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Ordinance Number 2566 the coin slot on any vending, weighing or merchandise machine which does not bear a sticker or seal showing that the current year's license fee had been paid and shall notify in writing the City License Collector of the location and owner, if possible, of any machine so.sealed. Stamp vending machines selling or dispensing United States Stamps for mailing purposes are hereby exempt for tho terms and provisions hereof. 35. DOG KENNEL.- Of operating or maintaining any dog kennel, $25.00 per annum. More than 3 dogs maintained at any one location shall const- _ itute a kennel. 36. .For all business not specifically enumerated in this Ordinan- ce $25.00 per annum. - ORDINANCE NO. 25 AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO REGULATING THE DRILLING AND RPODUCTION OF HYDRO- CARDON SUBSTANCE: ESTABLISHING PROCEDURES THERE- FOR PR?SCRIBING PENALTIES FOR THE VIOLATION HERE- OF: AND DECLARING THE URGENCY HEREOF. SECTION 1. Definitions. "City" shall mean the City of San Juan Capistrano in the County of Orange, State of California. "CONTROLLER DRILLING SITE" and "SITE" shall each mean that partic- ular area located within any part of the City upon which surface opera- tions for oil well drilling or otheroperations for the production of oil, gas or other hydro-barbon substance shall be permitted under the provisionsof this ordinance established and controlled as hereinafter provided. "OIL" as used in this ordinance shall mean and include oil, gas and other hydro -carbon substances. "SHALL" and "MAY": "SHALL", when used in this ordinance shall be i mandatoryi "May", when used in this ordinance is permissive. - "PERSON", shall mean and include one or more natural persons, ass- ociations, co -partnerships, corporations or other legal entries. "NUISANCE": The term "Nuisance" as used in this ordinance shall be declared -.to be nuisance by Section 3479 of the Civil Code of the State of California, or Section 370 of the Penal Code of the State of California. SECTION 2. Permit required. 67 It shall be unlawful for any person, firm or corporation to drill re -drill, whipstock, sidetrack or deepen or to otherwise recondition any other operation for the drilling for or producing oil, gas, or other hydro--arbon substance within the corporate limits of the City unless and until such person shall have obtained a permit therefor pursuant to the provisions of this ordinance. The City reserves the right to inspect at any time all drilling operations intheCity whether contemplated by this ordinance or not. SECTION 3. Application required — Hearing — Criteria for issuance. An application for any such permit or permits shall be filed and a public hearing had thereon as hereinafter provided, and at such public hearing it shall be shown: 1. That the gmnting of such permit and the drilling for or produ- cing of oil thereunder will rot create a nuisance. 2. That the grailUg of such permit will not be deteriinental to public health, safety, or welfare. 3. That the gm ting of such permit and the drilling for or produc- ing of oil thereunder in the location designated will not create a fire hazard of other hazard detrimental to the public welfare. 4. That the g=nting of such permit will afford equal protection to all property owners within the area affected by the granting of such permit. 9. That the granting of such permit will not deny -to any property owner the enjoyment of a substantial property right granted -to other owners in said vicinity affected by said permit. 6. That the granting of such permit will conserve property value and encourage the most appropriate use of land in the immediate vicinity and area affected by the granting of said permit. 7. That the granting of said permit will not be detrimental to the orderly development and expansion of the City and the direction of build- ing development according to a well ordered and zoned plan. B. That the granting of said permit will not violate any deed or tract restriction relating to any tract or property affected by said pe- rmit unless said permit is consented to or said restrictions waived in the manner specified in said deed or tract restriction or in the manner 68 required by law; provided, however that in the event that aV applicant for permit has inadvertently obtained an oil and gas lease covering pr- operty containing such restrictions, that such applicant shall be given a reasonable opportunity to obtain a waiver of such restriction or may be permitted to quitclaim such property. 