Signal Hill Municipal Code Ch. 16.12 Permits and Bonds

A. No person shall erect, construct, enlarge, alter, remove, demolish, or use within the city any structure, appurtenant equipment, or tank proposed, intended to be used, or used for or in connection with the drilling for or production of oil, gas, or other hydrocarbon substances, including the fixed storage of such substances without first obtaining a permit, pursuant to the provisions of this chapter and title.

B. A separate permit shall not be required for well servicing or maintenance, provided that all other permits required in this title have been first obtained.

(Ord. 90-08-1074 § 4 (part))

The permits required by this title are in addition to and are not in lieu of any permit which may be required by other provisions of the Signal Hill Municipal Code or by other governmental agencies.

(Ord. 90-08-1074 § 4 (part))

No person shall drill or redrill any well without first obtaining a permit, herein referred to as a drilling permit from the D.O.G and the city.

(Ord. 90-08-1074 § 4 (part))

A. Prior to the issuance of a drilling permit, as required by Section 16.12.030, applicants shall submit to the inspector an application form as provided by the city and the following information and accompanying material:

1. A complete legal description of the property.

2. Site plans, drawn to scale, containing the following information:

a. The boundaries and dimensions of the proposed drill site,

b. All existing and proposed buildings and structures or appurtenant facilities and their location, size, height and use on the site including, but not limited to, wells, tanks, dikes, pipelines, heaters, storage sheds, and the location of all pipelines,

c. Yards and spaces between buildings, structures, and appurtenant facilities,

d. Walls and fences and their location, height, and component materials,

e. Off-street parking locations, number of spaces, dimensions of parking area, and internal circulation pattern,

f. Pedestrian, vehicular, and service access; points of ingress and egress; and internal circulation,

g. Signs and their location, size, height, materials, and lighting,

h. Lighting locations and nature and hooding devices,

i. Location and width of existing and proposed public rights-of-way and private access roads,

j. A landscaping and irrigation plan, including a landscape program and agreement assuring performance thereunder,

k. A contour map showing topography and proposed grading for the drill site. An erosion control plan shall also be provided to guarantee protection of public property and adjacent private property from dirt, water, dust, debris, and erosion from the drill site,

l. A vicinity map showing the proximity of the drill site to any building used for human occupancy within a three hundred foot radius.

The applicant shall not be required to file any site plan within an area for which a plot plan has been previously filed unless existing tanks, fences, or other facilities and appurtenant structures are to be relocated or new tanks, fences, or other facilities and appurtenant structures are proposed;

3. A brief description of the manner in which the oil will be produced and transported if the drilling operation is successful;

4. Information concerning the source, quantity, and quality of water to be utilized in the drilling production program, the manner in which the water will be transported and stored on site, and the method of disposal of wastewater and other drilling wastes, including the location of backflow preventers;

5. A complete set of engineered drawings and specifications for all structures (other than drilling derricks, drilling masts, and blow-out equipment required by D.O.G.), tanks, mechanical and electrical systems, and high pressure systems used in drilling operations; provided that plans and specifications already on file with the city need not be resubmitted;

6. An oil spill contingency plan that specifies the location, type of cleanup equipment, description of responsibilities for monitoring equipment, disposition of wastes, and reporting incidents;

7. A phasing plan for the staging of the drilling operations, including but not limited to, an estimated timetable for project construction, operation, completion, and abandonment, as well as location and amount of land reserved for future expansion;

8. Copies of all other required permits, including but not limited to those required by D.O.G., the Long Beach fire department, Los Angeles County of Health Services, Los Angeles County Sanitation District, the Regional Water Quality Control Board and the South Coast Air Quality Management District;

9. An acoustical study prepared by a qualified acoustical engineer documenting existing ambient noise levels over a twenty-four-hour period on the drill site and within a three-hundred-foot radius;

10. Engineered public improvement plans for work, if any, in the right-of-way when required. A public works street, sewer, or water improvement bond will be required in a form and amount approved by the city engineer;

11. A faithful performance bond in conformity with the provisions contained in Sections 16.12.200 and 16.12.210;

12. Verification of liability insurance in conformity with the provisions contained in Section 16.12.240;

13. A verified statement signed by the applicant that he is duly authorized by the property owner to make and file the application, and that he has read the application and the same is true and correct;

14. The name, address, and phone number of the operator and the designated operator upon whom all notices provided by this title may be served.

