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HomeMy WebLinkAboutApprove for introduction Ordinance No. 4138 amending Municip Dept ID FD17 008 Page 1 of 2 Meeting Date: /5/2017 wove -zr Infi�U �Ch � s�-2 CITY OF HUNTINGTON BEACH REQUEST FOR. CITY COUNCIL ACTION c�//$/17 ftoP/TD 5-6lZ CPos MEETING DATE: 9/5/2017 SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Manager PREPARED BY: David A. Segura, Fire Chief SUBJECT: Approve for introduction Ordinance No. 4138 amending Municipal Code Title 15 regarding oil well abandonment requirements Statement of Issue: The City Council is requested to adopt an ordinance amending Municipal Code Title 15, regarding oil well abandonment requirements. The new Ordinance will allow for safe development over or near oil wells that do not meet the current California Division of Oil, Gas and Geothermal Resources (DOGGR) standard. Financial Impact: Not applicable. Recommended Action: Approve for introduction Ordinance No. 4138, "An Ordinance of the City of Huntington Beach Amending Sections 15.08.010 and 15.32.090 through 15.32.120 of the Huntington Beach Municipal Code Relating to Development of Property With Abandoned Oil Wells, and Amending Related Definitions in the Municipal Code." Alternative Action(s): Do not introduce the Ordinance and direct staff accordingly. Analysis: In an effort to assist and facilitate development in the community with safe methods to build over or adjacent to abandoned oil wells, a modification to Municipal Code Title 15 is proposed as contained in Section #4 of the Ordinance. DOGGR is the governing agency for all oil well abandonments in the state. Beginning progressively since 2010, their oil well abandonment standards have been applied more uniformly. Prior to 2010, DOGGR reviewed abandonments on a case-by-case basis, which allowed wells that could not be cleared to the bottom to obtain final approval letters of abandonment even though the wells were missing specified plugs. The current DOGGR standard requires plugs at specific depths regardless of the well's history or production zones. If one or more of the plugs are not appropriately placed, then the abandonment will not meet the current DOGGR standard. It is not uncommon to have difficulty reaching the bottom of an abandoned well since it may be lodged with obstructions. The existing Municipal Code Title 15 requirement (15.32.090) does not allow for development or redevelopment if the oil wells on the parcel are not abandoned to the current DOGGR standard. HB -329- Item 15. - 1 Dept. ID FD17 008 Page 2 of 2 Meeting Date:9/5/2017 The attached Ordinance (Attachment 1) will modify Title 15 to potentially allow development over or near oil wells that do not meet the current DOGGR standard, incorporating specified safeguards. A legislative draft is attached, showing all revisions to the Ordinance (Attachment 2). The ordinance references oil well abandonment criteria contained in Huntington Beach Fire Department (HBFD) City Specification (CS) #422, Oil Well Abandonment Permit Process (Attachment 3). With assistance from DOGGR and two of the City's environmental engineering consulting firms, CS #422 has been revised to be consistent with Title 15. The revised CS #422 requires the developer to submit an engineering report to the HBFD detailing why and how it would be safe to develop the property if an oil well was not abandoned to the current DOGGR standard. The HBFD will review each oil well abandonment engineering report to determine if the parcel is safe to develop. The HBFD will retain the services of a third party consultant, of the City's choice, to assist in reviewing the report and accompanying documents, and the owner shall pay all fees for the consultant. The language of this alternate method is directly incorporated into the ordinance to clarify the intent. The types of safety factors used to review the oil well abandonment include: • Location and size of abandonment plugs • Reason the well abandonment did not meet current DOGGR standards • Additional mitigation measures (e.g. methane barrier, detection and alarm system, etc.) • Location of building(s) in respect to the oil well If the oil well abandonment review is found to be satisfactory, the property owner shall fully execute and record an Environmental Release and Indemnity Agreement in the format required by the City of Huntington Beach. Sections #1, 2, 3 and 5 of the Ordinance provide for language clarification and for consistency with Section #4. If the City Council approves the Ordinance, a second reading will be scheduled for the City Council meeting on September 18, 2017, at which time adoption will also take place. If adopted, the ordinance will be effective October 18, 2017, Environmental Status: None. Strategic Plan Goal: Enhance and maintain public safety. Attachment(s): 1. Ordinance No. 4138, "An Ordinance of the City of Huntington Beach Amending Sections 15.08.010 and 15.32.090 through 15.32.120 of the Huntington Beach Municipal Code Relating to Development of Property With Abandoned Oil Wells, and Amending Related Definitions in the Municipal Code." 2. Legislative Draft 3. City Specification #422, Oil Well Abandonment Permit Process Item 15. - 2 HB _330_ ORDINANCE NO. 4138 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH AMENDING SECTIONS 15.08.010 AND 15.32.090 THROUGH 15.32.120 OF THE HUNTINGTON BEACH MUNICIPAL CODE RELATING TO DEVELOPMENT OF PROPERTY WITH ABANDONED OIL WELLS, AND AMENDING RELATED DEFINITIONS IN THE MUNICIPAL CODE The City Council of the City of Huntington Beach does hereby ordain as follows: SECTION 1. The Definition of"Division of Oil and Gas" at Section 15.08,010 of the Municipal Code is amended to read as follows: "DOGGR" shall mean the Division of Oil, Gas and Geothermal Resources of the Department of Conservation of the State of California." SECTION 2. The Definition of"Properly Abandoned Well" is deleted from Section 15.08.010 of the Municipal Code. SECTION 3. The phrase "DOGGR" shall replace the phrase "Division of Oil and Gas" at Municipal Code Sections 15.04,040, 15.04.045, 15.12.020, 15.12.040, 15.12.060, 15.12.170, 15.20.010, 15.20.050, 15.20.100, 15.20.130, 15.20.150, 15.20.160, 15.22..020, 15.24.070, 15.32.010, 15.32.035, 15.32.050, 15.32.090, 15.40,050, and 15.50.020. SECTION 4. Sections 15.32.090 through 15.32.100 of the Huntington Beach Municipal Code are amended to read as follows: "15.32.090 Abandonment Requirements—Development or Redevelopment A. No building or grading permit may be issued for property upon which there are any active or abandoned Wells without the approval of the Fire Code Official. To obtain the approval of the Fire