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5128 Oil and Gas DrillingORT>T: `A -CE I T0. 5128 F;sst ,zblisned in th© _,`iirI Jn?_rnal-____d�.�,� 1 __ 1.v 35�_---- A OR T'A,CE relating to the drilling for oil and gas ti•"rithin the limits of the City of Salina, Kansas. BE IT ORDS? =i1. TED by the Board of Cora: ii ss.-orers of the City of Salina: Section 1. 110 person, persons, partners .ir nor corporation shall co.E,:nence the drilling of a well for oil or gas within the city limits of the City of Salina, vrithout first havii_r_ procured from said city of Salina, a permit therefor to be issued by authorityn, of the Board of Corssioners of Laid city in accordance with the terms and coridit_ors of this Ordinance. Section? 2. Before any perrlit shall be granted for the co-:miencement of a well for the production of oil or gas, an application therefor shall ,�e filed with the City Clerk of Salina; such aTmlicaticn shall show: (1) That the applicant has good and valid oil and gas leases from pro-,�erty ovrners co -Tering at least a ten acre tract. (2) Evidence of a;reer:,ent in uniting between the lessee or lessess, and the lessors, if mo_•e than one, providing for a pooling of all royalties arising from said production on said tract, to be distributed to the property owners in accordance with the number of acres of each ovmer in the said tract. (3). Sl_ch application shall be accompanied by a plat or map of s-.ach tract shoves ing the proposed location of said well, which locaticn shall in no instance be closer than 300 feet of any boundary lime of said tract unless by the unani:Aous vote of the coi:uniss-ioners but not upon any street or alley; such map shall show the location of each residence u -:-)on said tract and all irtproveracnts. (4) A drilling agreement pro riding adequateprotection to the parties in interest, by enclosing the drilling rig on all sides, equipping same vd.th adequate fire extinguishers, 1°rhich are to be kept in good order; including a reasonable and adequate plan for the handlirg of the slush, basis seclLment, and salt water that may be produced in the drilling of said well; and fact-lities for handling production to the end that it nay not be necessary to store oil on said area in excess of 500 barrels per well; such agreement or agreements shall make further provision that in the event the yell is a dry hole, or non-productive OP either oil or gas, all materials, ecuilaent, tools, and machinery of every kind and character shall be removed therefrom within sixty days and the premises fully restored to their original condition as nearly as practicable. Section 3. Tha-:, a good and sufficient surety bond, with an aut =ized surety company, or, cash deposit, in such amount as the o `facers of said city r:na;T demand, but in no event less than Ten Thousand Dollrs, shall be tendered to the City of Salina, before drilling operations actually begins, for the faithf.zl per .'orntug-nee of the a_,,ree- ments as set forth in this ordinance and holding the city free and ~.armless from any damage vrhich may arise as the result of the drilling operations, t .e layin- of pine lines, the settling of tanks or the 2::oving of machinery and eav_ipment. 1 1 1 Section 4. The application, as herein above provided, shall be filed Y.dth the City Clerk and a fee therefor of twenty* -five dollars shall. be required. Upon the filing of said application, the saLie shall be considered by the hoard of Co::::zissiox:ers of the City of Salina, and if said Board of CorLT.-Assi overs shall deem such application adequate and the drilling of said well not injurious to Public or private pronertr, the sa:.:e shall be granted. If a perr_it is denied, the said filing fee of twenty-five dollars shall be refunded to the applicant. Section 5. The hoard of Cormiissioners shall have the oowerand reserves the authority to refuse any application for a permit v. -here by reason of the proposed application for the proposed well, and character and -ralue of the peraanent improvements already erected on the tract applied for, or adjacent thereto, and the uses to vh-iich the land and surroundings are adapted for civic purposes or for sanitary reasons, the drilling of a gas or oil well, vrill be a serious disadvantage to the city and its inhabitants as a whole, provided, how- ever, that when a pen -kilt shall be refused, for any of these reasons, but not otherwise, the deposit or cash paid vrith the application shall be returned to the applicant. Except as hereinbefore provided, if an application be found by the