Article 1. Drilling Regulations

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12-101. PURPOSE AND SCOPE. (a) For the purpose of promoting the public health, safety, sanitation and welfare and in order to preserve the beauty of the city, all mining, drilling, developing, and prospecting for oil, gas and other minerals within the corporate limits of the city is hereby restricted and regulated in accordance with the terms and conditions hereinafter set forth. (Code 1971, 10-101; Code 1983)

(b) The provisions of this article shall not apply to drilling, developing or prospecting for oil, gas or other minerals engaged in by the city or by other parties when such parties are acting as agents or employees of the city.

12-102. DRILLING PERMITS. (a) No individual, partnership, or corporation shall commence the drilling of a well for oil or gas within the corporate limits of the city, without first procuring from the governing body of the city, a permit to be issued in accordance with the terms and conditions of this article.

(b) No permit shall be available either as to drilling of such well or as to production therefrom without consent of the governing body. (Code 1971, 10-102, 105)

12-103. 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 $50. Such application shall show:

(a) The applicant has valid oil and gas leases from property owners or their assigns encompassing ten 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 the production on the tract, to be distributed to the property owners or their assigns in accordance with the number of acres owned by each lessee in the tract;

(c) The application shall be accompanied by a plat or map of such tract showing the proposed location of the well which location shall be at least 500 feet from any residential dwelling or business building, unless the record title holder of the property and all mortgagees shall authorize in writing the drilling within the above set forth limit and the same is approved by a four-fifths vote of the governing body. No such location shall be upon the public streets and alleys. The map shall show the location of each residence and all other improvements upon the tract. (Code 1971, 10-103)

12-104. SAME; DRILLING AGREEMENT. Each application also shall contain copy of a drilling agreement providing adequate protection to the parties in interest:

(a) By enclosing the drilling rig on all sides and equipping the same with adequate safety equipment, including fire extinguishers in good working order;

(b) 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 in such a manner as to prevent pollution of fresh water supplies, damage from contamination of the soil, and emission of unpleasant odors;

(c) 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. All plans and specifications must be approved by the governing body prior to the erection of the buildings;

(d) Proper plugging of abandoned or nonproducing wells to prevent damage by pollution or contamination of fresh water supplies and soil;

(e) The casing off of all salt water by means of concrete extending from the surface of the earth to a depth of approximately five feet into the anhydrate or the formation comparable thereto;

(f) All work to be done in a good and workmanlike manner to prevent any and all damage as above set forth;

(g) Any and all slush and salt water pits and storage of products produced therefrom within the corporate limits of the city is absolutely prohibited.

(h) An agreement in writing to guarantee to restore the drilling site of any and all nonproductive nonproducing wells or dry holes to the original condition as nearly as practicable as determined by the governing body. (Code 1971, 10-103; 106)

12-105. BOND; INSURANCE. (a) 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 in the amount of $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. The bond shall be renewed 30 days prior to its expiration date for each year that the permit is in force and effect.

(b) The 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 applicant's drilling, pumping, or maintenance of any well or any other structure or machinery appurtenant thereto. 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 canceled without 30 days' written notice thereof to the city.

(c) Insurance shall be in the following amounts:

(1) $100,000 for injury to any person in any one accident;

(2) $300,000 for injury to more than one person in any one accident;

(3) $100,000 for loss or damage to property in any one accident.

(Code 1971, 10-104)

12-106. EXISTING WELLS. Nothing in this article shall affect the right of any individual, partnership, or corporation from maintaining, operating or producing minerals from any gas well now in production, or the drilling of a new gas well or wells within 500 feet of any present gas well location, or the drilling of any present gas well or wells to a deeper sand without complying with the terms of this article. (Code 1971, 10-107)

12-107. WELLS OUTSIDE CITY. Nothing in this article shall prevent the authorized lessee of any mineral interest in and under the city from utilizing the mineral interests by drilling wells outside the corporate limits of the city and producing minerals from the lease by whipstocking. (Code 1971, 10-108)

12-108. REVOCATION OF PERMITS. The governing body may upon hearing, after three 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 days from the date of publication of notice of hearing in a newspaper authorized to publish legal publications in the city, revoke such permit, license or authorization. The governing body is not required to revoke a permit 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 1971, 10-109)