§ 9. DRILLING OF OIL AND GAS WELLS REGULATED  


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  • A.

    DEFINITIONS

    For the purpose of this section, and for all purposes under this section, the following words and terms wherever and whenever used or appearing in this section shall have the scope and meaning hereinafter defined and set out in connection with each. All technical or oil and gas industry words and phrases used herein and not specifically defined herein shall have that meaning customarily attributable thereto by prudent operators in the oil and gas industry.

    (1)

    Person shall include both the singular and the plural; and shall mean and include any person, individual, firm, partnership, association, corporation, club, society, cooperative, trust, municipal corporation, or political subdivision whatsoever.

    (2)

    Well shall include and mean any hole or holes, bore or bores, to any sand, any formation, strata or depth of the purpose of producing and recovering any oil, gas, liquid hydrocarbon, or any of them.

    (Ordinance No. 3-79 of April 9, 1979)

    (3)

    New Well Permittee shall mean the person to whom is issued a permit for the drilling and operation of a new well under this section, and his or its administrators, executors, heirs, successors, and assigns.

    (4)

    Old Well Permittee shall mean the person to whom is issued a permit for the redrilling, working-over, recompletion, and reoperation of an old or existing well under this section, and his or its administrators, executors, heirs, successors, and assigns.

    (5)

    Permittee shall include both an "old well permittee" and a "new well permittee".

    (Ordinance No. 08-82 of May 13, 1982)

    (6)

    Lease as the term is used herein shall mean any tract of land subject to an oil, gas, and mineral lease or other oil and gas development contract, or any unit composed of several tracts and leases but operated as one (1) lease, and any tract of land in which the minerals are owned by an operator or someone holding under it or him, but which, due to the fee royalty ownership is developed and operated as a separate tract.

    (7)

    Block as that term is used herein shall not be misconstrued to mean drilling block, but block of land only.

    (Ordinance No. 3-79 of April 9, 1979)

    B.

    PERMITS

    (1)

    New Well Permit

    It shall be unlawful and an offense for any person acting either for himself or acting as agent, employee, independent contractor, or servant of any other person, to commence to drill, to drill or to operate, any new well within the city limits of the City of Santa Fe, Texas, or to work upon or assist in any way in the prosecution or operation of any such new well, without a new well permit for the drilling and operation of such new well having first been issued by the authority of the city council of the City of Santa Fe, Texas, in accordance with the terms of this section.

    (Ordinance No. 08-82 of May 13, 1982)

    (2)

    Old Well Permit

    It shall be unlawful and an offense for any person acting either for himself or acting as agent, employee, independent contractor, or servant of any other person, to commence to redrill, workover or to recomplete or reoperate any well, old or existing, within the city limits of the City of Santa Fe, or to work upon or assist in any way in the prosecution or operation of any such well, without an old well permit for the redrilling and reoperation of such well having first been issued by the authority of the city manager of the City of Santa Fe in accordance with the terms of this section.

    (Ordinance No. 11-90 of June 26, 1990)

    C.

    STREETS AND ALLEYS

    No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is within any of the streets or alleys of the City of Santa Fe; and no street or alley shall be blocked or incumbered or closed in any drilling or production operation except by special permit by order of the city council of the City of Santa Fe, and then only temporarily.

    (Ordinance No. 3-79 of April 9, 1979)

    D.

    WELL LOCATION

    (1)

    Well Location—Subdivisions

    All drilling for gas and oil wells in recorded subdivisions shall be restricted to the location of existing oil and gas wells, or within a radius of not more than fifty (50) feet of such existing wells. This subsection shall apply only to acreage which has been subdivided into home sites the size of which are one (1) acre or less. Whenever acreage has been so subdivided, the provisions of this subsection shall apply when the plat thereof has been filed for record in the Office of the County Clerk of Galveston County, Texas.

    (2)

    Well Location-Dwellings, Schools, Buildings, Etc.

