Lomita Municipal Code Ch. 2 Oil and Gas Wells

For the purpose of this chapter, the following words and terms wherever and whenever used or appearing in this chapter shall have the scope and meaning hereinafter defined and set out in connection with each:

(a) Derrick means any structure or facility placed over an oil well for the purpose of lowering or raising pipe, casing, tubing or other drilling and producing equipment into or out of such oil well.

(b) Drill means to sink, bore or otherwise create a hole in the earth, whether or not the same is completed as a well, or to work upon or any way assist in such drilling, but does not include any operations performed in or in connection with such well from and after the completion thereof as a producing well.

(c) Oil well means any bore, hole or well which is drilled, sunk or bored for the purpose of determining the existence of, or removing, or reintroducing into the ground, any oil or gas; or to be used in any way as an accessory to the production of oil or gas, including but not limited to the injection or disposal of salt water; but excluding any well drilled solely for the production of fresh water.

(d) Operator means any person drilling, maintaining, operating, pumping, or in control of any oil well.

(e) Owner means the owner of the right to drill for and extract oil, gas, or other hydrocarbon substances.

(f) Sump means any excavation used or intended to be used for the purpose of storing of hydrocarbon, aqueous saline or other production of an oil well.

(g) Processing shall include the use of facilities for gauging, recycling, compression, repressuring, injection, reinjection, dehydration, stimulation, separation (including liquids from gas), shipping and transportation of, and gathering from other sites of oil, gas and other hydrocarbon substances and water and combinations thereof.

(h) Rework or repair shall mean any work within an existing bore hole.

(i) Redrill shall mean any drilling operation (including deviation from original well bore) to recomplete said well in the same or different zone.

(j) Deepen shall mean any extension of existing well bore below its existing depth.

(k) All technical or oil and gas industry words or phrases used herein and not specifically defined herein shall have that meaning customarily attributed thereto by prudent operators in the oil and gas industry.

Except as otherwise provided in this chapter, it shall be unlawful to erect any derrick or drill any oil well hole, or to use or operate or maintain the same, or any portion thereof, in or upon any real property in the City.

No person shall drill, cause to be drilled, or commence to drill any oil well hole, or erect or cause to be erected any derrick, without having first obtained a license therefor as provided herein.

No person shall drill any oil well hole, or erect or cause to be erected any derrick, except as provided in such license.

Before considering such license, the planning commission shall require of the applicant:

(a) The payment of the license tax, as required in section 4-2.06 of this chapter.

(b) The filing of an application for a business license as required in this Code.

(c) A map or plat of the real property on which the well is to be located.

(d) A statement from the planning director that such use is not in violation of the zoning laws of the City.

(e) A City building permit or a statement from the building department that such permit is unnecessary.

(f) Such other information as the planning commission deems necessary or proper.

(a) A license tax (called the spud-in fee) of one hundred twenty-five dollars ($125.00) shall be paid for initially drilling any oil well hole.

(b) A license tax of one hundred twenty-five dollars ($125.00) shall be paid for each deepening of an oil well hole.

(c) In addition, an annual license tax of fifty dollars ($50.00) shall be paid for every oil well hole, whether producing or not.

Before recommending a license, in cases where in the opinion of the planning commission the conduct of the proposed operations may constitute or create a hazard to life or property or be materially detrimental to property, the planning commission may impose such conditions thereon, in addition to those otherwise provided herein, as are reasonably necessary to prevent the proposed operations from being conducted in such a manner as to constitute or create a hazard to life or property or be materially detrimental to property. The applicant may appeal the recommendations of the planning commission and the imposition of any such conditions to the city council pursuant to the provisions contained herein.

The license may be revoked or suspended in the same manner and for the same reasons as provided for the revocation and suspension of licenses by the provisions of the Business License Law of the City of Lomita.

Except as provided in this part, no license for the erection of any derrick or the drilling of any oil well hole shall be valid or effective for any purpose, unless at the time of issuance there is on file with the city clerk and in full force and effect, in a form approved by the city attorney, a cash bond or surety bond covering such derrick or the drilling of such oil well hole. Such bond shall name the city as obligee and shall be executed by the applicant as principal, and except for a cash bond, as surety by a corporation authorized to act as surety pursuant to the laws of the State.