governing body to comply in all respects vrith this ordinance, the City Clerk shall be authorized to issue a permit for the drilling; of the :°cell provided for, and the permit shall specify the Particular location of the vrell to be drilled, and it shall be unlaveul for the permittee to drill elsei!riere in the tract. Section 6. That in operating, under any permit issued under this ordinance or any amendment thereto, all oil, gas and water produced or arising from the o_)erations, shall be piped or other:vise conveyed or removed from. the 1L-iits of the citr except the ordinary use of a slush -)end and the temporar-r storate of not to exceed 500 barrels of oil for each well; and all excavat'.ons and slush i A,onds shall be completely enclosed with six foot woven wire fence. That the laying of any pipe lines by any qor..riittee shall be done under the si, ervis-on of t'ie City `ngineer of the City of Salina, Kansas. Section 7. It shall be the duty of every person, firm or corporation, to whoxa a permit may be issued, as provided in this ordinance after the bell has been drilled in the event the same is a dry hole or abandoned, to remove the derrick, drilling tools, equ�.Pment and machinery from the location of the well aqd to restore the premises to their original condition, as nearly as it is practical so to do and to see teat the well is properly plugged. In the event oil or gas is produced from such well, then it shall be the duty of the holder of the perm'.t upon the cor::pletion of the drilling of the well to rerlove all machinery, equipment- and r aterial not necessary to be retained for use in the pro(Tuction of the oil or --as from such well, and insofar as can be done, con- sistent vrith the production from such Drell to restore the premises to their orifi:inal condition as nearly as practical. All of v.1.ich, either in the event of a dry ,:ole or a produci_zp; well, shall be done yr thin sixty days after the co:..pletion of tide drillinc' o_ the well. Section 8. No permit shall be granted or issued for the drilling of a well except upon ground held by the applicant under oil and ^as mini --E lease, grant, or drilling contract from the oimer giving the of=Tern's permission to drill the well; and wl'ien a permit shall have been issued, the same shall term')nate and become in- o?)erative without an -Nr action on the part of the Board of 'ori::zissio(iers of the City, unless wit_iin 60 lairs from the date of issue of such permit actual drilling of the well shall have been commenced, and after the drilling of a 4•rell shall have com- menced, the cessation for a lire period of the drilling operations shall cancel the permit, and the well shall be considered as abandoned for all purposes of this ord- inance and it shall be unlawful thereafter to continue drilling of such -cell without the is —3uance of another permit. Section 9. Z-1at neither this ord`uiance, nor any permit issued hereunder, scall be interpreted to grant any right or license to the permittee to enter upon or occupy in any respect in the drilling or production operations, any land except by the written consent of the owner; nor shall it limit or prevent the free riTht of any land owner to contract for the amount of royalty to be paid 1^rith respect to his oz^.m land. Section 10. That no permit wnhi.ch shall be issued tinder this ordinance or under any amendzient hereto, or any rights, privilorres or fr,-uichise granted hereby or hereunder, shall exist longer than for a period of ten years from the date of the issuance of the permit or as longi thereafter as oil and/or gas is _produced from the tract. Section 11. That any violation of any of the terms of this ordinance, nhethcr herein denominated as unlawful or not, shall be deex:ied a misdemeanor, and any person or corporation convicted of an,r such violation shall be fined in a sum not exceeding 500 dollars, and any person so con-,ricted shall be corgi fitted to jail Cantil such fine and costs are paid. Each day of the continuance of any such violation shall be con- sidered a separate offense and an7i person, agent or employee engaged in any such violation shall on conviction be so punished therefor. Section 12. If any section of this ordinance shall be held invalid for any reason it shall not affect the validity of any other section of the ordinance, or of t,ie remainder of the ordinance as a ln,nole, and it shall be conclusively presurled, in such event, that the Board of CorL:iissioners of said city ,could have passed such ordinance not`^rithstanO.ing the invalidity of