    No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is nearer than seven hundred fifty (750) feet of any residence, commercial building or water well without the applicant having first secured the written permission of the owner or owners thereof. No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is nearer than seven hundred fifty (750) feet of any school without the applicant having first secured the written permission of the person or persons in control of any such school or schools. No drilling and no permit shall be issued to any well nearer than seven hundred fifty (750) feet to city-owned buildings or water wells without written permission from the City of Santa Fe, Texas.

    (Ordinance No. 01-85 of January 3, 1985)

    E.

    APPLICATION AND FILING FEE

    (1)

    New Well: Every application for a permit to drill and operate a new well shall be in writing, signed by the applicant, or by some person duly authorized to sign same on his behalf, and it shall be filed with the city secretary and be accompanied with a non-refundable filing fee of seven thousand five hundred dollars ($7,500.00) in cash. No application shall request a permit to drill and operate but one (1) well, the said application shall include full information including the following:

    (a)

    The date of said application.

    (b)

    Name of applicant.

    (c)

    Address of the applicant.

    (d)

    Proposed site of the well, including:

    (i)

    Name of the fee owner.

    (ii)

    Name of the lease owner.

    (iii)

    Brief description of the land.

    (e)

    Type of derrick to be used.

    (f)

    The proposed depth of the well.

    (g)

    A statement that it is understood and agreed that for any legal action or undertaking, venue for all suits shall lie in Galveston County under any provision of this section.

    (2)

    Old Well: Every application for a permit to redrill or workover or to recomplete any well within the City of Santa Fe shall be in writing signed by the applicant or by some person duly authorized to sign same on his behalf, and it shall be filed with the city secretary and be accompanied with a non-refundable filing fee of two hundred fifty dollars ($250.00) cash. No application shall request a permit to redrill, or workover or to recomplete but one (1) well and said application shall include full information including the following:

    (a)

    The date of said application.

    (b)

    Name of the applicant.

    (c)

    Address of the applicant.

    (d)

    Location of well site.

    (e)

    Type of work and equipment to be used.

    (f)

    Length of work anticipated.

    (g)

    A statement that is understood and agreed that for any legal action or undertaking, venue for all suites shall lie in Galveston County under any provision of this section.

    The term of this permit shall be for a period of six (6) months from the date of issue. Subsection H shall apply to such applicant.

    (Ordinance No. 02-89 of February 9, 1989)

    F.

    ISSUANCE OR REFUSAL OF PERMIT

    The city council, within twenty (20) days after the filing of the application for a permit to drill and operate a well, shall determine whether or not said application complies in all respects with the provisions of this section, and if it does, the city council shall then fix the amount of the principal of the bond and insurance provided for in subsection H herein, and after such determination shall issue a permit for the drilling and operation of the well applied for. Each permit issued under this section shall:

    (1)

    By reference have incorporated therein all the provisions of this section with the same force and effect as if this section were copied verbatim in said permit.

    (2)

    Specify the well location with particularity to lot number, block number, name of addition or subdivision, or other available correct legal description.

    (3)

    Contain and specify that the term of such permit shall be for a period of six (6) months from the date of the permit and as long thereafter as the permittee is engaged in drilling operations with no cessations of such operation for more than ninety (90) days, or oil or gas is produced in commercial quantities from the well drilled pursuant to such permit, provided that if at any time after discovery of oil or gas the production thereof in commercial quantities shall cease, the term shall not terminate if the permittee commences additional reworking operations within ninety (90) days thereafter, and if they result in the production of oil or gas, so long thereafter as oil or gas is produced in commercial quantities from said well.

    (4)

    Contain and specify such conditions as are by this section authorized.

    (5)

    Specify the total depth to which the well may be drilled not exceeding the projected depth.

    (6)

    Contain and specify that no actual operations shall be commenced until the permittee shall file and have approved an indemnity bond in the designated principal amount as so determined by the city council and conditioned as specified in subsection H hereof.

    Said permit, in duplicate originals, shall be signed by the mayor of the City of Santa Fe, and prior to delivery to the permittee shall be signed by the permittee (with one (1) original to be retained by the city and one (1) by the permittee); and when so signed shall constitute the permittee's drilling and operating license and the contractual obligation of the permittee to comply with the terms of such permit, and such bond, and this section.

