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HomeMy WebLinkAboutPR 11772: SEISMIC PERMITINTEROFFICE MEMORANDUM TO: FROM: SUBJECT: DATE: STEVE FITZGIBBONS, CITY MANAGER DALE k WATSON, DIRECTOR OF PLANNING P.R. NO. 11772 - SEISMIC PERMIT (I~AKE RONEL OIL) 05/02/02 RECOMMENDATION: I recommend that Proposed Resolution No. 11772 be approved This Resolution would approve a permit to Lake Ronel Oil Company to conduct seismic operations in the City. BACKGROUND: The applicant to conduct seismic operations in the eastern part of the City in Jefferson County and in Orange County. The request also includes a portion of the area of Sabine Lake. A public hearing on this request was held on April 30, 2002. The applicant has complied with the requirements of the Oil and Gas Drilling Ordinance BUDGETARY/FISCAL EFFECT: The applicant has paid the required fees in the amount of $8,014.08. STAFFING/EMPLOYEE EFFECT: None SUMMARY: I recommend that Proposed Resolution No. 11772, granting a permit for seismic testing to Lake Ronel Oil Company be approved. P.R. No. 11772 05~02/02 DLW RESOLUTION NO. A RESOLUTION GRANTING A PERMIT FOR SEISMIC OPERATIONS IN THE CITY OF PORT ARTHUR TO LAKE RONEL OIL COMPANY. WHEREAS, the City Council of the City of Port Arthur may gram a permit for seismic operations; and, WHEREAS, Lake Ronel Oil Company has submitted an application in compliance with Section 66- 19 of the Port Arthur Code of Ordinances; and; WHEREAS, a public hearing was held on April 30, 2002; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT the Director of Community Services be and is hereby authorized to execute on behalf of the City of Port Arthur a permit in form and substance as set forth in Exhibit "A" attached hereto and made a part hereof, to be issued to Lake Ronel Oil Company for seismic operations in the City of Port Arthur THAT a copy o£tbe caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED this day of May, A.D., 2002, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AVES: MAYOR COUNCILMEMBERS: NOES: P.O. NO. 11772 05/02/02 Page 2 of 2 ATTEST: Mayor Acting City Secretary APPROVED AS TO FORM: City Attorney APPROVED FOR ADMINISTRATION: City Manager Director of Planning Exhibit "A" P.R. 11772 CITY OF PORT ARTHUR SEISMIC TESTING PERMIT 1.1 1.2 1.3 1.4 1.5 I. General All geophysical operations shall be limited to the areas and test sites depicted on the map on file with the City Secretary and made a part hereofi If, during the course of operations, any line or test site must be relocated to maintain compliance with the terms and conditions set forth herein or to ensure the safety of the general population, Permit Holder shall notify the Director of Community Services or his designee with'm three (3) business days of such relocation. The term of this permit shall be one year beginning on the date of issuance of this permit to Permit Holder. Work shall be completed within one hundred twenty (120) consecutive calendar days, beginning on the date of commencement of operations. The date of commencement of operations shall occur upon commencement of actual geophysical / seismic testing operations and shall not include surveying conducted prior to such date. Once operations have commenced, in the event Permit Holder is rendered unable, wholly or in part, by force majeure to complete operations within said 120 consecutive calendar days, then the time for completion shall be extended for the period of time such operations are affected by such force majeure but for no longer period. As soon as reasonably possible after the occurrence of the force majeure relied upon, Permit Holder shall give notice and full particulars of such force majeure to the City. Such cause, as far as possible, shall be remedied with all reasonable diligence. The term "force majeure," as used herein, shall mean acts of God, acts of the public enemy, orders of any kind of the government of the United States or the State of Texas or any civil or military authority other than the City, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, and any other inability, similar to those enumerated, which are not within the control of Permit Holder and which Permit Holder could not have avoided by the exercise of due diligence and care. Permit Holder shall be responsible for and shall settle all reasonable and legitimate claims, demands, and causes of action relating to property or persons arising out of, or as a result of, Permit Holder's operations under this permit and shall handle all such claims in an expedient manner. Permit Holder shall employ a third party engineer (specializing in seismology) who will be on the job during the testing period to monitor and mitigate any potential damage to public or private property. Permit Holder shall obtain written permission l~om property owners fi.om whom Page 1 of 7 Permit Holder is required by law to obtain authorization in order to enter or cross their property. 