Code Official, the property owner or designee must submit an application to the Fire Department for review and approval prior to issuance of any building or grading permit. The Fire Code Official will not approve the application unless: 1. Each Well on the property is abandoned or reabandoned to current DOGGR standards, except as provided at Subsection (B) belmv- and, 2. Each Well on the property complies with all Federal, Sia-0l. and City laws, including Fire Department City Specification No. 42.2, dated June 2017. B. If DOGGR determines that the Well cannot be abandoned to its current standards, the Fire Code Official may still authorize issuance of the building andior grading permit for the property if the Official finds each of the following fo-r each abandoned Well: 1 SF:16-5481/15905 Ldoc ORDINANCE NO. 4138 1. The property owner shall obtain, at his sole cost, a report from a California licensed professional engineer or geologist qualified and experienced with oil well abandonment. Prior to obtaining the report, the property owner shall obtain written approval from the Fire Code Official of the engineer or geologist charged with drafting the report. The engineer's or geologist's report shall advise at a minimum that: a. As abandoned, the Well will not pose any significant risk to the public health, safety or welfare. b. The Well is a safe distance for any existing or proposed structures or improvements. c. Any abandonment or mitigation conditions that should be imposed on the Well abandonment as conditions of development of the property. 2. The Well owner has constructed. and installed any venting plan andlor additional measures the engineer or geologist recommends to protect the public health, safety and welfare. 3. The Well complies with Fire Department City Specification No. 422, dated June 2017. 4. The Owner has executed and recorded against the property an environmental disclosure, release and indemnity agreement providing that the property owner and his assignees, release, indemnify and hold harmless the City against any and all claims, obligations, and causes of action of any kind or nature whatsoever, known or unknown, for personal injury or death, property damage, economic loss, and fines and penalties. The City Attorney shall approve the form of the disclosure and indemnity agreement. C. Existing producing Wells which will remain in service after the completion of the development or redevelopment of the property are exempt from these requirements. 15.32.100 Abandonment Procedures The procedures set forth in Huntington Beach City Specification No. 422, dated June 2017 shall be followed throughout the abandonment process. In addition to these requirements, the responsible party must submit an application to the Fire Department for review and approval for each well which is to be abandoned. Such application shall contain the date the abandonment work will commence. Once all necessary permits and approvals have been obtained, abandonment work may commence on or subsequent to the date so stated. SECTION 5. Sections 15.32.110 through 15.32.120 of the Huntington Beach Municipal Code are deleted. SF:16-5481/159051.doc 2 ORDINANCE NO. 4138 SECTION 6. This Ordinance shall become effective 30 days after its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the— day of Sj— 2017. A AAA Mayor ATTEST: APPROVED AS TO FORM: City Clerk City Attorney r%%v REVIEW D APPROVED: INI �,TED AND APPROV . �Iity anager X Fire ChieV SF:16-5481/159051.doc 3 Ord. No. 4138 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing ordinance was read to said City Council at a Regular meeting thereof held on September 5, 2017, and was again read to said City Council at a Regular meeting thereof held on September 18,2017, and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council. AYES: O'Connell, Semeta, Delgleize, Hardy, Brenden, NOES: None ABSENT: Posey, Peterson ABSTAIN: None I,Robin Estanislau,CITY CLERK of the City of Huntington Beach and ex-officio Clerk of the City Council,do hereby certify that a synopsis of this ordinance has been published in the Huntington Beach Wave on September 28,2017. In accordance with the City Charter of said City. (/�1 Robin Estanislau, City Clerk City Clerk and ex-officio Clerk Senior Deputy City Clerk of the City Council of the City of Huntington Beach, California LEGISLATIVE DRAFT HBMC Section 15.08.010 - 15.08,010 Definitions The terms used in this title shall,unless the context indicates otherwise,have the respective meanings herein set forth.. "Abandonment"shall mean operations on any well which will bring the well to the level of compliance defirned below under"properly abandoned well,"and the cicaning and restoration of the well site as required by the Huntington Beach Oil Code. "Approved type"and"approved design"shall mean and include improvements, equipment or facilities of a type or design approved by the Community Development Department,Fire Department,or Public Works Department. "Blowout preventer"shall mean a mechanical,hydraulic,pneumatic or other-device or combination of such devices, secured to the top of a well casing, including valves,fittings, and control mechanism connected therewith which can be closed around the drill pipe or other tubular goods which completely closes the top of the casing and is designed for preventing blowout. "Cellar"shall meant an excavation around and above the top joint of the casing of a well. Completion of Drilling,Redrilling and Reworking.Drilling,redrillinng and reworking is completed for the purpose of these regulations 30 days after the drilling,redrilling or reworking crew has been released through completion of its work or released by those so employing said crew. "Department,"unless specified otherwise in this title,shall mean the Fire Department. "Derrick"shall mean any portable frarnework,tower,mast,or structure which is required or used in connection with drilling,reworking,operating,or maintaining a well for the production of oil, gas, or other hydrocarbons from the earth. "Desertion"shall mean the cessation of operation at a drill site without compliance with the provisions of this title relating to suspended operations, idle wells,or abandonment. "Developed area"shall mean: I. Any area within 150 feet of an occupied residential,commercial,or office/professional structure which is itself within 100 feet of another occupied residential, commercial, or office/professional structure:or 2. Any area within a public park,beach or recreation area which has been developed and opened for public use. "Dh4sien of Oil Emd CasDQQQW'shall mean the Division of Oil;aftEl Gas and Qqotherrnal Resources of the Department of Conservation of.the State of California. "Drilling"shall mean digging or boring for the purpose of exploring for,developing, or producing oil,gas, or other hydrocarbons,or for the purpose of injecting water,steam or any other fluid or substance into the earth. 