B. The director may, in his sole discretion, upon finding either of the following circumstances exist with respect to the application, waive the items in subsection (A) of this section except that neither subdivisions (11), (12) and (13) of subsection (A) of this section nor the requirements contained in Section 16.16.020 of this title shall be waived in any event:

1. Certain information accompanying materials required in subsection (A) are not needed because the information is already on file with the city in conjunction with prior approvals;

2. The nature and location of a redrill does not necessitate the information or accompanying material. Criteria for waiver of information shall include but not be limited to existing land use patterns, proximity to surrounding buildings and structures, current physical condition of site, proposed size of drill site and type of operation proposed.

C. The inspector shall review all applications and information submitted pursuant to subsection (A) of this section to determine if these items are complete. Upon a determination that they are complete, the applications shall be reviewed by the city engineer and director of planning and approved or approved with conditions. In areas where a conditional use permit is required, said permit shall first be approved by the planning commission or the city council as the case may be.

(Ord. 90-08-1074 § 4 (part))

A. Permit term. On the first day of January next succeeding the issuance of a drilling permit and prior to the first day of January of each year thereafter, until the well has been abandoned, as provided in this title, an annual well permit must be obtained from the city for each well, including injection wells, whether active or inactive except for idle wells.

B. Non-compliance. No permit shall be issued to an operator who has failed to comply with the applicable regulations of this title.

C. Bonds and insurance. That evidence also be provided of performance bonds, pursuant to Section 16.12.190, liability insurance, pursuant to Section 16.12.240, and indemnification pursuant to Section 16.12.250.

(Ord. 2015-05-1475 § 4; Ord. 90-08-1074 § 4 (part))

A. Annual Idle Permit. Effective January 1, 1991, no persons shall maintain an idle well within thecity without obtaining an annual idle well permit from the inspector prior to the first day of January of each year.

B. Bonds and Insurance. That evidence also be provided of performance bonds, pursuant to Section 16.12.190, liability insurance, pursuant to Section 16.12.240, and indemnification pursuant to Section 16.12.250.

(Ord. 2015-05-1475 § 4; Ord. 90-08-1074 § 4 (part))

A. No person shall rework any well without obtaining a rework or an annual rework permit from the D.O.G. and the city.

B. A permit will be issued upon submittal by the operator of a copy of D.O.G. approval for the rework operation. Nothing shall preclude the inspector from requiring submittal and approval of additional information as may be requested, including but not limited to an acoustical study, pursuant to the requirements contained in Section 16.12.040.

C. Well servicing shall not require a rework permit.

(Ord. 90-08-1074 § 4 (part))

A. No person shall operate more than four production related tanks on any oil operation site or oil leasehold area contained with the outer boundary line as defined herein without obtaining an annual tank permit from the inspector prior to the first day of January of each year.

B. The operator of any oil production tank facility shall submit with the application for tanks more than four tanks, fees, the name, address, and phone number of a designated agent upon whom may be served any notice provided by this title.

C. Tanks not capable of holding fluids shall be removed or made serviceable.

D. Provisions of this section shall not apply to refinery, tank farm or unit facilities tanks.

(Ord. 90-08-1074 § 4 (part))

Wastewater shall not be discharged into the city's sanitary sewer system unless an annual industrial waste permit has been issued by the city per Chapter 13.06 of this code.

(Ord. 90-08-1074 § 4 (part))

There shall be no connection to any city sewer lateral or main until a sewer connection permit has been obtained from the city.

(Ord. 90-08-1074 § 4 (part))

A. Except for routine operating maintenance or well servicing, no person shall erect, construct, enlarge, alter, move, remove, convert or demolish any structure, or tank, or appurtenance on any oil operations site or cause the same to be done, without first obtaining all permits required pursuant to Title 15 of this code.

B. Annual Electrical Permit. In lieu of individual electrical permits for each electrical repair or alteration as may be required to maintain oil production facilities including tank farms, refineries, and loading facilities, operators may obtain and an annual electrical permit subject to annual review by the city.

(Ord. 90-08-1074 § 4 (part))

No abandonment, reabandonment, or other alteration shall be made into or on a previously abandoned oil, gas, or injection well in the city unless ordered by D.O.G. until a permit and inspection fee for such work has been approved and issued by the inspector.

