San Clemente Municipal Code Ch. 5.32 Oil and Gas Drilling Operations

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

"City" means the City of San Clemente in the County of Orange, State of California.

"Controlled drilling site" and "site" means that particular area located within any part of the City upon which surface operations for oil well drilling or other operations for the production of oil, gas or other hydrocarbon substances shall be permitted under the provisions of this chapter established and controlled as hereinafter provided.

"Nuisance" means any of the things declared to be a nuisance by Section 3479 of the Civil Code of the State of California, or Section 370 of the Penal Code of the State of California.

"Oil" means and includes oil, gas and other hydrocarbon substances.

"Person" shall mean and include one or more natural persons, associations, co-partnerships, corporations or other legal entities.

(Prior code § 32C-1)

It shall be unlawful for any person, firm or corporation to drill, re-drill, whipstock, sidetrack or deepen or to otherwise recondition any well or conduct any other operations for the drilling for or producing oil, gas or other hydrocarbon substances within the corporate limits of the City unless and until such person shall have obtained a permit therefor pursuant to the provisions of this chapter. The City reserves the right to inspect at any time all drilling operations in the City whether contemplated by this chapter or not.

(Prior code § 32C-2)

A. .....An application for any such permit or permits shall be filed and a public hearing had thereon as hereinafter provided, and at such public hearing it shall be shown:

1. That the granting of such permit and the drilling for or producing of oil thereunder will not create a nuisance. No person shall conduct any oil drilling operation in a manner that would create a noise, odor, or vibration detrimental to the health, safety or welfare of the population in the surrounding areas;

2. That the granting of such permit will not be detrimental to public health, safety or welfare;

3. That the granting of such permit and the drilling for or producing of oil thereunder in the location designated will not create a fire hazard or other hazard detrimental to the public welfare;

4. That the granting of such permit will afford equal protection to all property owners within the area affected by the granting of such permit;

5. That the granting of such permit will not deny to any property owner the enjoyment of a substantial property right granted to other owners in the vicinity affected by the permit;

6. That the granting of such permit will conserve property values and encourage the most appropriate use of land in the immediate vicinity and area affected by the granting of the permit;

7. That the granting of the permit will not be detrimental to the orderly development and expansion of the City and the direction of building development according to the General Plan of the City;

8. That the granting of the permit will not violate any deed or tract restrictions relating to any tract or property affected by the permit unless the permit is consented to or the restrictions waived in the manner specified in the deed or tract restriction or in the manner required by law; provided, however, that in the event that any applicant for permit has inadvertently obtained an oil and gas lease covering property containing such restrictions, that such applicant shall be given a reasonable opportunity to obtain a waiver of such restrictions or may be permitted to obtain a waiver of such restrictions or may be permitted to quitclaim such property;

9. That the granting of permits will not be in violation of any state law, regulation, court decision nor any City ordinance.

B. .....An adverse finding upon any one of the conditions set forth in subsection A of this section shall be sufficient cause to justify the denial of an application for a drilling and/or production permit if any such condition or conditions substantially affect the public health, safety or general welfare, or a substantial property right or rights or substantially affect the orderly development according to a well-considered and comprehensive plan and a conservation of property values.

(Prior code § 32C-3)

A. .....All oil well drilling, producing and surface operations shall be conducted from drilling sites designated by the City Council. The location, size and shape of such drilling sites shall be determined and prescribed by the City Council and may from time to time be enlarged whenever, in the judgment of the City Council, an enlargement thereof is necessary to carry out the spirit, intent and purposes of this chapter. Such drilling site or sites shall be selected and designated by the City Council after a full consideration of the purposes set forth in this chapter. Directional drilling may be permitted from the designated drill sites under the conditions herein set forth and in compliance with state laws and such other reasonable regulations, conditions, or restrictions as the City Council finds are reasonably necessary in a particular instance.

B. .....No drill site or sites shall be located upon any land or property within the City without the consent of the owner or owners thereof, unless the owner thereof has executed a lease or other instrument giving and granting to any person, firm or corporation the right to drill, prospect for, and produce oil from said property.