16-54811163105/sf 1 Item 15. - 6 HB -334- "Drilling equipment" shall mean the derrick,together with all parts of and appurtenances to such structure, every piece of apparatus,machinery,or equipment used or erected or maintained for use in connection with drilling. "Drill site"shall mean the premises used during the drilling or reworking of a well or wells located thereon. "Enhanced recovery"shall mean any production method which involves the injection of water,gas,steam, or any other substance into the earth for the purpose of extracting oil or other hydrocarbons. "Fluids"shall mean any gas or liquid. "Gas"shall mean any fluid,either combustible or noncombustible, which is produced in a natural state from the earth and which maintains a gaseous or rarefied state at standard temperature and pressure conditions.It shall also mean the gaseous components or vapors occurring in or derived from petroleum or natural gas. "Injection well"shall mean a well or gas well used for the purpose of injecting water, wastewater,brine,hydrocarbons,steam or any other substance as a means of enhanced recovery, repressurization or disposal whether under pressure, gravity,or vacuum. "Lessee" shall mean the person who has executed all oil or gas lease or sublease, or the owner of the land or minerals,or his or her heirs, or who conducts or carries on any oil or gas exploration, development and operation thereof,or any person so operating for him or herself or others. "Lessor"shall mean the owner of surface or mineral rights who has executed a lease. "Maintenance"shall mean and include the repair or replacement of machinery, equipment, apparatus,structure,facility, and parts thereof,used in connection with an oil operation site or drill site as well as any other work necessary to reduce fire hazards or any hazards to employees, public health, safety and welfare. "Multiple well site"shall mean two or more wells within a fenced surface area primarily used for the drilling and production of oil. Where two wells are separated by a developable parcel,they will be considered separate sites unless both are enclosed by the same perimeter fence. "New well"shall mean a new well bore or well hole established at the ground surface and shall not include redrilling or reworking of an existing well.An abandoned well shall be considered a new well for purposes of drilling,redrilling, or reworking. "Oil field recovery heater" shall mean any steam generator,or air or water heater used in an oil field thermal recovery operation. "Oil operation" shall mean the use or:maintenance of any installation,facility or structure used,either directly or indirectly, to carry out or facilitate one or more of the following functions: drilling,redrilling,reworking and repair, production,processing,extraction, enhanced recovery, stimulation, abandonment,storage or shipping of oil or gas from the subsurface of the earth. "Oil operation site"shall mean the physical location where oil operations are conducted except for any portion of the property which the surface owner is actively using for another purpose. 16-5481/163105/sf 2 HB _;;;_ Item 15. - 7 "Operator" shall mean any person drilling,maintaining, operating,pumping,or in control of any well.However, if the operator,as herein defined, is different from the lessee under an = oil or gas lease of any premises affected by the provisions of this title,then such lessee shall also be deemed to be an operator.In the event that there is no oil or gas lease relating to any premises affected by this title,the owner of the fee estate in the premises shall also be deemed an operator. Outer Boundary Line. Where several contiguous parcels of land in one or different ownerships are operated as a single oil or gas lease or operating unit,the term"outer boundary Iine" shall mean the exterior limits of the land included in the lease or unit,In determining the contiguity of any such parcel of land,no street,road or alley lying within the lease or unit shall be deemed to interrupt such contiguity. "Owner"shall mean a person who owns a legal or equitable title in and to the surfaces of the drill site or oil operation site. "Processing"shall mean the use of oil operations for gauging,recycling, compressor repressuring, injection,reinjection, dehydration,stimulation,separation(including but not limited to,separation of liquids frocn gas),shipping and transportation,and the gathering of oil,gas,other hydrocarbon substances,water or any combination thereof. pe4y-abena it t beeft El to the sa�jsfac4iea of the State Oil a-ad gas gupef�viseT�ffiftt all#FePef-� le been ^ to i se-In-te;—;I I oil bearing and-gas beaFing stfflta eneew4tered in ewe!!,to preteet-untlergre�and eft a� life, s andf other feseuFees, gki ,the siteha been o "Redrill" shall paean recompietion of an existing well by deepening or sidetrack operations extending more than 150 feet from the existing well bore. "Reworldng"sball mean recompletion of an existing well within the existing bore bole or by deepening or sidetrack operations which do not extend more than 150 feet from the existing well bore, or replacement of well liners or casings. "Source of ignition"shall mean any flame,are, spark or heated object or surface capable of igniting liquids, gases or vapors. "Subsidence" shall mean the settling or sinking of the ground surface. "Sump" shall mean any surface impoundment or excavated depression in the ground,lined or unlined,that is used for separating crude oil or other organic liquids,water, or solids. Sumps shall be classified as follows: 1. primary or first stage production sump is any sump which receives a stream of crude oil and produced water directly from oil production wells, field gathering systems,or tank systems. 2. Secondary or second stage sump is any sump which receives a wastewater stream from one or more primary sumps,a free water knockout device, a wash.tank, or from intermittent or emergency streams. 