(Ord. 90-08-1074 § 4 (part))

A. All permit fees and deposits shall be set in the amounts prescribed by resolution of the city council.

B. Such permit fees shall not exceed the estimated reasonable cost of providing the services required by the city to fully effectuate and implement this chapter and shall be levied and collected in accordance with all requirements of state law.

C. Permit fees payable under this chapter shall not be refundable in whole or in part.

(Ord. 90-08-1074 § 4 (part))

If any fee required to be paid in this chapter is not paid within thirty days from the time it becomes due or from the billing date, whichever is later, and payable, the same shall become delinquent, and a late fee shall be added thereto for each month for such delinquency, and shall be collected as part of such fee. The amount of the late fee shall be as prescribed by resolution of the city council.

(Ord. 90-08-1074 § 4 (part))

Each and all of the delinquent fees required by this chapter shall constitute a lien upon the related production well, idle well, appurtenant equipment and storage facilities for which permits provided in this chapter are required, and upon the property upon which the facility is located.

(Ord. 90-08-1074 § 4 (part))

Each of the persons whose duty it is to obtain any permit shall be declared and made to be jointly and severally liable for payment of the fee required to be paid.

(Ord. 90-08-1074 § 4 (part))

A. All permits, with the exception of required annual permits, issued pursuant to provisions contained in this chapter shall not be valid unless utilization of the privileges granted are commenced within one year from and after the date of issuance of the permit, or if after commencement, such activity is suspended or abandoned at any time for a one year period of time.

B. The provisions of this section shall not apply to permits issued pursuant to Title 15 of this code.

(Ord. 90-08-1074 § 4 (part))

No permit issued under this chapter may be assigned or otherwise transferred without first obtaining the written approval of the oil services coordinator, and any such assignment or transfer made or attempted to be made without such written approval shall be null and void and is without any force or effect whatsoever. The oil services coordinator shall approve of the assignment or transfer upon verification that the leasehold is in compliance with all provisions of the code. Transfer or assignment shall not be made if the permit holder is in violation of any provision of this municipal code.

(Ord. 90-08-1974 § 4 (part))

A. Each operator as herein defined shall post a faithful performance bond or bond rider for all operations under this chapter including but not limited to: drilling, redrilling, servicing, maintenance of oil field sites, pipelines and appurtenant facilities, landscaping, tanks, fences.

This faithful performance bond shall be in addition to any public works improvement bonds required by other provisions of the municipal code or statute of the state of California.

B. Bonds existing on the effective date of the ordinance codified in this title which are in compliance with the previous Signal Hill Oil Code shall remain in effect according to their terms, and need not be raised to the bond amount contained in Section 16.12.200.

C. Cash deposits or certificates of deposit may be accepted in lieu of required bonds if provided in a form satisfactory to the city attorney and the finance director.

(Ord. 90-08-1074 § 4 (part))

A. Bonds or riders to existing bonds shall be on a form approved by the city attorney and shall be filed with the department of finance. Bonds shall be issued by a corporate surety authorized to do business in the State of California with a Best's minimum policyholder rating of "A" status or better, and a Best's financial category minimum rating of Class 9 status of better, as rated by the most recent edition of Best's Key Rating Guide, or a surety approved by the D.O.G. or as otherwise approved by the city in the event such rating system is modified. The principal amount of any bonds specified may be increased by the city to reflect inflation, increased risk of losses and other factors.

B. Single Bonds. Corporate surety bonds in the penal sum of six thousand dollars 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 this title and any other ordinance, law, rule, or regulation of the city which in any manner pertains or applies to any of the principal's drilling or redrilling activities. The bond shall secure the city against all costs, charges, and expenses, including legal costs incurred by it for the failure of the principal to fully comply with the provisions of the Signal Hill Municipal Code. The bond shall include the correct name or number of the well and the surveyed location as recorded by D.O.G.

C. Blanket Bonds. Any operator may, in lieu of filing a single bond for each well, as required by subsection (B) of this section, file a bond in the amount of twenty five thousand dollars to cover all of this operations conducted within the city. A rider to said bond shall be filed with the department of finance showing the correct name or number of the well and the surveyed location as recorded by D.O.G. for each well covered by the bond.