9. That the granting of said permits will not be in violation of any state law, regulation, court decision nor any City ordinance. An adverse finding upon any one of the.conditions set forth in this section shall be sufficient cause to justify the denial of an application for a drilling and/or production permit if any such condition or condit- ions substantially affect the public health, safety or general welfare, or a substantial property right or rights or sutstanially affect the orderly development and expansion of the City and the direction of buil- ding development according to.a well -considered and comprehensive plan and a conservation of property values. SECTION 4. Drilling sites — Regulation by City — Drilling on private property. All oil well drilling producting and surface operations shall be conducted from drilling sites designated by the City Council of the City. The location, size and shape of such drilling sites shall be determined and .prescribed by the City Council and may from time to time be enlarged whenever, in the Oddgment of the City Council, an enlargement thereof is necessary to carry out the spirit, intent and purposes of this ordi- nance. Such drilling site or sites shall be selected and designated by the City Council after a full consideration of the purposes set forth in this ordinance and in a manner to carry out the spirit and intent and to achieve the purpose of this ordinance. Directional drilling may be permitted from said designated drill sites under the conditions here- in set forth and in compliance with state laws and such other reasonable regulations conditions, or restrictions as the City Council finds are reasonable necessary in a particular instance to carry out the spirit and purpose of this ordinance. No drill site or sites shall be located upon any land or property within the City without the consent of the owner thereof hasexsWted a lease or other instrument giving and granting to any person, firm or 69 corporation the right to drill, prospect for, and produce oil from said property. SECTION 5. Application for permit — Interest to beprotected — Permit fee. Any person, firm or corporation desiring to obtain a permit to dr- ill, re -drill, whipstock, sidetrack or deepen, or to otherwise recondi- tion any well, where a new hole is made, shall make and file a written application with the City Clerk to obtain such permit to conduct such operation from drill site to be designated by the City Council of the City which drill site shall be used for the explorationi and recovery of oil from such area as the City Council shall find many reasonably be ex- plored, and oil, gas, or other hydro -carbons produced therefrom, in the manner and upon the conditions hereinafter set forth and such other re- asonable conditions or restrictions as may be imposed by the City Coun- oil by reason of the.unusual or peculiar circumstances found to exist, and affecting a particular location or a particular application for such permit. Such drill site or drill sites Mall be selected and designated with full consideration of the purposes hereinbefore mentioned and for the purpose of carrying out the spirit and intent and achieving the pu- rpose of this ordinance, and particularly with a view of protecting safeguarding and promoting the public health, safety. and general welfare and assuring to all property owners affected by said permit, fairness and protection oP substantial property rights and an equal opportunity to recover and reduce to possession any oil, gas, or hydro -carbon sub- stance underlying his or her, property. Such application shall be in writing, duly vertified under oath by or on behalf or the applicant and shall contain or be accompanied by the following information, documents and fees: 1. The name and address of the applicant. 2. A description of the land or area for which the applicant has the proprietaryorcontractual authority to drill upon such drill site. 3. A description of the area which the applicant seeks to explore or from which oil, gas, or other hydro -carbon substance are to be prod- uced from the drill site requested by the applicant or designated by the City Council of the City, if a permit is granted. 70 4. A scale map or plat of each proposed oil producing area showing the boundaries, location and area thereof 5. A scale map or plat of each proposed or requested drilling site showing the boundaries, location and area thereof, the existing surface uses of the areas within such site or sites, and also the surface uses of the area within three hundred feet outside of the exterior boundaries of each proposed drilling site. 6. A statement or other information showing that said producing .. area and drilling site or sites, and applicant's rights in respect there- to, otherwise conform to the requirements of this ordinance entitling applicant to the request permit. 