The conditions of the bond shall be:

(a) That the City be indemnified against any expense or liability resulting from the operation or use of the land and equipment for which the license is granted.

(b) That upon cessation of operations or abandonment, the property be cleaned and made safe pursuant to this chapter and the derrick, other equipment and sumps be removed.

(c) That the licensee comply with all the terms and conditions of the license to the reasonable satisfaction of the city clerk.

(d) That the licensee comply with all the laws of the City and all other applicable laws.

(e) Such other conditions as the city attorney shall reasonably require incidental to the foregoing conditions.

The amount of the bond shall be one thousand dollars ($1,000.00) for each derrick or well drilled, or at the election of the licensee, two thousand five hundred dollars ($2,500.00) for three (3) or more derricks or wells.

The bond shall be terminated:

(a) Upon the licensee's filing with the city clerk a substitute bond in the principal sum required by this chapter.

(b) Upon the licensee's filing with the city clerk a request for release of the bond showing an abandonment of all operations for which the license was issued, or upon the revocation of such license, provided that all the conditions of the bond have been complied with to the reasonable satisfaction of the city council.

Before abandoning any oil well hole, the licensee shall give written notice of intention to abandon to the city clerk at the same time such notice is furnished to the state division of oil and gas, or at least five (5) days prior to the abandonment, whichever is the first of such events to occur.

(a) Where drilling is permitted hereunder on a site, the centerline of the well bore at the surface of any new well to be drilled shall not be located within thirty (30) feet of any public street or boundary of such site.

(b) Reasonable fire fighting equipment, as required and approved by the city fire chief, shall be maintained on the site at all times during drilling and production operations.

(c) Suitable sanitary facilities shall be installed and maintained during drilling, redrilling or remedial operations.

(d) All drilling mud, cuttings and other oil field waste shall be discharged into a steel tank or other receptacle. Upon completion of drilling, such tank or container and all waste material therein shall be removed from the site and the surface of the site restored to a clean and sanitary condition.

(e) Within sixty (60) days after the drilling of each well has been completed and the well has been in production or abandoned, the derrick and all drilling equipment shall be entirely removed from the site unless such derrick and appurtenant equipment is to be used within such time for the drilling of another well on the same site.

(f) Such sites and all private roads within or used for access to and from such site shall be suitably surfaced and maintained to eliminate dust.

(g) Any machinery used in the production and/or processing of substances within the site shall be designed and/or housed and operated so that noise, odor and vibration shall be limited to a minimum; noise to be limited to a level compatible with the ambient neighborhood noise level.

(h) Prior to commencement of any operation, the operator shall comply with the requirements of the division of oil and gas, State of California.

(i) All installations, structures and facilities on an operation site shall be kept painted and in good condition and together with the ground area comprising such site shall be maintained in a clean, neat and sanitary condition.

(j) That portion of site proposed for use shall be enclosed with a chain link fence or block wall having a minimum height of six (6) feet and equipped with solid gates of wall height, which gates shall be securely fastened at all times except when authorized personnel are in attendance at such site.

(k) The drilling of any well shall not be conducted in such a manner as to cause excessive noise, odor and vibration and shall be conducted pursuant to the following:

(1) Enclose the derrick and all drilling machinery used in connection with the drilling of any well, with fire resistant soundproofing material, which shall be maintained in a serviceable condition and provided further that no operations outside of said enclosure except for well logging shall be conducted between the hours of 9:00 p.m. of one (1) day and 7:00 a.m. of the following day; or

(2) Enclose all drilling machinery used in connection with the drilling of any well with fire resistant soundproofing material and the portable drilling mast shall be so enclosed, at least on three (3) sides, to a height of twenty (20) feet, and provided further, that no drilling operations or any work in connection with such drilling operation shall be conducted between the hours of 9:00 p.m. of one (1) day and 7:00 a.m. of the following day, except only that circulation of fluids and well logging may be continued during such time and in case of emergency, provided that notice of such emergency shall be given to the chief of police of such necessity and emergency at the time such emergency arises.

(l) All production shall be transported from any site by buried pipeline.

(m) Except in case of emergency, no materials, equipment, tools, or pipe used for drilling operations, or drilling mud, cuttings or oil field wastes resulting from such operations, shall be delivered to or moved from such site by trucks between the hours of 7:00 p.m. and 7:00 a.m. of the following day, provided that such delivery or removal of materials and equipment used in logging or testing shall be excepted from the provisions of this section.

