It is unlawful for any person to drill or commence operations for the drilling of a well or wells for oil and gas production at any place within the city limits, without first having obtained from the governing body a permit for the commencement of such operations for the drilling of the well. The applicant for such permit shall, at the time of making such application, deposit with the city clerk a fee of $500 and in the event such permit is granted the fee shall be retained by the city, but if such permit is denied, the fee is to be returned to the applicant.

(Code 1987, 15.20.010; Code 2012)

No permit for the drilling of an oil or gas well shall be granted by the governing body until the applicant shall have submitted an application containing the following information and evidence thereof:

(a)   That the applicant has a valid oil and gas lease or leases signed by persons resident of the city and owning at least 51 percent of the territory embraced by the boundaries of the area comprising the drilling location where the well is to be drilled, and which lease or leases shall be accompanied by an agreement in writing signed by all necessary parties providing for the pooling of all royalties and rentals derived from the lease or from production on the acreage contained in the drilling location, the royalties and rentals to be distributed among all the property owners in the territory embraced by the location, including leasing property owners and no leasing property owners in accordance with the number of square feet in the territory, exclusive of streets and alleys in the territory.

(b)   A map or plat of the area covered by the oil and gas lease or leases, showing the proposed location of each well, together with the written consent of the owner of the land on which the well is proposed to be located consenting to the drilling of the well on the land, and showing the location of all residences, buildings and other structures within a radius of 300 feet of the proposed drill site. The applicant shall also secure and file at the time of this application the written consent of all owners of land having thereon residence, building or other structure within a radius of 300 feet of the proposed drill site consenting to the drilling of the well at the proposed site.

(c)   A drilling agreement providing adequate protection to all persons who might be concerned with such drilling operations including the handling and disposal of slush, sediment, salt water or other material that may be produced in connection with drilling and operation of the wells in metal tanks which shall not be submerged; and the applicant shall further agree that no crude oil shall be stored within the city limits and in this connection with the storage of crude oil shall furnish information as to the proposed site for the storage of crude oil outside the city limits which location shall be subject to the approval of the city; applicant shall further agree that in the event the well is nonproductive, all tools, equipment and machinery used in connection with the drilling of the well shall be removed within 60 days after the completion thereof, and the premises be fully restored to their original condition as soon as practical.

(d)   An agreement with the lessors and with the lessee or lessees giving to the city the option to purchase all natural gas produced from the lease at a rate of not exceeding the then going market price per each 1,000 cubic feet thereof.

(Code 1987, 15.20.020; Code 2012)

All oil and gas wells commenced or drilled shall be drilled as nearly as practicable in the center of a 10-acre square geographical location; provided, however, that the governing body at the time of the granting of the license may permit such variations as may be deemed necessary in the amount of acreage required and the location of the drill site depending upon geographical factors, upon location of houses and other buildings, and topographical features of the land embraced by the location. The governing body may from time to time and shall upon the application of any interested persons, make a determination of the territory which is to be included in the drilling location of the city, which determination shall follow the standard 10-acre geographical location but in making such determination, the governing body shall not be required to split or divide any platted lot or lots; and the area or territory to be attributed to the well or wells under particular lease or leases shall be the territory described in the drilling permit issued therefore.

(Code 1987, 15.20.030; Code 2012)

(a)   No such permit shall be granted by the governing body and no oil or gas well shall be drilled or operated within the city, until the operator shall have filed with the city clerk a certificate of insurance insuring the operator against bodily injury to persons in an amount not less than $100,000 for each person and $2,000,000 for each accident and insuring the operator against damages to property in an amount not less than $1,000,000 for each accident and further insuring the operator against bodily injury from motor vehicle and trucking operations in an amount not less than $1,000,000 for each person and $2,000,000 for each accident and against property damage by reason of motor vehicle and trucking operations in an amount not less than $1,000,000 for each accident. Evidence of such insurance shall be kept on file with the city clerk continuously so long as any such well or wells are being drilled or operated within the city.

(b)   Before any such permit is granted by the governing body for the drilling of a well, the applicant shall in addition to furnishing evidence of insurance, file with the city clerk a good and sufficient operator’s bond in the amount of $100,000 with surety to be approved by the governing body conditioned that the applicant will comply with the provisions of this article and that he or she will protect the safety of person and property in the vicinity of the well from damage by reason of such drilling operations and willfully pay all such damages.

(Code 1987, 15.20.040; Code 2012)

The method of operation by any person holder, their successors or assigns, under this article shall comply with the following provisions:

(a)   Surface pipe must be set at a depth sufficient to adequately protect water supply and be cemented from ground level circulated into the pipe and completely back up the outside of pipe to ground level.

(b)   Adequate well head safety device shall be used to prevent well blowout.

(c)   The entire drilling rig, together with its equipment, shall be fenced, and adequate measures shall be taken to protect persons and property from blowing oil or gas.

(d)   All slush ponds and pits shall be of metal type and shall not be submerged.

(e)   Pumping units shall be surrounded and enclosed with a six-foot chainlink fence and on top of the fence there shall be protruding extension of three barbed wires at a 45 degree angle to the outside and construction and erection of the fence shall be subject to such plans and specifications as may be required by the city engineer.

(f)    A retaining wall constructed of seven inch or eight inch pipe shall be placed around the piping unit, or in lieu thereof, a reinforced concrete curb may be erected which shall conform to the requirements of the city engineer and the area therein shall be filled with chat or crushed rock.

(g)   All pumping units must be electrically driven with power belt shield.

(h)   All crude and transmission lines shall meet with the American Petroleum Institute specifications, and wherever the transmission lines cross a thoroughfare they must be constructed in accordance with the regulations of the state, and such transmission lines must be at least two feet from any utility line and shall be laid only upon the approval and subject to the direction of the city engineer. All salt water produced from any well in the city must be disposed of according to the regulations promulgated by the Kansas State Corporation Commission, and salt water shall not be left standing in any pit or slush pond.

(i)    All pumping units must be kept in a clean tidy condition and must be kept well painted.

(Code 1987, 15.20.050; Code 2012)