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HomeMy WebLinkAboutOIL ORDINANCEMONTEBELLO MUNICIPAL CODE PART 7 - OIL AND GAS PRODUCTION 6406 Compliance With This Part. No person shall drill a well for oil and gas or conduct any other operations for the development of property for oil and gas within any portion of the City unless such operations conform in their entirety with the provisions of this Part. 64o6,1 Permit Required. No person shall construct, maintain, or use within the City any derrick or other structure, appliance$ apparatus, or machinery proposed or intended to be used, or used for or in connection with the drilling for or production of oil, gas and/or other hydrocarbon substances without first obtaining a written permit therefor from the Building Inspector in accordance with the terms of this Part. 6406.2 A pp lication for Permit. Except as hereinafter provided each application for a permit required by Section 6406.1, shall be made in writing and signed by the applicant or his or its duly authorized representative, and filed with the Building Inspector. 6406.3 Maintenance of Pre -Existing Wells and Facilities. No written applications for a permit shall be required for the maintenance of derricks or other structures, appliances, apparatus, or machinery which were being used or maintained at the effective date of Ordinance No. 270 for, or in connection with the drilling for, or production of oil, gas, and/or other hydrocarbon substances* How- ever, any person maintaining same shall be required to obtain a written permit for each such derrick and its appurtenant structures, appliances, apparatus and machinery to be issued by the Building Inspector in accordance with the terms of this Part and shall further be required to pay to the City an Inspection Permit Fee of Forty Dollars and shall thereafter, in connection with each such permit and as a condition of continuing such permit in force and effect, pay said City an Annual Permit Renewal and Inspection Fee in the amount of Forty Dollars and said Annual Permit Renewal and Inspection Fee shall be due and payable on the first day of January following the issuance of the permit and on the first day of January each year thereafter. 6406.4 Pre -Existing Facilities. No bond shall be required in connection with the maintenance of wells and facilities erected, or being used or maintained prior to the effective date of Ordinance No: 270. All permits for the maintenance thereof shall be subject to revocation as provided herein. The provisions of this Part relating to the location of wells and tanks, the construction of derricks, tanks, sumps, toilet facilities or reservoirs, and the maintenance of absorption plants shall not be retroactive in effect. However, .2.. 64o6.4 (Cont'd.) the operators thereof shall maintain the same in compliance with all lawful orders of the Building Inspector and the Chief of the Fire Department in order that the same shall be maintained in a reasonably safe condition. All substantial alterations or additions to any such pre-existing facilities except incidental repairs which in the discretion of the Building Inspector do not constitute changes or additions, shall be made to conform to the provisions of this Part. The provisions of this Part relating to the maintenance of fire extinguishing equipment, the general maintenance of facilities with respect to the elimination of fire and safety hazards, the illegal discharging of gas, and the right of entry of premises for inspection purposes shall apply to the maintenance of, all pre-existing facilities. 6406.5 Application Fees. The Building Inspector shall not receive for filing any application under this Part unless said application is accompanied by applicant's certified check payable to the City in the sum of Two Hundred Dollars in payment of Investigation and Permit Fee. In the event, and at such time any application for such permit be denied by the Council, said fee, less the necessary costs and expenses incurred by said City in making investigation of such application, shall be refunded to the applicant, his or its heirs, executors, successors or assigns, provided, however, that the minimum amount of such costs and expense of investigation is hereby fixed in the sum of Twenty-five Dollars and said minimum amount shall, in any event, be retained by the City and shall not be subject to refund. 6406.6 Annual Fees. Whenever any permit is granted pursuant to this Part, The permittee in addition to the investigation and permit fee as above provided to be paid, shall thereafter, in connection with each such permit, and as a condition of continuing such permit in force and effect, pay to the City an Annual Permit Renewal and Inspection Fee in the amount of Forty Dollars and said Annual Permit Renewal and Inspection Fee shall be due and payable on the first day of January following the issuance of the permit and on the first day of January in each year thereafter* 6406.7 Application. Contents. Each such application shall contain and be accompanied by the following: 6406, a Same. Name and Address. The name and addresses, both business and'residence of applicant; if more than one applicant joins in the application the names and addresses, both business and residence of each such person must be stated; if the application is made in the name of a partnership, the name and addresses, both business and residence, of each partner must be stated; if applicant is a corporation, a statement must be made including and showing the laws under which it is incorporated, the place and address of its principal place of business in the State, together with the names and respective titles of its officers who will be in charge of its operations under the permit applied for, and of its general manager. -3- 6406.7b. Same• Purposes and Description of Derrick. A statement of the type of construction, dimensions and location of such derrick, together with the purpose or purposes for which permit is desired. 6406,70. Same. Description of Property. A detailed description of the real property proposed, or intended to be used, or used, for any of the purposes aforesaid, together with a statement of the acreage, or number of square feet, contained within the boundaries of said description. 6406.7d. Same. Map. A map, or plat, of the real property which is required to be described in detail in the application, drawn to scale, which map or plat shall have been prepared and verified by a licensed land surveyor, or a registered civil engineer so licensed or registered in the State, and on which map or plat shall be shown and indicated: (1) The location of the center of well -hole proposed to be drilled, operated or maintained thereon; (2) All existing buildings improvements and other structures on said real property within a radius of one hundred and fifty feet from the center of the proposed well hole. 6406.7e. Same. Other Information. Any and all other information that the City Council may, in its discretion, deem pertinent in connection with the permitted operations, and shall from time to time require• 6406.7f. Same. Written Agreement. A written agreement duly executed by applicant that, in the event a permit is issued to him by the City Council pursuant to such application, he will as a condition to any of his operations within the City, faithfully comply with and abide by each and all of the provisions, requirements and conditions of the permit issued to him, as permittee, and of this Code, the laws of the State, laws of the United States, and with all lawful orders of the Building and Fire Departments of said City in any manner pertaining or applying to any of the operations or proposed operations of applicant. 6406.7 . Same. Indemnity Bond. With each application for the erection, construction, operation or maintenance of any such derrick and appurtenances the applicant shall file with the City Council an indemnity bond for the principal sum of Five Thousand Dollars, unless a blanket bond has been filed as herein provided. In the event such applicant shall desire to erect, construct, operate or maintain five or more such derricks and appurtenances, then such applicant may file a blanket indemnity bond for the principal sum of Twenty -Five Thousand Dollars, payable to the City. -4- 6406,7 . (Cont'd.) Each such bond shall be executed by such permittee as Principal and, as Surety, by a corporation authorized and permitted to engage in the business of and act as a surety upon such bonds pursuant to the laws of the States provided that such bond must be approved as to the Surety, and otherwise as to the sufficiency thereof, by the City Council, and as to form thereof by the City Attorney of the City. The furnishing and filing o£' An indeimityy bdiid as aforesaid, in connection with each permit authorized to be issued under this Part, shall be a further condition and requirement to the issuance of any such permit, and is hereby expressly made a condition precedent to the delivery to permittee of any permit so authorized by the Council to be issued hereunder. Each such indemnity bond shall be kept and maintained in full force and effect at all times, and the obligations thereof and the liabilities thereunder shall be continuing obligations and liabilities, and may be terminated solely and only at the time or times, and in the manner as in this Part provided. The bond required hereunder shall be conditioned as follows, and the conditions thereof shall be stated in substantially the following languages (1) 1£ the above bounden principal shall well and truly indemnify, save and keep harmless the City of Montebello, a municipal corporation and its officers and employees from and against any and all loss, damage, liability or claim of liability, proximately caused by, contributed to, or arising out of or incident to any of Principal's operations, as permittee, under said permit, or supple- ment thereto, or operations upon the premises covered by the permit, or supplement thereto: (a) By reason of loss of, or damage, or injury to any person or property or to any public property, aside from ordinary wear and tear of the public streets and highways and/or (b) By reason of the failure or neglect by said Principal to faithfully comply with and abide by any of the provisions, requirements or con- ditions of this Code, or with any law of the State of California or law of the United States of America, or with any lawful order of the Building or Fire Departments of the City of Montebello, in any manner pertaining to any operations of permittee, under said permit; or with any of the terms, conditions or require- ments of said permit. -5- 6406.7 .(Cont'd.) (2) Further, if the above bounden Principal shall., upon the abandonment or discontinuance of any operations for the drilling for or producing of oil$ gas or other hydrocarbon substances or the abandonment of any well -hole., or wells on the above described premisesp restore to substantially the condition thereof at the time of the Issuance of such permits or supplement thereto) all streetsp sidewalksp and other public places in and property of said City which may have been disturbed or damaged., and which damages have been proximately caused bys contributed to, arisen out of., or incident to the operations for the abandonment of such well -holes or wells by permittee$ and permittee shall remove all derricksp and other structures machinery and equipmentp and shall clean and remove all oil and mud from sumpsp remove all concretes litter and other materials _ pertaining to such operations) cover and level all sumps, remove all oil,, and other hydrocarbon substances from the property on which such operations were carried one and leave the sames and the vicinity thereof in a clean and neat condition; and well and truly indemnifys save and keep harmless said City and its officers and employees from and against any and all costs to, expense or liability incurred by said City in connection with the cleaning up and restoration of either public or private propertyp as aforesaidp and in connection with the abandonment of any well -holey all in strict accordance and compliance with the provisions of this Code with the laws of the State of California, and with the rules and regulations of the Division of Oil and Gas, Department of Natural Resourcesp State of California. THEN THIS OBLIGATION shall be null and voids other- wise it shall be and remain in full force and effect. Each and all of the obligations herein imposed and made binding upon the Principal and the Surety shall in like manners binds jointly and severally., the respective heirs., administratorsp executors and successors of said Principal and said Surety. The obligations and liabilities under this bond are continuing obligations and liabilitiesi and the liability of Surety under this bond may be terminated solely and only at the times or times., in the manners and by strict compliance with the provisions for termination 'of liability as set forth herein. -6- 6406.8 Rejection.. The City Council shall have the power and reserves the authorityp after a hearing to be held upon ten days notice to applicants to refuse any application for a permit wherej, by reason of the location of the proposed well and the character and value of the permanent improvements already erected on the property upon which it is proposed to drill such well., and the use to which such property is adapted for civic purposes., or for sanitary reasonsp or for fire protection or for the protection of the common con- venience., prosperity and welfare of the inhabitants of the City as a wholep the drilling of such well will be of serious disadvantage to the City and its inhabitants as a whole. The decision of the City Council upon such hearing shall be final. 6406.9 Issuance of Permit. Upon an application being approved by the City Council., the Building Inspector shall then issue a permit for the erection and maintenance of the derrick and the permit shall specify the location of the derrick authorized to be constructed. No applicant shall deviate from the terms of the permit as issued or drill elsewhere under such permit at places other than as specified in said permit. Supplemental permits may be issued in writing by the Building Inspector covering minor changes in locations which in the opinion of the Building Inspector do not materially alter the basic plan of operations of Permittee under the original permit. The Building Inspector shall note all changes made by him upon the original maps and records. 6406.10 Duration of Permit. When a permit shall have been issued it shall terminate and ecome inoperative without any action on the part of the Citys (a) Unless within sixty days from the date of'issue of said permit actual drilling of the well shall have been commencedj, or (b) If drilling or other work upon the well shall cease for a period of ninety days, in which event it shall be presumed that the holder of such permit has abandoned the drilling of such well) unless such drilling or production operations shall have been temporarily suspended by the State Division of Oil and Gasp and unless such period shall be extended by the City Council upon petition therefor and good cause being shown to the satisfaction of said City Council. Any resumption of operations for a period of less than thirty consecutive six -hour daysp exclusive of holidays., shall not be considered a resumption of operations. (c) Unless revoked as hereinafter provided for. w7w 606,11, Revocation of Permits. In the event that any person to whom a permit has been issued to erect, construct, maintain or use any such derrick, and appurtenances shall violate•any of the provisions of this Code, or State or Federal Law appertaining to the erection, construction, maintenance or use of any of the above, the City Council may revoke the permit issued to any such person, provided, however, that no permit shall be revoked until after a public hearing as hereinafter provided has been had by the City Council in the matter of the revocation of said permit. Notice of said hearing shall be given in writing and served upon the holder of such permit, or his agent or manager, which notice shall state the ground of complaint against the holder, and shall state the time and place where and when such hearing shall be had* Such notices shall be deposited in the United States Post Office in a sealed envelope, postage prepaid, addressed to the permittee at the last known address of such person on file in the office of the City Clerk or Building Inspector. Such notice shall be mailed as hereinbefore provided at least ten days prior to such hearing. It shall be the responsibility of the Permittee to maintain his proper address on file with the City Clerk or Building Inspector and no failure on the part of the Permittee to receive said notice shall operate as a bar to any proceeding or affect its validity. 6 06.12 Termination of Liability Under Bond. The Surety, under any bond required by this Part, may have its liability, under any such bond, terminated only when termination thereof shall be authorized by the City Council, and then solely and only at the time, or times, and in the manner as follows: (1) Upon the Permittees' furnishing to and filing with the City Council a substitute indemnity bond in the principal sum required by this Part, conditioned the same as and in form similar to, and executed, and approved, all as is provided in this Part; (2) Upon the expiration of thirty days from and after the revocation by the City Council of the permit issued to the Principal, as Permittee, to carry on all of the operations permitted thereunder; provided, however, that such revocation shall have been consented to, in writing, by the Permittee or shall have been finally confirmed and adjudicated by a court of competent jurisdiction and the time for any appeal to, or hearing or re -hearing in, any higher or other court, plus thirty days, shall have fully expired; "8- 6 06.12(Cont'd.) (3) Upon the abandonment or discontinuance of any operations for the drilling for or producing of oils gas and/or other hydrocarbon substances or the abandonment of any well -hole or well in connection with which the bond was givenp if the Principal or Surety shall thereupon or thereafter fully and completely comply with and perform each and all of the conditions and obligations required of and imposed upon them by the provisions of paragraph numbered (2) of the bond form set forth in Section 6406.791, thens upon the giving of a thirty day notices in writing., to the City Council that such requirements and obligations have been complied with and performed$ and after action by the City Councils entered on its minutes$ approving and accepting such compliance and performance; Any such termination of liability# if authorized by the City Council to be made$ shall be effective solely and only as to acts committed or omissions occurring after the date., as authorized by the City Council., for the termina- tion of such liability$ and then only upon delivery to the Principal or Surety of a written consent to termination of liability signed by the Mayor and approved as to form by the City Attorneys wherein it shall be specified that such termination of liability shall be effective only from and after the date set forth in such written consent$ and then solely and only as to acts or omissions committed or occurring after said date. 64o6.13. Insurance. Each Permittee shall maintain in full force and effect during the time of all drilling operations conducted under any such permit a public liability insurance policy with Twenty-five Thousand Dollar and Fifty Thousand Dollar limits and a property damage insurance policy with Fifty Thousand Dollar limits for the benefit of third persons who may be injured or damaged as a result of any negligent operations of said Permittee under said permit& Said Permittee shall further keep on file with the City during his drilling operations under said permit a certificate of insurance duly executed by said Permittee's insurance carrier, which said certificate shall serve as evidence of the continued existence in full force and effect of said insurance policies. 6406.14. Location of Well. No person shall construct, locate maintain or operate any petroleum well derrick in such a manner that the center of the well hole ist (a) Within one hundred feet of any public street in public use prior to the commencement of drilling such wells except any alleys intersecting or lying within any block or:other subdivisibn•unit; unless otherwise permitted by the City Council where the limits of the property will not permit such spacings but in no event less than fifty feet from such public street. -9- 6406.14(Conttd.) (b) Within one hundred feet of the outer boundary of the parcel of land on which such well is situated or, where several contiguous parcels of land uninterrupted by any street or sidewalk are operated as a single unit, the outer boundary of all parcels of land included within such unit, unless otherwise permitted by the City Council where the limits of the property will not permit such spacing; but in no event less than twenty-five feet of such outer boundary. (c) Within one hundred feet of any steam boiler, building or source of ignition; unless otherwise approved by the City Council upon a property the limits of which will not permit such spacingp but in no event within less than twenty-five feet of such boiler, building or source of ignition. (d) Within two hundred and fifty feet of any school buildings or other places of public assemblage such as a church or public library; this restriction shall not apply when any such property has been officially closed to public use and proof of such fact has been established to the satisfaction of the City Council. 