1.6 1.7 1.8 1.9 Permit Holder shall pre-notify each owner, resident and/or business located within 250 feet of its planned testing. Permit Holder will offer to provide and will provide if requested to such owner, resident, and/or business, in writing, the name of Permit Holder's insurance carrier, the types and amount of insurance covering its proposed operations, the name and telephone number of an individual to contact in case of a claim for personal injury or property damage, and the procedure for obtaining a copy of Permit Holder's insurance certificate. Permit Holder shall design all source locations (charge size and depth, vibrator source sweep frequency and equipment drive levels) so that no structure, water well, susceptible underground utilities, or underground hazardous waste storage / disposal site shall be subject to any peak particle velocity greater than 0.5 inches per second. Using industry standard equipment and techniques, third party seismology engineer shall monitor and record, during operations, all pertinent locations to ensure that no structure, water well, susceptible underground utilities or underground hazardous waste storage/disposal site or is subject to a peak particle velocity greater than 0.5 inches per second. If peak particle velocity is greater than 0.5 inches per second, third party seismology engineer shall notify the Director of Community Services and cease all operations until corrections are made. Permit Holder shall maintain all documentation of monitoring activities for a period of at least four (4) years and make said documentation available upon request for inspection by the City. Permit Holder shall obtain water well, underground hazardous waste storage/disposal sites, and water, sewer, oil, gas, and chemical pipeline location maps and conduct all engineering calculations necessary to confirm that all operations meet standards established by the governing engineering codes and criteria. Information obtained by Permit Holder shall be used by the surveying teams and operations manager to ensure compliance with the terms and conditions of this permit and that safe operating distances are maintained. If requested by Permit Holder, the City shall make available at Permit Holder's expense for inspection and copying maps, if any, prepared by or on behalf of the City which indicate subsurface structures or facilities; provided, however, Permit Holder's reliance on any information furnished by the City, its agents, representatives, and employees, whether written or verbal, shall be at the sole risk of Permit Holder and the following disclaimer shall apply to any and all such information: Permit Holder acknowledges that the City has not made any independent investigation or verification of information regarding subsurface structures Page 2 of 7 and facilities furnished to Permit Holder and makes no representation or warranties as to the accuracy or completeness of such information. Permit Holder expressly acknowledges that the City makes no warranty or representation, express or implied or arising by operation of law, including, but not limited to; any warranty of fitness for a particular use or purpose of such subsurface information. 1.10Testing may be conducted fi.om 8:00 a.rr~ until 5:00 p.m. local time (or until sunset, whichever occurs first), on Monday through Friday and fi.om 10:00 a.m. until 8:00 p.m. (or sunset, whichever occurs first), on Saturday and 1:00 p.m. until 7:00 p.m. (or until sunset, whichever occurs first) local time, on Sunday. The Director of Community Services is authorized to allow testing fi.om sunrise to sunset in sparsely populated areas. 1.11 2.1 2.2 2.3 2.4 Ail City owned structures within 250 feet of testing, including but not limited to susceptible underground utilities (water mains, sewer mains, etc.) shall have pre- and post- damage inspections by Permit Holder. Permit Holder shall pay the City for all damage to City-owned structures with'm thirty (30) days of receipt of invoice. 