(n) No permanent tanks, gauging (other than in-line meters and temporary meter provers) or other permanent shipping facilities shall be permitted on such site.

(o) Portable equipment shall be used in all remedial, rework or maintenance work and shall be removed from the site upon completion of such work.

(p) All remedial, rework or maintenance work conducted on the existing well or site shall, except in the case of necessity or emergency, be conducted between the hours of 7:00 a.m. of one (1) day and 7:00 p.m. of the same day.

(q) Site or production equipment having external moving parts hazardous to life or limb shall be enclosed with adequate type fence or screen sufficient to prevent unauthorized access thereto and shall have a minimum height of six (6) feet. Fence gates shall be placed at a non-hazardous location and shall be locked at all times when unattended.

(r) No person shall drill any oil well hole upon any land in which the City has any right, title or interest without first having obtained the written consent of the city council therefor.

(s) No person shall drill any oil well hole, the surface of which is within one hundred (100) feet from the property line of any street or highway.

(t) No person shall drill any oil well within one hundred (100) feet from any existing oil well hole, unless an exception therefor has been granted by the planning commission.

(u) Any owner of land, oil and gas lessee, or other person having the right to drill for oil and gas thereon, may apply for such exception. Such application shall include such information as is prescribed by the planning commission. It shall be filed with the planning director and shall be accompanied by a fee of thirty-five dollars ($35.00) to cover the cost of publication and the processing of the application. The planning commission shall hold a hearing on such application as soon as practicable after filing. Notice of the hearing shall be published at least five (5) days prior to the date of the hearing in the newspaper having the contract for the publication of the City's legal notices.

(v) The planning commission, after notice and hearing as aforesaid, shall grant such exception whenever, in its reasonable judgment, drilling at the location proposed by the applicant is necessary to offset the drainage of oil and gas from the land of the applicant. The applicant shall have the burden of proving such drainage.

(w) No person shall drill any oil well hole, the surface of which is within three hundred (300) feet from any property used for a school or hospital.

(x) No person shall drill any oil well hole, the surface of which is within twenty-five (25) feet from any property line or within one hundred (100) feet from any existing dwelling. Where two (2) or more contiguous parcels of land are operated as a unit, the outermost boundary lines of such parcels shall be considered the property line for the purpose of this section.

(y) No person shall carry on any oil well drilling or redrilling operations, other than circulation of mud, between the hours of 10:00 p.m. and 6:00 a.m., unless the derrick and accessory structures have been soundproofed by an acoustical blanket as provided in this section, and all doors and similar openings are kept closed except for ingress and egress; provided, however, that the provisions of this paragraph shall not apply to any well, the surface of which is three hundred (300) feet or more from any dwelling.

(z) Acoustical blankets for the drilling derrick and accessory structures shall be made of fibrous glass insulation 1-½ inches thick, 0.50 pounds per cubic foot density, .063 pounds per square foot weight, .00010 to .00015 fiber diameter (inches) with a phenolic binder having a temperature limit of 450° F. sewed between layers of fire retardant vinyl fiberglass cloth, 15-17 ounces per square yard sewed with dacron thread D-92 with stitches not more than six (6) to the inch. The lacing cord shall be flat vinyl coated tape composed of fibrous glass yard braided, heat set and bonded. The tape shall have a 90-pound tensile strength. Grommets shall be #4 brass. Provided, however, that there may be substituted for the aforesaid specifications an acoustical blanket which, in the opinion of the superintendent of building, is equal in soundproofing ability and fire resistive qualities to the aforesaid specifications.

(aa) No person shall transport any crude oil or brine by truck from any oil well production site between the hours of 10:00 p.m. and 6:00 a.m.; provided, however, that the provisions of this paragraph shall not apply to any oil well production site which is located three hundred (300) feet or more from a dwelling.

All derricks shall be maintained free from patent structural defects and free from any patent defects which might render such derrick a hazard to life or property.

All derricks hereafter constructed shall be of steel and shall meet the standards for steel derricks as prescribed in American Petroleum Institute Specifications for Steel Derricks, Fifteenth Edition, a copy of which is on file in the office of the city clerk, which is hereby incorporated by such reference into this Code and made a part hereof.

All derricks shall be dismantled and removed from any drill site within sixty (60) days after the oil well drilled thereon is placed on production.