such section or sections. Section 13. That this or distance shall take effect and be in force from and after its publication in the official city papers. Irntroduced Deaember 3, 1945 Passed, December(®, 1945 Attest: Chas. E. Banker, City Clerk J. H. 1.1oore, Jr. T.1ayo r i i STATE C'- KLITSAS ) ) SS J[T7-,IlY 014' SJULII-1E ) I, Chas. E. Ban;er, City Clerk of the City of Salina, Kansas, do hereby certify that the above and roregoin,� is a true and correct cop;* of Ordinance No. 5123 passed and approved by the '?oard of Co�zaiss'.oners of the City of Salina December 10, 1945; and a record of the vote on its f+-nal adonton is P found on page Journal No. 15. ` i City .,', .. J1.iL�_1iLir ..�.J::' liiii ti-r.:IT•dti 0- rr T .r ORDINANCIE 5128 T bb T OF ;ITT CE R.T 71 �> �1 iILLD G 1`01E OIL _ E "1, r l GAS ` ]: -'�:' j r r.,T r �_ 1 I l .L T`. 1 I LLLITS OF T11 C ITY OF SILIT,`r! ? S 7L 1 ),-, A -, , L I 0EDA,.IT:IZ by 'he Board of Cor11,AlSSJ.OrierS of the City of Salina : Section 1: No person, persons, _,artnership nor corpora- tion shall cor aence the drilling of a well for oil or gas with- in the City Li--r-its Of' the City of Salina, withOut first having procured frogs aid City Of Salina, a permit therefor to be is- sued by authority of the i:oard of COMMiss oners of said city in accordance with the teras and conditions Of this `'rdinance. Section 2: Before any permit shall be r�'ranted for the commencement of a well for the production of oil or --as, an application therefor shall be filed with the City Clerk of Sal- ina; such application shall show: (1) : That the applicant has good and valid oil and `as leases from property owners cover.n,, at least a ten acre tract. (2):-6vidence of agree.7ent in writing between the lessee or lessees, and the lessors, if (more than one, pro- viding for a pooling of all royalties aris'_n,g from said prodI?ction on said tract, to be distributed to the property owners in accordance wit- the number of acres of each owner in the said tract. (3): Such application shall be accompanied by a plat or map of succi tract s`�rowin-, the aroposed location of s said well, which location shall in no instance be closer than 300 feet of any boundary line of said unless b the unanimous vote of the corzmissioners tracyi.'out no upon any street or alley; such map shall show the 1- :cation of each residence upon said tract and all il'-prove cents„ (4): A drilling af:�reel cnt prolTidin- adequate protection to the parties in interest, by enclosing; the drilling rig on all sides, equipin,r-- same with adequate fire lection Y r (4): (Cont�d) I extinguishers, vil"ch are to be kept in rood order• including- a � I _�easorable and adequate plan for the handling of the slush, basis sediment, and water ++i ' salt ter I that may be produced in the L'rilli.nr of said well; i and facilities for handling production to the e 9 r_ d j that it may not be necessary to store oil on said area in excess of 500 barrels per well; such agree- ment or agreements shall i:ake further provision that in the event the well is a dry hole, or non-productiv of either oil or gas, all materials, equipment, tools, and machinery of every kind and character shall be removed therefrom within sixty days and the premises fully restored to their original condition as nearly as practicable. Section #,5: That a good and sufficient surety bond I an authorized Surety Company, or, cash deposit, in su amount I as thy, Officers of said City may demand but i o event less than Ten Thousand Dollars, shall be te- � ��} d to the City of Salina, before drilling o erat'o P actuall.7 begins., for the faithful perfor lance of r agreements as set forth in this Ordinance and holdi _, the City free and harmless from any dam- age which ma r se as the result of the drilling; operations the 1 ng of pipe lines the sett i ng of takks or the moving of achinery and equipment. Section #4; The application, as herein above crovided� shall be filed with the City Clerk and a fee therefor of twenty- five dollars shall be required. Upon the filing of said appli- cation, t'Lie save shall be considered by the Board of Commission- ers of the City of Salina, and if said board of Comrnissl oners shall deem such application adequate and the drilling of said well riot injurious to public or private property, the same shall be granted. If a permit is denied, the said filing fee of twentyI five dollars shall be refunded to the applicant. ■ Section #5: — 3— `"he Board of Commiss_t onerrs shall ,ave the Power and reserves the authority to refuse any al. ' ^ tion