    If the permit for the well be refused, or if the applicant notifies the city council in writing that he does not elect to accept the permit as tendered and wishes to withdraw his application, or if the bond of the applicant be not approved and the applicant notifies the city council in writing that he wishes to withdraw his application, then upon the happening of said events the cash deposit provided for to be filed with the application shall be returned to the applicant, except that there shall be retained therefrom by the City of Santa Fe, one hundred dollars ($100.00) as a processing fee.

    G.

    TERMINATION OF PERMIT

    When a permit shall have been issued, the same shall terminate and become inoperative without any action on the part of the city unless within ninety (90) days from the date of issuance actual drilling of the well shall have commenced. The cessation for a like period of the drilling operations or the cessation of the production of oil or gas from the well after production shall have commenced, shall operate to terminate and cancel the permit, and the well shall be considered as abandoned for all purposes of this section, and it shall be unlawful thereafter to continue the operation or drilling of such well without the issuance of another permit.

    H.

    PERMITTEE'S INSURANCE AND BOND

    In the event a permit be issued by the city council under the terms of this section for the drilling and operation of a well, no actual drilling operations shall be commenced until the permittee shall file with the city secretary of the City of Santa Fe, a bond and a certificate of insurance as follows:

    (Ordinance 02-84 of 2/9/84)

    (1)

    The bond shall be a cash bond in the principal sum of such number of dollars as has been determined by the city council of the City of Santa Fe, but not to be less than five thousand dollars ($5,000.00). Said cash bond shall be for the benefit of the city and all persons concerned, conditioned that the permittee will comply with the terms and conditions of this section in the drilling and operation of the well. Said bond shall become effective on or before the date the same is filed with the city secretary and remain in force and effect and on deposit for at least a period of six (6) months subsequent to the expiration of the term of the permit issued, and in addition the bond will be conditioned that the permittee will promptly pay off fines, penalties, and other assessments imposed upon permittee by reason of his breach of any of the terms, provisions, and conditions of this section, and that the permittee will promptly restore the streets and sidewalks and other public property of the city, which may be disturbed or damaged in the operations, to their former condition; and that the permittee will promptly clear all premises of all litter, trash, waste, and other substances used, allowed, or occurring in the drilling or producing operations, and will, after abandonment, grade, level, and restore said property to the same surface condition, as nearly as possible, as existed when operations for the drilling of the well or wells were first commenced; and that the permittee will indemnify and hold the City of Santa Fe harmless from any and all liability growing out of or attributable to the granting of such permit, including the payment of any expenses incurred by the city for reasonable attorney's fees for representation of the city for any legal action which may be filed by either party hereto by reason of seeking or recovery of damages to the city as aforesaid. If at any time, the city council shall deem any permittee's bond to be insufficient for any reason, it may require the permittee to make an additional cash bond.

    The cash bond is a condition of the permit, and as such, will remain in effect in accordance with these regulations. If at any time the permittee transfers or assigns ownership of a well, the bond posted for that well will also transfer to the new owner, permittee, administrator, executor, heir, successor, or assign. The city will not honor any reservation of bonds between the transferring parties. The transferring parties shall notify the city within thirty (30) days of the transaction.

    If after completion of the well, permittee has complied with all of the provisions of this section, such as to removing derrick, clearing premises, etc., permittee may apply to have said cash bond reduced to a sum of not less than one thousand dollars ($1,000.00) for the remainder of the time said well produces without reworking, and be given a refund of the amount of the reduction. During reworking operations, the amount of the bond shall be increased to the original amount. Once the well ceases to produce and operate and is plugged and abandoned, permittee may apply for a full refund of said bond.

