§ 150.01 PURPOSE.
The protection of the lives of persons and property within the city and the protection of the public health, and protection from fire, gas explosions and other hazards dangerous to the public peace, health and safety, and the prevention of nuisances, requires the regulation of operations for the drilling and operation of wells, pipelines and other equipment for the production of petroleum and gas, and that for the preservation of the pubic peace, health and safety of the city and the inhabitants thereof, an emergency is hereby declared to exist. (Ord. 363, passed 6-21-65)
§ 150.02 COMPLIANCE WITH ORDINANCES AND LAWS.
In the drilling of any well or wells within the corporate limits of the city all ordinances and laws of said city in respect thereto shall be strictly followed and complied with and for the purpose of enforcing the provisions of such ordinances and laws and for the prevention of fires, explosions and other dangerous hazards, full authority for the enforcement of such rules and regulations is hereby vested in the City Council and the Police Department of the city. (Ord. 363, passed 6-21-65)
PERMIT PROVISIONS
§ 150.15 REQUIRED. It shall be unlawful and an offense for any person firm, or corporation either for himself or acting as an agent, employee or servant of any other person, firm or corporation, to engage in any work or to erect any structures, tanks, machinery, pipelines, or other appurtenances, incident to the drilling for or production of petroleum or natural gas or to operate, maintain, or permit to exist any equipment, structures or appurtenances incident to such production or to use or maintain any property or premises within the corporation limits of the city without first having been issued a permit or complying with all if the terms and conditions as provided in this chapter. (Ord. 363, passed 6-21-65) Penalty, see § 150.99
§ 150.16 SIZE OF DRILLING TRACT OR UNIT. The term DRILLING TRACT or UNIT when used in this chapter means a compact and contiguous area of land approximately square in shape containing not less than ten acres, provided that the City Council may issue a permit for a drilling tract or unit smaller in size or irregular in shape if, upon proper application, notice and hearing as hereinafter provided, the City Council finds that be reason of the manner of platting or laying out or the size of city lot or blocks or the geographical shape or location of the property involved and upon which it is sought to drill a well, a full ten-acre drilling tract or unit cannot be obtained as herein defined and that undue hardship would be created upon the owners if a drilling permit is not granted for such a drilling tract. (Ord. 363, passed 6-21-65) § 150.17 APPLICATION FOR PERMIT.
(A) (1) Before any permit for the drilling of a petroleum or gas well is issued, a written application therefor, signed by the applicant or some duly authorized person in his, her or its behalf, shall be filed with the City Clerk.
(2) The application shall state the name and address of the applicant, the location where the proposed well will be drilled and the formation to which the well will be drilled, and there shall be attached to the application a plat showing the shape and size of the drilling tract, the separate tracts or parcels of land comprising the tract and the proposed location of the well to be drilled. Wells shall be located as near the center of the unit as is practical and the circumstances permit.
(3) There shall also be attached to the application a list of all oil and gas leases or contracts with the owners of property within the drilling unit, the name and last known address of the owners of such oil and gas leases or contracts and the names and last known addresses of the owners of property situated within the drilling unit which have not been leased for oil and gas, or upon which there are no oil and gas leases or other contracts shown of record in the county.
(4) The fee for the issuance of a permit shall be $25 and each application shall be accompanied by a certified or cashiers check in that amount payable to the City Treasurer.
(5) If the application show that the applicant is not the owner of oil and gas leases or contracts covering all of the lands within the drilling tract, the applicant shall also file with the application a statement of the estimated cost of drilling, completing and equipping an oil and gas well on the unit. The application shall be duly verified before an official authorized to administer oaths in the state.
(Ord. 363, passed 6-21-65)
§ 150.18 GRANTING OF PERMIT. If the application, together with the exhibits attached thereto shows that the applicant is the owner of, or has under contract or lease all of the property within the unit and if the unit contains at least ten acres approximately in the form of a quare, the City Council shall grant a permit for the drilling of the well, provided the applicant has complied with all of the requirements of this chapter and any other ordinance of the city in relation to the drilling of petroleum and gas well. (Ord. 363, passed 6-21-65)
§ 150.19 HEARINGS ON APPLICATION.
