Chapter V · Business Regulations

ARTICLE 4. OIL AND GAS DRILLING

Sections 5-401 to 5-408 · 8 sections

5-401 Drilling permits.

It shall be unlawful for any individual, partnership or corporation to commence the drilling of a well for oil or gas within the corporate limits of the City of Satanta without procuring from the Governing Body a permit therefor, to be issued in accordance with the terms and conditions of this article.

(Code 1963, 8-500s; Code 2017)

5-402 Application for permits.

Before any permit shall be granted for the commencement of drilling operations of a well for the production of oil and gas, an application therefor shall be filed with the City Clerk, together with an application fee of Fifty Dollars ($50), such application shall show:

(a)That the applicant has valid oil and gas leases from property owners or their assigns encompassing ten (10) or more contiguous acres;

(b)A copy of the agreement between the lessee or lessees and the lessors, if more than one, providing for the pooling of all royalties arising from said production on said tract, to be distributed to the property owners or their assigns in accordance with the number of acres owned by each lessee in said tract;

(c)Such application shall be accompanied by a plat or map of such tract showing the proposed location of said well which location shall be at least five hundred (500) feet from any residential dwelling or business building, unless the record title holder of said property and all mortgages shall authorize in writing the drilling with in the above set forth limits and the same is approved by a four -fifths (4 / 5) vote of the Governing Body, and no such location shall be upon the public streets and alleys; such map shall show the location of each residence and all other improvements upon said tract;

(d)A drilling agreement providing adequate protection to the parties in interest, by enclosing the drilling rig on all sides and equipping the same with adequate safety equipment, including fire extinguishers in good working order; an agreement providing a plan for adequate disposal of brine and other fluid wastes from any producing well by piping and removing the same from within the city or by disposal wells and ln such a manner as to prevent pollution of fresh water supplies, damage from continuation of the soil, and emission of unpleasant odors; and an agreement to erect a building around the producing well after the completion thereof of the same general construction, material and design as the surrounding buildings and all plans and specifications must be approved by the Governing Body prior to the erection of said buildings; proper plugging of abandoned or nonproducing wells to prevent damage by pollution or contamination of fresh water supplies and soil; the casing off of all salt water by means of concrete extending from the surface of the earth to a depth of approximately five (5) feet into the anhydrate or the formation comparable thereto; all work to be done in a good and workmanlike manner to prevent any and all damage as above set forth any and all slush and salt water pits and storage of products produced therefrom within the corporate limits of the city is absolutely prohibited.

(Code 1963, 8-500s; Code 2017)

5-403 Bond condition.

Any applicant hereunder shall furnish a bond to be, deposited with the City Clerk, executed by the individual making the request and a surety company authorized to do business within the State of Kansas and agreeable to the Governing Body in the amount of Thirty Thousand Dollars ($30,000) to guarantee compliance with all plans, all conditions of the permit, all provisions of this article and any other ordinance passed with reference thereto, and such bond shall be renewed thirty (30) days prior to its expiration date for each year that the permit is in force and effect; and such applicant shall provide insurance by some responsible insurance company authorized to do business within the State of Kansas against injury, loss or damage for which the applicant may be liable when suffered by anyone as a result of the applicants drilling, pumping or maintenance. of any well or any other structure or machinery appurtenant thereto, and a copy of the policy of insurance shall be deposited with the City Clerk together with the certificate by the insurance company that such insurance is in effect and shall not be cancelled without thirty (30) days written notice thereof to said city, and such insurance shall be in the following amounts: One Hundred Thousand Dollars ($1000 000) for injury to any person in any one accident; Two Hundred Thousand Dollars $200,000) for injury to more than one person in any one accident; and Fifty Thousand Dollars ($50, 000) for loss or damage to property in any one accident.

(Code 1963, 8-500s; Code 2017)

5-404 Consent of council.

No permit above mentioned shall be available either as to drilling of such well or as to production therefrom, without consent of the City Council.

(Code 1963, 8-500s; Code 2017)

5-405 Restoration of drilling site.

An agreement by the applicant in writing to guarantee to restore the drilling site of any and all non-producing wells or dry holes to the original condition as nearly as practicable as determined by the Governing Body.

(Code 1963, 8-500s; Code 2017)

5-406 Wells outside city.

Nothing in this article shall prevent the authorized lessee of any mineral interests in and under the City of Satanta from utilizing said mineral interests by drilling wells outside the corporate limits of the City of Satanta and producing minerals from said lease by ship stocking.

(Code 1963, 8-500s; Code 2017)

5-407 Revocation of permits.

The Governing Body may, upon hearing, after three (3) days’ notice to the individual, partnership or corporation committing any substantial violation of any provision of this article and of the permit issued hereunder, or after the expiration of three (3) days from the date of publication of notice of hearing in a newspaper authorized to publish legal publication in the city, revoke such permit, license or authorization but the Governing Body is not required to do so if in the judgment of the Governing Body restitution is made for any damage occasioned by such violation together with adequate provisions to prevent any further violation.

(Code 1963, 8-500s; Code 2017)

5-408 Penalty.

Any person, firm or corporation violating any of the provisions of this article shall, upon conviction thereof, be fined in any sum not exceeding One Hundred Dollars ($100), or be imprisoned not to exceed thirty (30) days, or be both so fined and imprisoned. Each day of the continuance of the violation shall be considered a separate offense.

(Code 1963, 8-500s; Code 2017)