Laguna Niguel Municipal Code Art. 1 Oil Code

This article shall be known and may be cited as the Oil Code. The word "code," as used in this article, unless the context clearly indicates otherwise, shall mean the oil code.

(Ord. No. 90-11, § 12, 3-6-90)

(a) It is the intent of this article to regulate the exploration and drilling for and the production of petroleum so that this activity may be conducted in harmony with other uses of land within the city, thus protecting the people of the city in the enjoyment and use of their property and providing for their comfort, health, safety and general welfare.

(b) It is further the intent of the city council that petroleum operations shall be permitted in all districts within the city subject to the application of this article, the requirements of which have been carefully designed for the fulfillment of the intent expressed in subsection (a) of this section.

(c) The provisions of this article shall not apply to landfill gas recovery operations.

(Ord. No. 90-11, § 12, 3-6-90)

The words, terms and phrases defined in sections 8-8-4 through 8-8-26, when used in this article, shall have the meanings ascribed to them in sections 8-8-4 through 8-8-26, except where the context clearly indicates a different meaning.

(Ord. No. 90-11, § 12, 3-6-90)

Cross reference— Definitions generally, § 1-1-18.

Abandonment means the restoration of the drill site as required by this article.

ANSI means the American National Standards Institute.

API means the American Petroleum Institute.

Approved means approved by the director. The term "approved type" or "approved design" means and includes improvements, equipment or facilities of a type or design approved by the director.

ASME means the American Society of Mechanical Engineers.

(Ord. No. 90-11, § 12, 3-6-90)

Blowout means the uncontrolled discharge of gas, liquids or solids, or a mixture thereof, from a well into the atmosphere.

Blowout preventer means a mechanical, 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 blowout.

(Ord. No. 90-11, § 12, 3-6-90)

Cellar means an excavation around or above the top joint of the casing in a well.

Completion of drilling. A well is completed, for the purpose of this article, 30 days after the drilling crew has been released, unless drilling or remedial operations are resumed before the end of the 30 days.

(Ord. No. 90-11, § 12, 3-6-90)

Derrick means any framework, tower or mast, together with all parts of an appurtenance to such structure, including any foundations, pumphouse and pipe racks, and each and every part thereof, which is or are required or used or useful for the drilling for and the production of oil, gas or other hydrocarbons from the earth, except tanks used for storage purposes.

Desertion means the cessation of operations at a drill site without compliance with the provisions of this article relating to suspended operations or abandonment.

Diligence means that the drilling derrick is in its operating position over the well, properly anchored and supported, and that an operating crew is on duty at the drill site at all reasonable times.

Director means the director of community development and his assistants and deputies, and inspectors and officers of the community development department.

Division of oil and gas means the division of oil and gas of the department of natural resources of the state, or any other state agency that may in the future be charged with its responsibilities.

Drill site means the premises used during the drilling and subsequent life of a well which are necessary for the safe operation thereof.

Drilling means digging a hole in earth formation with a power-driven drill bit for the purpose of exploring for or developing of oil or gas. Drilling includes those operations that are concerned with the completion of a well. Drilling does not include a shot hole.

(Ord. No. 90-11, § 12, 3-6-90)

Gas means the gaseous components or vapors occurring in or derived from petroleum or natural gas.

(Ord. No. 90-11, § 12, 3-6-90)

Lessee means the possessor having the right to exploit the premises for minerals.

Lessor means the mineral right owner.

(Ord. No. 90-11, § 12, 3-6-90)

Maintenance means and includes the repair and replacement of parts of a structure where the repair or replacement does not alter or lessen the strength or stability of the structure.

(Ord. No. 90-11, § 12, 3-6-90)

Natural gasoline plant or absorption plant means a plant for the processing of natural gas from the production wells and processing it into its various components.

(Ord. No. 90-11, § 12, 3-6-90)

Oil includes petroleum, and the term "petroleum" includes oil.

Operator means the person, whether proprietor, lessee or independent contractor, actually in charge and in control of the drilling, maintenance, operation or pumping of a well or lease.

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, the term "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.

Owner means a person who owns a legal or equitable title in and to the surfaces of the drill site.

(Ord. No. 90-11, § 12, 3-6-90)

Person includes any individual, firm, association, corporation or joint venture, or any other group or combination acting as a unit.

(Ord. No. 90-11, § 12, 3-6-90)

Redrilling means the deepening of an existing oil well or otherwise drilling beyond the extremities of the existing well casing. The provisions of this article relating to drilling shall be equally applicable to redrilling.

(Ord. No. 90-11, § 12, 3-6-90)

Seismic petroleum prospecting means prospecting for oil by means of drilling holes into the ground, placing an explosive charge therein and detonating such charge, thereby exciting an energy or sound wave through the earth, the results of which are recorded and read by seismograph equipment placed at various locations on the surface of the earth. Seismic petroleum prospecting is prohibited in the following areas:

(1) The area within one-quarter mile of the boundary of O'Neill Park and Irvine Park.