(A) In the event that it appears that the applicant does not own leases for oil and gas or contracts concerning the same, covering all of the land within the unit, or if the drilling tract or unit does not contain at least ten acres or if the tract or unit is not square in shape, the City Clerk shall set a time and place for a hearing upon such application. The hearing shall be held not less than ten nor more than 20 days from the date of filing the application and notice of the hearing shall be given by the City Clerk by mail to the Mayor and each member of the City Council, and to the owners of any unleased land within the unit, and to the owners of oil and gas leases or contracts covering property within the unit as shown by the application. Such notice shall be so mailed at least ten days before such hearing. Copies of such notice shall also be posted in at least five public places in the city at least ten days before such hearing. The notice shall state the time and place od hearing, the name and address of the applicant and the approximate area and location of the proposed unit. The application and exhibits attached thereto shall be available for public inspection at the office of the City Clerk at a reasonable time before the hearing.
(B) At any time before the hearing any other owner or owners of oil and gas leases in the drilling tract or any owners of property within the drilling tract may file applications for a permit to drill in the unit.
(C) At the time and place fixed by the City Clerk, the City Council shall conduct a hearing on such application and all persons interested shall be given an opportunity to be heard. All witnesses shall be examined under oath and a transcript of the evidence shall be taken and filed with the City Clerk. The cost of the hearing and transcript shall be paid by the person, firm or corporation to whom a permit is granted and shall be paid before the permit is issued.
(D) The City Council shall decide whether or not the applicant, or which one of the applicants, is entitled to a permit. Preference shall be given to the applicant who has the greater portion of the area of the unit under lease. If the applicant does not have all of the land within the unit under lease or other contract, the City Council shall determine whether the estimated cost of drilling, completing and equipping the proposed well is reasonable, and if not, the City Council shall determine the sum which in its opinion is the reasonable estimated cost of these items.
(E) If a permit is granted, a notice of the decision of the City Council shall be given by the City Clerk by mail to the owners of land within the unit which is not leased for oil and gas and to the owners of oil and gas leases or contracts covering land within the unit, other than the applicant to whom the permit is issued. The $25 fee deposited by any applicant to whom a permit is not issued shall be returned to him.
(F) If a permit is issued to an applicant who does not have all of the property within the unit under lease or other contract to produce oil and gas therefrom, then the estimated reasonable cost of drilling, completing and equipping the well as determined by the City Council shall be set forth in the notice of the decision of the City Council and each addressee shall be advised to deposit his or its proportionate part of such estimated reasonable cost with the City Treasurer within ten days of the date of mailing of the notice if they desire to participate in all of the oil and gas produced from the unit. Failure on the part of any owner of property within the unit whose property is not under lease or other contract, and failure on the part of the owner of any lease or other contract covering property in the unit, other than the one to whom a permit is granted, to deposit his or its proportionate part of the estimated reasonable cost of drilling, completing and equipping the well within ten days after the date of mailing such notice shall be deemed to be an election not to participate in the produce of all of the oil and gas produced from the unit. Whether or not the owners of property lying within the unit, elect to participate in the cost of drilling, completing and equipping such well, such owners of property shall be entitled to receive their proportionate part of one-eighth royalty for oil and gas produced, saved and marketed from such well free and clear of any cost, except taxes which may accrue to such one-eighth interest.
(G) If sums are deposited with the City Treasurer for the proportionate part of the cost of drilling, completing and equipping a well as herein provided, the permittee shall, upon furnishing to the City Treasurer receipted bills showing the actual cost of drilling the well, receive such proportionate part of the deposited sum as shall be due the permittee for such sums advanced by him. If the well is abandoned and plugged at that point, the remaining sums in the hands of the City Treasurer shall be repaid to the parties who deposited them. If the well is completed and equipped, upon presentation to the City Treasurer of receipted bills for the completion and equipment expenses by the permittee, the proportionate part of such costs shall be paid to the permittee from the funds in the hands of the City Treasurer. In the event that there is then left in the hands of the City Treasurer any sum, it shall be refunded to the person who deposited the same.
