It shall be unlawful for any person, partnership, association or corporation to drill a well for on or gas within the city limits or to work upon or assist in any way in the drilling of any such well, without a permit for any such well, without a permit for such well, and for the prosecution of the development thereof having first been issued under and by the authority of the governing body in accordance with the terms of this article.

(Ord. 153; Code 1984, 4-801; Code 2012; Ord. 2016-01)

Within the city limits there shall be only one permit issued for one well in each drilling block as hereinafter defined, except that where one or more producing oil or gas sands or formations shall be found in such drilling block, a permit may be granted for one well to each of such sands or formations in such drilling block, and that, with such exception, it shall be unlawful to drill more than one oil or gas well in a drilling block; and for the purposes of this article, the area contained in the boundaries set forth in section 4- 801, hereof is hereby divided into 19 tracts each of which tracts shall constitute a drilling block within the terms of this article, and the drilling blocks are hereby established and designated as follows:

Drilling Block No. 1 shall be composed of all of Outlet No. 130; also a tract described as commencing at the southeast comer of Outlet 130, thence due south the northwest comer of Outlet 129, thence northwesterly following the northern boundary of Outlet 128 to a point on the boundary directly south of the southwest comer of Outlet 130, thence north to southwest comer of Outlet 130, thence southeasterly along the southern boundary of Outlet 130 to the place of beginning.

Drilling Block No. 2 shall be composed of all of Block “U” and “T” in Stout’s addition, also Outlet No. 108, Outlet 103 and Outlet No. 104.

Drilling Block No. 3 shall be composed of all of Blocks Nos. 1, 2 and 3 in North Addition and all other land lying directly south thereof, formerly railroad rights of way, and north of the northern boundaries extended of Blocks 1 and 2 in the original town of McLouth.

Drilling Block No. 4 shall be composed of all of Blocks “L” and “K” in Zabriskie’s Addition, also Outlet No. 116 and all the following described tract: Commencing at the northeast comer of Outlet 1 19, thence west on the northern boundary of the outlet to a point due north of the northeast comer of Outlet 117, thence due south to the northeast comer of Outlet 117, thence due east to the center of Union Street, then north to a point due east of the southeast comer of Block “K”, thence west along the south boundary of the block to the southwest comer thereof, thence north to the south line of Block L, thence west to the southwest comer of Block “L”, thence north to the place of beginning.

Drilling Block No. 5 shall be composed of the following described tract: Commencing at the northwest comer of Outlet 119, thence due south to the north line of Outlet 118, thence easterly following the north line of Outlet 118 and 117 to the northeast comer of Outlet 117, thence north to the north line of Outlet 119, thence west along the north line of Outlet 119, to the place of beginning.

Drilling Block No. 6 shall be composed of the following described tract: Commencing at the northwest comer of Outlet 118, thence south on the west line of Outlet 118 to a point due west of the center of Lucy Street, thence due east to a point due south of the southwest comer of Block 1, in J.H. Zabriskie’s Addition, thence north to the northwest comer of Outlet 110, thence westerly along the northern boundaries of Outlet 117 and 118 to the place of beginning.

Drilling Block No. 7 shall be composed of the following described tract: Commencing at the southwest comer of Block 3, J.H. Zabriskie’s Addition, thence north to the center of Lucy Street, thence due west to west boundary of Outlet 118, thence south on the west line of Outlet 118, thence south on the west line of Outlet 118 to the southwest comer of Outlet 118, thence east to the place of beginning.

Drilling Block No. 8 shall be composed of all of Block 14 and 15 Bowman’s Addition and all of Outlet “A” lying within the city limits.

Drilling Block No. 9 shall be composed of Block 13, Bowman’s Addition and Blocks 1 and 2 in Fisher’s Addition.

Drilling Block No. 10 shall be composed of Blocks 2 and 3, J.H. Zabriskie’s Addition and Blocks 9 and 10 of the original town of McLouth.

Drilling Block No. 11 shall be composed of Outlet 110, Outlet 111 and Outlet 112 and Block I, J.H. Zabriskie’s Addition, and Blocks 3 and 4 of the original town of McLouth.

Drilling Block No. 12 shall be composed of Blocks 1, 2, 5 and 6 of the original town of McLouth. Drilling Block No. 13 shall be composed of Blocks 7, 8, 1 1 and 12 of the original town of McLouth.

Drilling Block No. 14 shall be composed of the following described tract: Commencing at the northwest comer of Outlet 131, thence south along the west line of Outlet 131 to the south line of the City of McLouth, thence east along the south line of the city to a point due south of the center of Granite Street, thence north to the north line of Outlet 131, thence west along the north line of Outlet 131 to the place of beginning.

