HomeMy WebLinkAboutORDINANCE 0800-1982x
CITY OF KENAI
ORDINANCE N0, 800-82
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA,
AMENDING KMC 5.35 PERTAINING TO OIL AND GAS WELLS TO PLACE
MANAGERIAL FUNCTIONS IN THE CITY MANAGER, TO CLARIFY CERTAIN
PROVISIONS THERRIN, TO PROVIDE CRITERIA FOR ALLOWANCE OF EARTHEN
RESERVE PITS, AND TO PROVIDE THAT ABANDONMENT OF EARTHEN RESERVE
PITS SHALL BE CONSISTENT WITH FEDERAL AND STATE REGULATORY
AUTHORITIES.
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WHEREAS, Ordinance No. 123-67, adopted in September of 1967, as
superseded by Ordinance No. 508-79 adopted ordinances providing
for drilling of oil and gas wells in the city, and the ordinances
incorporated provided for exercise by the City Council of
functions which are managerial functions and should be exercised
by the City Manager in accordance with policies set by the
Council, and
WHEREAS, in some instances there should be clarification of the
ordinances, and =_
WHEREAS, much unnecessary and duplicitous regulation can be 000
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avoided with a corresponding saving of time of City staff as well
r as permitees, and
WHEREAS, policies should be set by the Council to provide for
conditions under which earthen reserve pits might be used and the
procedures to be followed on abandonment of the same.
V NOW, TPEREPORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
KENAI, ALASKA, as follows:
�gB�iQp�s In order to place managerial functions in the
City Manager, KMC 5.35 is hereby amended by substituting the
l words "City Manager" for the words "City Council" wherever they
_ appear in the following sectionss
5.35.020
5.35.030
5.35.060 3
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5.35.060 6
5.35.060 (last paragraph, unnumbered)
5,35.090
5.35.100
5.35.110
jjCCt,j.on_?,s The first paragraph of KMC 5.35.060 is hereby
amended as follows:
5.35.060 IBBlidt3C�QL_.8Cx1t0a1_Q€_BC�IIts�s JAL The
City aaugrK [COUNCIL], within 20 days after the filing
of the application for a permit to drill and operate a
well shall determine whether or not said application
complies in all respects with the provisions of this
ordinance, and if It does, the City jjanaser. [COUNCIL]
shall then fin the amount of the principal of the bond
and insurance in_a�ndan�g_�i€h..€h€�trQYisiQn_Q€�
5,j.4Q2A8. [ PROVIDED POR IN THE SECTION BELOW],, and
after such determination shall issue a permit for the
drilling and operation of the well applied for. Each
permit issued under this ordinance shall:
&x€j,aa_j: KMC 5.35.080 is hereby amended as follows:
5.35.080 jh"=Ia: If a well has been drilled
which is or can be made capable of producing gas or oil
in commercial quantities but for which there is a lack
of either a market at the well or of an available
pipeline outlet in the field, said well may be
suspended or shut in while the drilling and production
permit issued hereunder is still in effect4_and_€hn
pariQds of 8usRensinn_u_AhUt=ia. The permittee shall
give written notice to the City of his intent to
suspend or to shut in the well which notice shall
present the reasons therefore and indicate the good
faith attempts that were made in securing a market or
providing for the transportation of the oil or gas.
Said suspension or shut-in will be effective for one
year from the date of the notice to the City and may be
renewed for additional one year intervals upon review
and public resolution by the City Council. During the
suspension or shut in the well shall be secured by
fence, locks, or other security devices as approved by
the City Manager.
62StiQ31_4s The first two sentences of KMC 5.35.090 1 are
hereby amended as follows:
1. A bond®y�Oh�Q�i�,��_Nih_hh8_Ci�Y_�1SLIi in the
principal sum of ffZ��QQO,,,Q�_�Dgh�S�CO3�8�_6mQYu�_�ff�aY..hSY¢�QCti
iiva$_@X_t.ha_CihX_�QIiDil [SUCH NUMBER OF DOLLARS AS HAS BEEN SO
DETERMINED BY THE CITY COUNCIL, BUT NOT TO BE LESS THAN $25,0001.
Said bond MUSS [T01 be executed by a reliable insurance company
authorized to do business in the state, as surety, and with
applicant as principal, running to the city for the benefit of
the city and all persons concerned, conditioned that the
permittee will comply with the terms and conditions of this
ordinance in the drilling and operation of the well.
ffaCtian-Is The last paragraph of 5.35.090 is hereby amended as
follows:
1, Permittee shall file with the City Clerk certificates of
said insurance as above stated, and shall obtain the written
approval thereof by the City Manager, who shall act thereon
within 10 days from the date of such filing. Said Qar�igiaa�ae
t�hall_Aa�i�a_th_�hB insurance policy or policies shall not be
Madiiiad_or cancelled without written notice dalLmad to the
City Clerk at least 1Q [10] days prior to the effective date of
such cancellation, In the event said insurance policy or
policies are cancelled, the permit granted shall terminate, and
permittee's rights to operate under said permit shall cease until
Permittee files additional insurance as provided herein.
fie-,QUOU_ O KMC 5.35.130 is hereby wended as follows:
5.35.1.30 $ihas Lal Steel reserve pits shall ilEtLma11X be
used in connection with oil drilling and reworking operations.
Such pits and contents shall be removed from the premises and the
drillin site within 60 days after completion of the well.
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No earthen reserve pito shall be used except as
permitted by the City JMSar, [COUNCIL] or a case -by -case basis
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ggQrigw_Zs KMC 5.35.140 is hereby amended as followss
5.35.140 plilliusi Qu8S.At1ongil..Eg- pMwts All drilling and
operation at any well performed by a permittee under this
ordinance shall be conducted in accordance with the best
practices of the reasonably prudent operator. Each permittee
under this ordinance shall observe and follow the recommendations
and/or regulations of the American Petroleum Instituter (AND) the
�aSiTAlit�Ts���i.]ciiitil.�su�.�►u�.�caugr...�c:.�....W�c�sa�..aa..ss.....�.....a
b� �JgM _LggRect thegeto (THE COMMISSION OF THE STATE].
PASSED BY THE COUNCIL OF THE CITY OF KENAI LASKA, this 18th day of
August, 1982,
IIi VINCENT~00REILL
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ATTE Ts
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J et Whelan, City Clerk
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First Readings August 4, 1982
Second Readings August 18, 1982
Effective Dates September 18, 1982
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