6406,15 Oil Derricks. Specifications for all oil well derricks to be erected shall be filed with the Building Inspector and shall be subject to his approval. Such derricks shall be constructed of steel, except that the derrick floors, pump house floors, pipe racksp sills, postings, walkways, mud ditches, bull wheels, calf wheels and band wheels may be of wooden construction. There shall be installed and maintained on each derrick or oil well a sign on which shall�appear.the name of the wen being'drilled or operated together with the name of the person drilling or operating the well. The letters of such sign shall be at least two inches high. The sign shall be located on the derrick so that it will be fully visible from two opposite sides of the derrick. 6406.16, Fire Extinguishment Equipment. Minimum approved fire extinguishment equipment shall be provided and maintained in accordance with the following regulations. Extinguishers of an equivalent type may be utilized in lieu of those set forth when such type and use is approved. On every drilling or producing oil or gas well on which men are working there shall be maintained not less than two 2-1/2-gallon foam type extinguishers or the equivalent thereof. There shall be available to any lease pumper or maintenance man engaged in servicing operations on the apparatus in connection with any producing oil well not less than two 2-1/2-gallon foam type, or equivalent$ extinguishere, within a distance of one hundred feet or less of such well. -10- 6406.17. Boilers amines. The outlet from every exhaust of any engine or boiler used in connection with any oil well derrick, or dehydrating plant, shall be connected to an adequate exhaust and muffler box located not closer than twenty feet to any public street. Every building or structure for such boilers shall be constructed of non-combustible material, except that galvanized iron on wood frame will be permittedit The smoke stack on any such boiler, except boilers using gas exclusively, shall be equipped with a screen or other adequate device to prevent the escape from such smoke stacks of sparks or ignited carbon or soot; provided, however, that when the top of any such smoke stack is at least thirty feet above the ground level the screen may be omitted. 6406.18 Same. Distance from Well, Etc. No person shall install, maintain or operate any steam boiler within one hundred feet of the center of the well -hole of any oil well or any tank containing gas or flammable liquid where the property owned or controlled by the person will permit. In no case shall a boiler be erected within twenty-five feet of any petroleum well -hole or production tank or container holding petroleum or any products thereof, except as here- after provided. If more than one steam boiler is to be hereafter erected, maintained or operated for a particular use, such steam boilers must be so located as to form a battery. Every such steam boiler, or battery of boilers, except when housed or enclosed or except when elevated to a height of twenty-four inches above the surrounding terrain, shall be completely surrounded by a dike not less than twenty-four inches in height constructed as provided hereafter for tanks, and located not less than fifteen feet distant from such boiler or battery of boiierst 606.19. Same. Water or Steam Line. Every steam boiler hereafter erected, or where otherwise required. in the judgment of the Building Inspector, when located within one hundred feet of the center of any petroleum well -hole or tank, shall be equipped with a water or steam line of not less than one inch in diameter, piped from a point outside the retaining wall, where required, into the boiler fire box with a spray head or any equivalent device approved by the Building Inspector. Such water or steam line shall be controlled by an emergency valve to be located as designated by the Building Inspector. Such emergency control valve shall have a metal tag not less than three inches by six inches attached thereto, which tag shall have printed thereon "EMERGENCY VALVE TO BOILERS (STEAM OR WATER).0 -11- 6406.20. Same. Emergency Valves. Every steam boiler hereafter erected when located within one hundred feet of the center of any petroleum well -hole or tank, or where required in the judgment of the Building Inspector, shall be equipped with an emergency quick action valve, so arranged as to completely shut off all fuel feed lines to each and every boiler, such valve to be located not more than two feet from the valve controlling the steam or water line to the fire box, and shall have a -metal tag not less t#an three inches by six inches attached thereto, which tag shall have printed thereon "EMERGENCY VALVE TO BOILERS (FUEL LINE)." 64o6.21 Firemen* No boiler while in active service shall be left unattended, regardless of whether or not the same is equipped with any form of automatic controls A trained fireman shall be required to be in attendance at such boiler at all times while the same is in active service and such fireman shall be stationed at all times within a maximum distance of fifty feet from such boiler while the same is in such active service. By active service shall be meant that portion of the time when the fires are burning in the boilerp 64G6*22 Sumps or Reservoirso No person shall construct, use or maintain any permanent sump or reservoir whether heretofore or hereafter constructed or erected, for the purpose of storing petroleum or flammable liquids, unless such sump is constructed as follows: All earth sumps maintaining a fluid level more than one foot above the natural ground level at the lowest point shall have the inner sides entirely lined with not less than three inches of concrete or masonry construction. The earth -filled walls of such sumps or reservoirs shall be constructed in such manner as will meet the requirements of the Building Department. The level of the fluid in such sumps or reservoirs shall not be allowed or permitted, regardless of cause thereof, to rise above a point twelve inches below the lowest top point of the enclosing walls of the sumps or reservoirs and such point shall be marked with a gauge or marker at least four inches square, located at a point accessible for gauging, and the top of such gauge shall not be below the top of such sumps or reservoirs. 6406.23, Temporary Sumps. Temporary sumps may be constructed, maintained and used during the period of drilling a well for the normal purposes of mud usage or storage, walls of which shall be of substantial earth construction, and the fluid level of which shall not be allowed to rise above a point six inches from the top. The construction of all such sumps or reservoirs shall meet the requirements of the Building Inspectoro -12- 6406.24. Burning. No person shall set fire toy or burn any petroleum or liquid with petroleum contents in any sump hole, open pool or reservoirs or permit oil so situated on premises belonging to such person to be burned, unless a permit therefor shall first have been obtained from the Fire Department. 6406.25, Refineries, Tank Farms and Absorption Plants Prohibited* No refineries., tank farms or absorption plants shall be constructed within any portion of the City except in territory which is specifically zoned to permit the operation of same, 6406.26. Tanks. Tanks constructed in accordance with the American Petroleum Institutes Standard No. 12-A shall be considered as meeting the requirements of this Part for vertical tanks. The provisions of this Section shall not apply to drums constructed in accordance with the regulations of the Interstate Commerce Commission. The venting provisions shall not apply to any container of one hundred and ten gallons capacity or lesso providing, howevers that whenever it is essential for fire safety$ vents shall be maintained on containers which are permanently installed. Sur- face or above ground storage tanks or containers shall be constructed as followss 6406.27. Tanker including top) shall be constructed of open hearth steel or wrought irons or equivalents of a thickness depending upon the capacity and to be figured in accordance with the following table or formula set forth in Section 6406@279 No unroofed tanks shall be used. For liquids of thirty-five degrees Baume's or heavier, tanks may be constructed of concrete$ or of concrete lining on earths in accordance with plans approved by the Building Inspectors and such plans shall be drawn by a registered engineer. pacitY Gallons Minimum Thickness of Material 1 to 0 1 gauge (U. S. Standard) 61 to 350 16 gauge (U. So Standard) 351 to 560 14 gauge (U. S. Standard) 561 to 1100 12 gauge (U. So Standard) 2. HORIZONTAL TANKS OVER 1100 GALLONS CAPACITY. Tanks having a diameter of not over six feet shall be made of at least three -sixteenths inch steel. Tanks having a diameter.of over six feet less than eleven - and one-half feet shall be of at least one -quarter inch steel. -13- 6406.27(Contld.) Tanks having a greater diameter than eleven and one-half feet shall be constructed in accordance with plans which shall be submitted to the Building Inspector for approvalp and such plans shall be drawn by a registered engineers 3. VERTICAL TANKS OVER 1100 GALLONS CAPACITY. Tanks of this class shall be of such material and so constructed as to give a factor of safety of at least two and five -tenths. The minimum thickness of shell or bottom shall be three -six- teenths inch. The minimum thickness of roof shall be one - eighth inch. The thickness of plates shall be figured in accordance with the following formula: t - 2.6%xHXDXFX8 T X E t thickness of plate in inches H height of tank in feet above the bottom of the ring under consideration D - diameter of the tank in feet F - factor of safety (taken as 2.5) S - specific gravity of liquid taking water equal to 1 T - tensile strength of plate in pounds per square inch E - efficiency of vertical joint in ring under considera- tion 6 The tensile strength of the steel shall be taken as fifty-five thousand pounds per square inchs while the shearing strength of rivets or bolts shall be taken as forty thousand pounds per square inch. 6 06.28. Same. Additional Requirements. Tanks shall be riveted, bolted] welded or brazed and shall be caulked or otherwise made tight in a mechanical and workmanlike manner. The top of the tank shall be securely fastened to top ring with joints of practically equal vapor tightness to those between the rings. Every above ground tanks except floating deck type tanks of standard construction and designs which contains a vapor space which must breathe shall be provided with a vent of not.less than one and one -quarter inch inside diameters and of sufficient capacity to take care of the combined breathing and pumping rate; providedp however$ that the minimum permissible.size of all the vents shall be determined by dividing the diameter of the supply pipe by two and the quotient thereof shall be the minimum inside diameter of the vents. -14- 6406.28(Cont'd.) Adequate flame arresters or palate type vacuum and pressure relief valves shall be provided in all vents on tanks containing liquids which will flash at a temperature of 100oFs or less., and the free area of such flame arrester shall in no case be less than the area of the vent to which flame arresters is attached. All such flame arresters or vents shall be maintained so as to be readily accessible for inspection. 64o6.29. Location of Tanks. Oil storage shall be limited to 6000 barrels for each producing well. Storage tanks shall be located in conformity with the table set forth in Section 6406.30 with measurements to be taken from the shell of the tank. Where the configuration of the property will not permit of such spacing deviations may be made upon the written approval of the Building Inspector. The spacing given in said table shall also apply to distances between any tank and any building which is not of the fireproof construction. 6406.300 Same. Location of Tanks. Distance from nearest Capacity of Tank lot line of property Distance from in 42._gal& barrels that may be built upon nearest tank 1 to 266 - 8 ft................. 2 ft. 267 to 720 - 10 ft.................. 3 ft. 721 to 1p600 - 15 ft................. 5 ft. 1.601 to 2,854 - 15 ft................. 6 ft. 2,855 to 5,031 - 20 ft................. 7 ft. 5,032 to 10$200 - 20 ft................. 7 ft. 103201 to 15,000 - 25 ft................ 10 ft. 15,001 to 23,500 - 30 ft................ 15 ft. 23401 to 40,,000 - 40 ft................ 20 ft. 40,OO1 to 70,000 - 5o ft................ 25 ft. 70sOO1 to 95o000 - 60 ft................ 30 ft. 95,001 to 135,000 - 80 ft................ 40 ft. over 135s000 - 120 ft................ 60 ft. No storage tank shall be installed or maintained within one hundred feet of any steam boiler or open flame. Where the area under ownership or control of the person proposing to install or maintain any such tank does not permit of such spacingp the location thereof shall then be designated by the Building Inspector except that in no case shall the distance between any storage tank and a steam boiler or open flame be less than twenty-five feet. No tank hereafter, intended or used for the storage of petroleum therein or any flammable liquidsp shall be installed or maintained within one hundred feet of any steam boiler or open flame where the area under ownership or control of the person proposing to install 15- 6406.30(Cont'd.) or maintain any such tank does not permit of the one hundred feet spacing as above specified, the location of any such tank shall then be designated by the Building Inspector upon the lands owned or controlled by such person provided, however, that in no case shall the distance between any tank containing petroleum or any products, or any flammable liquids and a steam boiler or open flame be less than twenty-five feet. 6406.31. Piping and Electrical Equipment. All pipe and pipe fittings, including valves, gauge glass fittings, and other similar appur- tenances used in connection with any derrick, loading rack or tank, shall be designed, installed and maintained to safely withstand the pressure to which they may be subjected. All valves directly controlling the flow of flammable liquids from tanks shall be of 'the rising stem or self -indicating type. Provided, however, that this provision shall not apply to valves less than two inches in diameter. Gauge glass fittings for tanks and for containers, sample cocks and other similar fittings intended or used for the purpose of drawing off flammable liquids from tanks or containers, in any quantity shall be constructed of some metal having a melting point equal to steel or higher. Gauge glass fittings shall be equipped with automatic ball checks. Any system of piping connected to a positive acting pump shall be equipped with automatic pressure relief valve or suitable means to relieve the pressure of any such system and prohibit such pressure from exceeding one hundred and twenty-five per cent of the normal safe working pressure of the piping system or pump, whichever is the lower pressure. All electrical equipment proposed to be used, in connection with any permit issued hereunder shall conform to the State Electrical Safety Orders of the Industrial Accident Commission. 64G6.32. Dikes and Retaining Walls. No person shall use or maintain any surface storage tank or containers located outside of any building, and in which flammable liquids, petroleum or its liquid by-products, or liquified petroleum gases are, or may be, placed or stored unless such surface storage tank or container is surrounded by masonry, or reinforced concrete walls or dikes so designed, constructed and maintained as to confine the total capacity of the largest tank or container within the same and ten per cent of the capacity of such other tanks and containers as are located with the same. Such walls or dikes shall be increased for each additional tank or container of smaller capacity located within the same by ten per cent of the capacity of such additional tank or container. Provided, however, that such walls, or dikes shall not be required for tanks of less than two thousand gallons capacity, tanks in isolated locations, tanks located in absorption plants, tanks containing liquids which will flash at a temperature in excess of 1000F. and not more than 187oF., used in conjunction with orchard heating, or tanks containing liquified petroleum gases, except where in the opinion of the Chief of the Fire Department a hazardous condition exists. A -16- 6406.32.(Contld.) Any surface storage tank or container located inside of any building and in which flammable liquids are, or may be, placed or stored shall be surrounded by masonry or reinforced concrete walls or dikes so designed, constructed, and maintained as to confine the total capacity of all such tanks or containers within the same. 6406,33, Fire Hazard. When in the judgment of the Chief of the Fire Department, an extraordinary fire hazard exists, he may require the cessation of all operations incident to the drilling for, production of, treating or storing or delivering of, any petroleum or flammable liquids until such time as he shall deem it safe to resume such operation. The Chief of the Fire Department may also require the emptying, transference, or removal of petroleum and flammable liquids from any tank or sump to such location as he may deem advisable, when in his opinion, an extraordinary fire hazard exists. 6406.34. Petroleum on Surface of Ground. No person shall allow flammable liquids or waste materials to flow out or upon any public or private property, or cause or permit petroleum refuse or petroleum waste matter to be or remain on the surface of the ground under, around or near any derrick, sumps, or boilers, around or near any tank, around or near any oil sump, or around or near any combustible structure, and except within a sump or tank.' All lands within a radius of twenty-five feet from any derrick, tank or other buildings, machinery or equipment used in the development, production or storage of petroleum, gas, gasoline or other petroleum products, shall be at all times kept free and clear from dry weeds, rubbish or other flammable waste material. 6406.35. Smokin. No person shall smoke or throw, place or deposit any lighted cigar, cigarette, ash, match or other smouldering substances within twenty-five feet of any derrick, loading rack, tank or sump containing petroleum or any products thereof, or any flammable liquids. Adequate notice shall be given by the posting and maintaining of "NO SMOKING" signs by the person owning or controlling any property so used and all such signs shall have letters at least four inches in height. 6406.36. Toilet Facilities. No person shall maintain or operate an oil derrick unless suoh derrick is provided with a toilet located on the same premises, or within two hundred feet of said derrick, and connected to the City sewer system or to a cesspool in accordance with the provisions of this Code governing the installation of same. 64o6.37. Discharging of Gas. No Permittee shall discharge into the air any NOof natural gas, either before or after the removal of the gasoline therefrom, and any such discharge may be temporarily excused solely by an act. -,of God or causes beyond the' reasonable control of Permittee while in the exercise of utmost care and diligence. 17- 6 06.38. Blow Out Preventor. Casing Strength and Safety Appliances. No permittee shall drill a well without equipping same with adequate blow out prevention equipment, installed and maintained as required by the State Division of Oil and Gas. Permittee shall also equip his well with casings of sufficient strength, and with such safety devices as may be necessary and required by and in accordance with methods approved by the State Division of Oil and Gas and the permittee will use utmost care and diligence to effectually prevent blowouts, explosions and fixes, and will at all times keep installed and maintained such casings and other safety devices, and permittee shall at all times comply with and abide by all Safety Orders of the Industrial Accident Commission of the State of California. 