(Prior code § 32C-4)

Any person, firm or corporation desiring to obtain a permit to drill, redrill, whipstock, sidetrack or deepen, or to otherwise recondition any well where a new hole is made, shall make and file a written application with the City Clerk to obtain such permit to conduct such operations from a drill site to be designated by the City Council of the City, which drill site shall be used for the exploration and recovery of oil from such area as the City Council shall find may reasonably be explored, and oil, gas, or other hydrocarbons produced therefrom, in the manner and upon the conditions hereinafter set forth, and such other reasonable conditions or restrictions as may be imposed by the City Council by reason of the unusual or peculiar circumstances found to exist, and affecting a particular location or a particular application for such permit. Such drill site or drill sites shall be selected and designated with full consideration of the purposes hereinbefore mentioned and for the purpose of carrying out the spirit and intent and achieving the purposes of this chapter, and particularly with a view of protecting, safeguarding and promoting the public health, safety and general welfare, and assuring to all property owners affected by the permit, fairness and protection of substantial property rights and an equal opportunity to recover and reduce to possession any oil, gas, or other hydrocarbon substance underlying his or her property. Such application shall be in writing, duly verified under oath by or on behalf of the applicant and shall contain or be accompanied by the following information, documents and fee:

A. The name and address of the applicant;

B. A description of the land or area for which the applicant has the proprietary or contractual authority to drill upon such drill site;

C. A description of the area which the applicant seeks to explore, or from which oil, gas or other hydro-carbon substances are to be produced from the drill site requested by the applicant or designated by the City Council, if a permit is granted;

D. A scale map or plat of each proposed oil producing area showing the boundaries, location and area thereof;

E. A scale map or plat of each proposed or requested drilling site showing the boundaries, location and area thereof, the existing surface uses of the areas within such site or sites, and also the surface uses of the area within three hundred feet outside of the exterior boundaries of each proposed drilling site;

F. A statement or other information showing that the producing area and drilling site or sites, and applicant's rights in respect thereto, otherwise conform to the requirements of this chapter, entitling applicant to the requested permit;

G. A tentative plan of development and producing operations showing:

1. The method by which the applicant proposes to drill, complete and produce such wells and the type, size and kind of equipment and installations to be used in connection therewith,

2. The precautions the applicant proposes to take against fires, noise, odors and other hazards incident to drilling and other operations conducted on each such controlled drilling site,

3. The proposed routing of trucks and other traffic incident to such drilling and other operations conducted on each such controlled drilling site,

4. A landscaping plan showing the size, type and kind of walls, fences, shrubbery or other screening to be installed and maintained for concealment (a) during drilling operations and (b) thereafter so long as the controlled drilling site or sites are in use;

H. A permit fee in the amount of five hundred dollars ($500.00) shall be paid by each applicant for each well drilled or proposed to be drilled upon a controlled drilling site.

(Prior code § 32C-5)

The City Council shall not be bound to grant a permit for any drill site or drill sites requested in any application, but may designate another drill site or sites in place and stead thereof, and the City Council hereby reserves the right to determine in accordance with the provisions of this chapter, the shape, size and extent of the area that may be reasonably and successfully explored, or from which oil, gas and other hydrocarbon substances may be produced from a well or wells drilled upon any designated drill site. The determination thereof shall be made in accordance with the provisions of this chapter and with a view of carrying out the express purpose hereof.

(Prior code § 32C-6)

Upon the filing of an application as provided in Section 5.32.050, the City Council shall in its discretion either:

A. Refer said application to the City Planning Commission to hold and conduct a public hearing thereon, and for an examination, report and recommendation thereon; or

B. Fix a time and place for a public hearing thereon before the City Council.

(Prior code § 32C-7)