16-5481/163105/sf 3 Item 15. - 8 HB -336- 3. Tetrtiar y or third stage surnp is any sump which receives R.wastewater stream from the secondary sump or other separation process upstream of the tertiary sump. "Tank"shall mean a container, covered or uncovered,used in conjunction with the drilling or production of oil,gas,or other hydrocarbons for holding or storing fluids. "Well"shall mean any oil or gas well or well drilled for the production of oil or gas, or any well reasonably presumed to contain oil or gas."Well"shall include'injection wells used for the purpose of enhanced recovery,repressurization of the field,and disposal wells for the purpose of disposing of wastewater. "Well servicing"shall mean the maintenance work performed within any existing well bore which does not involve drilling,redrilling or reworking. (3037-5/90) 16-5481/163105/sf 4 HB _337_ Item 15. - 9 LEGISLATIVE DRAFT HBMC Section 15.04.040 - 15.04.040 Oil Committee—Authorization and Duties The City Council may from time to time appoint,on an ad hoc basis,an oil committee which shall include,but is not limited to,the following: a member of the City Council,a member of the Planning Commission,the City Attorney,Fire Chief,Director of Community Development,or the duly authorized agents of such members,a representative of the Western Oil and Gas Association,and a member of the Independent Oil Producers Association. A representative of the DOGGR may be requested to serve as an ex officio member of the committee.The committee shall act as an advisory body to the City Council with regard to the contents of this code and its revision.The City Councilmember sewing on the committee shall serve as the conunittee chair. (3037-5/90) 16-5481/163111/SF Item 15. - 10 HB -338- LEGISLATIVE DRAFT HBMC Section 15.04.045 = 15.04.045 Subsidence Committee—Authorization and Duties The City Council may appoint a subsidence committee which shall include,but not be limited to, the following: a member of the City Council,a representative of the Huntington Beach Fire Department,a representative of the C—Al AMia Divisioft af Oil and GasDO G a City geologic consultant,a representative of the independent Oil Producers Association, and a representative from the major oil producing companies operating in the City and the subsidence areas, The City Councilmember may also serve as the chair of this committee.The committee will endeavor to make recommendations to the Fire Chief for the control of subsidence,and the fire Chief will require mitigating actions to control subsidence and its negative effects.The City will endeavor to perform or cause to be performed on at least an annual basis a leveling survey of land within the City boundaries and the subsidence areas,and the results of this survey shall be provided to the subsidence committee members.This committee wiII evaluate the results of the surveys and the effectiveness of anti-subsidence measures which are in effect,and will formulate additional recommendations for subsidence control. (3037-5/90) 16-5481/163112ISF KB _33.)9- Item 15. - 11 � LEGISLATIVE DRAT HBMC Section 15.12.020 15.12.020 Drilling or Redrilling Permit Drilling or redrilling shall not be commenced unless or until: A. A copy of approval for such operations from the Division of Oil and C sDOGOR is submitted to the Fire Chief,and B. A permit for such operations has been obtained from the Fire Department. Said permit is herein referred to as a"drilling permit."(3037-5/90) Item 15. - 12 HB - 4 - � 0 I LEGISLATIVE DRAFT HBMC Section 15.12.040 15.12.040 Annual Permit—Additional Requirements A. Fencing.Beginning July 1, 1983,an annual permit shall not be issued for any well in a developed area, as defined in this title,which is not enclosed by a fence which conforms to the specifications contained in Chapter 15.22 of this title,and the regulations of toe DMjinn of OR and GasDQjaU as contained in the California Administrative Code as they presently exist or may hereafter be amended.The Fire Chief may grant an extension of six months so that fencing requirements may be met if the area has become developed since the issuance of the last annual permit. B. Landscaping.Beginning July 1, 1983,an annual pe37nit shall not be issued for any well in a developed area,as defined in this title,which has not been landscaped to conform to the requirements of this title and to a landscape plan,submitted for the review and approval of the Fire Chief and the Director of Community Development.The Fire Chief may grant an extension of six months so that landscaping requirements may be met if the area has become developed since the issuance of the last annual permit.Landscaping shall not be required for any well or tank which is not visible from a public street unless the well is within a public park,beach or recreation area which has been developed and open for public use. (3037-5/90) 16-5481/163118/5F KB -34 1- Item 15. - 13 LEGISLATIVE DRAFT HBMC Section 15.12.060 15.12.060 Reworking Permit Reworking shall not be commenced unless or until: A. A copy of approval for such operation from OG T is submitted to the Fire Chief;and B. A reworking permit for such operation has been obtained from the Fire Department. (3037-5/90) 16-5481/163123 Item 15. - 14 HB -342- LEGISLATIVE DRAFT HBMC Section 15.12.170 15,12,170 Effect of Suspension or Revocation of Permit No person shall carry on any operations performed under the teams of any permit during any = period of permit suspension or revocation, or pending a judgment of the court of law upon any application for writ taken to review the decision or order of the City in suspending or revoking such permit;provided,however,that nothing therein contained shall be construed to prevent the performance of such operation as may be necessary in connection with a diligent and bona fide effort to cure and remedy the default or violation for which the suspension or revocation of the permit was ordered,or such operation as necessary for the safety of persons or as required by the Divisieft ef Oil and Gas .(3037-5/40) 16-5481/163124/SF H B 43- Item 15. - 15 LEGISLATIVE DRAFT HBMC Season 15.20.010 15.20.010 Derricks A. All derricks and portable masts used for drilling or reworking shall meet the standards and specifications of the American.Petroleum Institute as they presently exist or may be amended hereafter. B. All drilling,redrilling or reworking equipment shall be removed from the operation site within 30 days following the completion of drilling; redrilling or reworking unless otherwise permitted by DOQQ2. (3037-5/90) 16-54811163125i SF Item 15. - 16 HB -344- LEGISLATIVE DRAFT HBMC Section 15.20.050 15.20.050 Identification Signs A, An identification sign shall be prominently displayed and maintained in good condition on or in front of the perimeter fence next to the entrance of each well whether producing or not. Such sign shall be of durable material and unless othenvise required by the Pivisien 0€ Lail aud-QasDOGG& shall have a surface area of four square feet.The sign shall be lettered with minimum two inch letters and contain the following: 1. Well name