6 06,39. Enforcement. Right of Entry. It shall be the duty of Building Inspector and the Chief of the Fire Department to see that provisions of this Part pertaining to their respective departments are complied with, and for that purpose they are hereby empowered and authorized to enter any derrick or other premises, for inspection purposes. No person shall fail, refuse, or neglect to permit said employees of the City to enter and examine any building, derrick, tank, boiler, piping, electrical equipment or anything in connection with the aforementioned businesses during the time same may be open for business or in operation or to interfere in any manner with such city employees in the performance of their duties. When in the opinion of the Chief of the Fire Department, dangerous or unsafe conditions exist and are liable to cause fire or the spread of fire then the said Fire Chief shall order the same repaired, removed or altered so that the same will be safe* Effective Date August 23, 1951 PRODUCTION oHc V1SVy D9 , dd ®off fWds { Thermal recovery —an 1865 process brought up to date —could double the world's recoverable oil reserves, says one authority. And makers of steam equipment are having a boom i� P Hooking up live steam to well -head. Union Oil worker wears safety suit because pre!;sures average 500 psi. 84 PRODUCTION A tonic for tired oil fields —steam ner, though some oil is burned off in injection —has been rediscovered by the process, the oil industry. All over the world, but Results. However, according to particularly in California, pro- William Owens, director of second- ducers are pumping superheated ary recovery for Union Oil of Califor- steam down well bores to get "sec- nia: "Thermal [steam] recovery is a ondary" oil from sluggish old fields, real breakthrough —probably the big- This thermal Geritol thins down - gest development in production since the viscous crude so it can flow more fracturing." freely toward the well bores. The He reports that typical steam - high steam pressure-500 psi at soaked wells have boosted initial well head —and the 500r heat melts production by from three to 10 times. asphaltic or parafin deposits that Union has hopes of at least doubling sometimes clog wells, helping to the recovering of heavy crudes that stimulate the movement of oil. is typical when primary methods, , Old cure. While steaming patents alone are used. Some producers en - date back to 1865, oil producers were thusiastically predict that over-all To - too busy exploring for new oil to pay covery of heavy crudes in California it much heed until about 10 years can be increased from about 20% to ago. But development of thermal about 40%, using thermal methods, technology and changing U.S. oil- Dr. Paul B. Crawford, member of ' economics recently have combined the Texas Petroleum Research Com- to make secondary steam recovery mittee, states flatly in a recent article attractive, even for low -profit, heavy that thermal recovery could double crudes, once considered umecover- the world's recoverable oil reserves. able. More conservative is J. Earle Gray, Domestic operators today know production manager of Tidewater Oil they must add to reserves to meet Co., who believes steam techniques future world petroleum demands. At are highly promising, but warns; the same time, the cost of finding "We've had some flashy results, but ; new oil has soared. One answer to we've had some problems, too," the dilemma has been to emphasize Among the latter he cites shortage overseas production [B171 Nov.21'04, of .good water in- steam -field loca- p107]. Another answer, just now be- tions, and the emulsifying effect coming practical, is to go back to steam has on certain oils. old, shallow U.S. fields and try to Ideal conditions. It isn't too sur- recover an estimated 40-billion hbl. prising that production men such as of heavy crude oil still left in the Gray are more cautious on long -run ground after first -round pumping. results. But since this fall, nobody, Water flooding and gas- injection long have been established as eco- can doubt that steam projects in Cal - ifornia have produced excellent ini- nomic means of boosting production tial production boosts, in run-down fields, Both'teelmiques Steaming works particularly well displace the oil toward a central pro- in California, where formations are during well from a ring of injection 'likely to hold thick, spongy masses of wells. And a related method, flame- -, heavy oil in reservoirs of limited size. flooding —whereby the gases are ' The steam penetrates such forma - ignited and• fed with pumped -in air tions much more effectively than it —works in somewhat the same man- does typical Texas fields that are so BUSINESS WEEK December 39, 2964 •, 91 c i Ri I Truck -mounted steam generating unit blasts high-pressure steam into an oil well near Wilmington, Calif. 'tightly compacted as to be imper- Corp., is happy to tell its success Side effect. Steam fever in Califor- vious to steam injection, and may ex- story. The company claims it ran out nia has brought boom times to rnak- r tend underneath several counties. of tanks to store the oil pouring at ers of steam -generating units and However, experimental steaming is unaccustomed high rates out of four water treatment gear. It s estimated going on in fields in Oklahoma, Kan- wells it started steaming in Septem- that there's about $35-million worth sas, Missouri, Pennsylvania, the ber. of equipment and pipe related to Athabasca area of Canada, and big Crestmont Pres. Carl T. Long says thermal recovery currently in use in projects are reported in Venezuela, daily production from 36 wells on California. Struthers Wells Corp„ Colombia, and Holland. one producing property amounted to Baker Oil Tools, Texsteam•, I-1 Ilibur- In California's heavy crude -oil exactly 176 bbl. a day last summer, ton Co., National Tank Co., and areas, oil is close to the surface— before steaming started. It had been others have found a seller's market. rarely more than 3,000 ft. deep. It's calculated that there were 900,000 Cost of a complete steam system I lso plentiful, despite 60 years of pri- bbl, of recoverable oil left in the in the 18-million to 20-million Btu- f mart' production. In fact, primary area, but that it would take 40 years per -hour class —most popular size— i production has recovered only about to recover at current rates of prime is $70,000 to $80,000. Some big pro - If 10% to 12% of • the state's heavy production. ducers have more than a dozen such crude. The thermal thicket lies in the Today, after two-and-a-halfmonths systems scattered around the state. San Joaquin Valley near Bakersfield, ' of steam -soak operations in four And a trend to even larger and more i where the biggest holders of produc- wells, at a cost of - about $80,000 not costly steam systems, capable of in properties are California Stand- counting fuel costs, Crestmont now higher pressures and higher temper- a- , Shell, and Tidewater. The old, expects to produce a total of 6.6-mil- atures, is expected.once steam moves slu *gish fields of the valley are lion bbl., and in 11 years, not 40. The out of the testing phase. Struthers stu ded with bulky tanks, shiny gen- company's prize steam well, heated Wells, for example, is readying 'a erators, and other equipment for by an 18,5-million Btu unit for 17 100-million Btu -per -hour generator, forcing steam into the ground, days, then capped for another seven, Baker Oil Tools, aniong , others, Over 150 thermal projects, 90% produced an average of 160 bbl, daily has tried to get some of the small of them'steam soaks, are boosting over 28 succeeding days, against less company business by selling and California production by about 25,- than two barrels daily prior to the leasing complete, truck -mounted 000 bbl, of crude daily, about 3% of steam treatment. steam systems. the state's estimated 1064 crude ppro- Key to increase. Long concedes Best chance. In Texas, secondary duction average of 816,500 Ubl, a there is much more expense' ahead recovery may not be quite so urgent day. And next year output from ther- before the increased production, a matter as in areas of declining pro- mal recovery is expected to at least , which sells at $1.65 a bU, becomes duction, but talk of steam recovery double, profitable. For one thing, Crestmont nonetheless runs high, One Texas oil Close-mouthed. Shell and other will have to drill some 40 new wells company researcher sniffs that ther- major producers like to be quiet at around $15,000 apiece in order to mal recovery may be just another about their steaming projects, so squeeze the maximum amount of fad. thermal recovery in California has crude out of the field with its steam- But on the whole, there is cautious 1 taken on an aura of mystery. The soak process. enthusiasm. Albert S. Trube, director �! companies plead that they, don't , Despite these preparation costs, of Tidewater's exploration and re - want to give away trade secrets. But the process seems tailor-made for search center in Houston, doesn't a more likely reason for their secre- small operators holding producing think there is enough evidence yet to tiveness lies in the fact that oil lease properties in heavy crude areas. To say that the thermal route is the way prices have climbed to five times the them, rate of return is the big prize, to economic recovery of heavy oil. 1060 rate in some California areas, in contrast to the majors' basic goal But Trube adds that of the prospec- with similar prices reported for some of adding to reserves, Rate of return tive recovery methods under test, mid-continent crude properties, has been maddeningly slow via pprr- "steam injection appears to have the However, a small California pro- mart' methods, and steam soak offers best chance of giving practical re- i ducer, Crestmont Consolidated , the key to instant increases. sults in the field at this time." End j ousINEss wgcir Pece,nber r a, ]9G4 " driQR��T�9�1 85, Oil and Gas Drilling Ordinance of the j City of Albion Adopted By the City Council As an Emergency Ordinance July 27, 1959 mit were taken. In such deepen- ing and reworking the same pre- cautions shall be complied with as herein set forth. In the event such application for re -working or deep- ening shall be filed within sixty days from the date of the comple- tion or abandonment of the orig- inal drilling operation, a fee of Two hundred Dollars ($200.00) rather than of Five hundred Doll- ars ($500.00) shall be required. Section 8. Compliance and Abatement: A. The Chief of the Fire De- partment, or Director Public Works, or Albion Supervisor of Wells or such other employee of the City as shall be designated for that purpose by the Common Council shall have the right and privilege at any time to enter upon the premises covered by any per- mit issued under this ordinance for the purpose of making inspec- tions thereof to determine if the requirements of this ordinance are complied with, or the require- ments of this ordinance are com- plied with, or the requirements of any other ordinance of this City met relating to the health, wel- fare and safety of persons within the City. B. All drilling operations for the discovery of oil, gas, pe- troleum or other hydrocarbons, equipping of wells, producing and marketing of oil, gas, petroleum and hydrocarbons; plugging of wells and all material used and work done in connection with the exploring for, producing and mar- keting petroleum products shall be in conformity with all State and Federal laws and Statutes and rules and regulations pertaining thereto and particularly with the Statutes of the State of Michigan and the regulations of the Super- visor of Wells of the State of Michigan. C. Wads used in the ordi- nance, unless otherwise defined, shall be the common meaning of such words as generally under- stood in the oil and gas industry, unless the content herein clearly implies otherwise. D. If any part of this ordi- nance or any requirement made shall be held to be invalid in any court of competent jurisdiction, such invalidity shall not affect the validity of any other part or sec- tion or requirement hereof. E. Each and every violation of this ordinance whether denom- inated as unlawful or an offense, or not, is hereby declared to be a public nuisance per as and may be abated by appropriate proceedings provided bylaw. F. Any violation of the terms of this ordinance whether denominated as unlawful or as an offense, or not, shall likewise be deemed a misdemeanor and any person, either for himself or by an agent, servant or employee who shall violate any provision of this ordinance, or who shall be en- gaged in any work or the erection of any structure, derrick, drilling rig, tank, pipeline or other drill- ing apparatus which shall be in violation of any provision of this ordinance, upon conviction thereof shall be deemed guilty of a mis- demeanor, and upon conviction of such violation shall be punished by a fine not exceeding $100.00 or by imprisonment for not more than 90 days in the County Jail, or both such fine and imprison- ment in the discretion of the Court. Each day of the continua- tion of any such violation shall be considered a separate offense and shall be punishable separate- ly, and any person, agent or em- ployee engaged in such violation shall upon conviction be so pun- ished therefor. G. The provisions of Ordi- nance number 5.71 at seq., being "Zoning Ordinance of the City of Albion, Michigan" and all ordi- nances or parts of ordinances of the City of Albion which are in conflict with any of the terms and provisions , of this ordinance be and the same are hereby repealed. Section 9. Time taking effect: This ordinance shall be deem- ed an emergency ordinance and shall take effect upon the day of adoption thereof. Oil and Gas Drilling Ordinance An ordinance regulating the lo- cation, drilling, maintenance and operation of oil and gas wells and the storage and transportation of oil, gas and other products pro- duced therefrom in the City of Albion, State of .Michigan; provid- ing fire prevention therefor; pro- viding against the pollution by im- piudties of the water courses, streams and water supply of said City; and to protect the health, safety, welfare and comfort of the inhabitants of the said City, by reason of said oil or gas wells; de- claring a violation of this ordi- nance to be unlawful and a nui- sance and prescribing penalties for the violation thereof. THE CITY OF ALBION OR- DAINS: Section 1. Occupation deemed hazardous: A. The business and occupa- tion of drilling and exploring for, producing, obtaining, transporting, gathering and storing of oil, gas, petroleum and hydrocarbons with- in the corporate limits of the City of Albion is a hazardous and dang- erous business and occupation and that it is necessary that said busi- ness and occupation be regulated, controlled and limited for the pur- pose of providing protection for the lives, health, welfare and safe- ty of the citizens of the City of Al- bion and of the public generally and for the protection of property from the danger of fire, explosion, gas, leaks, nuisances and other hazards, injurious to the public peace, health, welfare and safety. B. The provisions of this ordinance shall be deemed to be the minimum requirements for the preservation of the public peace, health, safety and welfare, and compliance with all terms there- of shall not be deemed to re- lieve any person from any duty imposed by law to use all neces- sary care and take all necessary precautions for the safeguarding of the public peace, health and safety and the rights of any indi- vidual or group of individuals, and it shall be the duty of any per- son drilling, operating or main- taining any well to use all neces- sary care and take all precautions of whatsoever nature which shall be reasonably necessary under the circumstances to protect the pub- lic or the rights of any part there- of. Section 2. Permit required: It shall be unlawful for any per- son, partnership, association of persons, syndicate, combination, corporation or estate to drill, ex- plore, or commence to drill any well for oil, gas, petroleum or other hydrocarbons in any area within the corporate limits of the City of Albion or for the second- ary recovery thereof, or to extend to deepen one already drilled, without first having applied for and receiving a permit therefor by the authority of the Common Council in accordance with the terms of this ordinance and the applicant having complied with the terms of this ordinance and the applicant having complied with the following requirements. A. The producer or owner of any proposed well shall fill out, sign and file an application in writing therefor upon forms pro- vided by the City Clerk accompa- nied with a filing fee of $500.00. The application shall contain the information as to the location where the proposed well is to be drilled, and attached thereto shall be a map, plat or survey of .the area to be drilled and the location of the well on said spacing and the exact location of tanks, flow - lines, fences and details incident to the proposed location. The lo- cation of said well shall be stated in relation to established street or plat lines, or in lieu thereof quar- ter section lines. The application shall show the names of the own- ers of the oil and gas in all of the area to be drilled and the lease or leases thereon. Said application shall also be accompanied by the consent in writing of the owner or owners of the drill site to be drilled consenting to the drilling of the well on his, or their prop- erty. 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o; apvm ail hugs lI •ff •not;sallddu Bans ilia pall] eq pas suvdmoo -on Data little glaoj lag J013vul -aaail an puog •papleoid utaiaq an jossal Io luasaoa 101 slnameamb -air Bill gnla eauslldaioa ;ualailjns pameap aq pus iol AjJlgnb Ilggs papiA.oid uigaag; Juasaoo ail} Sal -11T P Bons of jU0SUO0 Pig joj aprA -oad suolgleoad pun swig; ssaid -xe Sit Timis sasmal jo asual plus ;uaee sit; ui •asual aelnoadsaj lions goue io eassal pun saossal Gill jo samua Bill g;ao; 2uilles umon3i as jujosul sasnal aaillo ;0 luamoluis e Gain pun 'uopvol[ddr sin Sit palloal -uoo jo pauao 'Saar ions al sr2 ao Ile Gq; zo saanao Bq; Act palnoaxa 'joaaoq; suol;vallilea pun Sn2 pun Ile ;o IrAomaz pug Saaaoosip ail; ao3 sesval Ilia jo soldeo olnialsologd zo ajoas 'paijilaao Step Sit Ilvgs done, and if in his opinion the cleaning, swabbing or bailing shall be hazardous to the safety of life or property, he is hereby au- thorized to stop or prevent such cleaning, swabbing or bailing un- til such time as conditions may be- come favorable to continue the same. It shall be unlawful to commence the testing of any well from sundown until sunrise, or during a period when gas may set- tle on the ground, or during any electrical storm. Before bringing in a well, all of the control devices, including master gates and safe- ty valves shall be tested and shall be in good working order and shall comply with the provisions of this ordinance. H. Prior to entering the top of the Trenton -Black River for- mation, the drilling shall be done with mud-ladden fluids of such weight and viscosity as shall be required by and under good drill - practices in the area in which such drilling is being done. Section 5. Equipment A. All equipment and ma- terials used in the drilling of well for the discovery of oil, gas, pe- troleum and hydrocarbons shall be modern and shall be kept in a good working condition at all times. All drilling rigs shall be of the rotary type only to the produc- tion stage of said well, and there- after cable -tool equipment may be used for swabbing, cleaning and completion of said well. All drill- ing rigs shall be anchored or se- cured in accordance with good drilling practices. B. All drilling rigs or der- ricks shall be constructed with platform and superstructure of sufficient height to accommodate a double ram automatic blow-out p r e v e n t o r or space -saver of "Schaffer" or "Cameron" type or the equivalent, with hydraulic blow-out preventor, "Hydril" or "Reagen" above, said blow-out preventors to be installed above the ground level, together with blow -line of proper size and work- ing pressure, and with choke -man- ifold installed on each preventor. Said blow-out preventor shall be pressure tested prior to drilling operations under surface pipe, and shall be closed periodically every eight hours thereafter. C. When cable -tool equip- ment shall be used for completion of the well, they shall be equipped with master -gate, and the rig shall be equipped with lubricators while the well is being tested, swabbed, or bailed. Such master -gate shall have a remote control located at least twenty feet from the well bore. D. Every producer or opera- tor who shall drill a well shall as a minimum requirement set a con- ductor -string of pipe at least thirty feet into the top of the Coldwater shale and cement cir- culated to the surface; then, not less than 1000 feet of intermedi- ate casing and cemented with ce- ment circulated to the surface; then, a production string shall be set into or through the producing formation and shall be cemented with sufficient cement to fill up at least 300 feet above the producing formation plus 20 % excess ce- ment. Each string of casing with- in any well shall have the fittings thereon securely anchored to the casing immediately enclosing it. E. Each well shall have a separator capable of caring ade- quately for the production of the well, and both oil and gas, with- out spraying oil through the sep- arator vent line. No gas shall be produced, wasted or allowed to escape through a separator vent line from any well. When it shall appear that an explosive mixture of gas may be accumulating near the ground the designated City officer in charge may require that the well be shut down until such gas is dissipated. F. No tanks or other facil- ity for the storage of oil, gas, pe- troleum or hydrocarbons produc- ed from any well or wells within the corporate limits of the City of Albion shall be kept, erected or maintained within the corporate limits of the City except in areas zoned as industrial and agricul- tural areas where such storage tanks shall be allowed. Such stor- age tanks shall be erected without the corporate limits of the City of Albion, except for such installa- tion in industrially and agricul- hazard to the City and its inhabi- tants as a whole. It shall be dis- cretionary with t h e Common Council to grant or deny a per- mit in any industrial area or in any area in which residences or other buildings may have been erected when the granting of said permit shall be creative of fire hazards or otherwise destructive of property interests. D. The application shall also be accompanied, and no permit for ( the drilling of any well shall be is- sued without a duly executed bond given by the applicant as principal ) and executed by some bonding or !