HomeMy WebLinkAboutPR 11667: SAMEDAN DRILLINGINTEROFFICE MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
STEVE FITZGIBBONS, CITY MANAGER
r>gE L. wxrSON, r i croR OF VnaN G
P.R. NO. 11667 - DRIIJ.ING PERMIT (SAMEDAN OIL)
02/27/02
RECOMMENDATION:
I recommend that Proposed Resolution No. 11667 be approved. This Resolution would
authorize the execution of a drilling permit with Samedan Oil Corporation for a well
north of Hwy. 365 west of West Port Arthur Road.
BACKGROUND:
The applicant proposes to drill a well on the Port Arthur EDC property purchased for the
business park. The well location was included in the deed for the property when
purchased by the EDC. An access easement to the drill site was also included in the
deed. Because of the construction schedule of the park the drilling company has been
asked to relocate their access. They have agreed to this request and the Resolution has
been amended to provide for this requirement.
BUDGETARY/FISCAL EFFECT:
None
STAFFING/EMPLOYEE EFFECT:
None
SUMMARY:
I recommend that Proposed Resolution No. 11667, approving a drilling permit to
Samedan Oil Corporation be approved.
P.R. 11667
02/27/02 DLW
amended
RESOLUTION NO. __
A RESOLUTION APPROVING PERMIT #160 FOR DRILLING
OF AN OIL AND GAS WELL BY SAMEDAN OIL
CORPORATION
WHEREAS, Samedan Oil Corporation has made application for an oil and gas well permit within
the City of Port Arthur pursuant to Chapter 66 (Oil and Gas) of the Code of Ordinances, and;
WHEREAS, the Building Official has stated and the City finds that said application complies with
all the requirements of said Chapter 66 of the Code of Ordinances, and;
WHEREAS, a public hearing to receive citizen comment on the proposed permit was held on
February 5, 2002, now, therefore:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
THAT pursuant to said Chapter, the Building Official be and is hereby authorized to execute on
behalfoftbe City of Port Arthur, Permit No. 160 in form and substance set forth in Exhibit "A"
attached hereto and made a part hereof, to be issued to Samedan Oil Corporation for Oil and Gas
Drilling and Operating at the following location:
Lot 1, Block 16, Range "P", PALCO
THAT the Building Official shall cause a copy of this Resolution to be sent to Samedan Oil
Corporation.
THAT this permit shall be conditioned on Samedan Oil Corporation only utilizing an easement
within the public utility easement along the southern property line of the tract to access the drill site as
not to interfere with the construction of the improvements at the business park.
THAT this permit shall be for one year and renewable yearly ~ereat~er on approval of the City
Council.
P.R. 11667
02112/02
Page 2 of 2
TBAT a copy of the caption of this Resolution be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED this __. day of February, A.D., 2002, at a Regular
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
MAYOR
COUNCILMEMBERS:
NOES:
ATTEST:
Mayor
City Secretary
APPROVED AS TO FORM:
City Attorney
APPROVED FOR ADMINISTRATION:
City Manager
Director of Planning
CITY OF PORT ARTHUR
OIL AND GAS DRILLING PERMIT
Exhibit "A"
P.1L No. 11667
Permit No. 160
Having filed an application in accordance with Chapter 66 of the Code of Ordinances regulating
the drilling, completion, reworking and operation ofoil and gas wells and City Council
Resolution No. 01-357 having authorized the issuance of this drilling permit upon satisfaction of
all applicable requirements and this use being a use authorized by the City of Port Arthur Zoning
Ordinance and having satisfied all other applicable requiremems of said Chapter 66, Samedan Oil
Corporation, (hereinatter called "Permittee") is hereby granted a permit to drill and operate an oil
and gas well at the following described site more particularly described in said application:
Lot I, Block 16, Range "P"
Port Arthur Land Company
By making application and acceptance of this Permit by the Permittee, said Permittee agrees to
comply with all Ordinances and Resolutions of the City of Port Arthur as are now provided or as
bereaRer may be provided pertaining to the operations for the drilling and production ofoil and
gas, said provisions being incorporated by reference in this Permit, and having the same force and
effect as if copied verbatim in this permit.,
Permittee hereby further agrees to defend, exonerate, indemnify and hold the City of Port Arthur
and the Section 4A Economic Development Corporation harmless fi.om any and all liability
arising out of the granting of, or Permittee's operations pursuant to, this permit and to defend,
exonerate, indemnify and hold the City of Port Arthur and the Section 4A Economic
Development Corporation harmless fi.om any and all liability of every kind and nature whatsoever
which may arise because of any act done or omitted by Permittee or successors thereto. This
indemnity and hold harmless agreement shall apply to Permittee regardless of whether or not it is
alleged and/or proved that said liability was caused in part by an act or omission oftbe City or the
Section 4A Economic Development Corporation. The performance of this indemnity and hold
harmless agreement shall be insured by contractual liability insurance as required by Chapter 66.
The term of this Permit shall be for a period of one (1) year fi.om the date of the Permit and
renewable yearly thereafter, upon applying for such extension in writing to the Director of
Community Services and to City Council as long as the Permittee is engaged in drilling or
commemial operations pursuant to such permit.
Neither Chapter 66 or the Code of Ordinances, nor any permit issued thereunder, nor this permit
shall be interpreted to grant any right or license to the Permittee to enter upon, use or occupy in
any respect of the drilling or operation of any well, any surface land except by the written contract
of the surface owner; nor shall it limit or prevent the free right of the owner to contract for the
amount of damages, rights or privileges with respect to his own land and property.
Dated this day of , A.D. 2001.
ACCEPTED:
Name o f Permittee:
By:
Title:
Building Official
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