7. A tentative plan of development and producing operations showing. a. The method by which applicant proposes to drill, complete, and produce such wells and the type, size and kind of equipment and in- stallation to be used in connection therewith. b. The precautions applicant proposes to take against fires, noise, odors and other hazards incident to drilling and other operations conducted on each such Controlled Drilling Site. c. The proposed routing of trucks and other traffic incident to such drilling and other operations conducted on each such Controlled Drilling Site. d. A landscaping plan showing the size, type and kind of walls, fences, shrubbery or other screening to be installed and maintained for concealment (1) durning drilling operations and (2) thereafter so long as the Controlled Drilling Site or Sites are in use. B. A permit fee in the amount of $100.00 shall be paid by each applicant for each well drilled or proposed to be drilled upon a Contr- olled DriAing Site. SECTION 6. Council.may designate alternate site — Control.of drilling. The City Council shall not be bound to grant a permit for any drill site or drill sites requested in any application, but may designate an- other drill site or sites in place and stead thereof, and such City Council hereby reserves the right to determine in accordance with the provisions of this ordinance, the shape, size and extent of the area that may be reasonably. and succer.sfully explored or from which oil, gas, and 71 other hydro -carbon substances may be produced from a well or wells dri- lled upon any designated drill site. The determination thereof shall be made in accordance with the provisions of this ordinance and with a view of carrying out the express purpose hereof. SECTION 7. Application for permit — Action by council. Upon the filing of an application as provided in Section 5, the City Council shall in its discretion either, 1. Refer said application to the City Planning Commission to hold and conduct a public hearing thereon, and for an examination, report and recomendation thereon, or d 2. Fix a time and place for a public hearing thereon before the City Council.. SECTION 8. Effect of inaction by Planning Commission — Hearing —Notice. In the event the City Council in its discretion shall refer said application to the City Planning Commission, and the City Planning Com- mission either makes a report thereon in the time required therdn, or does not submit to the City Council its report on such application with- in thirty-five days (or such additional time not to exceed twenty-five days, as shall be authorised by the City Council prior to the expiration of said thirty-five day period) from the date of the reference of such application to the said Planning Commission, then at the meeting of the City Council immediately following the expiration of said thirty-five day period or at a meeting to which the matter is duly and regularly continued (not exceeding two weeks) the City Council shall set such application for public hearing before the City Council. Whenever said application is set fpr hearing before the City Council either as an or- ginal hearing or after receiving the report and recommendation from the, City Planning Commission, or after failure of the City Planning Commis- sion to make a report and recommendation thereon within the time herein required, the City Council shall fix a time for the hearing of said ap- plicantion not less than ten nor more tkanthirty-five days, if aR or- ginal hearing and not more than twenty-five days where said application has been previously referred to the City Planning Commission, from the date of the making of said order fixing the date for such public hearing, and shall direct the City Clerk to give notice of the filing of zuch '7 N application and of the hearing thereon. Such notice shall set forth the name and address of the applicant and the time and place and purpose of the hearing. A copy of said notice shall be posted at the City Hall and shall remain posted not less then ten days prior to the date of said hea- ring and copies of such notice shall also be posted, not less than one to each City block, within an area extending 300 feet in all directions from V'e exterior boundaries of any proposed drill site, and copies of such notice shall be mailed, atleast ten days before date of hearing to all property owners owning property within 300 feet from the exterior boundaries of said proposed drill site, as the names and addresses of such property owners appear upon the assessment roll and records in the office of the County Assessor of the County of Orange. Said notice shall also be published not less than once prior to said hearing in a newspaper of general circulation in said City Council. The publication of said notice shall not be less than ten days prior to date of said hearing. SECTION 9. Hearing — Production of witnesses and evidence — Continuance. The City Council and Planning Co7zmission shall have the power and authority to subpoena and compel the attendance of witnesses, and the production of papers and records at said hearing, to swear and examine all witnesses under oath, and may from time to time continue such hear- ing to a date certain without further notice. Hearing before the Plann- ing Commission shall be called upon notice specified in Section 8. SECTION 10. Hearing — Opportunity to be heard — Findings necessary for issuance of permit — Permit may be conditioned — Suspension or re- vocation. At such hearing the Planning Commission or the City Council shall receive evidence relating to any matter material to said application and give to ali parties directly interested or who may be affected by the action taken in respect thereof, a reasonable opportunity to be heard and to present evidence. After the conclusion of said hearing the City Council or the City Planning Commission, as the case may be, shall make its findings, and if it finds that: 1. That the granting of such permit and the drilling for or prod- ucing of oil thereunder will not create a nuisance. 