2. Lands, Streets, Rights-of-Way, and Easements Permit Holder shall restore any lands or rights-of-way used in its operations to original condition, flee of damage, including ruts or any injury to vegetation. Any costs incurred by thc City for restoration will be reimbursed to thc City at full costs by Permit Holder. Such costs will be paid within thirty (30) days of receipt of invoice. Permit Holder shall ensure that its operations will not interfere with the fi.ee and safe flow of traffic. When operations are immediately adjacent to the pavement, all equipment shall be parked and/or operated in one lane of traffic. Permit Holder shall notify the Public Works Director of any equipment to be operated on City streets that will exceed the maximum load limit of 48,000 pounds or 18,000 pound axle weight and obtain any special load limit agreement required. Cables placed on the pavement within rights-of-way must be arranged so they do not interfere with traffic flow or create a hazardous condition or rumble strip effect. Ali cables must be securely anchored to the roadway with materials that will not damage and/or puncture the pavement. Nails, spikes, and similar materials used for anchors shall not be placed inside the pavement edge. Page 3 of 7 2.5 2.6 2.7 Operations under this permit shall be barred by the Director of Community Services when the City's Public Works Director determines that the ground conditions are such that operations would cause extensive rutting in the rights-of- way or easements. In addition, operations will be barred when ground conditions would cause the tracking of mud, gravel, rock, or debris onto the roadway surface of any right-of-way or other City improvements. In the event that mud, gravel, rock, or debris is inadvertently tracked onto roadways in a way that creates a safety hazard or potential for damage to vehicles, the operator shall immediately cease operations and clean the roadway of all mud, gravel, rock, or debris. The time for completion of operations, as specified in paragraph 1.2 hereof, shall be extended by one (1) day for each full day operations are barred trader the provisions of this paragraph. N/A Permit Holder shall furnish adequate signs, barricades, flares, flagmen, etc. as necessary to protect the traveling public. 3.1 3.2 3.3 3. Testing On or before 1:00 p.m. on Friday of each week testing is conducted, Permit Holder shall furnish to the City's Director of Community Services or designee a schedule of the following week's test plans and test sites. Initial notification of pending work and the availability of pre- and post-test inspections of all adjacent structures shall be provided to all pipeline owners and operators, property owners and/or residents a minimum often (10) working days prior to working in their respective areas. Permit Holder shall notify each pipeline owner and operator, property owner, resident and/or business located within 250 feet of its planned operations twenty-four (24) to forty-eight (48) hours prior to performing the actual work. Prior to performing the actual work, Permit Holder shall offer, in writing to each pipeline owner and operator, property owner, resident and/or business within 250 feet of any Seismic operation, and shall provide, if requested, pre- and post-damage inspections for all structures, including appropriate testing and lab test for water wells. All damage inspections shall be performed within five (5) days of testing operations in the respective areas. Permit holder shall maintain records of such inspections for a period of four (4) years and shall make such records available, in whole or in part, upon request by the City. N/A Page 4 of 7 3.4 Permit Holder shall maintain, for a period of four (4) years, and make available upon request to the City, the daily log of Seismic tests showing date, location, and all other related information which includes seismic and pre- and post-test survey. 3.5 Prior to performing the actual work, Permit Holder shall offer, in writing, to the owners or agents of all structures, water wells, pipelines, and underground hazardous waste storage/disposal sites within 500 feet of charge source locations, and shall provide, if requested, pre- and post-inspections for all structures, including appropriate testing and lab test for water wells. Permit Holder shall maintain records of such inspections for a period of four (4) years and shall make such records available for inspection upon request by the City. 3.6 No charge tests shall be detonated within 1000 feet of any structure, water well, or underground hazardous waste storage/disposal site; provided, however, charge testing may be conducted within 1000 feet, but not less than 500 feet, of a structure, water well, or underground hazardous waste storage/disposal site if, prior to commencement of operations, Permit Holder secures and files with the City a signed authorization fi.om the owner or agent of such structure, water well, or underground hazardous waste storage/disposal site consenting to such testing and releasing the City fi.om all future claims resulting from such operations. Permit Holder will provide multiple monitoring of any charge testing within 1000 feet of any occupied structure. 3.7 Permit Holder shall fianish to the City a copy of the daily log for all charge tests showing the date, location, charge , depth, employee, and any other pertinent information related to each test, on a weekly basis (i.e., submit Monday through Friday logs on the following Monday). 