for 1 I! a permit whereby reason of the proposed application for the pro - i posed well, and character and value ofthe -)e;,. a� 1 �ar_ent improvements i' already erected on the tract applied for, or adjacent thereto, �i and the uses to which the land: and surroundings are adapted f; for civic purposes or for sanitary reasons, the drilling �I of a gas or oil vaell, will be a serious disadvanta<-e to the CitJr and its inhabitants as a whole, prop iii -ed, however that when a penin t shall be refused, for any of these reasons, but not otherwise, the deposit or cash paid with the applica- �I ;U -ion shall be returned to the applicant taxcept as hereinbefore III provided, if an application be found bt}12 r .�y ,over.;�, in�; body to �� comp_ly in all respects with this ordinance, the City Clem, shall l �I be authorized to issue a permit far the drilling of tiie well provided for, and the permit shall specify the particular lo- cation of the well to be drilled and it shall be unlawful ff' for the permittee to drill elsewhere in the tract. I! Section X16: That in oper ting under arty e � p� reit issued junder this ordinance or any amendment thereto all oil, vas 11 and water produced ed or ar:i. s ` n.g from,�the ope ,.t ti ons,) shall_ be i li piped or otnel'wise conveyed or rerrloved from the limits of the city except the ordir any use of a slush pond and the orar tern i storage of not to ep �` exceed 500 barrels of oil for each well; and i f� all excavations and slush ponds shall be cor2� l� rely enclosed ! yIiith six foot woven Uri_re fence. That the laying of any pipe lines by any permittee shall y,,e done underEr �, f ngineer of the City of Sal in t to supervision of the City4' !i a, Kansas. Section=: It shall be the duty of every pe ,'son firm or corporati ort, to whom a per -,it may be issued, as provided this ordinance f' to a_ ter the ti�aell has been cd.rilled in the e ;Tent I the same is a dry hole or abandoned, to remove the derrick, dri3lincD tools, equipment and machinery from the location of the well and to restore the pre;:ises to their original condition n ■ -4 - Section 7t,-7: (Cont Td) as nearly as it is practical so to do and to see that the well is properly plugSed. In the e -.Tent oil or ,s is produced from such well, then it shall be the duty of the holder of the per- mit upon the compl tion of the dri llinL of the well_to remove all r.�acilinr,r, equipment and ma-cerial not necessary to be re- tained for use in the i_)rod Lction of the oil or r^as from such well, and it sofar as can be done cor_sis gent with the production d( from such well to restore the premises to their original Condi- tion as ne .rly as practical. All of which, either in the eveitt 3 of a dry hole or a prod zc it wrell, shall be dor e within sixty days after the completion of the drilli_n,,C of the well. Section j`8: A?o permit shall be �-ran_ted or iss-_ied for the ,arillir`z of a well except upon rr _u_ d held by the applicant under oil and p -as mining lease, 7rar.t, or atilling contract from bhe owner giving the owner's perr�.ission to drill � _1 the well; and �vhen a permit shall ha e ;een issued the s° , same shall ter- ,minate and become in -operative without any action or- the part of the Board of Commissioners of the City, unless wi_thin 00; days from the date of issue of such permit act Ia.l drilli_ns, of the well shall ha e been commenced, ana after t le urillin � of a well shall have colrLrnenced, the cessation. for a like period Of the drilling- oN;;r-Itions shall cancel the and the well shall be considered as abandoned for all purposes of t',lis ord- inance and it shall be unlawful thereafter to continue drilling Of such well tiai_thout the iss .ance of another per ait. Section '9; ` I at neither this ordii arse, nor any permit issued "hereunder, shall be interpreted to `,rant any r :,ht or tee to enter upon or occupy in any r expect license to the per : it in the drilling-- or production open it -ors, any land except by tIe written consent bff the owner; nor shall it lir.,pit or prevent the free ri°ht of any land owner to (;ortraci; for the amount of royalty to be paid with res oe ct to his own land. - j I® f k j j -5- i Pp Section x,=-10: That no permit which shall ae issued under this ordinance or under any amendiner t hereto _ � E, , or any privil , ges or .f'ranc'hise -Tanted ;ier eby or hereunder shall hall exist !� lon er than for a period of ten years from the date of ti, ne is- suance of the perini_t or as long thereafter as oil and/or pas I - is produced from the tract. Section j,=