Every oil derrick shall have on it a legible sign not less than twelve by twenty-four (12 × 24) inches with the name, address and telephone number of the owner, and the operator if different from the owner, and the number of the lease and the number of the well printed thereon.

Lights shall be installed and used during nighttime drilling on each and every derrick and at other times whenever necessary for adequate lighting.

Whenever it shall be necessary, in order to protect any property or persons thereon, the planning commission may order and require that any derrick erected be sufficiently enclosed with galvanized iron or other suitable substitute so as to prevent the escape onto public or private property, or persons thereon, of any oil, gas, mud, water, steam or other gases, fluids or substances from said well, and the licensee for such well shall, within twenty-four (24) hours after service upon him of notice of such order of said planning commission, make, or cause to be made, such enclosure.

The outlets from every exhaust of any engine or boiler used in connection with any oil well, well hole, derrick, or production equipment, shall be connected to an exhaust and muffler box of approved type or design, to prevent the emission or escape of sound, sparks or ignited carbon or soot. Said box shall be located not less than twenty (20) feet from any street, road, alley or thoroughfare, dedicated to or in use by the public. Undue noise from such exhaust is hereby prohibited.

(a) The smoke stack of every boiler used in connection with any oil well, well hole, derrick or production equipment, shall be equipped with a screen or other device of approved type or design, to prevent the escape from such smoke stack of sparks or ignited carbon or soot; provided, however, that when the top of any such smoke stack is at least thirty (30) feet above the ground level, such screen and other device may be omitted.

(b) No person shall install, maintain or operate any steam boiler within twenty-five (25) feet of the center of the well hole of any oil derrick or any tank containing gas or flammable liquid.

(c) If more than one (1) steam boiler is to be hereafter erected, maintained or operated for a particular use, such steam boiler or battery of boilers, except when housed or enclosed, or except when burners are elevated to a height of twenty-four (24) inches above the surrounding terrain, shall be completely surrounded by a dike not less than twenty-four (24) inches in height, constructed as provided hereinafter for tanks, located not less than fifteen (15) feet distant from such boiler or battery of boilers.

No person owning or operating, having possession or control of any oil well site shall conduct or permit any oil well operations thereon unless such site shall be completely enclosed by a masonry wall or by a chain link fence with a maximum mesh of two (2) inches and with a minimum thickness of sixteen (16) gauge, and which wall or fence shall be at least six (6) feet in height, and if equipped with gates, unless such gates shall be securely fastened except when being used to enclose more than one (1) well.

(a) No person shall dig or cause to be dug, any sump on any oil well site or at any other place in connection with the operation of any oil well.

(b) No person shall own or operate, or have possession of, or be in control of any oil well site on which a sump is located, or any sump used in connection with the operation of any oil well; provided, however, that the provisions of this section shall not apply to portable sumps required by the state division of oil and gas or by the regional water pollution control board.

(c) No person shall own or operate, or have possession of, or be in control of any oil well site on which a sump has been located, or of any property on which has been located a sump used in connection with the operation of any oil well, unless such sump has been drained and filled with earth to the level of the surrounding terrain.

A well shall be an idle well:

(a) Unless it has produced one (1) or more barrels of oil or other hydrocarbon substances or ten thousand (10,000) or more cubic feet of gas within any twelve-month period on or after date of passage.

(b) Where there has been a cessation of production therefrom of oil, gas or other hydrocarbon substances with an intent of the operator thereof to permanently cease production. The removal from the drill site of any part of the equipment or machinery necessary for the production of oil or gas, including, but not limited to the pumping unit, rods or tubing, shall be prima facie evidence of the intent of the operator to permanently cease production, and thereupon, the operator shall have the burden of providing that the well was not an idle well. The presence at the drill site or the operation of a derrick, drilling rig or other oil well drilling or production equipment shall not be evidence of production of oil or gas.

(c) Where the drilling, redrilling or deepening thereof has been commenced and it has not produced one (1) or more barrels of oil or other hydrocarbon substances or ten thousand (10,000) or more cubic feet of gas within twelve (12) months thereafter.