In the event the City Council in its discretion shall refer said application to the City Planning Commission, and the City Planning Commission either makes a report thereon in the time required herein, or does not submit to the City Council its report on such application within thirty-five (35) days (or such additional time not to exceed twenty-five (25) days, as shall be authorized by the City Council prior to the expiration of the thirty-five (35) day period) from the date of the reference of such application to the Planning Commission, then at the meeting of the City Council immediately following the expiration of the thirty-five (35) day period or at a meeting to which the matter is duly and regularly continued, (not exceeding two (2) weeks) the City Council shall set such application for public hearing before the City Council. Whenever said application is set for hearing before the City Council either as an original hearing or after receiving the report and recommendation from the City Planning Commission, or after the failure of the City Planning Commission to make a report and recommendation thereon within the time herein required, the City Council shall fix a time for the hearing of said application not less than ten (10) nor more than thirty-five (35) days, if an original hearing, and not more than twenty-five (25) days, if an original hearing, and not more than twenty-five (25) days where said application has been previously referred to the City Planning Commission, from the date of the making of the order fixing the date for such public hearing, and shall order fixing the date for such public hearing, and shall direct the City Clerk to give notice of the filing of such application of the hearing thereon. Such notice shall set forth the name and address of the applicant and the time and place and purpose of the hearing. A copy of the notice shall be posted at the City Hall and shall remain posted not less than ten (10) days prior to the date of the hearing and copies of such notice shall also be posted, not less than one (1) to each City block, within an area extending three hundred (300) feet in all directions from the exterior boundaries of any proposed drill site, and copies of such notice shall be mailed, at least ten days before date of hearing to all property owners owning property within three hundred (300) feet from the exterior boundaries of said proposed drill site, as the names and addresses of such property owners appear upon the assessment roll and records in the office of the County Assessor of the County of Orange. Said notice shall also be published not less than once prior to said hearing in a newspaper of general circulation in the City as designated by the City Council. The publication of the notice shall not be less than ten (10) days prior to date of the hearing.

(Prior code § 32C-8)

The City Council and Planning Commission shall have the power and authority to subpoena and compel the attendance of witnesses, and the production of papers and records at the hearing, to swear and examine all witnesses under oath, and may from time to time continue such hearing to a date certain, without further notice. Hearing before the Planning Commission shall be called upon notice specified in Section 5.32.080.

(Prior code § 32C-9)

A. .....At such hearing the Planning Commission or the City Council shall receive evidence relating to any matter material to the application, and give to all parties directly interested or who may be affected by the action taken in respect thereof, a reasonable opportunity to be heard and to present evidence. After the conclusion of said hearing the City Council or the City Planning Commission, as the case may be, and shall make its findings, and if it finds that:

1. That the granting of such permit and the drilling for or producing of oil thereunder will not create a nuisance;

2. That the granting of such permit will not be detrimental to public health, safety or welfare;

3. That the granting of such permit and the drilling for or producing of oil thereunder in the location specified will not create a fire hazard or other hazard detrimental to the public welfare;

4. That the granting of such permit will afford equal protection to all property owners within the area affected by the granting of such permit;

5. That the granting of such permit will not deny to any property owner the enjoyment of a substantial property right granted to other owners in said vicinity affected by said permit;

6. That the granting of such permit will conserve property values and encourage the most appropriate use of land in the immediate vicinity and area affected by the granting of said permit;

7. That the granting of said permit will not be detrimental to the orderly development and expansion of the City and the creation of building development according to the San Clemente General Plan;

8. That the granting of said permit will not violate any deed or tract restrictions relating to any tract or property affected by said permit unless said permit is consented to or said restrictions waived in the manner specified in said deed or tract restriction or in the manner required by law; provided, however, that in the event that any applicant for permit has inadvertently obtained an oil and gas lease covering property containing such restrictions, that such applicant shall be given a reasonable opportunity to obtain a waiver of such restrictions or may be permitted to quitclaim such property;

9. That the granting of said permits will not be in violation of any state law, regulation or court decision nor any City ordinance;

B. .....A permit may be granted as herein authorized, subject to all the terms, provisions and conditions thereof, and upon such other reasonable terms, conditions and restrictions as the City Council in its judgment may find reasonably necessary in the particular instance to achieve the purposes of this chapter. The City Council shall by resolution either grant or deny said application, which resolution shall set forth the findings of the City Council and its reasons for granting or denying the permit, and shall direct the City Clerk, if a permit is granted, to issue to applicants such permit or permits for authority to conduct drilling or other operations as authorized, subject to such reasonable terms, conditions and requirements as the City Council shall find and determine may be reasonably necessary in its judgment. Such permit shall be effective from the date of its issuance until revoked by the City Council as provided herein.