3.8 Explosives shall be transported in constantly attended magazines as defined by the Fire Prevention Code. All vehicles transporting explosives will be placarded according to Federal regulations. Only the necessary amount of explosives for each day's operations, during such period as the permit is in effect, shall be transported within the City at any given time. No explosives shall be stored within the corporate city limits of Port Arthur, unless approved by the City's Fire Chief. If such storage is approved, explosives must be stored in a locked and secure, constantly attended magazine, as defined by the Fire Prevention Code, at a single, isolated, and sparsely populated location. 3.9 Permit Holder shall noti~ the Director of Community Services or designee within three (3) business days of any deviation fi.om these permit requirements. Page 5 of 7 4.1 4.2 4.3 4.4 4.5 4. Bonds, Insurance, and Indemnity Permit Holder shall pay a permit fee as defmed in Section 66-19 of the Code of Ordinances This permit fee is non-refundable. The Permit Holder shall submit to the City a performance bond in the amount of $100,000.00 from a surety authorized to do business in the State of Texas. The performance bond shall be valid for a period of one year from the date that permit is issued. The bond shall provide, but not be limited to, the following condition: there shall be recoverable by the City, jointly and severally from the principal and surety any and all damages, loss or costs suffered by the City in connection with Permit Holder's geophysical operations within the City. The bond shall contain the following endorsement: "It is hereby understood and agreed that this bond may not be canceled by the surety company until sixty (60) days after receipt by the City, by registered mail or written notice, of such intent to cancel or not to renew" The rights reserved to the City with respect to the bond are in addition to all other rights of the City and no action, proceeding or exercise of a right with respect to such bond shall affect any other rights of the City. Prior to conducting any operations hereunder, Permit Holder and/or its contractors shall furnish a Certificate of Insurance, which must be with a reputable company authorized to do business in Texas, to the City showing the City as an "additional insured" with respect to operations conducted within the City and showing liability insurance coverage covering commercial, personal injury, general, and pollution liability in amounts not less than $I0,000,000 per person, $10,000,000 per occurrence, and $10,000,000 property damage. Permit Holder shall maintain said Certificate of Insurance in full fome and effect for the entire permit period. Permit Holder hereby agrees to protect, indemnify, defend and hold the City of Port Arthur, Texas, its officers, employees, agents, and representatives harmless fi.om and against all claims, demands, and causes of action of every kind and character for injury to, or death of, any person or persons, damages, liabilities, losses, and/or expenses, occurring or in any way incident to, arising out of, or in connection with its or its contractors', agents', or representatives' operations under this permit, including attorneys' fees, and any other costs and expenses incurred by the City in defending against any such claims, demands, and causes of action. Within thirty (30) days of receipt of same, Permit Holder shall notify the City, in writing, of each claim for injuries to, or death of, persons or damages or losses to property occurring or in any way incident to, arising out of, or in connection with its or its contractors', agency's', or representatives' operations conducted under this permit. At the City's discretion, the City may conduct an independent investigation, monitor, and review the processing of any such claim to ensure that such claim is handled as required herein. Page 6 of 7 4.6 This permit may be revoked upon breach of any term or condition contained herein. 4.7 5.1 5.2 Notwithstanding anything contained herein to the contrary, this permit shall not be effective unless and until a copy of, this permit, signed by an authorized officer of Permit Holder, the performance bond, and the Certificates of Insurance have been filed with the City Secretary. 5. Definitions Susceptible Utilities - Water, Sewer, Pipeline, Natural Gas mains, and/or any underground installation which may be potentially damaged by seismic operations. Testing - Actual use of Energy Soumes. Issued this the day of ., 2002. PERMIT HOLDER CITY OF PORT ARTHUR By: Name: By: Name: Lawrence Baker, Title: Director of Community Services Title: Page 7 of 7 3000 Feet Port Arthur Corporate Boundries Within Seismic Shoot Boundries 9.3521 ,Sq. Miles · e' Lal~e RoWel OiPC Shirley Patten 4/12102 /