(2) The area within one mile landward of the line of Upper Newport Bay as established and adjudicated by Superior Court Case No. 20436.

(3) The area within one mile landward of the coastline measured from mean lower low-water datum as established by the U.S. Coast and Geodetic Survey from the easterly jetty of the harbor entrance at Newport Beach to the San Diego County line.

Shot hole means the hole drilled in seismic petroleum prospecting.

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

Structure means that which is built or constructed, including a tank, edifice or building of any kind.

Suspended operations means the approved temporary suspension of drilling or redrilling operations pending a resumption of operations or abandonment.

(Ord. No. 90-11, § 12, 3-6-90)

Tank means 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.

(Ord. No. 90-11, § 12, 3-6-90)

Well or oil well means 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 disposal thereof. Well does not include a shot hole.

Well servicing means remedial or maintenance work performed within any existing well which does not involve drilling or redrilling.

(Ord. No. 90-11, § 12, 3-6-90)

(a) A permit from the director shall be obtained:

(1) For drilling or redrilling operations in connection with the exploration for or the production of petroleum, or for the purpose of secondary recovery.

(2) To erect, construct, enlarge, alter, repair, move, improve, remove, convert or demolish any structure.

(b) No permit shall be required for well servicing or maintenance or for any structure for which a building permit is not required.

(Ord. No. 90-11, § 12, 3-6-90)

(a) The applicant for a permit under this article shall file an application in writing for a permit on a form furnished for that purpose by the community development department. The application shall be accompanied by:

(1) A complete legal description of the property.

(2) A fully informative plot plan showing the location of the well, the location of which has been staked on the ground, and appurtenant structures, and their relation to any existing hospital, sanitarium, church, rest home, airport, school and dwelling within the radius required by this article.

(3) Plans and engineering specifications of structures, drilling derricks, drilling masts, tanks and high-pressure systems regulated by this article. The applicant need not file plans and engineering specifications of standard derricks, masts and tanks when such plans and specifications are already on file in the office of the director.

(4) A corporate surety bond in conformity with the provisions of section 8-8-32.

(5) A verified statement signed by the applicant certifying that he is duly authorized by the operator to make and file the application and that he has read the application and the application is true and correct.

(6) An acknowledged statement in writing subscribed by the owner of the surface rights of the drill site and by the owner of any private land over which access is had to the drill site granting to the city the right to enter upon the drill site and such private land for the purpose of inspection and restoring the premises if the applicant should fail to do so.

(7) A statement as to the means by which liquid spills will be removed from diked areas or catchment basins.

(8) Such other pertinent information as may be required by the director.

(b) A drilling permit may be amended insofar as it relates to the drill site area and a drill site may be modified as to size and shape by filing with the director a modified plot plan, if the modified drill site conforms to the applicable provisions of this article and of section 9-1-117, but not otherwise.

(Ord. No. 90-11, § 12, 3-6-90)

(a) Existing wells. A bond in the form required by this section shall be filed for each existing well within 30 days following the effective date of this article.

(b) New wells. A bond in the form required by this section shall accompany every application for the drilling or redrilling of any oil well for which a bond is not on file.

(c) Bond forms. Bonds shall be on a form approved by the city attorney and shall be filed with the community development department as follows:

(1) Single bonds. Corporate surety bonds in the penal sum of $5,000.00. The bond shall be executed by the operator as principal and by the authorized surety company as surety and conditioned that the principal named in the bond shall faithfully comply with all the provisions of this article in drilling or redrilling and maintaining all production facilities as required by this article until properly abandoned in conformity with the provisions of this article. The bond shall secure the city against all costs, charges and expenses incurred by it by reason of the failure of the principal to fully comply with the provisions of this article. The bond shall include the correct name or number of the well and such other information as may be necessary to readily identify the oil well.

(2) Blanket bonds. Any operator may, in lieu of filing a single bond for each well as required by subsections (a) and (b) of this section, file a bond in the amount of $25,000.00 to cover all of his operations conducted within the city. A rider to the bond shall be filed with the director showing the correct name or number of the well and such other information as may be necessary to readily identify the oil well for each well covered by the bond.

(d) Default in performance of conditions.

(1) Whenever the director finds that a default has occurred in the performance of any requirement or condition of this article, written notice thereof shall be given to the principal and to the surety on the bond.

(2) Such notice shall specify the work to be done, the estimated cost thereof and the period of time deemed by the director to be reasonably necessary for the completion of such work.

(3) After receipt of such notice, the surety shall, within the time therein specified, either cause or require work to be performed, or failing therein shall pay over to the director the estimated cost of doing the work as set forth in the notice, plus an additional sum equal to 25 percent of the estimated cost. Upon receipt of such moneys, the director shall proceed by such mode as he deems convenient to cause the required work to be performed and completed, but no liability shall be incurred therein other than for the expenditure of the sum in hand. If the well has not been properly abandoned under the regulations of the division of oil and gas, such additional moneys may be demanded from the surety as necessary to restore the drill site in conformity with the regulations of this article.