+ indemnity company authorized to do business in the State of Michi- gan as surety, running to the City of Albion, Calhoun County, Mich- igan, for the benefit of the City of Albion, and all persons, firms and corporations concerned, condi- tioned that if the permit be grant- ed, the applicant and his or its as- signs will comply with the terms and conditions of this ordinance in the drilling and operation of the proposed well, and that the applicant will pay and discharge any liability imposed by law for damages on account of injury to property, either public or private, or bodily injury, or death, receiv- ed or suffered by any person or persons, firm or corporation, and resulting from the drilling opera- tion or maintenance of any well or any structures, equipment, ma- chinery, lines or appurtenances thereto used or allowed in the drilling or producing operation, and for clearing from the area to be drilled all litter, machinery, derricks, trenches, pits, debris, oil and other substances used thereon in the drilling or producing op- erations, whenever the well shall be abandoned or the operation fi thereof discontinued. The maxi- mum total liability under said bond, for loss or damage, either to person or property shall be in the amount of $200,000.00. Said f, bond shall be made for a term of not less than one year, and a new bond shall be furnished at the ex- piration of any existing one if the operation of such well covered thereby is continued. If at the time of such renewal all drilling on such well has been completed, the amount of total liability under such bond may be reduced to $50,- 000.00. In the case any bond re- quired herein shall lapse or be- come void for any reason whatso- ever, the permit issued under the terms of this ordinance shall im- mediately become inoperative and void until a new bond shall have been provided and filed with the City Clerk or the existing bond re- instated in full force, and such well and the drilling operations and production thereunder shall be shut down, suspended and dis- continued until the filing of such new bond or reinstatement of such existing bond. Each and every bond, both original and renewal, shall be approved by the City Council and shall be filed with the City Clerk. E. All applicants for a per- mit to drill a well for oil or gas shall at the time of making such applications pay to the City Clerk the sum of Five hundred Dollars ($500.00) as an application fee to apply on the cost and expenses of the administration of this ordi- nance, of which amount Four hun- dred Dollars ($400.00) thereof shall be refunded if the applica- tion is not granted and the bal- ance retained. On the second day of January after the completion of any pro- ducing well and annually there- after so long as production of oil or gas continues from such well, the owner of each of said wells shall pay to the City Clerk the sum of One hundred Dollars ($100.00) to apply on the cost and expense of the administration of this ordinance. F. 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ILd LONG BEACH MUNICIPAL CODE Sec. 3300.1 0 CHAPTER 3-011. DRILLING REGULATIONS Part 1—Definitions and Construction of Terms —Section 3300.1 Part 2—Drilling and Operating —Section 3300.2 Part 3—Storing and Handling --Section 3300.101 Part 4—Refining, Processing and Distributing —Section 3300.140 Part 5—Abatement of Nuisance"ection 3300.157 Part 6—Los Angeles County Flood Control District —Application of Provisions —Section 3300.167 PART 1—DEFINITIONS AND CONSTRUCTION OF TERMS SECTION 3300.1—Same—Definitions in General — The Words, terms and phrases hereinafter in this Chapter defined shall, whenever used in this or- dinance, have the meaning set forth in this Chapter, unless the context re- quires a different meaning. APPLICANT —"Applicant" means any person who applies for a permit hereunder from the Tax Collector. APPROVED —"Approved" or "Approved Type", or "Approved Design" means and includes improvements, equipment, or facilities of a type or design approved by the Chief of the Division of Fire, Department of Public Safety, of the City, or his duly authorized representative. BARREL —"Barrel" when used as a unit of measure shall mean forty-two U. S. Standard Gallons. BUILDING INSPECTOR —"Building Inspector" means the Superintendent of Building and Safety or any authorized deputy of such Superintendent of Building and Safety. BULK DISTRIBUTING STATION —"Bulk Distributing Station" means and includes any oil station, depot, or plant, for the wholesale distribution or marketing of oil or other flammable liquids, but which station is not a part or portion of a refinery, natural gasoline plant or commercial dehydration plant, as herein defined, BUREAU OF FIRE PREVENTION —"Bureau of Fire Prevention" shall be deemed to be synonymous with Chief of the Division of Fire, Department of Public Safety, of the City, or his authorized deputy. CLASS B EXTINGUISHERS —"Class B Extinguishers" means fire ex- tinguishers of the foam type, carbon dioxide systems, or other types of extinguishers suitable for use on fires in small quantities of oil and other flammable liquids, where a blanketing effect is essential, and which ex- tinguishers are approved by the Bureau of Fire Prevention, COMMERCIAL DEHYDRATION PLANT —"Commercial Dehydration Plant" means and includes any and all plants, whether completed or not, used, or erected or maintained for use, for or in connection with the separation of 0 LONG BEACH MUNICIPAL CODE Sec. 3300.1 i sand, water and other foreign substances from oil and other hydrocarbons, and includes each and every structure, building, tank or facility, and each and every piece of apparatus, machinery or equipment used, or erected or maintained for use, for or in connection with the erection, operation or main- tenance of such plant; excepting, however, any dehydration plant which Is operated and maintained exclusively as a part of the production equipment (as herein defined) of and for any well or wells operated and maintained by the person operating and maintaining such dehydration plant, and which plant is not used for the dehydration or treatment of any oil or other hydro- carbons produced or obtained by or from any well or wells not operated and maintained by the person operating and maintaining such dehydration plant. DEPUTY —"Deputy" or "Authorized Deputy" means any member, em- ployee, agent or representative of the department, office, officer or agency in question, acting with or under the authority of such department, office, officer or agency. DERRICK —"Derrick" means any structure, improvement, equipment, or facility, and each and every part of any thereof, whether completed or not, and which is or are required, or used or useful for or in connection with drilling, and/or operating, and/or maintaining a well for the production of oil, gas or other hydrocarbons from the earth, together with all parts of and appurtenances to such structure, improvement, equipment, or facility, In- cluding (but not limited to) any foundations and sills therefor, tower, pump. houses, engine -houses, belt -houses or housings, boilers, boiler plants, pipe. racks, postings, walkways, mud -ditches, bull -wheels, calf -wheels, band -wheels, and crown block. DESIGNATED AGENT —"Designated Agent' means the agent of ap- plicant or permittee designated as provided in Sections 3300.29 and 3300.88. i DRILL —"Drill" means and includes to sink, bore, or otherwise create a hole in the earth, whether or not the same Is completed as a well, or to work upon or In any way assist in such drilling, but does not include any operations performed in or in connection with such well from and after the completion thereof as a producing well. ERECT —"Erect" means and Includes to build, construct, install, assemble, put together, improve, alter, move, reconstruct, restore, renovate, renew or repair, any building, structure, improvement or facility, or any part or portion thereof or foundations therefor, or appurtenance thereto, whether or not such building, structure, improvement or facility is completed, or to work upon, or in any way assist in such erection. FLAMMABLE LIQUIDS —"Flammable Liquids" means and includes oil and other fluid hydrocarbons, including liquefied gases or other flammable liquids, having a flash point below two hundred degrees Fahrenheit. The flash point of all commodities shall be determined by the Elliot, Abel, Abel•Pensky, or Tag closed cap testers, but the Tag closed cap tester (Standardized by the United States Bureau of Standards) shall be authoritative In case of dispute. All tests shall be made in accordance with the methods adopted by the American Society for Testing Materials, and approved by the American Standards Association. FOAM APPLICATOR —"Foam Applicator" means any device used to deliver foam onto the surface of flammable liquids for fire prevention or extinguishing purposes. GAS —The term "Gas" means natural gas coming from the earth. HARBOR BOARD —"Board" or "Harbor Board" or "Board of Harbor Commissioners" means the Board of Harbor Commissioners of the City. HARBOR DISTRICT —"Harbor District" means the Harbor District of ithe City as defined in the Charter of the City of Long Beach. LONG BEACH MUNICIPAL CODE Sec. 3300.1 • HEREOP, ETC. —Wherever the terms "herein", "hereof', "hereby", "here- to," "hereinbefore," "hereinabove," "hereinafter," "hereunder," are used in this chapter, the same shall, unless otherwise provided, either expressly or by necessary implication from the context, refer to the whole of this chapter, and each and, every part thereof, rather than being limited to the specific section or paragraph in which said terms, respectively, may have been used. LIQUEFIED PETROLEUM GASES —"Liquefied Petroleum Gases" means and includes gases derived from petroleum or natural gas and which are in the gaseous state at normal atmospheric temperature and pressure, but which may be maintained in the liquid state at normal atmospheric temperature by suitable pressure and shall include (without limitation to) butane gas, propane gas and similar flammable gases. LOADING RACK —"Loading Rack" means any system of piping designed, used, or erected or maintained for use, for the purpose of transferring oil or flammable liquids from pipe lines and/or tanks into tank vehicles or cars, or visa versa, for wholesale distribution. MAINTAIN —"Maintain" means and includes to repair, or otherwise keep or place in working condition, but also means and includes to permit, or authorize to exist, regardless of whether any actual maintenance work is done. For the purposes of this chapter, an oil well, well -hole, derrick and production equipment, shall be deemed to be "maintained" upon the premises in and upon which the same were or are being drilled, erected or installed, until every part and portion of such derrick and production equipment, including any concrete foundations, (except such production equipment as is or are necessary to be maintained on the premises on which the same is or, are situated, for the operation or maintenance of other wells of permittee in the vicinity, and for which other wells the necessary permits hereunder have been obtained and kept and are then in full force and effect), shall have been dismantled, demolished and/or removed from the premises on which • the same are situated, and until the well and well -hole are permanently and finally abandoned in strict accordance with the rules and regulations of the Division of Oil and Gas of the State of California, or any regulatory authority having jurisdiction thereof, and until all sumps, cellars and ditches which are not necessary to be maintained for the operation or maintenance of such other wells of permittee in the vicinity, as aforesaid, shall have been cleaned out and all oil, rotary mud and rubbish removed therefrom and the sumps, cellars and ditches levelled or filled with clean dirt, and, where the same are lined with concrete, the walls and bottom shall have been broken up and removed, and until the premises on which said well, well -hole, derrick and production equipment so abandoned, dismantled and/or removed are, or were, situated, and the premises in the vicinity thereof, including all of the premises covered by the permit issued to permittee or under which permittee is operating, shall have been cleaned and graded and left, entirely free of oil, rotary mud, oil -soaked earth, asphalt, tar, concrete, litter, debris and other substances, and left in a clean and neat condition, and until all streets, side- walks and other public places in, and property of, the City, which may have been disturbed or damaged, either directly or indirectly, by reason of or in connection with, or incidental to, any operations of permittee, or any opera- tions on or from the premises covered by said permit, including operations for the abandonment of said well, shall have been cleaned, and, except for ordinary wear and tear of public streets and highways, restored to substan- tially the condition thereof at the time of the issuance of such permit, all as hereinafter provided. MARINE OIL SERVICE STATION —"Marine Oil Service Station" means any plant or service station located on the water frontage, and used, or erected or maintained for use, to deliver flammable liquids to small water- craft for fuel purposes. MARINE OIL TERMINAI—"Marine Oil Terminal" means any plant or station located on the water frontage, and used, or erected or maintained for use, to deliver and/or receive oil or flammable liquids to or from barges and • ocean going vessels. LONG BEACH MUNICIPAL CODE Sec. 3800.1 • NATURAL GASOLINE PLANT —"Natural Gasoline Plant" means and includes any and all plants, whether completed or not, used, or erected or main- tained for use, for or in connection with obtaining or extracting gasoline or natural gasoline or other substances, liquids or gases, from the natural gas or wet gas obtained from the earth, and includes each and every structure, build- ing, tank or facility, and each and every piece of apparatus, machinery or equipment used, or erected or maintained for use, for or in connection with the erection, operation or maintenance of such plant. OIL —"Oil" means and includes petroleum and other fluid hydrocarbons obtained from the earth. OPERATE —"Operate" means to work or act upon, or to cause or permit natural or artificial forces to function in connection with any structure, plant, equipment, machinery or facility with the purpose of utilizing the same for the purpose for which it was or is erected or maintained, or for any other purpose, and when used with reference to a well, well -hole, derrick or produc- tion equipment, means and includes any acts or functions performed or per- mitted to occur in connection with such well, well -hole, derrick or production equipment from and after the completion of the drilling of the well, for the purpose of producing or obtaining oil, gas and/or other hydrocarbons from the ground, and for the purpose of collecting and handling the same and making deliveries thereof at the well or from the shipping tanks or lease tanks in the vicinity of the well, and includes all functions performed or permitted to occur in connection with such production, collection, handling and delivery, including the repair, reconditioning, restoration, perforating, redrIlling or deepening of said well or well -hole, and the dehydration or cleaning of said oil prior to malting such deliveries as aforesaid. OPERATING UNIT —"Operating Unit" —means and includes all of the contiguous lands lying within any portion of the City upon the surface of which drilling is permitted hereunder, and which contiguous lands are in- cluded in the terms of the lease, permit or agreement pursuant to which the • well in question is drilled, or authorized to be drilled, whether such contiguous lands are in one ownership or in different ownerships, and whether such lands are described in said lease, permit or agreement as one parcel or as several parcels; provided, however, that if there are separate units of non- contiguous lands included in the terms of such lease, permit or agreement, each such unit of non-contiguous lands shall be deemed a separate operating unit hereunder. In determining the contiguity of any such lands, no street, road, highway or alley lying within the outer boundaries of the lands described in said lease, permit or agreement, shall be deemed to interrupt such con- tiguity. PERMIT —"Permit" means the written, typed or printed permission issued to applicant by the Tax Collector under the authority of this chapter. PERMITTEE—"Permittee" means any person to whom a permit has been granted and issued under and pursuant to the terms of this chapter by the Tax Collector. PERSON —"Person" means and includes an Individual; a receiver; a trustee; a co -partnership; joint adventurers; a firm; an unincorporated asso- ciation; a syndicate; a club; a society; a trust; a private corporation; a public corporation; a municipal corporation; a county, a State, a national govern- ment; a municipal, county, State or Federal agency, board or commission; a water district; a utility district, a political subdivision; and a drainage, irri- gation, levee, reclamation, flood control or water conservation district, whether acting for himself or itself, or in any representative capacity. PRODUCTION EQUIPMENT —"Production Equipment" means and in- cludes pumping equipment, tubing, pipes, gauges, meters, valves, oil and gas separators, sumps, flow tanks, production tanks, shipping tanks, lease tanks, shipping pumps, loading racks, and all other structures, machinery, equipment and facilities, and each and every part of any thereof (whetherr completed or not), required for or used or useful in connection with the operation, repair, reconditioning, redrilling or maintenance of a well or well -hole, and the collection, handling and delivery of oil, gas or other hydrocarbons therefrom, • • LONG BEACH MUNICIPAL CODE See. 3300.2 and which structures, machinery, equipment and facilities are not included In the "derrick", "well", or "well -hole", as heretofore defined; and also includes any wash tanks, dehydration plant or other equipment or facility operated or maintained by or in behalf of the operator of said well for the purpose of separating sand, water and other foreign substances from the oil, gas or other hydrocarbons produced or obtained by said operator, prior to shipping or delivering said oil from the shipping tanks or lease tanks at the well, or In the vicinity thereof. REFINERY —"Refinery" means and includes any and all plants, whether completed or not, used, or erected or maintained for use, for or in connection with the separation of oil or other hydrocarbons into any of its or their component parts, whether by cracking, distillation or other process, or for or in connection with making or deriving from oil or other hydrocarbons, any other products or by-products, and includes each and every structure, building, tank or facility, and each and every piece of apparatus, machinery, or equip- ment used or erected or maintained for use, for or in connection with the erection, operation or maintenance of any such plant. STATE OIL AND GAS SUPERVISOR —"State Oil and Gas Supervisor" means the Supervisor, or his deputy, of the Division of Oil and Gas, Depart- ment of Natural Resources of the State of California. TANK —"Tank" means and includes any receptacle located on, or any portion of which is above, the surface of the ground, having a capacity in excess of five U. S. standard gallons and which is maintained or used or useful for the storage or holding of oil or other flammable liquids; provided, however, that drums and other commercial containers used for handling and transporting flammable liquids, not exceeding one hundred and ten gallon capacity, shall not be deemed a tank. WELL —"Well" or "Oil Well" means a well or hole drilled into the earth for the purpose of exploring for or extracting from the earth oil, gas and/or other hydrocarbon substances and/or a well or hole in the earth by means of and through which oil, gas and other hydrocarbon substances are extracted or produced from the earth, and in addition to such hole in the earth, the term "Well" or "Oil Well" means and includes all permanent structures and equipment, including permanent well casing, required to be used, or used in connection with drilling, operating and/or maintaining such hole, and extracting or prodhcing oil, gas and/or other hydrocarbon substances from the earth. WELL -HOLE —"Well -Hole" or "Oil Well Hole" means the hole in the earth drilled for the purpose of exploring for, extracting or producing oil, gas or other hydrocarbon substances from the earth. PART 2—DRMLING AND OPERATING Division 1—Areas Within Which Drilling Permitted —Section 3300.2 Division 2—Locations at Which Wells May Be Drilled — Section 3300.6 Division 3—Permits Reissued —Section 3300.15 Division 4—Application For, And Issuance And Transfer of Permits Section 3300.24 Division 5—Tax Collector's Permit Fees and Collection Thereof Section 3300.40 Division 6—Bonds—Section 3300.51 Division 7—Miscellaneous Duties of Permittees—Section 3300.60 Division S—Revocation of Tax Collector's Permits —Section 3300.92 Division 1—Areas Within Which Drilling Not Permitted SECTION 3300.2—Drilling Prohibited in General —Except as in this chap- ter otherwise provided, it is unlawful and a nuisance to drill any well or well -hole, or to erect any derrick or production equipment, or to operate or • maintain the same or any thereof, or any portion of any thereof, in or upon any real property in the City. 0 LONG BEACH MUNICIPAL CODE Sec. 3300.3 SECTION 3300.3—Restrieted Area & Initiative Ordinance —"An ordinance making it unlawful to erect, construct or, install any derrick, machinery or apparatus for the purpose of drilling for, pumping or producing oil, gas or other hydrocarbon substances from any well not existing at the time this ordinance takes effect, or to maintain, pump or operate such new well, within certain portions of the City of Long Beach, repealing ordinances numbers C-282 and C-528, and providing penalties for the violation of this ordinance. The