    (Ordinance No. 34-98 of November 12, 1998)

    (2)

    In addition to the bond required in paragraph (1) of this subsection, the permittee shall carry a policy or policies of standard comprehensive public liability insurance, including contractual liability covering bodily injuries and property damage, naming the permittee and the City of Santa Fe, in an insurance company authorized to do business within the State of Texas, said policy or policies in the aggregate shall provide for the following minimum coverages:

    (a)

    Bodily injuries: $1,000,000.00-one person $3,000,000.00-one accident

    (b)

    Property damage: $1,000,000.00

    (3)

    Permittee shall file with the city secretary of the City of Santa Fe, Texas, certificates of said insurance as above stated, and shall obtain the written approval thereof by the city secretary of the City of Santa Fe, Texas, who shall act thereon within ten (10) days from the date of such filing. Said insurance policy or policies shall not be canceled without written notice to the city secretary of the City of Santa Fe at least ten (10) days prior to the effective date of such cancellation. In the event that said insurance policy or policies are canceled, the permit granted shall terminate, and permittee's rights to operate under said permit shall cease until permittee files additional insurance as provided herein.

    (4)

    If, after completion of a well, permittee has complied with all of the provisions of this section, such as to removing derrick, clearing premises, etc., he may apply to the city council to have said insurance policies reduced as follows:

    (a)

    Bodily injuries, fifty thousand dollars ($50,000.00) one (1) person; one hundred thousand dollars ($100,000.00) one (1) accident.

    (b)

    Property damage, fifty thousand dollars ($50,000.00), for the remainder of the time said well produces without reworking. During reworking operations the amount of the insurance policy or policies shall be increased to the original amount.

    (Ordinance No. 02-84 of February 9, 1984)

    I.

    APPOINTMENT OF OIL AND GAS INSPECTION COMMITTEE

    The city council may appoint an oil and gas inspection committee and said committee may be removed at the will of said city council. It shall be the duty of the oil and gas committee to enforce the provisions of this section.

    J.

    DEEPER DRILLING

    (1)

    Once any well has either been completed as a producer or abandoned as a dry hole, it shall be unlawful and an offense for any person to drill such well to a deeper depth than that reached in the prior drilling operations without the permittee as to such well obtaining a supplemental permit after filing a supplemental application with the city secretary specifying:

    (a)

    The then condition of the well and the casing therein;

    (b)

    The depth to which it is proposed such well be deepened;

    (c)

    The proposed casing program to be used in connection with proposed deepening operations;

    (d)

    And evidence of adequate current tests showing that the casing strings in said well currently pass the same tests as are in this section provided for in case of the drilling of the original well.

    (2)

    In the event the city council is satisfied that said well may be deepened with the same degree of safety as existed in the original well, a supplemental permit may be issued without additional filing fee to the permittee, authorizing the deepening and operation of the well to such specified depth as applied for. In any deeper drilling or any deeper completion or any deeper production operations, the permittee shall comply with all other provisions contained in this section and applicable to the drilling, completion, and operation of a well or wells.

    K.

    DERRICK AND RIG

    It shall be unlawful and an offense for any person to use or operate in connection with the drilling or reworking of any well within the city limits of Santa Fe, any wooden derrick, and all engines shall be equipped with adequate mufflers approved by the city council; or to permit any drilling rig or derrick to remain on the premises or drilling site for a period longer than sixty (60) days after completion or abandonment of the well. At all times from the start of erection of a derrick, mast, or a gin-pole, until the well is abandoned and plugged or completed as a producer and enclosed with a fence as herein provided, the permittee shall keep a watchman on duty on the premises at all times; provided, however, it shall not be necessary to keep an extra watchman on duty on the premises when other workmen of permittee are on said premises.

    (1)

    No electric lighting generator shall be placed or remain nearer than one hundred fifty feet (150') to any producing well or oil tank.

    (Ordinance No. 3-79 of April 9, 1979)

    (2)

    Any rubbish or debris which may constitute a fire hazard shall be removed to a distance of at least one hundred feet (100') from the vicinity of the wells, tanks and pump stations. All waste shall be burned or disposed of in such manner as to avoid creating a fire hazard or polluting streams of fresh water strata. All waste disposal plans shall be approved by the city council. Failure to obtain such approval prior to disposal shall result in a penalty as defined in chapter 4, section 9, paragraph CC-PENALTY.

    (Ordinance No. 08-84 of June 4, 1984)

    (3)

    No forge or open light shall be placed inside the derrick of a well showing oil or gas.