(e) Exoneration. Any bond issued in compliance with this article shall be terminated and canceled and the surety be relieved of all obligations thereunder when the well has been properly abandoned in conformity with all regulations of the division of oil and gas and notice to that effect has been received by the community development department.

(f) Substitution. A substitute bond may be filed in lieu of any bond on file under this section, and the director shall accept and file the bond if it is qualified and in proper form and substance. The bond for which it is substituted shall be exonerated, but only if the director finds that all of the conditions of the bond have been satisfied and that no default exists as to the performance upon which the bond is conditioned.

(Ord. No. 90-11, § 12, 3-6-90)

(a) Drilling or redrilling permit fee.

(1) A fee for each drilling permit or redrilling permit shall be paid to the director as established by resolution of the city council.

(2) Where drilling, redrilling, construction or other work for which a permit is required by this article is started or proceeded with prior to obtaining the permit, the fees specified in this subsection shall be doubled, but the payment of such double fee shall not relieve any person or employee from fully complying with the requirements of this article or the execution of the work, or from any other penalties prescribed in this article.

(b) Plan-checking fee. A plan-checking fee shall not be charged for the derrick or its appurtenances. A plan-checking fee shall be charged for all permanent buildings, production tanks, washing tanks, skim ponds and such other structures not directly connected with the derrick itself. A plan-checking fee shall be charged for oil well cellars designed to accommodate more than one oil well. The plan-checking fee shall be established by resolution of the city council.

(c) Annual inspection fee. The director shall inspect annually, and at such other times as he deems necessary, each producing oil well and suspended oil well regulated by this article for the purpose of ascertaining whether the well is being operated or maintained in conformity with the minimum standards of this article. To meet the expense of such inspection, the operator shall pay to the community development department an annual inspection fee as established by resolution of the city council. The year for which each fee is applicable runs from July 1 to June 30. The fees shall be based upon the total number of wells existing on July 1, whether producing or not. The fees shall be due prior to July 1 of the year to which they pertain. No additional fee shall be charged for additional inspections which may be required during the year. The director shall keep a permanent, accurate account of all annual inspection fees collected and received under this article, the name of the operator for whose account the fees were paid, and the date and amount thereof, together with the well name and designation and the general location of the well. A report of the director's annual inspection findings shall be furnished the operator.

(d) Building permit fee. A building permit fee, as established by resolution of the city council, shall be charged for the erection or construction or relocation of any permanent building, tank or other structures included in this section, and such fee shall be based on the total valuation of the structure when completed.

(e) Expiration of permit. No permit issued under this article shall be valid unless utilization of the privileges granted thereby be commenced within 180 days from and after the date of issuance of the permit and diligently and progressively prosecuted thereafter.

(Ord. No. 90-11, § 12, 3-6-90)

(a) Location of wells.

(1) No oil well shall be drilled within the following distances measured from the centerline of any local street or any highway shown on the master plan of arterial highways, as amended:

a. Major highways, 210 feet.

b. Primary highways, 200 feet.

c. Secondary highways, 190 feet.

d. Local streets, 180 feet, except that, in the case of a local street the right-of-way of which is more than 60 feet in width, the distance shall be 150 feet plus one-half of the existing right-of-way which is more than 60 feet in width. The director may determine that, because of the degree of slope or other feature of the topography, a lesser distance than one-half of the right-of-way in addition to the 150 feet is reasonable to ensure the safety of the traveling public in conformity with the purpose and intent of this subsection, in which case the distance thus set by the director shall prevail.

No oil well shall be drilled within 150 feet of the nearest rail of a railway which carries passengers for hire.

(2) No oil well shall be drilled within 150 feet of any building used for human occupancy, nor shall any such buildings be erected within 150 feet of any oil well not abandoned, except buildings incidental to the operation of the well. No oil well shall be drilled within 150 feet from the outer boundary line.

(3) No oil well shall be drilled within 300 feet of any building used as a place of public assemblage, institution or school, nor shall any such building be erected within 300 feet of any oil well not abandoned.

(4) The director may suspend any provision of subsection (a) of this section, in whole or in part, or impose less restrictive requirements, if such provisions or requirements are rendered unnecessary or unreasonable by then-existing special features such as topography, the nature of the use and occupancy of and the proximity to buildings on adjoining property, the height, character and structure of such buildings, and the type and character of oil field development, and may impose additional safety requirements rendered necessary because of such special features.

(b) Surfacing of private roads and drill sites. Prior to commencement of any drilling operations, all private roads used for access to the drill site and the drill itself shall be surfaced by clean crushed rock or gravel or decomposed granite or oiled and maintained to prevent dust and mud. In particular cases these requirements governing surfacing of private roads and drill sites may be altered at the discretion of the director after consideration of all of the circumstances, including but not limited to distances from public streets and highways, distances from adjoining and nearby property owners whose surface rights are not leased by the operator and the purposes for which the property of such owners are or may be used, topographical features, nature of the soil and exposure to wind.

