or its products into or upon any street, public highway, drainage canal, or ditch, storm drain or flood control channel.

(2) No person shall permit or cause to be permitted any oil, waste oil, refuse or waste material to be on the surface of the ground, under, around or near any oil well, pump, boiler, oil storage tank or building except within an oil sump, tank catchment basin or skimming pond.

(3) All land within twenty-five feet of any oil well, flammable liquid tank or other appurtenance to any such well shall be at all times kept free and clear of dry weeds, grass, rubbish or other combustible debris. When this distance is not sufficient to provide reasonable fire safety, a greater distance may be required which shall not exceed the height of the derrick or greatest dimension of the tank.

(f) Smoking. No person shall smoke nor cause, permit or allow another person to smoke within fifty feet of any well, tank location, or any area contaminated by oil or waste gas.

(g) Fire Control Equipment. A minimum of two fire extinguishers shall be maintained at all oil well locations where drilling, servicing or repair work is being conducted. Each such extinguisher shall have a minimum classification of 20B as set forth in N.B.F.U. No. 10, "First Aid Fire Appliances", in accordance with Section 15.606 of the fire code (Title 16).

(Ord. 52 §1 (part), 1962: prior code §3912).

(a) Any permit issued pursuant to the provisions of this chapter may be revoked by the city council upon its finding, after a public hearing as herein provided, that the permittee has failed, neglected or refused to perform, comply with and abide by any of the conditions and provisions of this chapter.

(b) Proceedings before the city council for the revocation of any permit may be instituted by the fire chief causing to be posted in a conspicuous place on the premises covered by the permit, readable from the ground level, a notice entitled "Notice of intention to revoke permit" and cause a copy thereof to be mailed, postage prepaid, to permittee, or his designated agent, at his last known address, and a copy to be filed with the city council. The notice shall set forth the date of the posting hereof, and the reasons and grounds upon which the revocation will be based, and shall require permittee, within fifteen days after the date of posting specified therein, to cure and remedy any default under, noncompliance with, or violation of any condition of the permit or to show cause before the city council why the permit shall not be revoked.

(c) Upon application therefor by permittee, the city council may, at its discretion, extend the time for curing and remedying any claimed default, noncompliance or violation by permittee. No extension of time shall be for a longer period than a total of sixty days from and after the service upon permittee of the notice of intention to revoke the permit.

(d) At any time prior to the expiration of the period of fifteen days, or any extension thereof, the permittee may file with the city council a written appeal from the order, requirement, decision or determination of the fire chief as set forth in the aforesaid notice, and request a hearing thereon by the city council. Failure to file a demand for such hearing within the aforesaid period of time, or any extension thereof, shall be deemed to be an admission on the part of the permittee that valid grounds exist for the revocation of the permit forthwith, unless permittee shall have commenced with a diligent and bona fide effort to cure and remedy the default, noncompliance or violation for which the notice was issued.

(e) If a hearing before the council is requested, the permit shall not be modified or revoked unless and until so ordered by the council after the completion of the hearing.

(Ord. 52 §1 (part), 1962: prior code §3913 (part)).

(a) The city council shall have and exercise the power to hear and determine appeals where it is alleged there is error or abuse of discretion in any order, requirements, decision or determination made by the fire chief in the administration or enforcement of any of the provisions of this code.

(b) An appeal shall be in writing and shall be filed in triplicate in the office of the city clerk. An appeal from any order, requirement, decision or determination by the fire chief must set forth specifically wherein it is claimed there was an error or abuse of discretion by his action or where the decision is not supported by the evidence in the matter.

(c) Within five days from and after the filing of the appeal, the fire chief shall transmit to the city council all papers involved in the proceedings. In addition, he may make and transmit to the city council such supplementary report as he may deem necessary to present clearly the facts and circumstances of the case.

(d) Upon receipt of the record, the city council shall set the matter for hearing and give notice by mail of the time, place and purpose thereof to appellant, to the fire chief and any other party at interest who has requested in writing to be so notified. No other notice need be given.

(e) Upon the date set for the hearing, the city council shall hear the appeal, unless for cause the city council shall on that date continue the matter. No notice of continuance need be given if the order therefor be announced at the time for which the hearing was set.

(f) Upon the hearing of appeals, the city council may affirm, change or modify the ruling, decision or determination appealed from or in lieu thereof may make such other or additional determination as it shall deem proper in the premises subject to the same limitations as are placed upon the fire chief by this code and by other provisions of law.

(Ord. 52 §1 (part), 1962: prior code §3914).

It is the duty of the fire chief to enforce the provisions of this chapter. For that purpose, the fire chief and his deputies shall have the powers of a police officer.

(Ord. 52 §1 (part), 1962: prior code §3913 (part)).

Any person violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be punishable as provided in Section 1.12.010.

(Ord. 52 §1 (part), 1962: prior code §3915).