    (4)

    All oil and gas pipe lines laid upon or across a public road or highway must be buried to a reasonably safe depth.

    (5)

    Wherever available and practicable, electric light and power shall be installed in congested drilling areas.

    L.

    PITS

    Either earthen or steel slush pits shall be permitted in connection with the drilling operation. In the event a steel pit is used, said pit and its contents shall be removed from the premises and the drilling site within thirty (30) days after completion of the well. In the event an earthen slush pit is used, same shall be filled and leveled within one hundred twenty (120) days after completion of the well.

    M.

    CASING

    All casing, including surface protection and production strings, shall be either seamless steel, or equivalent quality oil well casing. Each production string of casing must comply with at least the following minimum internal pressure yield strength, computed in accordance with A.P.I. Standards, to wit:

    Depth of String
    in Feet
    Internal Pressure
    Rating (psi)
    7" Casing
    0'- 3,400' 2,720 lbs.
    3,400'- 4,400' 3,740
    4,400'- 5,850' 4,360
    5,850'- 7,650' 6,340
    7,650'- 9,450' 7,240
    9,450'-11,300' 8,160
    5½" Casing
    0'- 4,400' 3,110 lbs.
    4,400'- 5,600' 4,270
    5,600'- 6,900' 4,810
    6,900'- 8,000' 5,320
    8,000'-10,005' 7,740

     

    Each joint and length of each particular casting string shall have, prior to setting, unconditionally passed a complete cold water test.

    N.

    SETTING AND CEMENTING CASING

    No well shall be drilled within the city limits of Santa Fe without properly setting surface casing to a minimum depth of fifteen hundred feet (1,500'). No well shall be drilled within the city limits of Santa Fe without cementing the surface casing by the pump and plug method with sufficient cement to completely fill all of the annular space behind such casing to the surface of the ground; and without cementing the production string by the pump and plug method with sufficient cement to completely fill all the annular space behind the production string to at least six hundred feet (600') above the highest oil and/or gas bearing horizon; and in the event a protection string of casing be required under the terms of this section, without cementing the protection string by the pump and plug method with sufficient cement to completely fill all the annular space behind the protection string to at least six hundred feet (600') above the highest oil and/or gas bearing horizon.

    O.

    VALVES AND BLOW-OUT PREVENTERS

    No well shall be drilled within the city limits of Santa Fe without properly equipping the surface casing when set with at least one (1) master valve, and without properly equipping the protection casing when set with at least one (1) master valve and one (1) fluid-operated ram type blowout preventer; and without properly equipping the production casing during completion operations and workover operations with at least one (1) master valve and at least one (1) fluid-operated ram type blow-out preventer. On each well drilled, a valve cock or kelly cock shall be installed on the kelly used. Each blow-out preventer shall test five thousand (5,000) pounds and its mechanical operation shall be tested at least once every eight (8) hour period and all control equipment shall be in good working condition and order at all times.

    P.

    DRILLING FLUID

    No well shall be drilled within the city limits of Santa Fe without using mud as the drilling fluid after the setting of surface casing as provided in subsection N hereof. Prior to the time the well reaches a total depth of five thousand feet (5,000') or the depth of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the mud laden drilling fluid shall be at all times maintained at not less than ten (10) pounds per gallon. After the well reaches a total depth of five thousand feet (5,000') or the depth of the first known or encountered oil or gas bearing horizon, whichever is the lesser depth, the weight of the mud laden drilling fluid shall be at all times maintained at such weight as will provide a hydrostatic head of not less than five hundred (500) pounds per square inch in excess of the formation pressure. In reworking a well, a drilling fluid shall be at all times maintained at such weight as will provide a hydrostatic head of not less than five hundred (500) pounds per square inch in excess of the formation pressure.

    Q.

    DRILL STEM TESTS

    It shall be unlawful and an offense for any person in connection with the drilling or reworking operations of any well within the city limits of Santa Fe to take and to complete any drill stem test or tests except during daylight hours and then only if the well effluent during the test is produced through an adequate oil and gas separator to storage tanks, and the effluent remaining in the drill pipe at the time the tool is closed is flushed to the surface by circulating drilling fluid down the annulus and up the drill pipe.