(c) Derricks. All derricks and masts hereafter erected for drilling or redrilling shall be at least equivalent to the current American Petroleum Institute Standards.

(d) 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 and insignia of the operator shall be displayed at all times from the commencement of drilling operations until the well is abandoned. If there are more than two producing wells on one leasehold, it shall be sufficient if the entrances to the leasehold are posted with a sign not less than 18 inches by 24 inches in size 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.

(e) Blowout prevention generally. Protection shall be provided to prevent the blowout of an oil well during drilling and redrilling operations and shall conform to the requirements of the California Administrative Code, title 8, Petroleum Safety Orders, Drilling and Production, article 55, Blow-Out Prevention, sections 6691, 6691.1 and 6691.2.

(f) Blowout prevention for wells other than drilling wells.

(1) Protection shall be provided to prevent the blowout of an oil well, conforming to the requirements of the California Administrative Code, title 8, Petroleum Safety Orders, Drilling and Production, article 55, Blow-Out Prevention, section 6692, in the following cases:

a. During perforating, shooting or cutting off of string of casing.

b. During well servicing operations on a well that is known to have sufficient gas pressure to cause the well to flow, or where the gas pressure is unknown.

(2) The operator shall notify the director, in writing, at least one day before any of the operations described in this subsection are commenced. If the day following the day on which notice is given falls on a Saturday, Sunday or holiday, then such additional days' notice must be given as may be required so that there shall be one day, Saturday, Sunday and holidays excepted, between the date notice be given and any of such operations commenced.

(g) Waiver of blowout prevention requirements. The blowout preventive requirements of subsections (e) and (f) of this section may be waived by the director upon such conditions and for such operations as he may determine, upon written application by the operator and upon a showing by him of sufficient cause therefor based upon information regarding depth of hole, probable gas pressures to be encountered, the proposed drilling, completion or abandonment program or whatever further information the director may require.

(h) Drilling and production waste control.

(1) Rotary mud, drill cuttings, oil field waste, oil or liquid hydrocarbons and all other oil field wastes derived or resulting from or connected with the drilling of any well shall be discharged into a sump hole or steel tank. Such drill cuttings, rotary mud and drilling waste materials shall be removed from the drill site upon completion of drilling operations. Tanks used as and for sump purposes shall be removed from the drill site and sump holes shall be drained and backfilled within 30 days from and after completion of drilling.

(2) All wastewater and all other waste materials resulting from production operations shall be disposed of into an appropriate waste facility, such as but not limited to an existing sump, a wastewater disposal system or a sewer, subject to the approval of the agency governing the facility involved.

(3) Excepting temporary sumps for the disposal or storage of materials used for or produced by drilling operations, no new sumps or ponds shall be created without the written approval of the director.

(i) Fencing. All sumps or sump holes and all oil well production equipment having external moving parts hazardous to life or limb shall be attended 24 hours per day or be enclosed by a steel chainlink type fence not less than six feet in height and in addition having not less than three strands of barbed wire sloping outward at approximately a 45-degree angle and for 18 inches from the top of the fence. There shall be no aperture below such fence greater than four inches. Fence gates shall be placed at nonhazardous locations and shall be locked at all times when unattended by a watchman or serviceman.

(j) Cellars. The following regulations shall apply to cellars:

(1) Every cellar shall be constructed in accordance with the current Uniform Building Code, as amended and adopted by the city council.

(2) Such cellars shall be kept free from water, oil drilling fluids or other substances which might constitute a hazard, except during drilling and servicing operations.

(3) The depth of such cellars shall be the vertical measurement between the lowest point of the floor area in the bottom of such cellar and the lowest point of the ground or any surface adjacent to the top of the cellar wall.

(4) All multi-well cellars exceeding three feet in depth and 25 feet in length shall have two separate means of exit or entrance. If the cellar exceeds 50 feet in length, one of the means of entrance or exit shall be a stairway. If the cellar exceeds 200 feet in length, a third means of entrance or exit shall be provided.

(5) Multi-well cellars shall have a steel grate covering with no unobstructed openings in excess of three inches. Materials, equipment or other appurtenances shall not be stored or placed on the grating so as to interfere with the escape of gases and vapors.

(k) Removal of equipment. All drilling equipment and the derrick shall be removed from the premises within 60 days following the completion, abandonment or desertion of any well. Once the well is a producing well, it shall be serviced with a portable derrick when required. Drilling operations shall be diligently prosecuted until the well is completed or abandoned.