(Ord. 90-08-1074 § 4 (part))

A. Notice Required. Whenever the inspector finds that a default has occurred in the performance of any drilling or redrilling requirement or condition of the Signal Hill Municipal Code, a written notice shall first be issued to the operator or the authorized agent. If no response is received within fifteen days a notice shall first be issued to the operator of the authorized agent. If no response is received within fifteen days, a written notice shall be given to the principal and to the surety of the bond.

B. Contents of Notice. Such notice shall specify the work to be done, the estimated cost thereof, and the period of time deemed by the department to be reasonably necessary for the completion of such work.

C. After receipt of such notice, the surety shall, within the time therein specified, cause the work to be performed, or failing therein, shall pay the director of finance one hundred twenty-five percent of the estimated cost of doing the work as set forth in the notice, but not exceeding the amount of the bond.

D. Upon receipt of such monies, the department and/or oil services coordinator may in such a manner as it may deem convenient to cause the required work to be performed and completed.

E. In the event the surety does not cause the work to be performed and fails or refuses to pay over to the city the estimated cost of the work to be done as set forth in the notice, the city may proceed to obtain compliance by way of civil action against the surety or by criminal action against the principal, or by both methods.

(Ord. 90-08-1074 § 4 (part))

A substitution bond may be filed in lieu of any bond on file hereunder, and the department of finance may accept and file the same if it is qualified and in proper form and substance and approved by the finance director and the city attorney and the bond for which it is substituted shall be exonerated but only if the oil services coordinator finds that all of the conditions of last-mentioned bond have been satisfied and that no default exists as to the performance upon which the bond is conditioned.

(Ord. 90-08-1074 § 4 (part))

Any bond issued for drilling or redrilling shall be terminated and canceled and the surety be relieved of all obligations thereunder when the with has been fully and finally abandoned in conformity with all regulations of this title and in conformity with all regulations of D.O.G.

(Ord. 90-08-1074 § 4 (part))

A. Operators shall maintain a comprehensive general liability insurance policy, including coverages for: sudden and accidental pollution including the cost of environmental restoration; underground resources coverage and completed operations. The policy shall insure the city against all costs, charges and expenses incurred by it for clean-up of sudden and accidental pollution. The insurance policy shall name the city as an additional insured for third party liabilities arising from any oil operations insured under the certificate during the period of coverage. The insurance deductible must be no greater than ten thousand dollars. The policy shall provide for a thirty day cancellation notice to the city in the event the policy will be terminated for any reason except nonpayment of premium in which case the notice period shall be ten days. The policy shall be in an amount equal to one million dollars per occurrence.

B. Self-insurance. Notwithstanding the foregoing requirements for insurance, no such insurance policy shall be required if the grantee customarily self-insures the risks covered by the required insurance, and has presented to the city:

1. A certification evidencing such facts, which certification has been approved by the city as sufficient and by the city attorney as to form, to which is attached the following agreement:

In consideration of City allowing permittee to self-insure the risks in lieu of a policy of liability insurance, operator agrees to indemnify and keep and save free and harmless and defend the City, its officers and employees from and against any and all loss, claims, or demands of any kind or nature whatsoever for death, injury, or loss to persons or damage to property, including property or facilities owned by the City, its officers or employees, or any of them, which any person may sustain or incur or which may be imposed upon them, or any of them, arising out of, or in any manner incident to operator's operations authorized by, pursuant to, or in furtherance of any of the activities covered by the permit.

2. Certified financial statements showing the financial condition of the operator as of a date of more than one year prior to operator's application for the permit, which statement has been certified by a certified public accountant by operator's proper officials to be true and correct and which reflects a net worth of the operator in excess of five times the amount of limits of liability as established herein. The statement must be approved by the city as to sufficiency and by the city attorney as to form.

(Ord. 90-08-1074 § 4 (part))

The operator shall indemnify, defend and hold the city, and their elected officials, officers, agents, and employees free and harmless from all actions, suits, claims, demands, liability, costs, and expense, including prosecution claimed or established against them, or any of them, for damage or injuries to persons or property of whatsoever nature, arising out of or in connection therewith:

A. The acts or omissions of operator, its servants, agents, or employees, or to which operator's negligence shall in any way contribute;

B. Arising out of the operator's failure to comply with the provisions of any federal, state, or local statute, ordinance, or regulation applicable to the operator in its business hereunder.

(Ord. 90-08-1074 § 4 (part))