C. .....The City Council reserves the right to cancel, suspend or revoke any permit issued hereunder for good cause or for a violation of any of the terms or provisions of this chapter.

(Prior code § 32C-10)

Such drilling site or sites shall be located and designated as such places and in such manner as to permit the recovery of oil, gas and other hydrocarbon substances from the largest area reasonably possible by directional drilling and in such manner as to comply with the conditions set forth in Section 5.32.030 of this chapter, and the state laws, and to afford to property owners within said area an equal opportunity to recover and reduce to possession oil, gas and other hydrocarbon substances underlying their property, and in such manner as will be just, fair and equitable, and such as will protect the rights of and result in substantial justice to all concerned, and will avoid unnecessary hardship, conserve natural resources, and otherwise carry out the spirit and comply with the provisions of this chapter.

(Prior code § 32C-11)

The City Council shall take evidence and shall determine at the time of the public hearing for the granting of a permit, or a subsequent public hearing or hearings held and conducted in the same manner, the number of wells that may reasonably be drilled upon and the number of wells that may be reasonably necessary to be drilled upon and from said designated drilling site to properly recover, produce, and reduce to possession the oil, gas and other hydrocarbon substances from the area which the City Council determines in its judgment can be produced from said drilling site. Permits shall be obtained by each applicant for each well drilled upon such drilling site as hereinafter provided.

(Prior code § 32C-12)

Each applicant requesting a permit for the establishment of a drilling site must have the proprietary or contractual authority to drill for and produce oil, gas and other hydrocarbon substances from such proposed drilling site.

(Prior code § 32C-13)

Each controlled drilling site and all exterior parts thereof shall be adequately landscaped except for those portions occupied by any required structure, appurtenance or driveway, and all such landscaping shall be maintained in good condition at all times.

(Prior code § 32C-14)

Each permittee prior to commencing drilling, production or incidental operations permitted herein shall post with the City Council a corporate surety bond (to be approved as to form by the City Attorney) in the sum of five thousand dollars ($5,000.00) in favor of the City, conditioned upon the performance by the permittee of each and all of the conditions, provisions, restrictions and requirements of the permit and this chapter. No extension of time which may be granted by the City Council or any change of specifications or requirements that may be approved or required by it or any other alterations, modifications or waivers affecting any of the obligations of the permittee made by any City authority or by any other power or authority whatever shall be deemed to exonerate either the permittee or the surety of any bond posted pursuant to this section.

(Prior code § 32C-15)

No operations in connection with the drilling for and producing of oil shall be commenced unless and until a permit has been issued therefor pursuant to an application and the determination of prescribed conditions as hereinabove set forth. In addition thereto, the conditions stated in Sections 5.32.170 through 5.32.330 of this chapter shall also be required conditions under which operations shall be conducted from any controlled drilling site.

(Prior code § 32C-16)

Drilling operations shall be commenced on at least one (1) controlled drilling site within ninety (90) days from the effective date of the permit or within such additional time as the Council in its discretion may allow, and thereafter shall be prosecuted diligently to completion.

(Prior code § 32C-17)

All drilling operations shall be conducted by electric power or by internal combustion motors or steam driven equipment. If internal combustion methods or steam driven equipment are used, mufflers of modern construction, designed to reduce noise to a minimum, shall be installed upon such motors or equipment and also upon mud pump motors. Proven technological improvements and producing and drilling methods shall be adopted from time to time as they become available if capable of reducing noise, vibration, nuisance and annoyance.

(Prior code § 32C-18)

Pumping and producing operations shall at all times be carried on only by electrical power none of which power shall be generated by permittee on the controlled drilling site or in the area unless otherwise approved by the City Council.