(l) Soundproofing. Soundproofing shall comply with the following specifications when required by the provisions of section 9-1-117. Soundproofing acoustical blankets for the drilling derrick and accessory structures shall be fibrous glass insulation 1½ inches thick, 0.50 pounds per cubic foot density, 0.063 pounds per square foot weight, and 0.00010 to 0.00015 fiber diameter (inches), with a phenolic binder having a temperature limit of 450 degrees Fahrenheit sewed between layers of fire retardant vinyl fiberglass cloth, 15 to 17 ounces per square yard, sewed with Dacron thread D-92 with stitches not more than six to the inch. The lacing cord shall be flat vinyl-coated tape composed of fibrous glass yarn, braided, heat set and bonded. The tape shall have a 90-pound tensile strength. Grommets shall be no. 4 brass. All doors and similar openings shall be kept closed during drilling operations, except for ingress and egress.

(m) Alternate materials and methods of construction.

(1) The provisions of this article are not intended to prevent the use of any material or method of construction not specifically prescribed by this article, provided any such alternate has been approved.

(2) The director may approve any such alternate provided he finds that the proposed design is satisfactory and complies with the intent of this article, and that the material or method offered is, for the purpose intended, at least the equivalent of that prescribed in this article in quality, strength, effectiveness, fire resistance, durability and safety.

(3) The director shall require that sufficient evidence or proof be submitted to substantiate any claims that may be made regarding its use. Whenever there is insufficient evidence of compliance with the intent of this article or evidence that any material or any construction does not conform to the requirements of this article, or in order to substantiate claims for alternate materials or methods of construction, the director may require tests as proof compliance to be made, at the expense of the owner or his agent, by an approved agency.

(4) Test methods shall be as specified by this article for the material in question. If there are no appropriate test methods specified in this article, the director shall determine the test procedure.

(5) Copies of the results of all such tests shall be retained for a period of not less than two years after the acceptance of the materials or methods.

(n) Sanitary facilities. Sanitary facilities shall be provided at the drill site during all drilling or redrilling operations and shall be in accordance with the standards of the health department.

(Ord. No. 90-11, § 12, 3-6-90)

It shall be the responsibility of the director to determine that the drill site and all facilities pertinent thereto have been restored to their original condition as nearly as practicable in conformity with the regulations of this article, including the following requirements:

(1) General standards.

a. It shall be the responsibility of the operator to comply with the abandonment provisions of this article, and he shall furnish to the director the approval of the division of oil and gas, department of natural resources, confirming compliance with all abandonment proceedings under state law, and a notice of intention to abandon under the provisions of this section stating the date such work will be commenced. Abandonment may then be commenced on or subsequent to the date so stated.

b. Abandonment shall be approved by the director after restoration of the drill site and the subsurface thereof has been accomplished in conformity with the following requirements:

1. The derrick and all appurtenant equipment thereto shall be removed from the drill site.

2. All tanks, towers and other surface installations shall be removed from the drill site.

3. All concrete, pipe, wood and other foreign materials shall be removed from the drill site to a depth of six feet below grade, unless part of a multi-well cellar is then being used in connection with any other well for which a permit has been issued.

4. The oil well casing shall be cut off at a point six feet below the drill site grade at the cellar, but in no case below sea level. Nothing shall be placed in the hole above the point of cutoff until the cutoff has been inspected by the director and by him found to be in compliance with all applicable provisions of law.

5. The top 25 feet of the remaining casing shall be filled with a cement plug to prevent gas fumes from escaping.

6. A steel cap of not less than the same thickness as the well casing shall be tack welded to the casing in a minimum of four places.

7. All holes and depressions shall be filled and packed with native earth. All oil, waste oil, refuse or waste material shall be removed from the drill site.

(2) Conversion to water well. A well may be converted to a domestic or agricultural water well upon the approval of the director after:

a. A request in writing by the landowner has been made to the director.

b. An original or certified copy of the approved conversion permit from the division of oil and gas has been furnished to the director.

c. All the provisions relating to abandonment in subsection (1) of this section have been complied with, except that those appurtenances necessary in the opinion of the director for the operation of a water well may be retained.

(Ord. No. 90-11, § 12, 3-6-90)

Except as provided in subsection (2) of this section, no drilling, redrilling, work or construction shall be done beyond the point indicated in each successive inspection without first obtaining the written approval of the director.

(1) Site preparation.

a. The well location shall be clearly marked by a stake or other suitable means and identified as the well location.

b. The drill site shall be prepared as required in this article and shall be of such size so as to provide for the safe erection of the mast or derrick and all appurtenant structures thereto as indicated on the approved plot plan.

c. Any private road used for ingress and egress of equipment to the drill site shall be prepared as required by this article.

d. The proposed well shall be located in conformity with this article as to the distances from streets, outer boundaries, public buildings and dwellings.

(2) Commencement of drilling. The director shall be called and notified when the drilling derrick or mast has been erected in conformity with this article and all necessary equipment pertinent to the drilling operations thereof has been installed and is on the site. Drilling may proceed prior to inspection of the derrick or mast, provided that its design has been previously approved by the director. It will be the obligation of the director to inspect such facilities as to their conformity with this article as soon as reasonably practicable.