2. That the granting of such permit will not be detrimental to 7 3 Public health, safety or welfare. 3. That the granting of such permit and the drilling for or Prod- ucing of oil thereunder in the location specified will not create a fire hazard detrimental to the public welfare. 4. That the granting of such permit will afford equal protection to all property owners within the area affected by the granting of such permit. 5. That the granting of such permit will not deny to any property owners the enjoyment of a substantial property right granted to other owners in said vicinity affected by said permit. 6 6. That the granting of such permit will ;onserve property values and encourage the most appropriate use of land in the immediate vicinity and area affected by the granting of said permit. 7. That the granting of said Permit will not be detrimental to the orderly development and expansion of the City and the direction of build- ing development according to a well ordered and zoned plan.. 8. That the granting of said permit will not violate any deed or tract restrictiop. relating to any tract or property affected by said permit unless said permit is consented to or said restrictions waived in the manner specified in said deed or tract restriction or in the ma- nner required by law; provided, however, that in the event that any ap- plicant for permit has inadvertently obtained an oil and gas coverage property containing such restrictions, that such applicant shall be given a reasonable opportunity to obtain a waiver of such restrictions or may be permitted to Quitclaim such property. q. That the granting of said permit will not be in violation of any State law, regulation or court decision nor any City ordinance. A permit may be granted as herein authorized, subject to all the terms, provisions and conditions thereof, and upon such other reasonable terms, conditions and restrictions as the City Council in its judgment may find reasonably necessary in the particular instance to achieve the purposes of this ordinance. The City Council shall by resolution either grant or deny said application which said resolution shall set forth the findings of the City Council and its reasons for granting or denying said permit and shall direct the City Clerk, if a permit is granted, to issue to 74 applicants such permit or permits for authority to conduct drilling or other operations as herein authorized to the extent authorized in said resolution and permit, by means of wells or other surface operations located on the drill site or sites designated by the City Council and subject to such other reasonable terms, conditions and requirements as the City Council shall find and determine may be reasonably necessary in its judgment to conserve the public safety and general welfare and as will provide for and result in the proper drilling of said well and or the development of such producing zones as may underlie the incorp- orated aroa of the City from wells drilled on such drilling site or sites as may be found and determined by the Council to be just, fair and equ- itable, and such as will protect the rights of and result in substantial justice to all concerned and avoid unnecessary hardship and conserve such natural resources in the interest of the general welfare and accomplish the greatest good and result in the least detriment to all persons con- cerned,- considering the rights of everyone affected as a whole, and other- wise carry out the spirit and purposes of and comply with the provisions of this ordinance. Such permit shall be effective from and after the date of issuance thereof and shall remain in force until revoked by the City Council. The City Council reserves the right to cancel, suspend or revoke any permit issued here under for good cause or for a violation of any of the terms provisions of this ordinance. SECTION 11. Permittee to offer owners — Duration of offer —Waiver by property owner — Procedure upon waiver. Each permittee or his an- cessor interest shall at the time of receiving such permit for the dri- lling for and / or production of oil, gas and other hydro -carbon subst- ances execite an offer in writing giving to each record owner of the pr- operty within the area from which said oil, gas or other hydro -carbon substances can reasonably be recovered or produced from the drilling site for which a permit is given as determined from evidence presented at a public hearing for the granting of such permit, the right to royalties, to wit; The right to share in the,proceeds of production from wells bottomed in said area upon the same basis as those peoperty owners who have by lease or other legal consent agreed to the drilling for and 75 production of oil from the sub -surface of said area. The offer hereby required must remain open for acceptance for a