people of the City of Long Beach do ordain as follows: SECTION 1—It is hereby declared to be unlawful for any person, firm, association or corporation, whether as principal, agent, servant, employee or otherwise, to erect, construct or install, or cause to be erected, constructed or installed any derrick, machinery or other apparatus or equipment for the purpose of drilling for oil, gas or other hydrocarbon substances, or pumping -or producing the same from any well not actually being drilled or existing at the time this ordinance takes effect, within that portion of the City of Long Beach described as follows: Beginning at the intersection of the line of ordinary high tide of the Pacific Ocean with the westerly boundary line of the City of Long Beach; thence northerly along said westerly boundary line of the City of Long Beach and following its various courses to its intersection with a former northwesterly boundary line of the City of Long Beach as said boundary line existed prior to the annexation election of December 28th, 1023; thence northeasterly along said former northwesterly boundary line of the City of Long Beach to the southerly line of Willow Street; thence easterly along said southerly line of Willow Street to a line three hundred feet west of and parallel to the westerly line of California Avenue, said line three hundred feet west of and parallel to the westerly line of California Avenue being also a boundary line of the City of Long Beach; thence south along said line • three hundred feet west of and parallel to the westerly line of California Avenue to the northeasterly line of the private right of way of the Pacific Electric Railway Company; thence southeasterly along the northeasterly line of said private right of way and across all intersecting streets and alleys to its intersection with the easterly boundary line of the City of Long Beach at the Orange County line; thence southerly along said boundary line of the City of Long Beach to the line or ordinary high tide of the Pacific Ocean; and thence westerly along said line of ordinary high tide of the Pacific Ocean to the point of beginning, or to erect, construct or install, or cause to be erected, constructed or installed, any derrick, machinery or other apparatus or equipment for the purpose of drilling for oil, gas or other hydrocarbon substances, or pumping or producing the same from any well not actually being drilled or existing at the time this ordinance takes effect, within five hundred (500) feet of any real property used for public school purposes or any building used for hospital purposes at any place within the City of Long Beach. SECTION 2—Every person, firm, association or corporation, whether as principal, agent, servant, employee or otherwise, violating any of the pro- visions of this ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by a fine not exceeding Five Hundred Dollars ($500.00) or by imprisonment for not more than six (6) months, or by both such fine and imprisonment; and each such person, firm, association or corporation shall be deemed guilty of a separate offense for each day during any portion of which the violation of any of the provisions of this ordinance Is committed, continued or permitted. SECTION 3—Ordinances Numbers C-282 and C-528 are hereby repealed. NOTE —The above Initiative Ordinance was passed by the electors of the City at a Special Municipal Election held on the ninth day of March, 1027, in accordance with Ordinance No. C-615 calling said election." • SECTION 3300.4—Initiative Ordinance Amended —"An ordinance to amend an ordinance entitled, an ordinance making it unlawful to erect, construct or LONG BEACH MUNICIPAL CODE See. 3300.4 install, any derrick, machinery, or apparatus for the purpose of drilling for pumping or producing oil, gas or other hydrocarbon substances from any well not existing at the time this ordinance takes effect, or to maintain pump or operate such new well, within certain portions of the city of Long Beach, repealing ordinances numbers C-282 and C-528, and providing penalties for the violation of this ordinance, so as to permit the drilling of not more than one such well to an acre in a certain portion of the property described in said ordinance." "The People of the City of Long Beach do ordain as follows: SECTION 1—it is hereby declared to be unlawful for any person, firm, association or corporation, whether as principal, agent, servant, employee or otherwise, to erect, construct or install, or cause to be erected, constructed or installed any derrick, machinery or other apparatus or equipment for the purpose of drilling for oil, gas or other hydrocarbon substances, or pumping or producing the same from any well not actually being drilled or existing at the time this ordinance takes effect, within that portion of the City of Long Beach described as follows: Beginning at the intersection of the line of ordinary high tide of the Pacific Ocean with the westerly boundary line of the City of Long Beach and follow- ing its various courses to its intersection with a formerly northwesterly bound- ary line of the City of Long Beach as said boundary line existed prior to the annexation election of December 28th, 1923; thence northeasterly along said former northwesterly boundary line of the City of Long Beach to the southerly line of Willow Street thence easterly along said former northwesterly boundary line of the City of Long Beach to the southerly line of Willow Street; thence easterly along said southerly line of Willow Street to a line three hundred feet west of and parallel to the westerly line of California Avenue, said line three hundred feet west of and parallel to the westerly • line of California Avenue being also a boundary line of the CIty of Long Beach; thence south along said line three hundred feet west of and parallel to the westerly line of California Avenue to the northeasterly line of the private right of way of the Pacific Electric Railway Company; thence south- easterly along the northeasterly line of said private right of way and across all intersecting streets and alleys to its intersection with the easterly boundary line of the City of Long Beach at the Orange County line; thence southerly along said boundary line of the City of Long Beach to the line of ordinary high tide of the Pacific Ocean and thence westerly along said line of ordinary high tide of the Pacific Ocean to the point of beginning, except not more than one well on any acre in that portion of the said defined area lying west of the west line of the Los Angeles County Flood Control District right of way; or to erect, construct or install, or cause to be erected, con- structed or installed, any derrick, machinery or other apparatus or equipment for the purpose of drilling for oil, gas or other hydrocarbon substances, or pumping or producing the same from any well not actually being drilled or existing at the time this ordinance takes effect, within five hundred (500) feet of any real property used for public school purposes or any building used for hospital purposes at any place within the City of Long Beach. SECTION 2=Every person, firm, association or corporation, whether as principal agent, servant, employee or otherwise, violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punished by fine not exceeding Five Hundred Dollars ($500.00) or by imprisonment for not more than six (6) months, or by both such fine and imprisonment; and each such person, firm, association or corporation shall be deemed guilty of a separate offense for each day during any portion of which the violation of any of the provisions of this ordinance is committed, continued or permitted. SECTION 3—Ordinance Numbers C-282 and C-528 are hereby repealed. NOTE —The above Initiative Ordinance was passed by the electors at a • Special Municipal Election held on the 15th day of June, 1937, in accordance with Ordinance No. C-1505 calling said election." LONG BEACH MUNICIPAL CODE — Reprinted 7.1-56 (3) — Sec. 3300.5 SECTION 3300.5—Areas Described in Which Drilling Permitted —Upon obtaining the necessary permits therefor, as hereinafter provided, and as provided by law and the ordinances of the city, and during such time as such permits are kept in full force and effect, and each and all of the terms and conditions of such permits and of all of the regulations and provisions of all laws and all ordinances of the city applicable thereto, are complied with, the permittee may drill, operate and maintain a well or well -hole and erect, operate and maintain the necessary derrick and production equipment for the drilling, operation and maintenance of such well, all as provided herein and in such permits, and upon the premises covered thereby, but not outside of those portions of the city hereinafter in this section described; provided, however, nothing herein contained shall be construed to prohibit by directional drilling methods the drilling, operation or maintenance of a well or wellhole any subsurface part of which shall be outside of the portions of the City hereinafter -described when the derrick and all surface equipment • necessary or convenient to the drilling of and production from such well or well -hole are located in any of the portions of the City hereinafter described: (1)—AREA 1—(Harbor District Central.) —Area 1 is that portion of the City bounded as follows: On the north by the south line of Pacific Coast Highway; on the south by the line of ordinary high tide of the Pacific Ocean; on the east by the west line of the right of way of the Los Angeles County Flood Control District Channel of the Los Angeles River; and on the west by the westerly boundary line of the City; to the extent that such drilling, erection, operation and maintenance within said area are not in conflict with that certain Initiative Ordinance adopted by a vote of the registered qualified electors of the City of Long Beach at a Special Municipal Election held on the 15th day of June, 1937, pursuant to the provisions of Ordinance No. C-1505, Ordinance of said City. (Amended by Ord. C-3631, 5-29-561 • (2)—AREA 2—(West Sixty Feet of Flood Control Channel in Harbor District.) —Area 2 is the west sixty feet of the right of way of the Los Angeles County Flood Control District Channel of the Los Angeles River, to the extent and in the manner authorized by the judgment in that certain action in the Superior Court of the'State of California, in and for the County of Los Angeles, entitled "Continental Corporation, a corporation, et al., plaintiffs, vs. City of Long Beach, et al, defendants," being action No. 442081 in the files of the Clerk of said Court, and further to the extent and in the manner authorized by judgments in those certain actions in the Superior Court of the State of California, in and for the County of Los Angeles, entitled "Continental Southern Corporation, a corporation, et al., plaintiffs, vs. City of Long Beach, a municipal corporation, et al., defendants," being action No. 502421 in the files of the Clerk of said Court, and "Continental Northern Corporation, a corporation, et al., plaintiffs, vs. City of Long Beach, a municipal corporation, et al., defendants," being action No. 502422 in the files of the Clerk of said Court. • (3)—AREA 3—(Tidelands in Harbor District, East of Entrance Channel.) — Area 3 is that portion of the Harbor District of the city lying southerly of the line of ordinary high tide of the Pacific Ocean and easterly of the center line, and its southerly prolongation, of the Entrance Channel to the Long Beach Inner Harbor. (4)—AREA 4—(Tidelands in Harbor District West of Entrance Channel.) —Area 4 is that portion of the Harbor District of the City lying southerly of the line of ordinary high tide of the Pacific Ocean and westerly of the center line, and its southerly prolongation, of the Entrance Channel to the Long Beach Inner Harbor. (5)—AREA 5—(Signal Hill, Northwest.) —Area 5 is that portion of the City described as follows: Beginning at the northeasterly corner of Lot 57, Resubdivision of American Heights Tract, as per map recorded in Book 7, Page 180, of Maps in the office of the Recorder of the County of Los Angeles, said northeasterly corner being in the southerly line of 29th Street (formerly Brandon Street), 50 feet wide, LONG BEACH MUNICIPAL CODE - Reprinted 7.1.56 (3) - Sec. 3300.5 as shown on Map of E. S. Field's Long Beach Heights No. 1, recorded in Book 10, Page 196, of Maps in the office of said County Recorder; thence easterly along the southerly line of 29th Street and the prolongation thereof to a line 90 feet easterly of, measured at right angles and parallel to the easterly line of Atlantic Avenue, 80 feet wide, said parallel line being the common boundary line between the cities of Long Beach and Signal Hill; thence northerly and easterly along said boundary line to its intersection with the prolongation southerly of the center line of that portion of Lime Avenue, 60 feet wide, lying north of Wardlow Road; thence northerly along said prolongation and said center line to the center line of 35th Street (formerly Chateau Thierry Street), 51 feet in width; thence westerly along said center line of 35th Street to the prolongation southerly of the easterly line of Lot 10, Block 12, Tract No. 2964, as per map recorded in Book 37, Page 35, of Maps in the office of said County Recorder; thence northerly along said prolongation and said easterly line of said Lot 10 to the northeasterly corner of said Lot 10; thence westerly along the northerly line of said Lot 10 and along the prolongation west of said • northerly line to the center line of Atlantic Avenue, 80 feet in width; thence northerly along said center line of Atlantic Avenue to the prolongation easterly of the northerly line of Lot 17, Block 11, aforementioned Tract No. 2964; thence westerly along said prolongation and along the northerly line of Lot 1, said Block 11, and the westerly prolongation thereof to the center line of Linden Avenue, 80 feet wide; thence southerly along the center line of Linden Avenue to a point in the easterly prolongation of the northerly line of Lot 16, Block 10, aforementioned Tract No. 2964, the same being the most southerly line of 36th Street (formerly Lincoln Avenue), 40 feet wide; thence westerly along said easterly prolongation, said southerly line of 36th Street and its westerly prolongation, to the northwest corner of Lot 1, Block 9, aforementioned Tract No. 2964; thence northwesterly in a direct line to the northeast corner of Fractional Lot 7, Block F, Los Cerritos, as per map recorded in Book 12, Pages 198 and 199, of Maps in the office of said County Recorder; thence westerly along the northerly line of Fractional Lot 7 and along the north- erly line of Fractional Lot 50, said Block F, aforementioned Los Cerritos, to the • northwest corner of Fractional Lot 50, said Block F, said point also being the intersection of the southerly line of 36th Street (formerly Lincoln Avenue), 80 feet wide, and the easterly line of Locust Avenue, 60 feet wide; thence southerly along the easterly line of Locust Avenue, 60 feet wide, and its southerly pro- longation to the point of intersection with the northerly line of Wardlow Road, 80 feet wide, said point also being the southwest corner of Lot 29, said Block F; thence easterly along the southerly line of Lot 29, said Block F, to a point in the northerly prolongation of the easterly line of Oak Avenue, 60 feet wide; thence southerly along said northerly prolongation of said easterly line of Oak Avenue to a point in the southerly line of Wardlow Road, 80 feet wide, said point being the intersection of the easterly line of Oak Avenue, 60 feet wide, and the southerly line of Wardlow Road, 80 feet wide; thence southeasterly along the easterly line of Oak Avenue, 60 feet wide, along a curve concave to the northeast and having a radius of 240 feet, to a point in the northerly prolongation of the westerly line of Lot 17, Block B, Vista Del Mar Tract No. 2, as per map recorded in Book 10, Page 158, • of Maps in the office of said County Recorder; thence southerly along said prolongation and along said westerly line of Lot 17, said Block B, afore- mentioned Vista Del Mar Tract No. 2, to a point in the northerly line of the alley south of Oak Avenue; thence southeasterly in a direct line to a point in the southerly line of said alley, 15 feet wide, said point being the northwest corner of Lot 3, said Block B; thence southerly along the westerly line of said Lot 3 to a point in the northerly line of Crest Drive, 60 feet wide; thence southerly in a direct line to a point in the southerly line of Crest Drive, 60 feet wide, said point being the northwest corner of Lot 32, Block C, afore. mentioned Vista Del Mar Tract No. 2; thence southerly along the westerly line of Lot 32, said Block C, to a point in the northerly line of the alley south of Crest Drive; thence southwesterly in a direct line to a point in the south- erly line of said alley, 15 feet wide, said point being in the northwest corner of Lot 6, said Block C; thence southerly along the westerly line of said Lot 6, said Block C, to a point in the northerly line of Pepper Drive, 60 feet wide; thence southwesterly in a direct line to a point, said point being the inter- section of the southerly line of Pepper Drive, 60 feet wide, and the easterly line of Locust Avenue (formerly Maple Drive), 60 feet wide; thence southerly LONG BEACH MUNICIPAL CODE — Reprinted 7.1.56 (3) — Sec. 3300.5 along the easterly line of Locust Avenue (formerly Maple Drive), 60 feet wide, to a point in the northerly line of 31st Street, 120 feet wide; thence easterly along the northerly line of 31st Street, 120 feet wide, to a point, said point being the beginning of a tangent curve concave to the south and having a radius of 220 feet; thence southeasterly along said tangent curve to a point in the westerly line of Long Beach Boulevard, 100 feet wide; thence easterly in a direct line to the point of intersection of the northerly line of 31st Street, 60 feet wide, and the easterly line of Long Beach Boulevard, 100 feet wide; thence easterly along the northerly line of 31st Street, 60 feet wide, and its easterly prolongation to the point of intersection of the northerly line of 31st Street, 60 feet wide, with the easterly line of Elm Avenue, 60 feet wide; thence southerly along said easterly line of Elm Avenue, 60 feet wide, and its southerly prolongation to the point of intersection with the northerly line of Spring Street, 60 feet wide; thence easterly along the northerly line of said Spring Street, 60 feet wide, and its easterly prolongation to its intersection with the northerly prolongation of the easterly line of the alley, 13 feet wide, • west of Atlantic Avenue and south of Spring Street in E. S. Field's Long Beach Heights No. 1, as shown on map recorded in Book 10, at Page 196, of Maps in the office of said County Recorder; thence southerly along the easterly line of said alley and its southerly prolongation to a point in the southerly line of 29th Street (formerly Brandon Street), 50 feet wide; thence easterly along the southerly line of said 29th Street, 50 feet wide, to the point of beginning. (Amended by Ord. C-3633, 6-6-56) (6)—AREA 6—(Signal Hill, Cemetery, North and Northeast.) —Area 6 is that portion of the City described as follows: Beginning at the intersection of the north line of Spring Street with the west line of Orange Avenue, said point being in the boundary line of the City of Long Beach; thence southerly along the boundary line of the City of Long Beach and following the various courses of said boundary to the north line of Farm Lot 12, The American Colony Tract, as per map • thereof recorded in Book 19, Pages 89 and 90, Miscellaneous Records of Los Angeles County, California; thence easterly along the north line of said Farm Lot 12 to a line 433 feet westerly of and parallel to the easterly line of Farm Lot 7, said The American Colony Tract; thence northerly along said line 433 feet westerly of and parallel to the easterly line of said Farm Lot 7 to a line 50 feet southerly of and parallel to the northerly line of said Farm Lot 7; thence easterly along said line 50 feet southerly of and parallel to the northerly line of said Farm Lot 7 to a line 333 feet westerly of and parallel to the easterly line of said Farm Lot 7; thence southerly along said line 333 feet westerly of and parallel to the easterly line of said Farm Lot 7 to the north line of said Farm Lot 12; thence easterly along the north line of said Farm Lot 12, and the easterly prolongation thereof, to the east line of Cherry Avenue; thence northerly along said east line of Cherry Avenue to the south line of Wardlow Road; thence easterly along said south line of Wardlow Road to a point in a line 588 feet easterly from and parallel with the center line of said Cherry Avenue; thence southerly along said last mentioned parallel line to the north • line of Farm Lot 29; thence easterly 300 feet, along said north line of Farm Lot 29; thence southerly parallel to said center line of Cherry Avenue to a point in the north line of Spring Street, said point being in the boundary line of the City of Long Beach; and thence westerly along the boundary line of the City to the point of beginning. [j LONG BEACH MUNICIPAL CODE — Reprinted 4-1-56 (2) — Sec. 3300.5 (7)—AREA 7—(Signal Hill, Reservoir and Southeast) —Area 7 is divided into two (2) parcels, designated as Parcel A and Parcel B, and is that portion of the City described as follows: Parcel A Beginning at the intersection of the boundary of the city in Pacific Coast Highway, formerly State Street, with the prolongation northerly of the east line of the alley west of Obispo Avenue; thence easterly along the boundary of the city, and