Oil and gas drilling for exploration, production, or other purposes within the City of Cherryvale is unlawful, except as provided by this article.  Oil and gas drilling for exploration, production, or other purposes on land situated outside, but within 330 feet of, the city limits of Cherryvale is unlawful, except as provided by this article.

(Code 2001, 6-401; Code 2014)

(a)   APPLICATION, FEES.  Any person, firm, or corporation, before commencing to drill for oil or gas, shall obtain a permit from the city.  Each oil or gas well shall require a separate permit. To apply for a permit an application form must be completed providing all requested information. The application and an application fee of $500 shall be deposited with the city clerk. If the permit is denied, $250 of the application fee shall be returned. If the permit is granted, the full application fee will be retained by, the city as a permit fee.

(b)   PERMIT PROVISIONS.  Permits will become void if actual drilling operations are not begun within 180 days from the permit effective date.  Drilling operations must be completed within 90 days after actually started or the permit will become void. Permits shall contain all requirements imposed by ordinance and any additional requirements the Council deems necessary to protect the health, safety, and property of its inhabitants. The city attorney shall review each application, write necessary permits, and be compensated in an amount not to exceed $150.00 from the application fee.  At the direction of the city attorney, the city building inspector shall inspect and verify information submitted by the applicant and be compensated in an amount not to exceed $75.00 from the application fee.

(c)   PERMIT PROCEDURE. Once the completed application and fee are received by the city clerk, the city shall have a period not to exceed 21 days to examine and verify application information. The city will conduct a hearing at a regular or special meeting of the Council to consider the application. Notice stating the date, time, place and purpose of the hearing shall be published in the official city newspaper one time at least seven days prior to the scheduled hearing. Written notice of the hearing shall be sent by first­ class mail to all property owners within 330 feet of the proposed well site. The Council may adjourn and continue the hearing as it deems necessary.

After completing the hearing the Council may grant or deny the permit application. Terms of all permits will be established by the Council. The city attorney will prepare all permits and present them to the Council for final approval. The permit, once approved and signed by the mayor, shall be dated and immediately delivered to the applicant.

(d)   PERMIT DENIAL. The Council reserves the authority and discretion to deny a permit application for any of the following reasons:

(1)   The proposed well location would create a safety hazard;

(2)   The proposed well location would seriously conflict with existing land uses;

(3)   The proposed well location would seriously interfere with the environmental aesthetics of the area;

(4)   The proposed well location would significantly reduce surrounding property values;

(5)   The proposed well location is within 330 feet of an established cemetery boundary;

(6)   The proposed well location is within 330 feet of the city fire limits;

(7)   The applicant has failed to comply fully with the permit application provisions of this article;

(8)   The applicant has been prosecuted and convicted for violation of this article; or

(9)   The proposed drilling would violate any of the terms of this article.

(10) In addition to the reasons stated above, the Council may, within its sound discretion, deny a permit application to protect the public health, safety, and welfare. When the city denies a permit application it shall state its reasons for denial in writing.

(Code 2001, 6-402; Code 2014)

The following information shall be submitted with each permit application:

(a)   A map of the proposed well location indicating the location of all streets, alleys, residences, buildings and other structures within 330 feet of the proposed well. All real property boundary lines within 330 feet of the proposed well location shall be mapped and the title owners of the properties indicated.

(b)   Written agreements from all real property owners within 330 feet, of the proposed well stating their consent to the drilling and any compensation paid or to be paid as consideration for their agreement.

(c)   Written agreements or statements showing reasonable and adequate plans for handling and disposing of all drilling fluids and other wastes associated with drilling m1d operating the proposed well.

(d)   Drawings showing the type and location of tanks and other facilities for handling or storing the production of the proposed well.

(e)   Affidavits stating the names and addresses of all persons having any interest in the surface or mineral estate of all real property within 330 feet of the proposed well location. The affidavit shall also indicate all oil and gas leasehold interests.