    R.

    TUBING

    All tubing used in any well within the city limits of Santa Fe shall be seamless steel tubing having not less than a minimum internal pressure yield strength of five thousand two hundred eighty (5,280) pounds per square inch if used in connection with a well completion at a depth not exceeding seven thousand feet (7,000'), or less than a minimum internal pressure yield strength of seven thousand two hundred sixty (7,260) pounds per square inch if used in connection with a well completion at a depth in excess of seven thousand feet (7,000').

    S.

    BRADENHEAD

    Each well drilled within the city limits of Santa Fe shall be equipped with a bradenhead with a working pressure of not less than three thousand (3,000) pounds per square inch. Bradenheads shall not be welded. The bradenhead installed on the surface casing shall be set above ground level and shall be equipped with fitting having a working pressure rating of not less than three thousand (3,000) pounds per square inch. The bradenhead pressure shall be checked at least once each calendar month and if pressure is found to exist, proper remedial measures shall be taken immediately to eliminate the source and the existence of the pressure.

    T.

    CHRISTMAS TREE AND WELL HEAD CONNECTIONS

    The christmas tree and all well head connections on each well drilled within the city limits of Santa Fe shall be as follows: on all flowing wells completed at a depth of above four thousand feet (4,000'), the christmas tree and well head connections shall have at least a minimum working pressure of two thousand (2,000) pounds per square inch and a minimum test pressure of at least four thousand (4,000) pounds per square inch; and on all wells completed to a depth of from four thousand one feet (4,001') to seven thousand feet (7,000'), the christmas tree and well head connections shall have at least a minimum working pressure of three thousand (3,000) pounds per square inch and a minimum test pressure of at least six thousand (6,000) pounds per square inch; and on all wells completed below a depth of seven thousand feet (7,000'), the christmas tree and well head connections shall be at least a minimum working pressure of five thousand (5,000) pounds per square inch and a minimum test pressure of at least ten thousand (10,000) pounds per square inch. All piping and fittings connecting the well head to an oil gas separator shall have at least the same minimum working pressure and minimum test pressure as hereinabove specified for christmas tree and well head connections. In the event the surface shut-in pressure of any well in the city limits of Santa Fe exceeds two thousand (2,000) pounds per square inch, the flowing of the christmas tree shall be equipped with an automatic closing safety valve in addition to the regular control valves.

    U.

    PREMISES TO BE KEPT CLEAN AND SANITARY

    The premises shall be kept in a clean and sanitary condition, free from rubbish of every character, to the satisfaction of the City of Santa Fe, at all times drilling operations or reworking operations are being conducted, and as long thereafter as oil and/or gas is being produced therefrom.

    V.

    MUFFLERS REQUIRED

    Motive power for all operations after completion of drilling operations shall be electricity or properly muffled gas, gasoline, or diesel engines. Such mufflers are to be approved by the oil and gas committee or the city council prior to their use.

    W.

    STORAGE TANKS AND SEPARATORS

    It shall be unlawful and an offense for any person to use, construct, or operate in connection with any producing well within the city limits of Santa Fe, any crude oil storage tanks except to the extent of two (2) steel tanks for oil storage, not exceeding five hundred (500) barrels capacity each and so constructed and maintained as to be vapor tight and each surrounded with an earthen fire wall at such distance from the tank as will under any circumstances hold and retain at least one and one-half (1½) times the maximum capacity of such tank. A permittee may use, construct, and operate a steel conventional separator, and such other steel tanks and appurtenances as are necessary for treating oil, with each of such facilities to be so constructed and maintained as to be vapor tight. Each oil gas separator shall be equipped with both a regulation pressure relief safety valve and a bursting head.

    X.