Drilling Block No. 15 shall be composed of the following described tract: Commencing at the northeast comer of Outlet 1133 thence west on the north line of Outlet 133 and 131 to a point due south of the center of Granite Street, thence due south to the south line of the City of McLouth, thence east to the southeast comer of Outlet 132, thence north to the place of beginning.

Drilling Block No. 16 shall be composed of Blocks “C,” “D,” and “F”, Wolcott’s Addition and Outlet No. 106.

Drilling Block No. 17 shall be composed of all of Blocks “A”, “B”, and “G”, to Wolcott’s Addition, also the following described tract: Commencing at the northeast comer of Block “A”, thence east to a point due north of the northeast comer of Block “F”, thence south to the northeast comer of Block “G”, thence west to the northeast comer of Block “B”, thence due north to the place of beginning.

Drilling Block No. 18 shall be composed of all of Blocks “H” and “I” in Wolcott’s Addition, also the following described tract: Commencing at the northeast comer of Block “G”, thence east to the east line of the city, thence north to the north boundary of Outlet 129 and Outlet 128 to a point due north of the northeast comer of Block “G”, thence due south to the place of beginning, also all that tract of land lying due north of Outlet 129 and within the limits of the city.

Drilling Block No. 19 shall be composed of all of Outlets 109, 121, 122, 123, 124, 125, 126, and 127, also described as follows: Commencing at a point 135 feet east of northeast comer of Block “F”, Wolcott’s Addition, thence south to the north line of Lake Street, thence east to the east line of the city, thence north to the south line of Lucy Street, thence west to the place of beginning.

In determining the area designated as any drilling block all lands included in streets and alleys and land in which no oil and gas rights can be granted shall be disregarded, and wherever a street, alley or highway is designated as a boundary of the restricted drilling area, the boundary line, unless otherwise specified, shall be deemed to be the centerline of such street, alley or highway.

(Ord. 153; Code 1984, 4-802; Code 2012; Ord. 2016-01)

In case a permit for the drilling of a well be issued to a person, persons, or corporation not holding oil and gas leases or drilling contracts with the owners of all the lots in the drilling block, it shall be a condition of the permit that the permittee, its successors and assigns, shall deliver to the credit of each of such owners, whose land shall not be under lease, free of costs, in the pipeline to which the well may be connected, a share of all oil or gas produced and saved from such well, equal to one-eighth of the proportion of the whole production that the square feet of ground so owned bears to the square feet contained in such drilling block, exclusive of the streets and alleys, and a like proportion of the proceeds of gas and casing head gas produced from the well and used off the premises.

(Ord. 153; Code 1984, 4-803; Code 2012; Ord. 2016-01)

It shall be unlawful for any person, association or corporation to drill an oil or gas well, or to extend or deepen one already drilling in the city, at a point nearer than 150 feet of the boundary lines of the city.

(Ord. 153; Code 1984, 4-804; Code 2012; Ord. 2016-01)

In case there be application filed with the city clerk and pending at the same time, for permits to drill in any one drilling block in the city, by more than one applicant, that application shall be granted if otherwise sufficient which shall be made by the person, association or corporation holding the greater area of the ground in the drilling block, by lease or other contract with the owner, permitting the drilling thereon for oil or gas; but, in case a permit be issued to persons or corporations who do not hold leases or other valid drilling contracts in writing from the owners of all of the land within the block, other than streets or alleys, any owner of unleased land in the block, and any person or corporation other than the permittee, holding oil and gas leases on land in the block, shall have the right to share in the ownership and benefits of such oil or gas well in the proportion that the area of his, her or its land or lease bears to the area of the block, exclusive of streets and alleys, provided that within 10 days from the date of the issuance of such permit, he, she or it shall file with the city his, her or its election in writing to pay the holder of the permit, or his, her or its assigns, a like proportion or the total cost and expense of drilling, completing and operating the well, and shall within that time make and file with the city clerk a bond with an authorized surety company as surety, and in an amount representing that portion of the estimated maximum cost of the well that the area of ground owned or held under lease by the principal bears to the whole area of the drilling block, conditioned that the principal in the bond will pay to the permittee and his or her assigns such proportion of the cost and operations of the well, from time to time, as required in the operations, such bond to be approved by the mayor and held by the city clerk for the benefit of all persons interested.

(Ord. 153; Code 1984, 4-805; Code 2012; Ord. 2016-01)

It shall be unlawful to drill any oil or gas well within any of the streets or alleys of the city, or to block or incumber or close up any street or alley in any drilling or production operations, except by special permit by order of the governing body, and then only temporarily.