(f)    Copies of oil and gas leases executed by persons owning at least fifty-one percent of the mineral interest in real property within 330 feet of the proposed well location.

(g)   Any other information related to the application requested by the Council, city attorney, or building inspector.

(Code 2001, 6-403; Code 2014)

All oil and gas wells subject to this article shall be located on the property being developed at least 200 feet from any residence, business, or public building and 330 feet from the property boundary line of any nonparticipating party. A nonparticipating party shall include any real property owner, whether an individual, firm, or corporation, which has not entered into a written agreement with the applicant to permit drilling on or within 330 feet of their property boundary line.

(Code 2001, 6-404; Code 2014)

(a)   The applicant shall prior to issuance of a gas or oil well permit submit for the approval of the Council a corporate surety bond executed by some bonding or surety company authorized to do business in the state of Kansas in the amount of fifty thousand dollars ($50,000 .00) payable to the city, conditioned for the full and faithful compliance with all the terms and provisions of this article and the conditions of the permit  authorized thereby, and to save and hold the city free and harmless from all suits or damages sustained by the city in the event that any claim for damage or injury is maintained against the city as a result of the activities of the applicant in drilling or operating a well. All such bonds shall be renewed immediately prior to their termination and shall remain in force and be binding upon the principal and surety unless cancelled by giving thirty days’ notice in writing to the city clerk, and the surety shall not be liable for any loss after the expiration of thirty days from the date specified in the notice, except for loss occurring while the bond is in full force and effect.  Upon the expiration of any such bond, a new bond shall be filed by the principal in such amount as in the case of an original bond.

(b)   In the event any permittee shall have furnished such bond as required for a permit and there shall be no unsatisfied claim upon such bond at the time of the application for a subsequent permit to drill a well, no further bond shall be required for any subsequent permit, but in such event there shall be endorsed on the bond the identification of the subsequent permit for which the bond is made applicable; provided, that if there shall be an unsatisfied  claim against the existing bond at the time of the application for a subsequent permit, the Council, at its discretion, may require an additional bond in the aforesaid amount or any lesser amount as may be determined .

(c)   The amount of the surety bond required may be reduced to five thousand dollars ($5,000.00) from and after the completion of any well upon filing a new or amended bond conditioned and approved as in the case of the original bond, except for the amount.  Such bond shall be renewed and filed during the continued operation of the well and for a period of six months thereafter or until the premises have been cleared of obstructions and restored to their original condition as required by this article.

(Code 2001, 6-405; Code 2014)

(a)   The applicant for a gas or oil well permit shall submit a policy of indemnity or casualty insurance, issued by some responsible insurance company authorized to do business in Kansas, and naming the city as co-insured, insuring against injuries, loss or damage for which the applicant may be liable as the result of the drilling, operation, or maintenance of any well or any structure or machinery appurtenant thereto. Such insurance coverage shall be in the following amounts:

$500,000 for injury to any one person in any occurrence;

$500,000 for injury to more than one person in any occurrence; and

$500,000 for loss or damage to property in any one occurrence.

(b)   A copy or certificate of the policy shall be deposited with the city clerk, together with a certificate by the insurance company that such insurance is in force and shall not be cancelled without thirty days’ written notice thereof to the city.  Such insurance shall be renewed immediately prior to the end of the term thereof and shall be maintained during the entire period of drilling or operation of a well.

(Code 2001, 6-406; Code 2014)

(a)   FENCING. Locations and equipment shall at all times during drilling operations be fenced by either a temporary portable type snow fencing at least four feet high or other fencing equally acceptable. Upon completion of a well the pumping unit, tank battery and other permanent production equipment shall be enclosed within a chain  or wire mesh fence six feet in height supplied by steel posts set in concrete to depth of at least eighteen inches; and on top of such fence there shall be placed and maintained a protruding extension of three barb wires, the lowest of which shall be at least seven feet aboveground, extended on bars at an angle of forty-five degrees to the outside, and all gates forming a part of such fence shall be kept closed and locked at all times except when in active use by the operator.