(3) Release of drilling crew. The director shall be notified immediately in writing when the drilling crew is released, and it shall then be his duty to inspect.

(4) Completion of drilling. Upon completion of drilling operations, an inspection request shall be called for.

(5) Abandonment. An inspection shall be made subsequent to the approval of the abandonment notice, and the director shall certify that the well has been abandoned in conformity with all applicable regulations to a depth of six feet below grade.

(Ord. No. 90-11, § 12, 3-6-90)

(a) Agent for service of notice. Every operator of any oil well shall designate an agent who is a resident of the state, upon whom all orders and notices provided for in this article may be served in person, or by registered or certified mail. Every operator so designating such agent shall, within ten days, notify the director, in writing, of any change in such agent or such mailing address unless operations within the city are discontinued. Service by registered or certified mail, or in person, on the agent so designated shall constitute service for all purposes of this article.

(b) Transfer of ownership.

(1) The operator shall notify the director, in writing, of the sale, assignment, transfer, conveyance or exchange by the operator of wells, property and equipment, within ten days after such sale, assignment, transfer, conveyance or exchange. The notice shall contain the following:

a. The name and address of the person to whom such well and property was sold, assigned, transferred, conveyed or exchanged.

b. The name and location of the well.

c. The date of sale, assignment, transfer, conveyance or exchange.

d. The date when possession was relinquished by the former operator.

e. A description of the properties and equipment transferred.

(2) Every person who acquires any well, property or equipment, whether by purchase, transfer, assignment, conveyance, exchange or otherwise, shall, within ten days after acquiring such well, property or equipment, notify the director, in writing, of his ownership. The notice shall contain the following:

a. The name and address of the person from whom such well and property was acquired.

b. The name and location of the well.

c. The date of acquisition.

d. A description of the properties and equipment transferred.

e. The person designated for service of notice and his address.

(c) Suspension of drilling and redrilling operations. The operator of any well shall notify the director, in writing, of any temporary suspension of operations, pending a resumption of operations or abandonment. The director, for good cause, may approve temporary suspension of operations. Such notice shall be filed with the director within 30 days from and after release of the drilling crew. Failure of the director to act within ten days shall constitute approval thereof. The operator shall notify the director, in writing, upon resumption of operations, giving the date thereof.

(d) Change in drilling contractor. The operator, before changing drilling or redrilling contractors, shall file with the director a written notice of the change, giving the name of the original contractor and the name of the proposed contractor, and such information as was originally required to meet the design and structural requirements of this article. Such notice shall be attached to and become a part of the original oil drilling or redrilling permit.

(Ord. No. 90-11, § 12, 3-6-90)

(a) Storage capacity. Maximum tank capacity for a producing oil well is as follows: If oil or other liquid storage facilities are established incidental to a producing well on a drill site, such storage facilities shall not exceed a total of 2,000 barrels per well.

(b) Design and construction of tanks. All tanks shall be constructed in detailed conformity with the current API standards applicable thereto.

(c) Foundations and supports. Tanks shall rest directly on the ground or on foundations, supports or pilings of concrete, masonry, steel, crushed rock or wood. Exposed pilings or steel supports shall be protected by fire resistive materials to provide a fire resistance rating of not less than two hours. Stairs, platforms and walkways shall be of metal, concrete or wood.

(d) Spacing between tanks.

(1) No tank for the storage of any flammable liquid shall be located closer than three feet to any other such tank.

(2) For tanks above 50,000 gallons' individual capacity for the storage of any flammable liquid, except crude petroleum, the distance between such tanks shall not be less than one-half the diameter of the smaller tank.

(3) Tanks for the storage of crude petroleum having capacities not exceeding 126,000 gallons (3,000 barrels) shall not be less than three feet apart. Tanks having a capacity in excess of 126,000 gallons (3,000 barrels) shall be not less than the diameter of the smaller tank apart.

(4) The minimum separation between a liquefied petroleum gas container and any other tanks for the storage of any flammable liquids shall be 20 feet. Suitable means shall be taken to prevent the accumulation of flammable liquids under adjacent liquefied petroleum gas containers, such as by diking, diversion curbs or grading. When flammable liquid storage tanks are diked, the liquefied petroleum gas containers shall be outside the diked area and at least ten feet away from the centerline of the dikes; however, this provision shall not apply when liquefied petroleum gas containers of 125 gallons or less in capacity are installed adjacent to Class III flammable liquid storage tanks of 275 gallons or less in capacity.