and number; 2. Name of operator, 3. Telephone number of two persons responsible for said well who may be contacted in case of an emergency. B. In the event the drill site or leasehold is fenced or walled, all entrances to said drill site or leasehold shall be posted with a like sign.In addition,a readily visible sign of durable material designating the well name and number shall be posted on or near each and every well within the drill site or leasehold, All freestanding signs and any sign larger than four square feet in surface area shall be subject to the provisions of Huntington Beach Municipal Code Artielc 961,(2491-7/81,2759-5/85,3037-5/90) 16-5481/163126/SF HB -345- Item 15. - 17 LEGISLATIVE DRAFT HBMC Section 15.20.100 15.20.100 Oil Operations—Location Time A. It shall be unlawful for any person to engage in any work whatsoever on any oil operation site within 300 feet of a dwelling unit, church, Hospital,rest home, school, preschool, nursery, or other place of public assembly, except in the following situations: 1. When such work consists of minimum maintenance or surveillance on the oil operation site and such work is conducted between the hours of 7:00 a.m. and 10:00 p.m.; or 2. In case of emergency; or 3. When so ordered by DOGGR; or 4. Where the work being so conducted is soundproofed and such soundproofing is approved by the Fire Chief. B. Wben operations are conducted beyond a distance of 300 feet from the aforementioned facilities,the Fire Chief may, in cases of disturbance such as excessive noise or vibration, require the oil operator to: 1. Enclose the derrick and all drilling machinery used in cotuiection with drilling of any well with fire resistant soundproofing material, which shall be maintained in a serviceable condition.No operations other than well logging shall be conducted outside the enclosure; or 2. Enclose all drilling machinery used in connection with the drilling,redrilling, or reworking operations with fire resistant soundproofing material including the drilling mast or derrick,which shall be so enclosed on a minimum of three sides to a height of 20 feet, and conduct no operations between the hours of 10:00 p.m. and 7:00 a.m.with the exception of circulation of fluids and well logging. The Fire Chief may allow other phases of the operation to continue during the restricted hours if, in his or her opinion, the noise is minimal, or if required by the PA':_:^- ^F(Dil and GasDOGGR or in the case of emergency. (3037-5/90) 16-5481/163127/SF Item 15. - 18 HB -346- LEGISLATIVE DRAFT HBMC Section 15.20.130 15,20,130 Blowout Prevention In all cases protection shall be provided to prevent blowout during oil operations as required by and in conforruance with the requirements of Divisien ef Oil and 3&sp =QQGYR and the safety orders for drilling and production of the State Division of Industrial Safety.Violations of this section shall constitute a misdemeanor punishable as set forth in Chapter 1.16 of the Huntington Beach Municipal Code.(3037-5/90) 16.5481/163128/SP HB -347- Item 15. - 19 LEGISLATIVE DRAFT HBMC Section 15.20.150 15.20.150 Fence Permit Required No fence or wall shall be constructed to enclose any oil well site,oil operation site or drilling = island site in whole or in part until a permit therefor shall have been issued by the Community Development Department.As a condition of issuing such permit,the Director of Community Development or the Fire Chief may impose thereon any conditions as are necessary in the interest of the public safety, and such fence or wall shall be constructed in accordance with such conditions.These fence,gate and wall standards may be modified subject to the approval of 4he Di isi DOGGR and the Fire Chief upon a deterinination by the Fine Chief that alternate ineans of restricting access have been provided and that said alternate means are as effective or more effective than these fence standards. The provisions relating to dedication of j right-of-way and construction of improvements shall not be applicable to the issuance of such permit.All such enclosures shall be subject to the setback requirements contained in this title. (3 037-5/90) 16-5481/1631301SF Item 15. - 20 HB -348- LEGISLATIVE DRAFT HSMC Section 15.20,160 - 15.2O.160 Fences All oil operation sites, oil heaters and tanks;and idle wells shall be completely enclosed by a chain link fence.masonry wall, or other approved fencing material according to City requirements in combination with all applicable Division of Qi d-C D requixem nt5. A. All chain link fence enclosures shall Dave a minimum height of six feet,topped with three strands of barbed wire;spaced four inches apart. B. There shall be at least one gated opening for access,placed in anonhazardous position and said gate(s)shall be kept locked at all times while left unattended by security or service personnel. C. There shall be no opening below the fence greater than four inches. D. Support posts shall beset in concrete and shall be imbedded into the ground to a depth sufficient to maintain the stability of the fence as approved by the Building Division,but in no event less than 12 inches. E. Fencing constructed of individual chain link panels shall be securely latched,pinned or hinged to prevent unauthorized persons from gaining access to such operation or drilling site. F. The chain link fabric shall be 11-gauge galvanized steel and maybe coated with vinyl or plastic material. G. Posts and rails shall be standard galvanized,welded pipe.Fences constructed after January 1, 1984 shall use pipe of the following outside diameters: End posts: 2 3/8 Line posts: 1 7/8 Top and bottom rails: 1 3/8 Movable panels around wells shall use 1 3/3 8 inch galvanized welded pipe for all frame members. H. All pipe and other ferrous parts, except chain link fabric, shall be galvanized inside and outside. I. Tension.rods shall be 3/8 inch round steel bolt stock.Adjustable tighteners shall be turnbuckle or equivalent having a six inch minimum take-up.Tension bars shall have a minimum thickness of 114 x 3/4 inch. (3037-5/90) 16-5481/163131/SF HB -349- Item 15. - 21 LEGISLATIVE DRAFT HBMC Section 15.22.020 15.22.020 Screening--Drilling, Redrilling and Activation Within 60 days of completion of drilling or redrill.ing, or within 60 days of activation of an idle well if such well is located in a developed area,as defined in this title, such well shall be screened by a fence enclosure which conforms to the requirements of this chapter,the provisions set out elsewhere in this code, and the regulations of the Diviskm of Oil DOGGIR contained in the California Administrative Code as they presently exist or may hereafter be