period of at least one (1) year after the date of production, or until such peoperty owner or owners shall have released or waived all claim thereto, and provided further that the leasing by any property owner in the said area of his, her, or its property to a person, firm or corporation other than the permittee, shall constitute a waiver and a release of their claim to royalties impunded for them by said permittee as herein provided, so long as the Property of said owner or owners remains subject to other lease or leases, but in no event shall any such owner oar owners have any claim to royalties impounded after a period of one (1) year after production. During the period said offer is in effect, said permittee or his successors in interest shall impound all royalties to which said owners, or any of them, may be entitled in a bank or trust company in the State of California with proper provisions for payment to the said record owners of property in the area who have not.signed the lease at the time such permit became effective but who accent such offer in wri- tting within such Period and consent to the production of oil from their property and the sharing of royalties upon the same terms and conditions as the owners of other property in said area. Any such royalties rema- ining in any bank or trust company at the time said offer expires,which are not due or payable as herein peovided, shall be paid pro rate to th- ose owners who, at the time of expiration are otherwise entitled to share in the proceeds of such production. - SECTION 12. Required conditions. Each drilling site established under the provisions of this ordinance shall be subject to the required cond- itions stated in Section 13 through 17. SECTION 13. Directional drilling — Compliance with law — Fairness to property owners. Such drilling site or sites shall be located and des- ignated at such places and in such manner as to permit the recovery„of oil, gas and other hydro -carbon substance from the largest area reason- ably possible by directional drilling and in such manner as to comply with the conditions set forth in Section 3 hereof and the State laws, and to afford to property owners within said area an equal opportunity to recover and reduce to possession cU, gas and other hydro -carbon sub- 76 stances underlying their property and in such manner as will be just fair and equitable, and such as will arotect the rights of and result in substantial justice to all concerned, and will avoid unnecessary ha- rdship, conserve natural resources, and otherwise carry out the spirit and comply with the provisions of this ordinance. SECTION 14. Number of -.cells — Permit for each well. The City Council shall take evidence and shall determine at the time of the public hear- ing for the granting of a permit, or subsequent public hearing or hear- _. ings held and conducted in the same manner, the number of ells that may reasonably be drilled upon and the number of wells that may be seasonably necessary to be drilled upon and from said designated drilling site to properly recover, produce, and reduce to possession the oil, gas and other substances from the area which the City Council determines in its judgment can be produced from said drilling site. Permits shall be obtainted by each applicant for each well drilled upon such drilling site as herein- after provided. SECTION 15. Authority to drill and produce. Each applicant requesting a permit for the establishment of a drilling site must have the propri- etory or contractual authority to drill for and produce oil, gas and other hydr-carbon substnaees from such proposed drilling site. SECTION 16. Landscaping. Each dontrolled drilling site and all exterior parts thereof shall be adequately landscaped except for those protion oc- cupied by any required structure, appurtenance or driveway, and all such landscaping shall be maintained in good condition at all times. SECTION 17. Bond required. Each permittee prior to commencing drilling, production or incidental operations permitted herein shall post with the City Council a Corporate surety bond (to be approved as to form by the City Attorhey) in the sum of $5.000.00 in favor of the City, conditioned upon the perforn::nce by the permittee of each and all of the conditions, provisions, restrictions and requirements of the permit and this ordinance No extension of time which may be granted by the City Council or any ch- arge of specifications or requirements the -t may be approved or required by it, or any other alterations, modifications or waivers affecting any of the obligations of the permittee made by any City authority or by any other power or authority whatever shall be deemed to exonerate either 7'7 the permittee or the surety of any bond posted pursuant to this section. SECTION 18. Operations requirements. No operations in connection with the drilling for and producing of oil shall be commenced unless and until a permit has been is=ued therefor pursuant to an application and the det- ermination of prescribed conditions as hereinabove set forth. In addition