    FENCE

    Any person who completes any well as a producer shall have the obligation to enclose said well, together with its surface facilities and storage tanks, by a substantial smooth net wire fence sufficiently high and properly built so as to ordinarily keep persons and animals out of the enclosure with all gates thereto to be kept locked when the permittee or his employees are not within the enclosure. It is provided, however, that in noncongested areas the city council or inspection committee, in its discretion, may waive the requirement of any fence or may designate the type of fence to be erected.

    Y.

    VENTING AND FLARING OF GAS

    No person engaged in drilling or operating any well shall permit gas to escape or be vented into the air unless said gas be flared and burned. All gas flared or burned from a torch, pipe, or any other burning device within the city limits of Santa Fe must be done in such manner so as not to constitute a fire hazard to any property; and the location of the torch, pipe, or other burning device, the construction thereof, the maintenance thereof, and the operation thereof, shall at all times be in full compliance with such regulations as may from time to time be issued by the oil and gas committee or the city council of the City of Santa Fe.

    Z.

    ABANDONMENT AND PLUGGING

    Whenever any well is abandoned it shall be the obligation of the permittee and the operator of the well to set a two hundred foot (200') cement plug in the bottom of the surface casing with the bottom of the plug one hundred feet (100') above the surface casing section; and to set a fifty foot (50') cement plug in the top of the surface casing. No surface or conductor string of casing may be pulled or removed from a well. During initial abandonment operations it will be the obligation of the permittee or the operator of the well to flood the well with mud-laden fluid weighing not less than ten (10) pounds per gallon or sufficient mud weight to yield a hydrostatus pressure five hundred (500) pounds above maximum formation pressure; and the well will be kept filled to the top with said mud-laden fluid at all times; mud-laden fluid of the above specifications will be left in the well bore below and between cement plugs. Any additional provisions or precautionary measures prescribed by the State of Texas or the Railroad Commission of the State of Texas in connection with the abandonment and plugging of a well shall be complied with by the permittee.

    (Ordinance No. 3-79 of April 9, 1979)

    AA.

    DISPOSAL OF SALT WATER

    Permittee shall make adequate provisions for the disposal of all salt water or other impurities which he may bring to the surface, and disposal to be made in such manner as to not contaminate the water supply, present or prospective, or to injure surface vegetation. The disposal process shall be approved by the city council or the oil and gas committee prior to disposal.

    (Ordinance No. 08-84 of June 4, 1984)

    BB.

    VIOLATION OF LAWS OR REGULATIONS

    Any violation of the laws of the State of Texas or any rules, regulations, or requirements of any state or federal regulatory body having jurisdiction in reference to drilling, completing, equipping, operating, producing, maintaining, or abandoning an oil or gas well or related appurtenances, equipment, or facilities, or in reference to fire walls, fire protection, blow-out protection, safety protection, or convenience of persons or property, shall also be a violation of this section and shall be punishable in accordance with the provisions hereof.

    CC.

    PENALTY

    It shall be unlawful and an offense for any person to violate or neglect to comply with any provision hereof irrespective of whether or not the verbage of each subsection hereof contains the specific language that such violation or neglect is unlawful and is an offense. Any person who shall violate any of the provisions of this section, or any of the provisions of a drilling and operating permit issued pursuant hereto, or any condition of the bond filed by the permittee pursuant to this section, or who shall neglect to comply with the terms hereof, shall be deemed guilty of a misdemeanor and shall, on conviction thereof, be fined in any sum not less than five dollars ($5.00) nor more than two hundred dollars ($200.00); and the violation of each separate provision of this section, and of said permit, and of said bond, shall be considered a separate offense, and each day's violation of each separate provision thereof shall be considered a separate offense. In addition to the foregoing penalties, it is further provided that the city council of the City of Santa Fe at any regular or special session or meeting thereof, may, provided ten (10) days' notice has been given to the permittee that revocation is to be considered at such meeting, revoke or suspend any permit issued under this section and under which drilling or producing operations are being conducted in the event the permittee thereof has violated any provision of said permit, said bond, or this section. In the event the permit be revoked, the permittee may make application to the city council of the City of Santa Fe for a reissuance of such permit, and the action of the city council thereon shall be final.

(Ordinance 3-79 of April 9, 1979)