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(e) Location of tanks. The minimum distance between any outside aboveground tanks to the nearest building or line of adjoining property which may be built upon is as follows:

(1) Flammable liquids other than those having boilover characteristics similar to crude petroleum:

(2) Crude petroleum and other liquids having boilover characteristics similar to crude petroleum and flammable liquid tanks with a capacity in excess of 50,000 gallons: Tanks with capacities in excess of 50,000 gallons and all tanks for the storage of crude petroleum shall be located in accordance with the following provisions (applicable to gastight tanks, including conservation type tanks, constructed in compliance with the standards of this article or equivalent standards):

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a. Group A tanks. Any gastight tank constructed in compliance with the standards of this article or equivalent standards and equipped either with:

1. An approved permanently attached extinguishing system; or

2. An approved floating roof;

which is to be used only for the storage of refined petroleum products or other flammable liquids not subject to boilover shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than the greatest dimension of diameter or height of the tank, except that such distance need not exceed 120 feet.

b. Group B tanks. Any gastight tank constructed in compliance with the standards of this article or equivalent standards but not equipped either with:

1. An approved permanently attached extinguishing system; or

2. An approved floating roof;

which is to be used only for the storage of refined petroleum products or other flammable liquids not subject to boilover shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than 1½ times the greatest dimension of diameter or height of the tank, except that such distance need not exceed 175 feet.

c. Group C tanks. Any gastight tank constructed in compliance with the standards of this article or equivalent standards and equipped either with:

1. An approved permanently attached extinguishing system; or

2. An approved floating roof;

which is to be used for the storage of crude petroleum shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than twice the greatest dimension of diameter or height of the tank, except that such distance shall be not less than 20 feet and need not exceed 175 feet.

d. Group D tanks. Any gastight tank constructed in compliance with the standards of this article or equivalent standards and not equipped either with:

1. An approved permanently attached extinguishing system; or

2. An approved floating roof;

which is to be used for the storage of crude petroleum shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than three times the greatest dimension of diameter or height of the tank, except that such distance shall not be less than 20 feet and need not exceed 350 feet.

e. The term "approved attached extinguishing system," as used in the this subsection (e)(2), may be interpreted to apply to:

1. A fixed foam or other recognized extinguishing system embodying a supply of the extinguishing medium;

2. A system employing a pipeline for conveying foam from a point outside the dike to the tank; or

3. Portable overshot devices for applying foam over the rim of the tank. Where reliance is placed on a pipeline for conveying foam, the pipeline shall be so installed and attached as to be an integral part of the tank. Where reliance is placed on a portable overshot device, the practicability of its use shall be demonstrated before approval. Approved foam-generating equipment of sufficient capacity should be available on the property or by response of a municipal or other public fire department, or otherwise readily available, and there should be on hand or otherwise readily available a sufficient supply of foam-producing materials as specified in the National Fire Protection Association Standards for Foam Extinguishing Systems, No. 11.

f. No building used for human occupancy, except buildings essential to the operation of the storage facilities, shall be erected within the distances set out in the tables in this subsection, from such storage tanks.

g. For purposes of this subsection, the term "gastight tank" includes so-called conservation type tanks.

(f) Diverse ownership. Where tank locations of diverse ownership have a common boundary, the director may, with the written consent of the owners, waive the required distances from the common property line and substitute the space between tanks as provided in this section.

(g) Dikes, diversion walls and catchment basins.

(1) Required. Tanks used for the storage of crude petroleum and other flammable liquids having similar boilover characteristics shall be diked or provided with approved diversion walls and catchment basins or combinations thereof.

(2) Location. No catchment basin or diked impounding area shall be located closer to the outer boundary line, or to any building designed for human occupancy, than the diameter or height, whichever is greater, of the largest tank served by such basin or area, nor shall any building designed for human occupancy be erected or placed closer than such distance to any catchment basin or diked impounding area.

(3) Capacity. The net capacity of a catchment basin, diked impounding basin or any combination thereof shall be equal to the capacity of the largest tank, plus ten percent of the aggregate capacity of all other tanks served. In computing the required capacity of a catchment basin, diked impounding basin or combination thereof:

a. The volume of the largest tank up to the height of the dike shall be considered as part of the available capacity of a diked impounding basin.

b. No part of the volume of tanks other than the largest tank shall be considered as part of the available capacity.

c. The capacity of a separate catchment basin may be used to reduce the required capacity of a diked impounding basin provided drainage sufficient to prevent overflow of the dike and effective control of flow are provided.

d. The capacity of a single separate catchment basin may be applied to reduce the required capacity of each of the diked impounding basins draining into it.