(Ord. 363, passed 6-21-65)
§ 150.20 BOND REQUIRED. No permit for the drilling of any such well shall be issued until the applicant shall have file with the City Clerk good and sufficient bond in the amount of $5,000 issued by a bonding or an indemnity company authorized to do business in this state, payable to the People of the State of Illinois, for the use of any person interested and conditioned that the applicant or his or hits assigns will comply with all of the terms and conditions of this chapter in the drilling of a well as herein provided and that all drilling sites will be leveled and restored to their former condition and that all litter, machinery, derricks, buildings and other structures and equipment will be cleared and removed from the premises as soon as the same are no longer needed in connection with the drilling of the well or the production of oil or gas therefrom. (Ord. 363, passed 6-21-65)
§ 150.21 INSURANCE REQUIRED. The permittee shall before commencing any drilling operation, file with the City Clerk a certificate showing that he is insured by an insurance carrier licensed to do business in this state under a policy of insurance in which the carrier agrees to pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of any bodily injury, sickness or disease, including death at any time resulting therefrom, and because of injury to or destruction of property, including the loss thereof, sustained by any person, firm or corporation and caused by or arising out the ownership, maintenance or operation of any oil or gas well or any device or equipment used in connection therewith within said city. Said policy limits shall be in the sum of not less than $100,000 for bodily injury and $10,000 for property damage. (Ord. 363, passed 6-21-65)
§ 150.22 NUMBER OF PERMITS PER OIL AND GAS WELLS. Within the corporate limits of the city there shall be issued only one permit for one oil and gas well to be drilled on each drilling tract or unit, provided that when one or more wells shall be drilled beyond the city limits line and less than 330 feet thereof immediately adjacent to any drilling tract within the city limits or separated therefrom by a street, alley or highway, then a permit may be issued for the drilling of an additional well or wells in said drilling tract at a location not more than 200 feet from the city limits line to offset such well or wells on land situated outside the city limits, and provided further that were more than one oil and gas bearing formation underlies a drilling tract or unit, then a permit may be granted for one well to each such formation. (Ord. 363, passed 6-21-65)
§ 150.23 LIST OF CONTRACTORS AND SUB-CONTRACTORS TO BE FILED WITH CITY CLERK. Before work shall commence under any permit the holder thereof shall file with the City Clerk a written statement of all contractors and subcontractors connected with the work including the erection of the rig and the drilling of the well, and shall promptly notify said City Clerk of any change of contractor or subcontractor. (Ord. 363, passed 6-21-65)
§ 150.24 EXCAVATIONS; PERMIT REQUIRED; PLAT; FEE.
(A) It shall be unlawful and an offense for any person, firm or corporation, either as principal or agent, to make any excavation in any part of the streets, alleys, highways, sidewalks or other public property, for the purpose of drilling any well or for the purpose of laying or installing any pipe lines in or upon such property without first having obtained a permit from the City Council so to do.
(B) The applicant for such permit shall file with the City Clerk a plat showing in detail the size and exact location of such proposed excavation and the purpose for which the same will be made, and if for the laying of pipelines, the size of the pipeline, the purpose for which it will be used and the depth at which such line will be buried. Upon the granting of any such permit, the City Council may require the permittee to furnish a proper bond or to place in escrow a sufficient sum of money for the payment of any damages which are likely to accrue on account of such excavation and for the faithful performance by the permittee of his agreement to restore the land to the same or as good condition as it was prior to such excavation.
(C) The City Council may also require payment from such permittee of an annual fee or rental so long as such excavation or such pipeline is in use.
(Ord. 363, passed 6-21-65) Penalty, see § 150.99
§ 150.35 PUMPING UNITS TO BE PLACED ON ELECTRICAL OPERATION. Any and all pumping units installed on any well for the production of oil or gas shall be placed on electrical operation within 30 days of such additional time as may be granted by the City Council upon application of the operator, and same shall be housed, fenced, or otherwise enclosed to protect the public from them. (Ord. 363, passed 6-21-65) Penalty, see § 150.99
§ 150.36 DISPOSAL OF SALT WATER, OIL AND OTHER REFUSE. All salt water, oil and other refuse caused, made or produced in connection with the drilling of any well and in connection with the production of petroleum or gas shall be hauled out and disposed of outside the city limits by the operator or put into a disposal well with pipe set for injection in cement below fresh water level. (Ord. 363, passed 6-21-65) Penalty, see § 150.99
§ 150.37 RESTORATION OF PIT. Within ten days from the date on which any well is plugged or placed on pump, all pits shall be filled and leveled and the surface of the drilling site restored as nearly as may be to the condition it was in before the commencement of the drilling operation. (Ord. 363, passed 6-21-65) Penalty, see § 150.99 §
150.38 DEPTH OF SURFACE PIPE. In the drilling of any well for petroleum or gas the permittee shall set surface pipe to a depth below any and all fresh water sands which might be used in the further by the city, which depth shall be at least 260 feet. (Ord. 363, passed 6-21-65) Penalty, see § 150.99
§ 150.99 PENALTY. Any person, firm or corporation either for himself or his agent, servant, or employee, who has violates any of the provisions of this chapter or who shall be engaged in any work or the erection of any structure which shall be in violation of the provisions of this chapter, upon conviction thereof shall be deemed guilty of a an offense and fined in any sum not exceeding $200 and costs and each day such violation is continued or any structure or equipment is so unlawfully maintained or permitted to exist in violation of this chapter, shall be deemed a separate offense. (Ord. 363, passed 6-21-65)