thereto, the conditions stated in Section 19 through 36 shall also be required conditions under which operations shall be conducted from any Controlled Drilling Site. SECTION 19. Time for commencing operations — Diligent prosecution. Drill- ing operations shall be commenced on at least one Controlled Drilling Site within 90 days from the effective date of the permit or within such add- itional time as the Council in its discretion may allow, and thereafter shall be prosecuted diligently to completion. SECTION 20. Form of power for drilling — Methods. All drilling oper- ations shall be conducted by electric power or by internal combustion motors or steam driven equipment. If internal 'combustion methods or steam driven equipment are used, mufflers of modern co:struction, desig- ned to reduce notice to a minimum, shall be installed upon such motors or equipment and also upon mud pump motors. Proven technological impr- ovements and producing and drilling methods shall be adopted from time to time as they become available if capable of reducing noise, virabrat- ion, nuisance and annoyance. SECTION 21. Pumping and producing — Electrical power generators. Pump- ing and producing operations shall at all times be carried on oily by electrical power none of which power shall be generated by permittee on the Controlled Drilling Site or in the area. SECTION 22. Number of wells operated at one time. Drilling operations shall be carried on or conducted in connection with only one well at a time by any one permittee *or any Controlled Drilling Site and such well shall be brought in or abandoned before operations of the drilling of another well are commenced on such Controlled Drilling Site; provided, however that the City Council may permit the drilling of more than one well on such Controlled Drilling Site at any time after a discovery well has been brought in. SECTION 23. Elimination of annoyance — Good engineering practice. All 73 oil drilling production operations shall be conducted in such a manner as to eleminate, as far as practicable, dust, noise, virbration or nox- ious odors, and shall be in accordance with good engineering practice incident to drilling for and the production of oil, gas, and other hyd- ro -carbon substances. SECTION 24. Derrick construction. All parts of the derrick above the derrick floor shall be, enclosed with fire resistant, soundproofing mat- erial approved by the Orange County Fire Marshall. SECTION 25. Transporting heavy equipment to site. Heavy trucking: of materials, equipment, or pipe used either for drilling or production operations shall be conducted to or from the Controlled Drilling Site only between the hours of 6:00 o'clock A.M. and 6:00 o'clock P.M., on any day except in case of emergency incident to unforseen drilling or producting operations. SECTION 26. Earthen sumps. No earthen sumps shall be used. SECTION 27. Fire fighting equipment. Fire fighting equipment as re- quired by applicable fire regulations of the City shall be maintained on the site at all times durning the drilling and production operations. SECTION 28. Removals of drilling equipment after drilling. Within 60 days after the drilling of each well has been completed and said well placed on production or abandoned, the derrick and all other drilling equipment shall be entirely removed from the site and the site and sur- rounding area left clean and free of refuse, including rotary mud and compounds related to the mechanics of drilling or treating the well un- less such derrick and appurtenant equipment is to be used in a reason- able time for the drilling of another will in the same site. SECTION 29. Bond required. The applicant shall post with the City Council a(satisfactory corporate surety bond in favor of the City, in the sum of Two Thousand Dollars ($2,000.00) ner well or Ten Thousand Dollars ($10,000.00) for five (5) or more wells, conditioned upon the compliance by the applicant with each and all of the provisions and co- ditions set forth in Section 18 through 36 and such additional conditi- ons and limitations determined by by the City Council at the time of the granting of said permit, to be reasonably necessary to be imposed to ca- rry out the purpose and provisions of this ordinance. 79 SECTION 30. Screening equipment from view — Compliance with fire re- gulations. No oil, gas or other hydro -carbon substance may be produced from any well hereby permitted unless all equipment necessary for such production is reasonably screened from view or installed below ground level, and maintained in accordance with applicable fire regulations. SECTION 31. Storage facilities. No production tanks and no tanks or other facilities for the storage of mud, water or oil shall be erected or maintained on the site which extend above the ground level to a hei- ght of more than 18 feet. SECTION 32. Processing plants at site prohibited, No 'refinery or other nrocessing plant of any kind shall be constructed, established or main- tained on the site at any time. SECTION 33. Signs. No sign shall be constructed, erected, maintained