amended, (3037- 5190) i i 16-5481/163132/SF Item 15. - 22 H B -3 J 0- LEGISLATIVE DRAFT HBMC Section 15.24.070 15.24.070 Gas Emission or Burning Prohibited No person shall allow or cause or permit gases from production operations to be vented into the atmosphere or to be burned by open flame except as provided by law or as permitted by the pOGGR and the appropriate air pollution control district. (3037-5/90) i 16-5481/163133(SF HB _351- Item 15. - 23 LEGISLATIVE DRAFT HBMC Section 15.32.010 15.32.010 Production Report Filing Dates All well operators shall file with the Fire Department,during the first 30 days of each quarter,for the last preceding calendar quarter, a statement in such form as the Fire Chief may designate, showing: A. The amount of oil and gas produced from each well during the period indicated and the number of days during which fluid was produced from each well. B. The number of wells drilling, reworking,producing, idle,and owned or operated by such person. C. In lieu of the above,the operators may submit to the Fire Chief copies of Form 110 report,as submitted toy D. Owners or operators of all oil and/or natural gas wells,oil or natural gas storage facilities,or oil or natural gas transportation equipment shall be required to meter fluids produced or transported as ordered by the Fire Chief to verify production of wells under the jurisdiction of the City of Huntington Beach. E. The Fire Chief may require any additional actions he or she determines necessary for verification of well production.(3037-5/90) 16-5 481,'163134/SF Item 15. - 24 HB -3>2- LEGISLATIVE DRAFT HBMC Section 15.32.O35 15.32.035 Production Standards A. Any well which does not produce in any calendar quarter at least 90 barrels of crude oil _ or other hydrocarbon substances, or at least 100,000 cubic feet of natural gas,shall be declared"nonproducing."If such well fails to produce the required amounts for two successive calendar quarters,it shall be declared idle.The following classifications of wells are EXEMPTED from these minimum production requirements: 1, Wells which are part of an identified and legitimate"enhanced recovery project"; 2. Wells which are part of a City authorized consolidated recovery project; 3. Wells utilized for the injection of fluids; 4. Wells deemed by the Fire Department and the Division of 04 ail GasDQ-Q-QRto be necessary to prevent the dangerous repressurization of a mineral field; 5. Wells which,to the satisfaction of the Fire Chief;are demonstrated to have a legitimate future use as a part of an enhanced recovery project or consolidation project. B. The Fire Chief may suspend minimum production requirements during periods of extremely low market prices for crude oil or natural gas.Wells will be exempt from production standards for each calendar quarter or portion thereof for the duration of such periods. C. All wells which are exempted from production standards for any reason must be shown to be mechanically sound, patent, and operable. 16-548 1/l 63136/SF HB -353- Item 15. - 25 LEGISLATIVE DRAFT HBMC Section 15.32.050 - 15.32.050 Idle Welts = When a well is determined to be an"idle"well,the surface area of the well site shall be cleaned pursuant to the following: A. Notice shall be sent by the Fire Chief,by registered or certified mail, to the owner of the fee simple interest in the land on which such well is situated as shown on the last equalized assessment toll, and to the owner of the mineral rights on which such well is situated as shown on the last equalized assessment roll, and to the operator of such well as indicated on either the records of the TG ,Department of Conservation or the records of the hire Department.Once the notice is sent,the well or wells specified therein may not be activated unless the requirements of Chapter 15.40 of this code are adhered to and satisfied, B. The notice shall indicate the name and location of the well in question and a statement by the.Fire Chief of the reasons why such well is an idle well, as defined in this title. (3037- 5/90) 16-54 S 1/1 63 1 37/SF Item 15. - 26 HB -354- LEGISLATIVE DRAFT HBMC Section 15.32.090 15.32.090 Abandonment Requirements—Development or Redevelopment Pi!ier-ta the release of any building or grading pen:nits for the develepment or redevelepjBent ef any pfepeFty,all-well on tl pafeel shall 4 abandoned reabaedeiied t eun-,,3t Division of O:l # .t} ffipletio f the development or re deyeln.��ent nth r. p o eKempted .....1-. 1 a ftem these . (3037-5/90) A. No building or grading permit may be issued for property upon which there are any active or abandoned Wells without the approval of the Fire Code Official. To obtain the approval of the Fire Code Official, the property owner or designee must submit an application to the Fire Department for review and approval prior to issuance of any building or grading permit. The Fire Code Official will not approve the application unless: l. Each Well on the property is abandoned or reabandoned to current DOGGR standards, except as provided at Subsection(B) below; and, 2. Each Well on the property complies with all Federal.. State and City laws, including Fire Department City Specification No, 422, dated June 2017. B. If DOGGR determines that the Well cannot be abandoned to its current standards, the Fire Code Official may still authorize issuance of the building and/or grading permit for the property if the Official finds each of the following for each abandoned Well: l. The property owner shall obtain, at his sole cost, a report from a California licensed professional engineer or geologist qualified and experienced with oil well abandonment. Prior to obtaining the report, the property owner shall obtain written approval from the Fire Code Official of the engineer or geologist charged with drafting the report. The engineer's or geologist's report shall advise at a minimum that: a. As abandoned, the Well.will not pose any significant risk to the public health, safety or welfare. b. The Well is a safe distance for any existing or proposed structures or improvements. c. Any abandonment or mitigation conditions that should be imposed on the Well abandonment as conditions of development of the property. I6-54 81/1631381SF HB -355- Item 15. - 27 2. The Well owner has constructed and installed any venting plan and/or additional measures the engineer or geologist recommends to protect the public health, safety and welfare. 3. The Well complies with Fire Department City Specification No. 422, dated .tune 20 t 7. 