following the various courses of said boundary to the north- easterly line of the Alamitos Tract, as per map recorded in Book 36, Pages 37 to 44, Miscellaneous Records of Los Angeles County, California, thence southeasterly along said northeasterly line of Alamitos Tract to a line 300 feet east of and parallel to the east line of Termino Avenue; thence south along said parallel line to the north line of Pacific Coast Highway, 100 feet • in width, formerly State Street; thence east along the north line of Pacific Coast Highway, 100 feet in width, formerly State Street, to a line 180 feet easterly of, measured at right angles, and parallel to the easterly line of the parcel of land conveyed to the city by deed recorded in Book 4752, Page 134, of Deeds, Records of Los Angeles County, California (Community Hos- pital Lands); thence southerly along said parallel line to a line 150 feet south of, measured at right angles, and parallel to the south line of Pacific Coast Highway, 100 feet in width, formerly State Street; thence west along the last mentioned parallel line to the west line of Termino Avenue; thence southerly along the west line of Termino Avenue to the north line of Fifteenth Street; thence west along the north line of Fifteenth Street to the east line of Redondo Avenue; thence north along the east line of Redondo Avenue to the north line of Ransom Street; thence west along the north line of Ransom Street to the east line of Obispo Avenue; thence north along the east line of Obispo Avenue to the south line of Lot 2, Block 1, Tract No. 1954, as per map recorded in Book 22, Pages 110 and Ill of Maps, Records of • the County of Los Angeles, State of California; thence westerly along the westerly prolongation of the south line of said Lot 2 to the east line of the alley west of Obispo Avenue; and thence north along the east line of said alley and the prolongation thereof to the point of beginning. Parcel B Beginning at the center of the inner circle of Los Alamitos Circle, which has a radius of 180 feet, said radial point being 19.41 feet northerly measured at right angles to the center line of Pacific Coast Highway, former- ly State Street, 60 feet in width, as shown on map of Alamitos Tract, as recorded in Book 36, Pages 37 to 44, both inclusive, Miscellaneous Records, of the County of Los Angeles, State of California; thence south 00 01, 15" east from said radial point a distance of 347.00 feet to the true point of beginning of this description; thence south 750 43' 28" east a distance of 272.85 feet to a point in the northerly line of the Outer Circle; thence along said northerly line of the Outer Circle south 290 18' 46" west a dis. tance of 17.44 feet to an intersection with a curve, concave northerly and having a radius of 500 feet, a radial line through said point having a bearing of south 30° 47' 55" east; thence westerly along said curve, concave to the north and having a radius of 500 feet a distance of 435.66 feet to a point in said curve, a radial line through said last mentioned point having a bearing of south 190 07' 26" west, said point being an intersection with a curve, concave to the west and having a radius of 500 feet, a radial line through said last mentioned point having a bearing of north 870 12' 31" east; thence leaving the northerly line of the Outer Circle and northerly along said last mentioned curve, concave to the west and having a radius of 500 feet a distance of 127.66 feet to a point in said curve, a radial line through said last mentioned point having a bearing of north 72° 34' 48" east; thence north 890 58' 45" east a distance of 186.27 feet to the true point of beginning. (8)—AREA 8—(Alamitos Heights and Flats.) —Area 8 is that portion of the City of Long Beach described as follows: Beginning at the intersection of the center line of Santiago Avenue with the center line of 4th Street; thence east along the center line of 4th Street • • • • I LONG BEACH MUNICIPAL CODE — Reprinted 4.1-56 (2) — Sec. 3300.5 and the prolongation thereof to the boundary of the City of Long Beach as established by the annexation of December 17, 1923; thence southerly along the boundary of the City of Long Beach and following the various courses of said boundary to the most southerly corner of Lot 1, Tract No. 1077, as per map recorded in Book 18, Page 195 of Maps, Records of the County of Los Angeles, California; thence northwesterly along the southerly line of said Lot 1 to the intersection of a line 800 feet northeasterly of and parallel to the northeasterly line of the 200-foot right of way of the Pacific Electric Railway Company's Newport Beach Line; thence northwesterly along said parallel line to the northwesterly line of Parcel 1 of the property conveyed to the City of Long Beach by deed recorded in Book 4654, Page 163, of Official Records in the office of the County Recorder of the County of Los Angeles, having a bearing of South 740 39' 30" West and a length of 401.30 feet; thence South 740 39' 30" West, 95.53 feet to an angle in said Parcel 1; thence South 560 04' 30" West, 167.47 feet to the most westerly corner of said Parcel 1; thence North 560 04' 25" West, 311.34 feet to a point in the easterly line of Parcel 2 of said property conveyed to the City of Long Beach; thence South 80° 07' 11" West, 102.51 feet to a point in the southwesterly line of said Parcel 2; thence North 21° 42' 40" West, 309.95 feet along said southwesterly line of Parcel 2 to a point in a curve concave to the south and having a radius of 1884.91 feet, a radial line passing through said point of curve having a bearing of North 30 43' 54" East; thence southeasterly along said curve an arc distance of 503.52 feet to the end of said curve, a radial line passing through the end of said curve having a bearing of North 190 02' 14.7" East; thence South 70° 57' 45.3" East, 122.99 feet to the center line of Santiago Avenue, 60 feet wide; and thence northerly along said center line of Santiago Avenue to the point of beginning; Provided, however, that it shall be unlawful hereafter to drill any well or well -hole, at the surface of the ground, or to erect any derrick, within that portion of Area 8 described as follows: Beginning at the intersection of the center line of Santiago Avenue (60 feet wide) with the south line of Colorado Street (60 feet wide); thence east along said south line of Colorado Street to the center line of Manila Avenue (60 feet wide) ; thence South 250 feet along said center line of Manila Avenue; thence west along a line 250 feet south of and parallel to said south line of Colorado Street to the westerly line of Parcel 2 of the land conveyed to the City of Long Beach by deed recorded July 17, 1926,in Book 4654, Page 163, of Official Records in the office of the County Recorder of the County of Los Angeles; thence northwesterly along said westerly line of Parcel 2 to the south line of Colorado Street (60 feet wide); and thence east along said south line of Colorado Street to the point of beginning. (Amended by Ord. C-3609, (9)—AREA 8-A—(San Gabriel River.) —Area 8-A is that certain parcel of land being a portion of Lot 2, Tract No. 1077, in the City of Long Beach, County of Los Angeles, State of California, as per map recorded in Book 18, Page 195 of Maps, in the office of the County Recorder of said County of Los Angeles, more particularly described as follows: Beginning at the intersection of the southwesterly line of said Lot 2 with a line 40 feet northwesterly of, measured at right angles and parallel to the northwesterly right of way line of the Los Angeles County Flood Control District San Gabriel River Channel, 400 feet wide; thence northwesterly along said southwesterly line of Lot 2 to the intersection with a line 205 feet north- westerly of, measured at right angles and parallel to said northwesterly right of way line of San Gabriel River Channel; thence northeasterly along said parallel line to the intersection with a line 400 feet northwesterly of, measured at right angles and parallel to said southwesterly line of Lot 2; thence south- easterly along said last mentioned parallel line to said line 40 feet north- westerly of and parallel to said northwesterly right of way line of the San Gabriel River Channel; and thence southwesterly along said line 40 feet northwesterly of and parallel to said northwesterly right of way line of the San Gabriel River Channel to the point of beginning. (Amended by Ord. C-9609, 1-31-56). (10)—AREA 8-B—(Signal Hill Water Department Lands —Northeast.) — Area 8-B is that portion of the city described as follows: LONG BEACH MUNICIPAL CODE — Reprinted 4-1-56 (2) — Sec. 3300.5 Beginning at the intersection of the southerly line of Farm Lot 45, The American Colony Tract, as per map thereof recorded in Book 19, Pages 89 and 90, Miscellaneous Records of Los Angeles County, California, with a line 390 feet westerly of and parallel to the easterly line of Temple Avenue, said point of intersection being in the boundary line of the City of Long Beach; thence northerly along said line 390 feet westerly of and parallel to the easterly line of Temple Avenue to the southerly line of Spring Street; thence easterly along said southerly line of Spring Street to a point in a line 660 feet easterly from and parallel with said easterly line of Temple Avenue; thence southerly along said line 660 feet easterly from and parallel with said easterly line of Temple Avenue to a point in a line 290.95 feet northerly from and parallel with the center line of Willow Street, as per deed recorded in Book 5961, Page 93, of Deeds, Records of Las Angeles County, California; thence easterly along said line 290.95 feet northerly from • and parallel with the center line of said Willow Street to the southeasterly line of that portion of Rancho Los Cerritos, as per map recorded in Book 2, Page 202, of Patents, Records of Los Angeles County, California, deeded to the city by deed recorded in Book 4727, Page 245, of Deeds, Records of Los Angeles County, California, said southeasterly line of that portion of Rancho Los Cerritos being also the northwesterly line of Lot 1, Tract No. 10548, as per map recorded in Book 174, Page 17, of Maps, Records of Los Angeles County, California; thence northeasterly along said northwesterly line of said Lot 1 to the westerly line of Newport Avenue; thence southerly along said westerly line of Newport Avenue to the north line of Willow Street; thence westerly along said northerly line of Willow Street to the afore- mentioned southeasterly line of Rancho Los Cerritos; thence southwesterly along said southeasterly line of that portion of said Rancho Los Cerritos, deeded to the City of Long Beach, to its intersection with the southerly line of Willow Street, said point of intersection being in the boundary line of the City; and thence southwesterly along the boundary line of the City and following the various courses of said boundary line to the point of beginning in the southerly line of aforementioned Farm Lot 45, The American Colony Tract, 390 feet westerly thereon from the easterly line of Temple Avenue. • • LONG BEACH MUNICIPAL CODE See. 3300.5 (11)—AREA 8-C—(Water Department Lands, Airport Central South.) — Area 8-C is that portion of City described as follows: Beginning at the intersection of the southerly line of Spring Street with a line 400 feet easterly of and parallel to the center line of Newport Avenue; thence southerly along said line 400 feet easterly of and parallel to the center line of Newport Avenue to a point in the southeasterly line of that portion of the Rancho Los Cerritos, as per map recorded in Book 2, Page 202, of Patents, Records of Los Angeles County, California, deeded to the City by deed recorded in Book 4727, Page 245, of Deeds, Records of Los Angeles County, California; thence southwesterly along said southeasterly line of that portion of said Rancho Los Cerritos to a point in a line 700 feet westerly of and parallel to the center line of Newport Avenue; thence northerly along said parallel line to the southerly line of Spring Street; and thence easterly along said southerly line of Spring Street to the point of beginning. (12)—AREA 8-D—(Virginia Country Club West.) —Area 8-D is that portion of the City described as follows: That portion of Lot 6, Block D, and that portion of Lot 5, Block E, Subdivision of a Part of The Rancho San Pedro, as per map recorded in Book 32, Pages 97 and 98, Miscellaneous Records of the County of Los Angeles, State of California, more particularly described as follows: Beginning at the intersection of the Compromise Ranch Line, as per map filed in Book 6, Pages 15 and 16, Records of Surveys, in the office of the County Recorder of said Los Angeles County, with the southerly right-of-way line of the Union Pacific System private right-of-way; thence south 240 211 17" east along said Compromise Line 34.50 feet; thence south 340 04' 58" west 456.21 feet; thence south 220 36' 48" west 1,269.48 feet; thence south 720 19' 08" west 268.19 feet; thence south 450 33' 33" west 348.86 feet to a point in the easterly right-of-way line of the Los Angeles River Flood Control Channel, said easterly right-of-way line being a boundary line of the city; thence north 30 04' 59" east 1,420.84 feet along said easterly right-of-way line of the Los Angeles River Flood Control, Channel to the southerly right-of-way line of the Union Pacific System private right-of-way; and thence north 670 08' 23" east along said southerly right-of-way line of the Union Pacific System private right-of-way 1,256.41 feet to the point of beginning; excepting there- from all that portion of said parcel lying westerly of a line 120 feet easterly of and parallel to the easterly right-of-way line of the Los Angeles River Flood Control Channel, and all that portion of said parcel lying northerly of a line 120 feet southerly of and parallel to the southerly right-of-way line of the Union Pacific System private right-of-way. (13)—AREA 8-E—(Flood Control, Del Amo South.) —Area 8-E is that portion of the city described as follows: That portion of Lot 5, Block D, Subdivision of a part of the Rancho San Pedro, as per map recorded in Book 32, Pages 97 and 98, Miscellaneous Records of the County of Los Angeles, State of California, more particularly described as follows: Beginning at the intersection of the southerly line of said Lot 5 with the westerly line of Tract No. 3554, as per map recorded in Book 38, Pages 44 and 45, of Maps, Records of the County of Los Angeles, State of California; thence westerly along said southerly line of said Lot 5 to the easterly right-of-way line of the Los Angeles River Flood Control Channel, said easterly right-of-way line being a boundary line of the City; thence northerly along said easterly right-of-way line of the Los Angeles River Flood Control Channel to its intersection with the westerly line of afore- mentioned Tract No. 3554; and thence southerly along the westerly line of said Tract No. 3554 to the point of beginning; excepting therefrom all that portion of said parcel lying westerly of a line 120 feet easterly of and parallel to the easterly right-of-way line of the Los Angeles River Flood Control Channel. (14)—AREA 8-F—(Airport, Central, West.) —Area 8-F is that portion of the city described as follows: • The southerly 300 feet of the northerly 340 feet of the easterly 410 feet of Farm Lot 8 and the southerly 300 feet of the northerly 340 feet of the LONG BEACH MUNICIPAL CODE — Reprinted 12.1.56 (5) — See. 3300.5.5 westerly 1,070 feet of Farm Lot 9, and the northerly 300 feet of Vine Avenue (vacated) all in the American Colony Tract, as per map thereof recorded in Book 19, Pages 89 and 90, Miscellaneous Records of Los Angeles County, California. (15)—AREA 8-G—(Airport, Northwest.) —Area 8-G is that portion of the City described as follows: The southerly 200 feet of Lot 48, and the southerly 200 feet of the westerly 100 feet of Lot 49, all in Tract No. 8084, as per map thereof recorded in Book 171, of Maps, Pages 24 to 30, inclusive, Records of Los Angeles County, California. (16)—AREA 8-1-I—(Airport, Central, East.) —Area 8-3-1 is that portion of the City described as follows: • The westerly 300 feet of the easterly 310 feet of the southerly 630 feet of Lot 51 and the westerly 300 feet of the easterly 310 feet of Lot 58, and the westerly 300 feet of the easterly 310 feet of Lot 59 and the westerly 300 feet of the easterly 310 feet of the northerly 750 feet of Lot 66, all in Tract No. 8084, as per map thereof recorded in Book 171, of Maps, Pages 24 to 30, inclusive, Records of Los Angeles County, California. (17)—AREA 8-I—(East Spring Street.) —Area 8-I is that portion of the City described as follows: That portion of Lot 17, Tract No. 10548, as per map recorded in Book 174, Page 19, of Maps, Records of the County of Los Angeles, State of California, described as follows: Beginning at the intersection of a line 120 feet southerly of and parallel to the northerly line of said Lot 17 with a line 100 feet easterly of and parallel to the westerly line of said Lot 17; thence easterly along said line 120 feet southerly of and parallel to the • northerly line of said Lot 17 to a line 1,000feet easterly sou and Parallel to the westerly line of said Lot 17; thence southerly along said line 1,000 feet easterly of and parallel to the westerly line of said Lot 17 to a line 1,000 feet southerly of and parallel to the northerly line of said Lot 17; thence westerly along said line 1,000 feet southerly of and parallel to the northerly line of said Lot 17 to a line 100 feet easterly of and parallel to the westerly line of said Lot 17; and thence northerly along said line 100 feet easterly of and parallel to the westerly line of said Lot 17 to the point of beginning. (18)—AREA 8-J—(Willow and Lakewood) —Area 84 is that portion of the City described as follows: Beginning at the intersection of the center line of Lakewood Boulevard with the center line of Willow Street; thence North 00 05' 53" East along the center line of Lakewood Boulevard a distance of 745.53 feet; thence westerly at right angles to said center line of Lakewood Boulevard to a point in a line 66 feet westerly of, measured at right angles and parallel to • the center line of said Lakewood Boulevard, said point being the true point of beginning of this description; thence South 0° 05' 53" West a distance of 100.53 feet; thence South 340 33' 48" West a distance of 106.39 feet to the beginning of a tangent curve concave to the northwest and having a radius of 155.00 feet; thence southwesterly along said curve a distance of 180.34 feet to line tangent; thence North 780 46' 20" West a distance of 492.63 feet to the beginning of a tangent curve concave easterly and having a radius of 145.00 feet; thence northwesterly and northeasterly along said curve through an angle of 1800 00' 20" a distance of 455.54 feet to a line tangent; and thence South 780 46' 00" East a distance of 657,68 feet to the true point of beginning of this description. SECTION 3300.5.5—Hearing Required for Area Change —Before creating, enlarging, diminishing or eliminating an area of the City wherein the activities referred to in Section 3300.5 are permitted, the City Council shall hold a public hearing thereon. The City Clerk shall, not less than ten days before the date set for such hearing; mail a notice thereof, postage prepaid, to each person owning property, as shown by the latest City assessment roll, within any portion of the City so to be created or eliminated in its entirety as such area and to each such person owning property within a distance of three LONG BEACH MUNICIPAL CODE — Reprinted 12.1.56 (5) — Sec. 3300.6 hundred feet of the outer boundaries of such portion. The City Clerk shall so mail such notice to each person owning property, as shown by the latest City assessment roll, within any portion of the City to be added to, or taken from, such area where such activities are permitted, and to each such person owning property within a distance of three hundred feet of the outer boundaries of such portion; provided, however, that such notices need not be mailed to the owners of any property within a distance of three hundred feet of the outer boundaries of such portion, if such property is within, and will remain within, an area wherein such activities are permitted. The failure of the City Clerk to mail, or the failure of any such property owner to receive, the notice prescribed by this section, shall in no wise affect the validity of any action taken by the City Council to create, enlarge, diminish, or eliminate any such area. (Added by Ord. 0-3664, 10-23-56). • Division 2—Locations at Which Wells May Be Drilled SECTION 3300.6—In General Re Locations —Notwithstanding any other provision of this Chapter, it is unlawful and a nuisance to drill any well or well -hole, or to erect any derrick or production equipment, or to operate or maintain any of the same, at any location within those areas in the City within which such drilling, erection, operation and maintenance are permitted as in this Chapter provided, unless such well, well -hole, derrick and production equipment are located as hereinafter in this Division provided, • • LONG BEACH MUNICIPAL CODE Sec. 3300.7 SECTION 3300.7—One Well Per Acre of Operating Unit —It is unlawful hereafter to drill more than one well or well -hole for each full acre contained In the operating unit (as hereinabove defined), in or upon which, or as a part of which, such well or well -hole is drilled or to be drilled, except in those portions of the City hereinabove described as Areas 5, 6, 7 and 8. SECTION 3300.8-100 Feet from Street or Boundary of Unit —(Except When Unit Less than 250 Feet Wide). It is unlawful hereafter to drill any well or well -hole, the center