(Ord. 153; Code 1984, 4-806; Code 2012; Ord. 2016-01)

Every application for permit to drill a well shall be in writing signed by the applicant or some person in his, her or its behalf; it shall be filed with the city clerk and be accompanied with a deposit of $100 in cash. The application shall state the drilling block and the particular lot and location in the drilling block where the proposed well is to be located and have attached to it certified copies of all oil and gas leases or other drilling contracts with the owners of land in the drilling block which the applicant may have together with abstracts of title or certificates of title satisfactory to the governing body to the end that the application will show what proportion and what parts of the block the applicant holds under lease or contract from the owner.

The application shall also be accompanied with a plat or map of the drilling block showing the exact location of the proposed well, which shall be as nearly as practicable at the center of the drilling block. The application shall also be accompanied with a duly executed bond in the penal sum of from $5,000 to $20,000 given by applicant as principal and a surety company authorized to do business in the State of Kansas as surety running to the city for the benefit of the city, and all persons, firms, and corporations concerned, conditioned that if the permit be granted the applicant and his, her or its assigns will comply with the terms and conditions of this article in the drilling and operation of the well and will pay to the city and to any owners of land in the drilling block to which the applicant shall not hold oil and gas leases or contracts the oil and gas royalties as herein provided, that the applicant will restore the streets and sidewalks and other public places of the city which may be disturbed in the operations, to their former condition, will clear the blocks and lots of all litter, machinery, derricks, buildings, oil and other substances erected, used, or allowed in the drilling or producing operations whenever the well shall be abandoned or the operation thereof discontinued and that he, she or it will pay all damages suffered by inhabitants of the city or to property therein by fire, or from oil, gas, or water caused by or originated from the operations connected with such well, and will hold the city harmless from any and all liability growing out of granting of such permits.

(Ord. 153; Code 1984, 4-807; Code 2012; Ord. 2016-01)

It shall be unlawful to erect or use within the city within 300 feet of a residence, or business or public building, in the drilling or operation of any oil or gas well, any drilling rig without enclosing it in on all sides, and every such drilling plant shall be equipped with fire extinguishers maintained in good order. No storage of oil or facilities therefor shall be kept, erected or maintained within the boundaries defined in this article, except to the extent of not to exceed 500 barrels for each well.

(Ord. 153; Code 1984, 4-808; Code 2012; Ord. 2016-01)

No permit shall be granted or issued for the drilling of a well except upon ground held by the applicant under oil and gas lease or drilling contract from the owner, giving the owner’s permission to drill the well; and when a permit shall have been issued, the same shall terminate and become inoperative without any action on the part of the governing body of the city, unless within 30 days from the date of issue, actual drilling of the well shall have commenced, and after the drilling of a well shall have commenced, the cessation for a like period of the drilling operations, or the cessation of production of oil or gas from the well after production shall have commenced, shall operate to terminate and cancel the permit, and the well shall be considered as abandoned for all purposes of this article, and it shall be unlawful thereafter to continue the operation or drilling of such well without the issuance of another permit.

(Ord. 153; Code 1984, 4-809; Code 2012; Ord. 2016-01)

Neither this article, nor any permit issued hereunder, shall be interpreted to grant any right 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 right of any lot owner to contract for the amount of royalty to be paid with respect to his or her own land, or for damages, rights or privileges with respect thereto.

(Ord. 153; Code 1984, 4-810; Code 2012; Ord. 2016-01)

In operating under any permit issued under this article or any amendment thereto, all oil, gas and water produced or arising from the operations, shall be piped or otherwise conveyed or removed from the territory of the city except the ordinary use of a slush pond, and all excavations in or use of the streets and alleys in such operations shall be under the reasonable direction of the governing body, and done without unreasonable obstructions of the streets and without expense or cost to the city.

(Ord. 153; Code 1984, 4-811; Code 2012; Ord. 2016-01)

No permit which shall be issued under this article or any amendment hereto, nor any rights, privileges or franchise granted hereby or hereunder shall exist longer than for a period of 20 years from the date of issuance of the permit.

(Ord. 153; Code 1984, 4-812; Code 2012; Ord. 2016-01)

Any violation of any of the terms of this article whether herein denominated as unlawful or not, shall be deemed a misdemeanor, and any person or corporation convicted of any such violation shall be fined in a sum not exceeding $100. Each day of the continuance of any such violation shall be considered a separate offense and be punishable separately, and any person, agent or employee engaged in any such violation shall on conviction be so punished therefor.

(Ord. 153; Code 1984, 4-813; Code 2012; Ord. 2016-01)