(b)   SLUSH PONDS, PITS. All slush ponds and pits shall be of metal, fiberglass, or concrete construction.

(c)   EQUIPMENT. If a well is productive, only the tools, machinery, structures and equipment necessary for its operation shall be maintained at such well and the premises surrounding the well shall be restored to their original condition as nearly as practicable within 60 days after completion of the well.

(d)   MAINTENANCE OF AREA. All production equipment, structures and premises shall at all times be maintained and kept in a clean, sanitary and tidy condition. All structures shall be of incombustible materials.

(e)   ABANDONED OR NONPRODUCTIVE WELL. In the event the well is either nonproductive or abandoned, within 60 days after the determination thereof, .all tools, equipment and machinery used in connection with the drilling of the well shall be removed, and the premises shall be fully restored to their original condition as soon as practicable and in no case more than 60 days after such determination.

(f)    DRILLING TIMES. All drilling operations shall be conducted from 7 A.M. to 7 P.M.

(g)   STATE/FEDERAL LAW. Applicants must comply fully with all applicable state and federal law concerning oil and gas exploration, production, and related activities.

(h)   ADDITIONAL REQUIREMENTS. At the time of granting any permit, under the provisions of this article, the Council may make requirements, in addition to those contained herein, as may be reasonably necessary for protection of persons and property in the city.

(Code 2001, 6-407; Code 2014)

(a)   PERMIT DURATION.   The permit to drill a gas or dl well shall be valid only in the event m1d for so long as the pe1mittee shall comply with the conditions of the permit and this article, and only so long as there is production from or other lawful use made of the well.

(b)   PERMIT NOT ASSIGNABLE. No permit, authorized by this article, shall be assignable or assigned without the approval of the Council.

(c)   PERMIT REVOCATION. Upon any substantial violation of the conditions of any pe1mit, authorization, or of m1y provisions of this article, the Council may, upon a hearing after five days’ written notice by mail or personal service to the person committing such violation, or if the address of the permittee is unknown and cannot be found in the city, after the expiration of five days from the date of publication of notice in the official city newspaper, revoke such permit or authorization.   Provided, however, that if in the judgment of the Council restitution is made for any damage occasioned by such violation together with adequate provisions to prevent any further violations by such pe1mittee, the Council may waive revocation of any permit, but the same shall not affect any penalty otherwise provided for the violation of this article.

(d)   PERMIT NOT CERTIFICATION. No provision of this article, or any permit or authorization granted pursuant to this article, shall be interpreted to grant any right or license to the permittee to enter upon or occupy in any respect any land except by the written consent of the owner.  Nor shall it limit or prevent the free right of any property owner to contract for the amount of royalty to be paid with respect to ills or her own land, or for damages, rights, or privileges with respect to said land. The city, by issuing, a permit, in no way certifies or endorses the permittee ‘s activities and it shall be incumbent upon all property owners, lessors, and others dealing with the permittee to take the necessary action to protect their particular interests.

(Code 2001, 6-408; Code 2014)

If any applicant or any other party shall desire to lay pipelines in the streets, public grounds, or alleys in the city for transmission of petroleum or gas or any waste fluid from any well or drilling location within the boundaries of the city, authorization and approval must be obtained from the Council. The person seeking san1e shall provide detailed plans and specifications for constructing and maintaining such pipelines and for restoration of streets, grounds and alleys, wherever damaged by such construction, to as good condition as existed immediately prior to the damage, which plans and specifications shall be approved by the Superintendent of streets and utilities prior to granting such authorization.

(Code 2001, 6-409; Code 2014)

Drilling or oil or gas shall be a permissible activity in all zones of the city when the requirements of this article and of a Council approved permit can be met. The permittee shall not operate any oil or gas well, or any activity associated with the well, so as to constitute a public nuisance.

(Code 2001, 6-410; Code 2014)

Violation of any provision contained in this article is a Class C misdemeanor. Each day such violation exists and continues shall constitute a separate offense.

(Code 2001, 6-411; Code 2014)