(Prior code § 32C-19)

Drilling operations shall be carried on or conducted in connection with only one (1) well at a time by any one (1) permittee or any controlled drilling site and such well shall be brought in or abandoned before operations of the drilling of another well are commenced on such controlled drilling site; provided, however, that the City Council may permit the drilling of more than one (1) well on such controlled drilling site at any time after a discovery well has been brought in.

(Prior code § 32C-20)

A. .....All oil drilling production operations shall be conducted in such a manner as to eliminate, as far as practicable, dust, noise, vibration or noxious odors, and shall be in accordance with good engineering practice incident to drilling for and the production of oil, gas and other hydrocarbon substances.

B. .....In cases of abandonment of a well site, the testing equipment shall be dismantled and removed within sixty (60) days of drilling and testing completion. In cases of abandonment, the well shall be capped to the requirements of the City Engineering Department and State Department of Conservation, Division of Oil and Gas, and also in conformity with all other existing state and federal laws. In case of a productive well, the well shall be placed in production in a manner that shall provide a low profile and blend aesthetically with the surrounding area.

(Prior code § 32C-21)

All parts of the derrick above the derrick floor shall be enclosed with fire-resistant, soundproofing material approved by the Fire Chief of the City.

(Prior code § 32C-22)

Heavy trucking of materials, equipment or pipe used either for drilling or production operations shall be conducted to or from the controlled drilling site only between the hours of seven-thirty (7:30) a.m. and five-thirty (5:30) p.m., on any day except in case of emergency incident to unforeseen drilling or producing operations.

(Prior code § 32C-23)

No earthen sumps shall be used.

(Prior code § 32C-24)

A. .....Fire fighting equipment as required by the Fire Chief of the City shall be maintained on the site at all times during the drilling and production operations. Appropriate fire fighting and first aid equipment shall be located at the site prior to the start of any drilling operations to the satisfaction of the Fire Chief of the City.

B. .....A direct method of communication shall be established by telephone, two (2) way radio, or other acceptable method to facilitate the reporting of an emergency.

(Prior code § 32C-25)

Within sixty (60) days after the drilling of each well has been completed and said well placed on production or abandoned, the derrick and all other drilling equipment shall be entirely removed from the site and the site and surrounding areas left clean and free of refuse, including rotary mud and compounds related to the mechanics of drilling or treating the well, unless such derrick and appurtenant equipment is to be used in a reasonable time for the drilling of another well in the same site.

(Prior code § 32C-26)

No oil, gas or other hydrocarbon substances may be produced from any well hereby permitted unless all equipment necessary for such production is reasonably screened from view or installed below ground level, and maintained in accordance with applicable fire regulations.

(Prior code § 32C-27)

No production tanks and no tanks or other facilities for the storage of mud, water or oil shall be erected or maintained on the site which extend above the ground level to a height of more than eighteen (18) feet.

(Prior code § 32C-28)

No refinery or other processing plant of any kind shall be constructed, established or maintained on the site at any time.

(Prior code § 32C-29)

No sign shall be constructed, erected, maintained or placed on the site or any part thereof, except those required or permitted by law, permit or ordinance, to be displayed in connection with the drilling or maintenance of the well.

(Prior code § 32C-30)

Suitable and adequate sanitary toilet and washing facilities shall be installed on the site and maintained in a clean and sanitary condition at all times.

(Prior code § 32C-31)

Each permittee and its agents, successors and assigns who conduct drilling, production or incidental operations permitted hereunder, must at all times be insured to a limit of not less than five hundred thousand dollars ($500,000.00) against liability in tort arising from drilling, production, or other activities or operations conducted or carried on from any controlled drilling site. The policy of insurance shall be written by an insurer or insurers satisfactory to the City and the form of the policy shall be subject to the approval of the City Attorney. A duplicate policy or policies shall be filed with the City Clerk. Each such policy shall be conditioned or endorsed so as to cover all agents, lessees, or representatives of the owner, lessee or permittee who may actually conduct drilling, production or incidental operations permitted hereunder.