or Placed on the site or any part thereof, except those required or permitted by law, permit, or ordinance, to be displayed in connection with the drilling or maintenance of the well. SECTION 34. Toilet and washing facilities. Suitable and adequate san- itary toilet and washing facilities shall be installed on the site and maintained in a clean and sanitary condition at all times. STICTION 35. Liability insurance. Each permittee and its agents, sudd- essors and assigns who conduct drilling, production or incidental oper- ations permitted hereunder, must at all times be insured to a limit of not less than $500,000.00 against drilling, production, or other activ- ities or operations conducted or carried on from any Controlled Drilliing site. The policy of insurance shall be written by an insurer or insur- ers satisfactory to the City and the form of the policy shall be subject to the approval of the City Attorney. A duplicate policy or policies shall be filed with the City Clerk. Each such policy shall be conditi- oned or endorsed so as to cover all agents, lessees, or representatives of the owner, lessee or Permittee who may actually conduct drilling, production or incide,tal operations permitted hereunder. SECTION 36. Extension of time limits. The performance of any act re- quired to be performed within a specified period of time shall be susp- ended during the time that the permittee is prevented from performing by the elements, accidents, strikes, lockouts, riots, delays in trans- 8o portation, interference by municipal, state, or federal action, or the action of other governmental officials or bodies, or any other cause or causes beyond the reasonable control of the permittee, whether such ca- use are similar or dissimilar to the causes specifically mentioned, or so long as the price of oil of the quality produced from any well shall be less than $.75c per barrel at the well. SECTION 37. Permittee to furnish well surveys — Drilling through oil sand or zone — Permittee to have authority where well bottomed. Each person, firm or corporation granted a drilling and/or production permit shall furnish tQ the City a well survey of each well showing the direc- tion and location of the hole drilled and the exact location of the bo- ttom of such hole or well, and shall, upon demand, furnish to the City such a survey of any well being drilled, and shall furnish a copy of the electro log (Schlumberger or equivalent) of each well. In the event that it is proposed to drill a well by directional methods and penetrate or extend said hole Qr well through an oil production sand or zone, de- tailed information shall be furnished by the City Planning Commission and/or the City Council at the time of the application for permit, to- gether with a statment of the methods peoposed to be used by said app- licant to protect any such producing oil sand or zone which it is pro- _ posed to drill into or through by such directional drilling, and the City Council shall have the right to impose any reasonable conditions or restrictions upon said applicant to assure itself that any oil sand or zone into or through which it is proposed to extend such well will not be materially damaged or destroyed. No well shall be bottomed in any land where the permittee does not have the proprietary or contrat- ual authority to drill for and produce oil, gas and other hydro -carbon - substance. The electro logs furnished inaccordancewith this section shall not become matters of public record, but may be used by the City in connection with its subsurface water problems or conditions. SECTION 38. Drilling fees — Business license requirements.Each per- mittee holding a permit under the provisions of this ordinance, shall have the right and such permittee is hereby permitted, in consideration of the $100.00 Controlled Drilling Site Fee, to drill one well in and upon such drilling site, but shall pay a further permit fee in the sum of $100.00 for each additional well drilled in or upon such site which fee must be paid 'before drilling,operations on any such additional well are commenced, and each such permittee must also obtain and at all times have possess a valid and then current business license covering each and every well, business or activity conducted by, for, or on behald of, such permittee in or upon the premises included withinany such Controlled Drilling Site and for which a business license is required under the provipions of this or any other ordinance of said City. SECTION 39. Boundaries of drilling site. Every application for the es- tablishment or designation of a drilling site shall set forth the bound- aries of the proposed site. Such boundaries may be modified by the Pla- nning Commission or the City Council if in their judgment such modifica- tion is reasonably necessanj for the preservation and enjoyment of a su- bstantial property right of the applicant or any property owner in the area to be explored from said site; or the Planning Commission or the City Council may designate a drilling site other than the one requested for the same reasons