(4) Construction. Dikes shall be of earth, concrete or solid masonry designed to be liquidtight, and shall be maintained. Where piping passes through dikes, provision shall be made for movement without damage to the dike and to minimize leaks under emergency conditions. Earthen dikes shall be built and maintained at a minimum height of two feet, have sloping sides consistent with the angle of repose of the material used, and be not less than two feet wide at the top. The distance between the inside toe of any dike and the shell of the tank shall be not less than five feet for tanks not more than 30 feet in diameter and ten feet for tanks in excess of 30 feet in diameter.

a. Spill dikes. Where tanks within a common diked impounding basin may cause mutual exposure from spills, spill dikes shall be provided between tanks of 10,000 barrels or greater individual capacity. Groups of tanks of less than 10,000 barrels individual capacity and not in excess of 15,000 barrels aggregate capacity may be enclosed within a single spill dike. The height of such spill dike shall not exceed 50 percent of the height of the main or perimeter dikes.

b. Drainage. Drainage shall be provided at a consistent slope of not less than one percent away from tanks and fittings to a sump, drain box or other safe means of disposal located within the diked impounding area and at the greatest possible distance from the shell of the tank. Traps with not less than six inches of liquid seal shall be provided between the sumps, drain boxes or sewer openings within any impounding area and the sewers or drains intended for the disposal of spills. A valve, operable from outside the dike, shall be provided in the dike drain system and shall normally be kept closed.

c. Disposal. Approved provisions shall be made for disposing of water and of oil retained by dikes, impounding or catchment basins.

(h) Suspension of requirements. In particular installations, some or all of the requirements of subsections (d), (e) and (g) of this section governing storage facilities may be suspended, in whole or in part, or less restrictive requirements may be imposed pending further order of the director, where such requirements are rendered unnecessary or unreasonable by reason of the then-existing special features such as topography, nature of occupancy and proximity to buildings on adjoining property, the height and character of construction of such buildings, capacity and construction of the proposed tanks and the character of liquids to be stored, the degree of private fire protection to be provided and the facilities of the fire department to cope with flammable liquid fires.

(i) Skim ponds. Any open, accessible, surface or subsurface installation used for the disposal of permitted waste liquids shall be fenced in accordance with the fencing provisions of this article.

(j) Loading by truck from production tank sites.

(1) 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 the nearest line of property that may be built upon by a clear distance of not less than 25 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 platform. 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.

(2) 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 oils released by overflow and from loading spouts or lines.

(k) Maintenance of tanks. All tank tops which are accessible by means of a ladder, stairs or otherwise shall be maintained in a safe manner. Such tops, unless constructed and maintained in compliance with the applicable API standards, shall be made of a substantial material with no openings in excess of four inches in any dimension except for gauging hatches and similar openings which can be secured.

(Ord. No. 90-11, § 12, 3-6-90)

All piping systems to be operated at a pressure in excess of 20 percent of the minimum yield strength of the material with which the pipe is fabricated shall be designed, constructed, operated and maintained in accordance with the provisions of ANSI Standard B-31.

(Ord. No. 90-11, § 12, 3-6-90)

(a) Electrical equipment. All electrical equipment shall be installed and maintained in accordance with the requirements of the National Electrical Code as amended and adopted by the city.

(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 25 feet to a producing well or closer than 100 feet to a drilling well; except that internal combustion engines, and their fuel tanks, used in the drilling, production and servicing of oil wells are exempt from this provision. 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 is located on such sites, the provisions in this subsection relating to distances of storage tanks may be altered at the discretion of the director after consideration of 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 of exhausts. 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 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 a distance not less than 20 feet vertically above grade and not less than 25 feet horizontally from any source of ignition and at locations that do not create a hazard to the general area.

(e) Waste control on 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. No new sumps or ponds shall be created without the written approval of the director.

(3) All land within 25 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 or cause, permit or allow another person to smoke within 50 feet of any well or 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 National Fire Protection Association No. 10, Standard for the Installation of Portable Fire Extinguishers.

(Ord. No. 90-11, § 12, 3-6-90)

It shall be the duty of the director to enforce the provisions of this article. If at any time the director finds any operator is violating any of the provisions of this article, he may order immediate compliance. If immediate compliance is not obtained, the director shall order immediate cessation of operations. The operator shall immediately comply with the order of the director to cease, and shall not resume any operations until written approval of the director is had.

(Ord. No. 90-11, § 12, 3-6-90)

(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, requirement, decision or determination made by the director in the administration or enforcement of any of the provisions of this article.

(b) An appeal shall be in writing and shall be filed in triplicate in the office of the director. An appeal from any order, requirement, decision or determination by the director 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) Any appeal not filed within ten days from and after the date of the order, requirement, decision or determination complained of shall be dismissed by the city council.

(d) Within five days from and after the filing of the appeal, the director shall transmit to the city council all papers involved in the proceedings and two copies of the appeal. 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.

(e) 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 the appellant and to the director and any other party at interest who has requested in writing to be so notified, and no other notice need be given.

(f) 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 is announced at the time for which the hearing was set.

(g) Upon the hearing of such appeal, 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 director by this article and by other provisions of law.

(Ord. No. 90-11, § 12, 3-6-90)

Any person any of the provisions of this article shall be deemed guilty of a misdemeanor, and each such person shall be deemed guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this article is committed, continued or permitted, and upon conviction of any such violation such person shall be punished by a fine of not more than $500.00 or by imprisonment for not more than six months, or by both such fine and imprisonment.

(Ord. No. 90-11, § 12, 3-6-90)