(Prior code § 32C-32)

The performance of any act required to be performed within a specified period of time shall be suspended during the time that the permittee is prevented from performing by the elements, accidents, strikes, lockouts, riots, delays in transportation, interference by municipal, state, or federal action, or the action of other governmental officials or bodies, or any other cause or causes beyond the reasonable control of the permittee, whether such causes are similar or dissimilar to the causes specifically mentioned.

(Prior code § 32C-33)

A. .....Each person, firm or corporation granted a drilling and/or production permit shall furnish to the City a well survey of each well showing the direction and location of the hole drilled and the exact location of the bottom of such hole or well, and shall, upon demand, furnish to the City such a survey of any well being drilled, and shall furnish a copy of the electro log (Schlumberger or equivalent) of each well. In the event it is proposed to drill a well by directional methods and penetrate or extend said hole or well through an oil producing sand or zone, detailed information shall be furnished the City Planning Commission and/or the City Council at the time of the application for permit, together with a statement of the methods proposed to be used by the applicant to protect any such producing oil sand or zone which it is proposed to drill into or through by such directional drilling, and the City Council shall have the right to impose any reasonable conditions or restrictions upon the applicant to assure itself that any oil sand or zone into or through which it is proposed to extend such well will not be materially damaged or destroyed. No well shall be bottomed in any land where the permittee does not have the proprietary or contractual authority to drill for and produce oil, gas and other hydrocarbon substances.

B. .....The electro logs furnished in accordance with this section shall not become matters of public record, but may be used by the City in connection with its subsurface water problems or conditions.

(Prior code § 32C-34)

Each permittee holding a permit under the provisions of this chapter, shall have the right and such permittee is hereby permitted, in consideration of the one hundred dollar ($100.00) controlled drilling site fee, to drill one (1) well in and upon such drilling site, but shall pay a further permit fee in the sum of one hundred dollars ($100.00) for each additional well drilled in or upon such site, which fee must be paid before drilling operations on any such additional well are commenced, and each such permittee must also obtain and at all times have and possess a valid and then current business license covering each and every well, business or activity conducted by, for, or on behalf of, such permittee in or upon the premises included within any such controlled drilling site and for which a business license is required under the provisions of this chapter or any other ordinance of the City.

(Prior code § 32C-35)

Every application for the establishment or designation of a drilling site shall set forth the boundaries of the proposed site. Such boundaries may be modified by the Planning Commission or the City Council if in their judgment such modification is reasonably necessary for the preservation and enjoyment of a substantial property owner in the area to be explored from said site; or the planning commission or the City Council may designate a drilling site other than the one (1) requested for the same reasons and to carry out the spirit and intent of this chapter, and provided that the boundaries of such proposed drilling site either as established, modified or otherwise designated will not be materially detrimental to the public welfare or injurious to property or improvements in the vicinity of its location. That such modification or designation of a drilling site shall only be made at the time of the hearing of an application for the establishment or designation of a drilling site as hereinbefore provided, or upon a hearing before the Planning Commission and/or City Council, after notice thereof as hereinbefore provided for the hearing of an application for the establishment or designation of a drilling site.

(Prior code § 32C-36)

The City Council hereby reserves the right to grant conditional variances for nonconforming uses under this chapter and under unusual circumstances when necessary to preserve substantial property rights and to prevent hardship and unfairness.

(Prior code § 32C-37)

In the event any owner, lessee or permittee shall violate any of the conditions prescribed by this chapter or any permit issued hereunder, the City Council may order the City Clerk to give such owner, lessee or permittee notice of such violation and if such owner, lessee or permittee shall fail, without just cause, to commence to remedy such violation within ten (10) days after receipt of written notice thereof from the City Clerk, then the City Council, may by resolution, suspend or cancel any permit issued hereunder; provided, however, that such suspension or cancellation shall not affect the right of the owner, lessee or permittee to continue drilling for or production of oil from wells which are then drilling or producing, and as to which no such violation exists.

(Prior code § 32C-38)

Editor's note— Ord. No. 1664, § 9, adopted Sept. 18, 2018, repealed § 5.32.090, which pertained to Penalties and derived from Prior code § 32C-39.