of which, at the surface of the ground, is located within one hundred feet of a public street, road or highway dedicated prior to the commencement of such drilling, or within one hundred feet of any outer boundary line of the lands which constitute the operating unit (as hereinabove defined), in and upon which such well is drilled; except in those portions of the City hereinabove described as Areas 2, 4, 5, 6, 7 and 8; and except that subject to the provisions of Sections 3300.7, 3300.9, 3300.10, 3300.11, 3300.12 and 3300.13, if an operating unit within those portions of the City hereinabove described as Areas I or 3, is less than two hundred fifty feet in width in any portion of said unit at which it is desired to drill a well, a well may be drilled at said location where the width of said unit Is less than two hundred fifty feet, if the center of such well at the surface of the ground is so located as to be as far from the lateral boundary lines of said operating unit adjacent to said location as the configuration of the surface of the ground and the existing improvements thereon will permit. The foregoing provisions of this section shall not apply in the case of any street or highway which is opened through a field in which drilling was commenced prior to the opening of the street or highway. For the purposes of this section, an alley which intersects or lies within any block, or other subdivision unit, shall not be deemed such public street, • road or highway. SECTION 3300.9-150 Feet from Other Wells. It is unlawful hereafter to drill any well or well -hole, the center of which, at the surface of the ground, is located within one hundred fifty feet of the center location, at the surface of the ground, of any other well -hole then being drilled, or theretofore drilled, whether completed or not, and which has not been abandoned, as required by this Chapter; except within those portions of the city hereinabove described as Areas 5, 6, 7 and 8; and except that wells may be drilled upon and from that portion of the City hereinabove described as Area 2, if the center location of each such well at the surface of the ground is at least one hundred feet from the center location, at the surface of the ground, of any other well or well -hole then being drilled, or theretofore drilled (whether within or without said Area 2, and whether completed or not), and which has not been abandon- ed as required by this Chapter. SECTION 3300.10-150 Feet from Harbor Lines —It is unlawful hereafter to drill any well or well -hole the center of which, at the surface of the ground, is located within one hundred fifty feet of any harbor line established by the United States War Department or by the Board of Harbor Com- missioners of the City, unless and until the Council, by resolution duly and regularly adopted upon recommendation of said Board, has determined and declared that such well or well -hole so located, will not endanger or prejudice the interests of commerce, navigation or fisheries. SECTION 3300.11-25 Feet from Structure or Street —It is unlawful hereafter to drill any well or well -hole, the center of which, at the surface of the ground, Is located within twenty-five feet of any boundary line of the operating unit in and upon which such well is drilled, or within twenty-five feet of any steam boiler, source of ignition, building or structure, except existing well -hole, or within twenty-five feet of any public street, road or highway dedicated prior to the commencement of such drilling. • It is unlawful hereafter to erect any steam boiler or other source of Ignition, or any other building or structure (except any facility or equip. • LONG BEACH MUNICIPAL CODE Sec. 3300.12 ment, other than a steam boiler or other source of ignition, used, or erected or maintained for use, exclusively in connection with the drilling, operation or maintenance of such well), any portion of which is located within twenty- five feet of the center, at the surface of the ground, of any well or well -hole, the erection of the derrick for which has theretofore been commenced. SECTION 3300.12-50 Feet from Refinery or Natural Gasoline Plant — It is unlawful hereafter to drill any well or well -hole, the center of which, at the surface of the ground, is located within fifty feet of any building, equipment, apparatus or facility used in connection with any natural gasoline plant or refinery, which is subject to the accumulation or discharge of flammable vapors in quantities which are deemed dangerous by the Bureau of Fire Prevention, or within fifty feet of any tank used, or erected or main- tained for use, for the storage or holding of liquefied petroleum gases. It is unlawful hereafter to erect, within fifty feet of the center of any well or well -hole, at the surface of the ground, any building or apparatus which is subject to the accumulation or discharge of flammable vapors in quantities which are deemed dangerous by the Bureau of Fire Prevention, or any tank used, or erected or maintained for use, for the storage or holding of liquefied petroleum gases. - SECTION 3300.13-500 Feet from School Lands, Etc. It is unlawful hereafter to drill any well or well -hole, or to erect any derrick or production equipment, or hereafter to operate or maintain any of the same, whether heretofore or hereafter drilled or erected, unless all portions of such derrick and production equipment are at least five hundred feet from any real property used for public school purposes and at least five hundred feet from any building used for hospital purposes at any place within the City; except, that this section shall not apply to the operation and maintenance hereafter of the well -hole, derrick or production equipment used for the production of oil, gas or other hydrocarbons from any well which was in existence, or which was actually being drilled on March 14, 1927, the date when that certain initiative ordinance adopted by vote of the registered qualified electors of the City of Long Beach at a special municipal election held on the 9th day of March, 1927, pursuant to the provisions of Ordinance No. C-615, Ordinances of said City, became effective. (Section 3300.3) SECTION 3300.14—Part of Surface Unavailable for Location of Well — Notwithstanding any other provisions of this Division where a parcel of land contains one acre or more and where all or substantially all of the surface of such parcel of land is unavailable for the surface location of oil or gas wells, there may be drilled or produced not more than one well into each acre of such parcel of land, and the surface location of such well may be located upon property which may or may not contain one acre or more of surface area, and the property upon the surface of which the surface location of such well may be located may or may not be contiguous to such parcel of land, provided: 1. No operator shall construct or maintain any derrick within 150 feet of any other derrick, then standing, of such operator. 2. The surface location of such well, as measured from the center of the hole, shall be not less than twenty-five feet from an outer boundary of the surface of the property upon which such well is located, and shall be not less than twenty-five feet from any dedicated public street, road or highway which is so dedicated and in such public use at the time of the commencement of drilling of such well. 3. The producing interval of such well shall be not less than seventy-five feet from an outer boundary of the parcel of land into which such producing Interval is drilled, and the producing interval of such well shall be not less than one hundred and fifty feet, as measured horizontally in the same zone, • from the producing Interval of any other well which is producing or capable of producing oil or gas. • LONG BEACH MUNICIPAL CODE Sea 3300.15 Division 3—Permits Reissued SECTION 3300.15—Persons required to obtain permits —No person who, is the owner or is In control or possession, either legal or actual, or who has the right to, or to obtain, the control or possession, or who has the right to control the possession or use, of any real property situated In the City, or of any interest therein, or who has the right or duty with respect to any real property in the City, shall drill thereon or therein or therefrom, any well or well -hole, or erect thereon or therein, any derrick or production equipment, or operate or maintain the same, or any thereof, or allow, permit, acquiesce in or consent to any person drilling, erecting, operating or main- taining the same, or any thereof, upon, in or from such property, without first obtaining or causing to be obtained, the permit or permits required by this chapter. No person who Is the owner or is in control or possession, either legal or actual, or who has the right to, or to obtain, the control or possession, or who has the right to control the possession or use, of any derrick, drilling equipment, production equipment, well or well -hole, or of any portion of any thereof, or of any structure, machinery, equipment or facility used, operated or maintained in connection with any thereof, shall allow, permit, acquiesce in or consent to, any person drilling, erecting, installing, operating or main- taining the same, or any thereof, or any such structure, machinery, equipment, or facility used, operated and maintained in connection with any thereof, without first obtaining or causing to be obtained, the permit or permits re- quired by this chapter. SECTION 3300.16--Clerk's Oil Well Permits Required No person shall erect, at any place in the City, any derrick, the erection of which was not heretofore commenced, or hereafter drill any well or well -hole, any portion of which is within the City, and the erection of the derrick for which • was not heretofore commenced, or hereafter erect at any place within the City, any production equipment for any such well, or operate or maintain such well, well -hole, derrick or production equipment, without first obtaining from the Tax Collector a permit so to do, which permit shall be designated and is hereinafter sometimes referred to as "City Tax Collector's Oil Well Permit." The City Tax Collector's Oil Well Permit shall expire at midnight of June 30 next following the date of its issuance, and shall be of no further force and effect unless the same is renewed as herein provided. SECTION 3300.17—Renewal Permits Required for Wells Hereafter Drilled —From and after the first day of July next succeeding the issuance of any City Tax Collector's Oil Well Permit hereunder no person shall perform any work in connection with the drilling of any well or well -hole for which such permit was issued, or in connection with the erection of any derrick or production equipment, for use or used in connection with such well or well - hole, operate or maintain the same, or any thereof, whether or not the same is or are completed, without first obtaining from the City Tax Collectors, on or before each first day of July after the issuance of such City Tax Collector's Oil Well Permit, a permit renewing said Tax Collector's Oil Well Permit. Said renewal permit shall be designated and is hereinafter sometimes referred to as "City Tax Collector's Annual Renewal Oil Well Permit", and shall be and remain in full force and effect for only the fiscal year July 1 to June 30 for which it is issued. SECTION 3300.18—Renewal Permits Required for Existing Wells —for Periods Subsequent to June 30, 1941—No person, from and after July 1, 1941, shall perform any work in connection with the drilling of any well or well. hole, any portion of which is in the City, and the drilling of which was there- tofore commenced, or perform any work in connection with the erection at any place within the City of any derrick or production equipment, the erection of which was theretofore commenced, or operate and maintain any such well, well -hole, derrick or production equipment, or any portion of any thereof, whether or not the same is or are completed, without first obtaining • from the Tax Collector on or before said first day of July, 1941, and on or before every first day of July thereafter, a permit so to do. Each such permit • LONG BEACH MUNICIPAL CODE Sec. 3300.19 shall also be designated as, and is hereinafter included in the reference to, "City Tax Collector's Annual Renewal Oil Well Permit" and shall be and remain in full force and effect for only the fiscal year July 1, to June 30, for which it is issued. SECTION 3300.19—Supplemental Permits May Be Issued —Any person heretofore issued a permit by the Tax Collector, and while not in default thereunder, may thereafter apply to the Tax Collector for a Supplemental, Permit to change the well name or number designation thereof, or for the purpose of carrying on additional lawful operations incidental to his opera- tions authorized under his original permit, but which incidental operations are not authorized under said original permit, whether by reason of their nature, their location or otherwise. A Supplemental Permit may also be granted, upon application duly made therefor, permitting the substitution of a new and different approximate location for the center of the proposed well -hole, provided that said application be made within six months from the date of issuance of the original permit, and that at the time of the granting of any such Supplemental Permit said original permit shall not have expired or been revolted. All applications for a Supplemental Permit shall be made in like manner as an application for an original permit, and such Supplemental Permit shall be issued only in the manner and upon the same terms and conditions and subject to the same requirements as to approval as herein provided in regard to the issuance of original permits; provided, however, that no additional fee shall be charged by the Tax Collector for such Supplemental Permit. SECTION 3300.20—Building Permits Required —No person shall erect at any place within the City, any derrick or add to, enlarge, move, improve, alter, reconstruct, restore, convert, extend, remove, dismantle or demolish any derrick, whether heretofore or hereafter erected, without first obtaining from the Building Inspector, a permit so to do, as hereinafter and in the Building regulations in this code provided. All derricks hereafter erected pursuant to a permit so issued shall be removed within a period of six months from date of erection; provided, however, that extensions of time for not to exceed three successive six month periods may be granted of the permittee shall furnish evidence of the necessity therefor to the satisfaction of the Building Inspector. In any event, any derrick hereafter erected shall be removed within a period of two years from date of erection. SECTION 3300.21—Bureau of Fire Prevention Permits Required —No person shall erect, at any place within the City, any derrick or hereafter to alter, add to, enlarge, move, improve, reconstruct, restore, convert, extend, remove, dismantle or demolish the same, or any thereof, whether heretofore or hereafter erected, without first obtaining from the Bureau of Fire Preven- tion a permit so to do as hereinafter provided. SECTION 3300.22—Harbor Board Permits Required No person shall erect, at any place within the Harbor District of the City, any derrick or hereafter alter, add to, enlarge, move, improve, reconstruct, restore, convert, extend, remove, dismantle or demolish the same, or any thereof, whether heretofore or hereafter erected, without first obtaining from the Board a permit so to do, as hereinafter provided. SECTION 3300.23—Special Zoning Permits Not Required —The Zoning provisions of this code, pertaining to property used, relating to the issuance of special permits for non -conforming uses thereunder, shall not apply to the drilling, operation or maintenance of wells or well -holes, or to the erection, operation or maintenance of derricks or production equipment for use in connection with such wells or well -holes; and no special permit under said Zoning provisions of this code, shall be required to drill any well or well -hole, or to erect any derrick or production equipment, or to operate or maintain any of the same, within those portions of the city within which such drilling, • erection, operation and maintenance are authorized or permitted hereunder; nor shall any special permit under said Zoning provisions of this code ever • LONG BEACH MUNICIPAL CODE Sec. 3300.23a be issued to drill any well or well -hole, or to erect any derrick or production equipment, or to operate or maintain any of the same in any portion of the City within which, or at any location at which, the same are not authorized or permitted hereunder. SECTION 3300.23a—Special Conditions Imposed —The Building Inspector and the Bureau of Fire Prevention may impose any of the following conditions in any permit required by this chapter, and issued by their respective depart- ments, as may be deemed necessary for the security, safety, welfare and protection of the public; provided that in the event the applicant is unwilling to accept such a permit containing special conditions he shall have the right to appeal to the Council for review of the special conditions imposed, and the decision of the Council shall be final: 1, Following a testing period of not to exceed thirty days, the pumping unit established at the well site shall be installed so that no part thereof shall be above the surface of the ground. 2. Following a testing period of not to exceed thirty days, all oil produced shall be carried away from the site through pipe lines. 3. No open pits, sumps or basins shall be permitted at the site of a producing well. 4. Upon completion of the drilling of a well, in event production is obtained, the premises shall be placed in a clean and orderly condition and shall be landscaped with a planting of quick -growing trees and/or shrubs so as to screen from public view the tanks and other permanent equipment. All such landscaping, shrubbery and trees shall be kept in good condition. 5. Except in case of emergency, no materials, equipment, tools or pipe used for drilling operations shall be delivered to or removed from the drilling • site except between the hours of 7 a. m. and 7 p.m. of any day. 6. No oil shall be removed by truck from the well site between the hours of 8 p.m. to 6 a. m. 7. No commercial refining process or any process for the extraction of products from natural gas shall be carried on at the well site. S. Permanent structures and equipment shall be painted a neutral color so as to blend in with natural surroundings. 9. All private roads used for ingress and egress to and from the well site shall be surfaced and properly maintained during drilling and production operations. 10. Drilling shall not be permitted within 300 feet of any residence. 11. Signs shall not be constructed, erected, maintained or placed on the premises or any part thereof, except those required by law or ordinance to be displayed in connection with the drilling or maintenance of the well. 32. No earthen sump shall be permitted. 3.3. No tanks, apparatus or equipment shall be erected, installed or maintained above the surface of the ground. 