4. The Owner has executed and recorded against the property an environmental disclosure, release and indemnity agreement providing that the property owner and his assignees, release, indemnify and hold harmless the City against any and all claims, obligations, and causes of action of any kind or nature whatsoever,known or unknown, for personal injury or death, property damage,economic loss, and fines and penalties. The City Attorney shall approve the form of the disclosure and indemnity agreement. C. Existing producing Wells which will remain in service after the completion of the development or redevelopment of the property are exempt from these requirements. 16-5481/163138;SF Item 15. - 28 HB -356- LEGISLATIVE DRAFT HBMC Section 15.40.050 - 15.40.050 Test Permit A. At the request of the applicant and prior to the issuance of the activation permit,the Fire Chief may grant a test permit for a period not to exceed 90 days.This test permit is to authorize the applicant to operate the well on a test basis to determine if said well is capable of producing in the quantities specified in this code. B. The test permit shall not be issued unless the drill site and oil operation is in compliance with all the provisions of this title and other applicable provisions of the Huntington Beach Municipal Code except that equipment,materials and operations necessary for the conducting of the test shall be permitted. C. Should the well fail to produce oil,gas or other hydrocarbon substances within the 90 day period in a manner sufficient to demonstrate that it is capable of producing the quantities specified in this code,the applicant shall abandon the well within. 180 days from the issuance of the test permit in accordance with the regulations of GasQQ"Q and this title. (3037-5/90) t6-5481/163139/SF xB _3)5 7_ Item 15. - 29 LEGISLATIVE DRAFT HBMC Section 15.50.020 15.50.020 Abandonments The sealing and abandonment of existing wells which will be replaced by the project shall be completed within 18 months of the date of commencement of drilling operations for the consolidation project.All abandonments shall be done according to the requirements of the DiViJ e„x Of Oi'�-4-GasDOGGR and the City of Huntington Beach.(3637-5/90) 16-5481/163140/SF Item 15. - 30 HB -358- LEGISLATIVE DRAFT HSMC Section 15.32.100 15.32.100 Abandonment Procedures The procedures set forth.in Huntington Beach City Specification#Number 422.date June 2017 _ shall be followed throughout the abandonment process. fn addition to these requirements,the responsible party must€ile us omit an application to =vaAn D +.w ' f w FD 61) the Fire Department for review and approval for each well which is to be abandoned. Such aetiee cation shall contain the date the abandonment work will commence, Once all necessary permits and approvals have been obtained,abandonment work may commence on or subsequent to the date so stated.(3037-5/90) 16-5481/163141/SF HB -359- Item 15. - 31 LEGISLATIVE DRAFT HBMC Section 15.32.110 The-a4a de eat of a well shall not be approved and aus"4 by the Fife Depaftmerit iititil th site bag been i Itlreffie . A. The.a 1 ..d all d + hall Lremoved f. r +1, ni '3 .Y t B. All+.,,.1E� • pipiftg,debris, All -- and other tithe vcv�.baf e site- D. /��� +L. ...,�+1, TF+I.o 8r 44s . All ViS P� � leeated in a sbigle wall ee4lar, or if the iii,eil is the last �mil'67LIF7ICTPivII 1�1_the rpellar shall 1 m ...4. E. The well site shall be gradeditud fttutaedte asriear a Ratural state as praaiea 1 .:tlhia he site 1,., :,d r-•l��i autc¢svxisoa�u xr�nRrc�rnsaa rra iaa .. �a .. ...... treated er disposed of__ueordariee with all 1 eat,-w 1 federal r-eoatiens, E303 9 t 6-5481/163143/SF Item 15. - 32 HB _360_ LEGISLATIVE DRAFT HBMC Section 15.32.120 - 46T32.115 Site Restoration Time Lintit 16-5481/1634981SF HB -36 1- Item 15. - 33 LEGISLATIVE bRAFf HBMC Section 15.32.120 cc of-,o b t3Gve4OPffiffiflt may be PAlawed pfeNlided that pr-eee"r-es set fbrth by the Fire Chief-and in 3 Fire GhieFto b hazar-deus a + t3, eendition of the Wvttrsl. ,A:., th e.—,y.buufA i0.,. 16-5481/163147ISF Item 15. - 34 HB -362- City Specification No. 422 Reference to HBMC Section 15.32.090 Huntington Beach Fire Department Oil Well Abandonment• Process Before any oil well abandonment operations are commenced, the State of California Division of Oil, Gas and Geothermal Resources (DOGGR) must be contacted, and the following processes initiated: • For all sites undergoing development, the owner must complete and submit a Well Review Program Introduction and Application to the DOGGR. At completion of the DOGGR review, a Well Review Letter will be issued to the owner. • The well operator must submit an application to abandon or re-abandon each oil well to the DOGGR when the well is not abandoned to the current DOGGR standards, or when the well casing will be modified. The DOGGR will then issue a permit that sets forth their agency requirements and conditions. The DOGGR Well Review Letter (if applicable) and abandonment permit must be presented to the Huntington Beach Fire Department (HBFD) in order to obtain a Fire Department permit for well abandonment. The HBFD permit authority on well abandonment includes top plate inspection, methane leak test, backfill / grading and land use / development as per Sections 3, 4, 5, and 6 in this City Specification. REQUIREMENTS 1. PERMITS 1.1 The well operator or well abandonment contractor must submit a Fire Construction Permit Application (FD042) to the HBFD for each oil well being abandoned. Two (2) copies of a site plan must also be provided, with building locations, well location, Geographical Information System (GIS) coordinates for well, American Petroleum Institute (API) number, well name, well operator, property owner and any other pertinent information. 1.2 If explosives are to be used at any stage of the abandonment process, the abandonment contractor must obtain an Operational Permit by completing the Fire Code Permit Application (FD114) and submitting to the HBFD prior to use of explosives. Once plan approvals and permits have been obtained as required by Sections 1.1 and 1.2 above, abandonment work may commence. JUNE 2017—REPLACES FEBRUARY 2010 PAGE 1 OF 4 8:IFMT1Fire Prevention ManuailCity SpecslCity Spec 422.docFMT\Fire Prevention\City SpecslCity Spec 422.doc HB -363- Item 15. - 35 CITY SPECIFICATION NO. 422 Oil Well Abandonment Permit Process 2. OIL WELL (DOWN HOLE) ABANDONMENT 2.1 An oil well shall be abandoned per the current DOGGR standards. The well operator must do everything reasonable and feasible to properly abandon the well, including completing the abandonment of the well in compliance with an alternative abandonment plan coordinated and approved by the DOGGR. 