and to carry out.the spirit and intent of this or- dinance, and provided that the boundaries of such proposed drilling si- te either as established, modified or otherwise designated will not be materially detrimental to the public welfare or injurious to property or improvements in the vicinity of its location. That such modificat- ion or designation of such drilling site shall only be made at the time of the hearing of an application for the establishment or designation of a drilling site as hereinbefore provided, or upon a hearing before the said Planning Commission and/or City Council, after notice .thereof as hereinbefore provided for the hearing of an application for the est- ablishment or designation of a drilling site. SECTION 40. Conditional variance for non -conforming uses. The .City Council hereby reserves the right to grant conditional variances for non -conforming uses under this ordinance under unusual circumstances when necessary to preserve substantial property rights and to prevent hardship and unfairness. SECTION 41. Suspension or cancellation of permit. In the event any owner, lessee, or permittee shall violate any of the conditions prescribed &2 by this ordinance or any permit issued hereunder, the City Council may order the City Clerk to give such owner, lessee or permittee notice of such violation and if such owner, lessee or permittee shall fail, with- out just cause, to commence to remedy such violation within 10 days af- ter receipt of wri`Lten notice thereof from the City Clerk, then the Ci- ty Council, may by resolution, suspend or cancel any permit issued here- under; provided, however, that such suspension or cancellation shall not affect the right of the owner, lessee, or permittee to continue drilling for or production of oil from wells which are then drilling or producing and as to which no such violation exists. SECTION 42. Penalties. Every person who drills for or produces hydro- carbon substance in violation of any of the provisions of this ordinance shall be guilty of a misdemeanor or punishable by a fine of not to exceed Five Hundred Dollars ($500.00) or by imprisonment in the County Jail for a period of not more than six (6) months, or by both such fine and imp- risonment. Each day of violation of any of the provisions of this ord- inance shall be emsidered to he a seperate offense. SECTION 43. Effective date. This ordinance is an urgency ordinance for the immediate preservation of the public peace, health and safety and shall take effect immediately. The facts constituting the urgency are as follows: The City of San Juan Capistrano became duly incorporated on the 19th day of April, 1961, and has no ordinance effective regulating the subject matter hereof. In order that the public may be protected immediately and so that improper development of lands through the drilling or production of hydro -carbon substance will not adversely effect the value of prope- rty and the public health and safety of the citizens it is essential that this ordinance be adopted as an urgency, measure. SECTION.44. Certification and publication. The City Clerk shall cert- ify to the passage and adoption of this ordinance by the City of San Juan Capistrano at a regular meeting held on the 22nd day of May, 1961, and shall cause the same to be published in the Coastline Dispatch within fifteen days after its passage. Passed, approved and adopted this 22nd d of May, 961. Mayor of San Juan Capistrano RON ATTEST: City Clerk State of California ) County of Orange )ss. City of San Juan Capistrano ) I, Ernest Thompson, City Clerk of the City of San Juan Capistrano, do hereby certify that the foregoing and attached Ordinance was finally passed, approved and adopted by the City Council of the City of San Juan Capistrano at a regular meeting thereof held on the 221 d day of May, 1961. AYES: Councilmen: Bathgate, Chermak, Durnford, Olivares, and Buchheim. NOES: Councilmen: None ABSENT: Councilmen: None (SEAL) City Clerk ORDINANCE NO. 26. AN ORDINANCE OF THE CITY OF SAN JUAN CAPISTRANO AMENDING ORDINANCE NO. 5, BY ADDING THERETO A NEW SECTION 3, C, 2, d, LIMITING AREAS WITHIN WHICH ACCESSORY BUILDINGS MAY BE CONSTRUCTED: The City of San Juan Capistrano does ordain as follows: SECTION 1. Ordinance No. 5, of the City of San Juan Capistrano is hereby amended by adding thereto the following subsection to Section 3 thereof. d. Not withstanding the provisions of subparagraphs a, b, and c, above the location of all accessory buildings and structures shall be subject to the approvals of the planning commission as evidenced by such approvals being indicated on the construction plans involved. SECTION 2. That except.to the extent it be hereinbefore amended, Ordinance No. 5 of the City of San Juan Capistrano shall remain in full force and effect. SECTION 3. This ordinance is an urgency ordinance and shall take effect immediately. The facts establishing the urgency are as follows: inasmuch as Ordinance No. 5 of the City of San Juan Capistrano was det- ermined to be an urgency ordinance for the reason set forth therein and