Whenever, in the opinion of the city engineer, a well is an idle well, he shall send notice thereof by registered or certified mail to:

(a) The owner of the fee simple interest in the land on which such well is situated as shown on the last equalized assessment roll;

(b) The owner of the mineral lease on which such well is situated as shown on the last equalized assessment roll; and

(c) The licensee of such well as shown on the records of the city clerk of the City. For the purposes of this section, the licensee of a well shall be deemed the operator of such well.

Within ninety (90) days after the city engineer has sent notice of an idle well; or a notice of intention to abandon a well has been given to the state division of oil and gas by the owner or the operator pursuant to section 3229 of the state public resources code or any amendment thereto, the owner and the operator shall clean and restore the drill site and the surface thereof in conformity with the following requirements:

(a) The derrick and all appurtenant equipment thereto shall be removed from the drill site.

(b) All drilling and production equipment, tanks, towers and other surface installations shall be removed from the drill site or tank farm site.

(c) All concrete, pipe, wood and other foreign materials shall be removed from the drill site or tank farm site.

(d) The oil well casing shall be cut off at the cellar floor, but in no case below sea level. Nothing shall be placed in the hole above the point of cut-off until the cut-off has been inspected by the City and found to be in compliance with all applicable provisions of law.

(e) A steel cap of not less than the same thickness as the well casing shall be welded to the casing around the entire circumference of the well casing.

(f) The rathole and all holes and depressions shall be filled and packed with native earth.

(g) All oil, waste oil, refuse or waste material shall be removed from the drill site.

The provisions of section 4-2.27 shall be suspended from the date an application for a decision or exception is filed with the planning commission as provided in section 4-2.29 below, until the decision is rendered or the exception is granted or denied.

Within thirty (30) days after notice of an idle well is sent as provided in section 4-2.26 and subject to the provisions of section 4-2.28, the owner or the operator thereof may apply to the planning commission of the City:

(a) For a decision that the well is not an idle well as defined in section 4-2.25; or

(b) If such well is an idle well, for an exception to the provisions of section 4-2.27. Such application shall be filed with the planning commission and shall be accompanied by a fee of thirty-five dollars ($35.00) to cover the cost of publication and servicing of such application and shall include such information as prescribed by the commission. The fee shall be remitted to the applicant in the event that the commission finds that such well is not an idle well.

Upon receipt of such application, the commission shall set a date, time and place for a public hearing thereon before the commission and shall send notice thereof to the applicant and to all persons having an interest in the land on which the well is situated as shown on the last equalized assessment roll. The commission may conduct the hearing in an informal manner. The rules of evidence shall not apply. The hearing may be adjourned to a future time at the discretion of the commission without the giving of further notice other than an announcement by the commission of date, time and place of such adjourned meeting.

At the conclusion of the hearing on an application for a decision that the well is not an idle well, the commission shall decide whether or not the well is an idle well in accordance with the provisions of section 4-2.25. If the commission decides that the well is an idle well, the owner and the operator thereof shall comply with the provisions of section 4-2.27.

(a) At the conclusion of the hearing on an application for an exception, the commission shall deny the application or grant the exception in whole or in part as applied for. The exception may be granted by the commission if in the judgment of the commission:

(1) The applicant has shown good cause why there has been no production for the aforesaid twelve (12) months or more period, or otherwise why there has been a cessation of production;

(2) There are practical difficulties or unnecessary hardships resulting from the strict enforcement of this chapter;

(3) It will not be materially detrimental to the public welfare, to the owners of the adjacent property and to the rights of owners of the fee simple interest in the property; and

(4) It will not substantially interfere with the orderly development of the City.

(b) If the exception is granted, the commission may impose thereon such conditions as it may deem reasonable and proper. Unless stated otherwise by the commission, the exception shall be for a period of two (2) years from the date of the application therefor. If the commission shall deny the application for an exception, the owner and operator shall comply with the provisions of section 4-2.27 or may appeal the decision of the commission to the city council.

Every person who digs, drills, excavates, constructs, owns or controls any abandoned water well or abandoned oil well, and every person owning or having possession of any premises on which any such abandoned well exists, shall cap or otherwise close the mouth of or entrance to such well in such a manner as to prevent persons from falling therein and in such a manner that such capping or covering cannot be removed by accident or inadvertence, or such persons shall fill such a well.

Whenever any person fails or refuses to perform any act required by this chapter the City may itself cap, cover or fill such well. It is not necessary to follow the provisions of this section as a condition precedent to any criminal prosecution.