2.2 When the required down hole well work is complete and all records received, the DOGGR will issue a Report of Well Abandonment (Form OG159) to the applicant. A copy of the DOGGR issued report for each well shall be submitted to the HBFD prior to the oil well abandonment permit final inspection approval. 3. PRIOR TO BACKFILLING THE EXCAVATION 3.1 Welding of the Metal Top Plate 3.1.1 The metal top plate shall be the same thickness or thicker than the casing it is attached to and must be welded by a licensed welder. 3.1.2 The plate shall have three, 2 inch welds and shall be free of any nipples and/or valves. Full circumference (100%) welding of the top plate is not permitted. 3.1.3 Termination of the top plate and metal casing shall be a minimum of 6 feet and a maximum of 10 feet below final grade. 3.1.4 The following information shall be placed on the top plate surface with welding rod: • API number • Well name • Date welded 3.2 Fire Department Inspection and Gas-Test 3.2.1 The Fire Department must observe the methane gas-test at the well head prior to welding the top plate. The top plate shall be welded immediately after gas- test completion in the presence of the HBFD Inspector. 3.2.2 The gas-test equipment is required to have been calibrated within the previous 12 months and a copy of the calibration test provided at the inspection. 3.2.3 Results of the gas-test must be provided to the HBFD for review prior to final permit approval. 3.2.4 Methane levels at the top plate cannot exceed site specific background levels. JUNE 2017—REPLACES FEBRUARY 2010 PAGE 2 OF 4 c.Ic"7-Icire Prevention Manual\City Specs\Clty Spec 422.docFMT\Fire Prevention\City Specs\City Spec 422.doc Item 15. - 36 HB -364- CITY SPECIFICATION NO. 422 Oil Well Abandonment • 3.2.5 Inspections must be scheduled at least 2 business days in advance by Calling the HBFD at (714) 536-5411. 4. BACKFILL & GRADING 4.1 All grading associated with well abandonment shall be performed in accordance with City grading and excavation codes. 4.2 Each excavation must be back-filled and compacted in lifts no greater than 8 inches. 4.3 Back-fiil material must be clean and free of debris, in compliance with City Specification No. 431-92, Soil Quality Standard. 4.4 All lifts shall be compacted to a minimum of 90 percent relative compaction, in compliance with American Society of Testing & Materials standards, 4.5 Copies of compaction reports shall be submitted to the HBFD at completion of grading, prior to oil well abandonment permit final inspection approval. 5. LAND USE I DEVELOPMENT 5.0 To develop a parcel that contains an oil well, all oil wells must be abandoned or re- abandoned when the wells are not abandoned to the current DOGGR standard. Sections 5,1 and 5.2 provide options for development based on the abandonment outcome. 5.1 If the oil well abandonment is approved to current standards by the DOGGR, there is no restriction to development location. A copy of the Report on Well Abandonment (OG159) must be provided to the HBFD for review prior to precise grade or building plan approval. 5.2 If the oil well abandonment is not approved to current standards by the DOGGR, Land Use I Development may still occur, subject to the following requirements and approval by the HBFD: 5.2.1 The well operator must provide a copy of the Report on Well Abandonment (OG159) to the HBFD. 5.2.2 The property owner shall provide a report from a California licensed Professional Engineer or Geologist that is experienced in well abandonment. The licensed Professional must be approved by the HBFD. The report shall include the following: 5.2.2.1 Detailed abandonment procedure. 522.2 Reason for failure to meet the DOGGR standards. 5.2.2.3 Additional mitigation measures, if proposed. JUNE 2017—REPLACES FEBRUARY 2010 PAGE 3 OF 4 S:1FMTT!re Prevention Manual\City SpecslClty Spec 422.docFMTTire PreventiWCity Specs\City Spec 422.doc 1- B -365- Item 15. - 37 CITY SPECIFICATION NO. 422 5.2.3.4 Recommendation as to safe proximity of buildings on the property to the oil well. Recommendation must also include an affirmative statement that the abandoned well will not pose any significant risks to public health or safety. 5.2.3.5 The report shall be stamped, wet signed and dated by the licensed professional. 5.2.3 The property owner shall fully execute and record an Environmental Release and Indemnity Agreement in the format required by the City of Huntington Beach Attorney. 5.2.4 Upon receipt of the reports required in 5.2.1 and 5.2.2, and receipt of the Indemnity Agreement required in 5.2.3, the HBFD will conduct a review. If the HBFD finds the well abandonment safe for the proposed land use / development, a letter will be issued with the requirements for approval of precise grade and building plans. The HBFD shall retain the services of a third party consultant of the City's choice to assist in reviewing the report / documents, and the owner shall pay all fees for the consultant. 5.3 Prior to the issuance of precise grade or building permits, former oilfield properties shall conform to City Specification No. 429, Methane Mitigation Requirements, and City Specification No.431-92, Soil Quality Standard, 6. CONTAMINATION 6.1 If, during any of the oil well abandonment or project development processes, any previously unknown oil well or soil contamination is discovered, the DOGGR and the HBFD must be notified immediately, 6.2 If the contamination discovered constitutes a release under Proposition 65, contact the Orange County Health Care Agency immediately and provide notification of the release. APPROVED: ': J DATE: (- David A. Segura, FirtYlief JUNE 2017--REPLACES FEBRUARY 2010 PAGE 4 OF 4 C•`�""T'�ire Prevention Manual\City Specs\City Spec 422.docFMT\Fire Prevention\City Specs\City Spec 422.doc Item 15. - 38 HB -366- City of Huntington Beach September 5, 2017 ITEM #15 APPROVE FOR INTRODUCTION ORDINANCE NO. 4138 AMENDING MUNICIPAL CODE TITLE 15 REGARDING OIL WELL ABANDONMENT REQUIREMENTS Oil Well Abandonment Requirements Existing Municipal Code Title 15 does not allow for development if oil wells are not abandoned to the current CA Div. of Oil, Gas and Geothermal Resources (DOGGR) standard Oil Well Abandonment Requirements DOGGR standards have become progressively more rigid leading to oil well abandonments that cannot meet the current standard Oil Well Abandonment Requirements The proposed Ordinance allows for safe development over or near oil wells that do not meet the DOGGR Standards Oil Well Abandonment Requirements It requires developers to submit an engineering report documenting how the property can be safely developed If the oil well abandonment review is acceptable, the property owner also executes an environmental release and indemnity agreement