14. Derricks and drilling equipment shall be enclosed with sound -proofing materials approved by the Building Inspector. Division 4—Application For, And Issuance And Transfer Of Permits SECTION 3300.24—Appllmtion for Permit from Tax Collector —Any person desiring to obtain any permit from the Tax Collector as required herein, shall make written application therefor to, and shall file the same with, the Tax Collector. A separate application must be made and filed as to • each well and well -hole for which a permit is desired, except an application for Tax Collector's Annual Renewal Oil Well Permits may include any • LONG BEACH MUNICIPAL CODE Sec. 3300.25 number of wells for which applicant is entitled to such permits. All applica- tions shall be made upon forms prescribed and provided for such purposes by the Tax Collector, but each such application shall, amongst other things, be duly signed and executed by the applicant, and if the applicant is a corpora- tion, the corporation seal shall be affixed thereto. Each application shall be verified, under oath, by the applicant, or by some person duly authorized to make such verification on behalf of the applicant, and shall show the name and the business and residence addresses of applicant. If more than one applicant joins in the application, the name and business and residence addresses of each such person must be stated. If the application is made in the name of a partnership, the name and business and residence addresses of each partner must be stated. If applicant is a corporation, a statement must be made showing the laws under which it is incorporated, the place and address of its principal place of business in the State of California, and the names and respective titles and addresses of its officers who will be in charge of its operations under the permit applied for, and of its general manager or chief administrative or executive officer. SECTION 3300.25—Agreement to Comply with Laws —Each application filed with the Tax Collector for a permit hereunder, shall also contain a written agreement duly executed by applicant that, in the event a permit is issued to him pursuant to such application, he will, as a condition to any of his operations thereunder, faithfully comply with and abide by any and all of the provisions, requirements, terms and conditions of the permit Issued to him, as permittee, and of this chapter and of all other ordinances of the City, and particularly the building and electrical construction regulations in this code, including any amendments thereto, duly and regularly adopted, and of that certain initiative ordinance adopted by a vote of the registered quali- fied electors of said City, at a Special Municipal Election held on the 9th day of March, 1927, pursuant to the provisions of Ordinance No. C-615, (Section 3300.3) Ordinances of the City of Long Beach, as said initiative ordinance is • amended by that certain intiative ordinance adopted by vote of the registered qualified electors of said City at a Special Municipal Election held on the 15th day of June, 1937, pursuant to the provisions of Ordinance No. C-1505, being Section 3300A of this code, of said City, together with any amendments to said initiative ordinance hereafter duly and regularly adopted, and of any other ordinance of the City, or of the Board of Harbor Commis- sioners, and of the laws of the State of California (including the Charter of the City of Long Beach) and of the United States of America, and with any rule or regulation of the Building Inspection Division, Department of Engin- eering -Public Service, and of the Division of Fire, Department of Public Safety, and of the Bureau of Fire Prevention, of the City of Long Beach, and of the Board of Harbor Commissioners, and which ordinance, law, rule or regulation in any manner pertains or applies to any of the operations or proposed opera- tions of applicant. SECTION 3300.26—Deserlption of Premises Covered by Permlt—Each application filed with the Tax Collector for a permit hereunder, except an application for Tax Collector's Annual Renewal Oil Well Permit shall also contain, (1) a statement of the location, or proposed location, and the type of construction, dimensions and capacity of any and all tanks used or intended to be used in connection with any of the operations to be conducted under said permit, (2) a true and correct legal description of the real property included in the operating unit (as hereinabove defined) under which the proposed operations of applicant will be conducted and (3) a true and correct legal description of the portion of said operating unit which applicant proposes to use under said permit (including the property on which any "production equipment" for said well is intended to be, or is located). The parcel described pursuant to the foregoing subsection 3 is hereinafter referred to as the "premises covered by the permit", and no other real property may be used for any such purpose, unless a supplemental permit is applied for and ob- tained, as herein provided, wherein such other property is likewise described In detail, and thenceforth such other property is also included in the reference herein to the premises covered by the permit. Each application, except an . application for Tax Collector's Annual Renewal Oil Well Permit, shall also contain a statement of the acreage or number of square feet contained within • LONG BEACH MUNICIPAL CODE Sea 3300.27 the boundaries of said operating unit and the number of wells theretofore drilled, or for which permits have been received or applications are on file for wells on said operating unit, whether pursuant to the lease, permit or agree- ment, under which the proposed operations of applicant will be conducted or otherwise. In all cases where the applicant owns, an operating unit con- taining an area in excess of ten acres and shall, pursuant to section 3300.27, file a master map of the whole of said operating unit and a legal description thereof he shall not be required in any application for a permit to give the description of his operating unit and it shall be sufficient if he shall in said application allege that said map and said description have been filed, provided whenever any charge occurs in the area of his operating unit the applicant shall promptly file a new map showing the changed area thereof and a legal description of the same. SECTION 3300.27 Map of Premises Covered by Permit —Each application for a Tax Collector's Oil Well permit (for a new well) shall also contain, or be accompanied by, a map, or plat, of the real property, upon the surface of which is to be located the surface location of the well and all equipment appurtenant thereto, which is required to be described in detail in the applica- tion as the premises to be covered by the permit, which map or plat shall have been prepared and verified by a licensed land surveyor, or a registered civil engineer, so licensed or registered in the state, and shall be coordinated with the United States Public Surveys, and drawn to the scale of not less than one inch for each one hundred feet, and on which map or plat shall be shown and indicated: (1) All buildings, improvements and other structures on said real property; (2) The location of the center of the well -hole proposed to be drilled, operated and/or maintained thereon; • (3) The location of each derrick, tank, sump, boiler, and other major equipment proposed, or intended to be used, or used, in the drilling and operation of each well or proposed well; and (4) The location of all pipe lines proposed to be used, or used, in appli- cant's operations; provided, that if the real property described In detail as the premises to be covered by the permit, and shown on said map, or plat, is a part of, but less than the whole of, a larger operating unit (as hereinabove defined), said map, or plat, shall be superimposed upon an accurate map or plat prepared by a reputable land surveyor or civil engineer, so as to accurately show the position and relation of such premises to be covered by the permit, with reference to the boundaries of such operating unit, provided further that in those cases where an applicant owns an operating unit containing an area in excess of ten acres he shall not be required to file any additional map with any application when he has filed a master map, of the whole of his operating unit, drawn to the scale of one inch to each one hundred feet on which shall be shown all individual well unit parcels of said applicant, to- gether with all improvements, well tank groups, pipe lines and other facilities in existence at the time of the filing thereof and after the filing of such master map said applicant shall in any application for any additional well set forth In said application the location of the center of such well, a legal description of the acre parcel therefor and the symbol of the tank group to be used in connection with said well. Said well location and acre parcel shall be coordinated with and by reference related to said master map and said location and parcel shall be indicated on said master map by the custodian thereof. SECTION 3300.28--Duplicates of Notices Filed with State Division of Oil and Gas —Each applicant for a permit from the Tax Collector to drill a new well shall also file with the Tax Collector an executed duplicate of the "Notice of Intention to Drill New Well" required to be filed by applicant with the State Oil and Gas Supervisor, and of any other notices required to be filed by • applicant with said Supervisor, relating to or in connection with the drilling of a new well. Each such applicant shall likewise file with the Tax Collector • LONG BEACH MUNICIPAL CODE See. 3300.29 an executed duplicate of the "Report on Proposed Operations" or any other report issued and delivered to applicant by said Supervisor by way of report upon applicant's proposed operations as set forth in any of said notices hereinabove referred to. Said duplicate notices and reports shall be filed by such applicant with the Tax Collector at the time of filing his application for such permit hereunder, or at the time or immediately after the originals thereof are or have been filed with or received from said Supervisor. SECTION 3300.29—Designation of Agent or Applicant —Each applicant hereunder for a permit from the Tax Collector shall file with the Tax Collector, at the time of filing such application, an appointment of an agent who shall maintain his place of residence within the County of Los Angeles, State of California, upon whom all orders, notices and processes provided for or permitted by this chapter may be served, and each permittee hereunder shall at all times maintain such an agent. Said appointment shall be in writing, upon forms approved by the Tax Collector, duly executed and ack- nowledged by applicant or permittee, and shall be accepted in writing, exe- cuted and acknowledged by such agent. Nothing herein shall be deemed or construed to mean or require that service of any such order, notice or process may be served only upon such designated agent to the exclusion of service upon applicant, or permittee, or any of its members, or officers. SECTION 3300.30—Procedure for Tax Collector Upon Receipt of Appli. cation —Upon receiving any application for a Tax Collector's Oil Well Permit hereunder, with the accompanying papers and information herein required, the Tax Collector shall notify the Building Inspector, the Bureau of Fire Prevention, and the Board of Harbor Commissioners, of the receipt of such application, and shall deliver to the Building Inspector, Bureau, and Board, respectively, a duplicate copy of such application, together with a duplicate copy of the map or plat required to be filed with the Tax Collector by the provisions of section 3300.27, and a copy of such other information filed with the City Tax Collector as required herein, as the Building Inspector, Bureau • or Board, respectively, may request the Tax Collector to furnish to It, and no such Tax Collector's Oil Well Permit shall be issued unless and until the permits herein required to be obtained from the Building Inspector, Bureau of Fire Prevention, and Board of Harbor Commissioners, have been obtained and written notices thereof have been filed with the City Tax Collector, as hereinafter provided, and any such City Tax Collector's Oil Well Permit otherwise Issued shall be and is hereby declared to be null and void. SECTION 3300.31—Conditions to Issuance of City Tax Collector's Permit — Obtaining Building Permit —Any permit required to be obtained from the Building Inspector to erect, add to, enlarge, move, improve, alter, reconstruct, restore, convert, extend, remove, dismantle or demolish any derrick or other structure used, or erected or maintained for use, in connection with the drilling, operation or maintenance of any oil well or well -hole, shall be obtained and issued in the manner provided by and subject to all of the terms and provisions of the building regulations in this code; provided, however, that upon receiving any application for such a building permit, said Building Inspector shall immediately notify the Bureau of Fire Prevention, and, if the application is for a structure located in the Harbor District, the Board of Harbor Commissioners, in writing, that such application for such building permit has been filed with said Building Inspector, and no such building permit shall be valid or effective for any purpose unless and until the permits required herein to be obtained from the Bureau of Fire Prevention and from the Harbor Board, have been obtained and issued, as herein provided; and provided further, that no such building permit shall be issued to move, re- move, dismantle or demolish any derrick, unless and until the rules of the Division of Oil and Gas of the Department of Natural Resources of the State of California applicable thereto, have been complied with. The Building In- spector shall notify the Tax Collector, in writing, in a manner and on forms approved and/or furnished by said Tax Collector, of the issuance of each such building permit. SECTION 3300.32—Conditions to Issuance of CIty Tax Collector's Permit —Obtaining Bureau of Fire Prevention Permitr—Any person desiring to obtain from the Bureau of Fire Prevention, as required herein, shall any permit • LONG BEACH MUNICIPAL CODE Sec. 3300.33 make written application therefor to, and shall file the same with, said Bureau upon forms prescribed and provided for such purpose by said Bureau. The Bureau of Fire Prevention shall not issue any permit pursuant to such appli- cation unless and until said Bureau has made an investigation of the premises to be covered by the permit, and of the work and operations intended to be, or which may be, performed and conducted under said permit, and has deter- mined to its satisfaction that such work and operations will not be in violation of law, or of this chapter, or of any ordinance of the city, or of any rule or regulation of any governmental officer, board, agency or commission appli- cable thereto, and that such work and operations will not, in the judgment of said Bureau, cause a dangerous or hazardous condition or create a menace to adjacent property. The Bureau of Fire Prevention shall notify the City Tax Collector in writing, in a manner and upon forms approved and/or furnished by the City Tax Collector, of the issuance of each such permit by the Bureau of Fire Prevention. SECTION 3300.33—Conditions to Issuance of City Tax Collector's Permit — Obtaining Harbor Board Permit —Any person desiring to obtain any permit from the Board of Harbor Commissioners, as required herein, shall make written application therefor to, and file the same with, said Board upon forms prescribed and provided for such purpose by said Board. No such permit shall be issued unless and until said Board has made an investigation of the premises to be covered by the permit and of the work and operations intended to be or which may be performed and conducted under said permit, and has determined, to its satisfaction, that such work and operations will not endanger or prejudice the interests of commerce, navigation or fisheries, or any harbor facilities of the City, or until said Board, by motion duly and regularly adopted and duly recorded in its minutes, has ordered such permit to be issued. If the center of the well or well -hole for which such permit is sought, is, at the surface of the ground, located within one hundred and fifty feet of any • harbor line established by said Board or by the United States War Department, said Board shall not order the issuance of any permit hereunder unless and until the Council has determined and declared, by resolution duly and regu- larly adopted upon recommendation of said Board, that such well or well -hole so located will not endanger or prejudice the interests of commerce, naviga- tion or fisheries. Said Board shall notify the Tax Collector, in writing, in a manner and upon forms approved and furnished by the Tax Collector, of the Issuance of each permit hereunder by said Board. SECTION 3300.34—Conditions to Issuance of City Tax Collector's Permit — Obtaining Harbor Board Permit --When Application Covers Property Owned or Claimed by City —Notwithstanding any other provision hereof, the Board of Harbor Commissioners shall not issue any permit as required herein, unless and until said Board has made an investigation of the premises to be covered by the permit and of the work and operations intended to be or which may be performed and conducted under said permit, and such other investigation as it deems necessary or proper therefor, and has determined upon such investigation, that none of the work or operations contemplated by such permit will be performed or conducted in, upon or from any property in and to which the City has, or claims to have, any right, title or interest; provided, however, that subject to the provisions of the City Charter, said Board shall have the power and authority to issue or modify a permit or permits covering such property in and to which said City has, or claims to have, some right, title or interest, if the applicant or permittee chooses to and does submit a proposed agreement to be entered into, as a condition precedent to the issu- ance or modification of such permit or permits, by, among, and between the Board, the City, the applicant or permittee, and such record owners of the land described in such proposed agreement and such record owners of any Interest in or to the mineral rights in such land, or in any part thereof, as the Board may require to become parties to such agreement in order to protect the City's interests. Such proposed agreement shall contain terms and conditions fair, just, equitable, and protective of such interest or inter- ests of the City as a court of competent jurisdiction may find, by its final • judgment, that the City has in the land described in the application or in such proposed agreement or in any mineral rights therein, or in any part LONG BEACH MNICIPAL CODE Sec. 3300.35 thereof, to the end that in the event of any such final judgment, the City may be made secure in receiving its just share of any proceeds realized from the operations under such proposed agreement. Upon the submission of such an application and proposed agreement and prior to the issuance of any permit thereunder, or upon the submission of such a proposed agreement within thirty days after the effective date of this ordinance relating to any application already on file or to any permit hereto• fore issued, the Board shall consider such proposed agreement, together with any modifications thereof that the Board may deem necessary, and if the Board finds that such proposed agreement and its modifications, if any, is in accordance with the provisions of this chapter, and if such application and the permit sought to be issued or modified, as the case may be, is, or after modification will be, in accordance with the provisions of this chapter in all respects, then, after such proposed agreement and its modifications, if any, has been duly executed by all other necessary parties, the City and the Board may execute the same and the Board may order the issuance of such permit. Every such agreement shall be filed with the Board and thereafter may be made a part, by reference, of any subsequent application for a permit under this chapter, in so far as such subsequent application relates to or embraces the land described in such agreement, or any part thereof. SECTION 3300.35—Conditions to Issuance of City Tax Collector's Permit — Filing of Bond —Any permit required by the provisions of this chapter to be obtained from the Tax Collector, shall not be issued, and even though issued, shall not become effective for any purpose whatsoever, unless and until permittee shall have procured and filed with the Tax Collector, a surety bond, or bonds, as herein required, and unless and until such bond, or bonds, shall have been approved in the manner required by this chapter. The Los Angeles County Flood Control District, and any agent of said • District, are hereby specifically exempted from procuring or filing with the Tax Collector any surety bond or bonds as a condition to the issuance or effectiveness of any permit required by this chapter to be obtained from the Tax Collector. SECTION 3300.36—Conditions to Issuance of City Tax Collector's Permit -- Payment of Fees —Any permit required by the provisions of this chapter to be obtained from the Tax Collector, shall not be issued, and even though issued shall not become effective for any purpose, except upon the payment to the Tax Collector of the fee or fees hereinafter prescribed. Each person whose duty it is to obtain, or cause to be obtained, the necessary permit or permits hereunder, shall be and is hereby declared to be jointly and severally liable for any and all fees therefor as provided herein. The Los Angeles County Flood Control District, and any agent of said District, are hereby specifically exempted from the payment of any fees required by this section to be paid to the Tax Collector as a condition to the issuance or effectiveness of any permit required by this chapter to be obtained from the Tax Collector. SECTION 3300.37—Form of Permits Hereunder —All permits required by this chapter shall be in writing, and in such form as is prescribed by the office, officer, board or bureau required to issue the same, as herein provided, and when issued shall be kept on the premises covered by the respective permit. SECTION 3300.38—Assignment of Permit —No permit issued by the Tax Collector hereunder may be assigned or otherwise transferred by the permittee without first obtaining the written consent of the Council to the proposed assignment or transfer; and prior to giving such consent, the Council shall cause to be made such investigation, and require the filing with the Tax Collector by such proposed assignee or transferee of such information, as is by this chapter required for the original issuance of a permit, and such additional Information as the Council may require. The written consent of the Council to any proposed assignment or transfer of a permit, and the LONG BEACH MUNICIPAL CODE — Reprinted 7.1.56 (3) — Sec. 3300.39 furnishing to and filing with the Tax Collector of a new surety bond naming therein the assignee or transferee of the permit as the Principal (which bond shall comply in all respects with the bond hereinafter required to be furnished and filled), shall be conditions precedent to the validity of any assignment or transfer thereof, and any such assignment or transfer made, or attempted to be made, without such written consent of the Council, and without the furnish- ing and filing of such new bond, shall ipso facto be, and become, void and without any force or effect. SECTION 3300.39—Effect of Permit as Against City —Notwithstanding any provision of this chapter, the issuance of any permit or permits here- under, or as herein required, or anything in such permit contained or referred to, shall not be deemed to authorize or permit the permittee therein named, or any person, to violate any provision of this chapter, or of any other ordi- nance, of the City, or of any law, and shall not constitute a waiver by the City, of any of the provisions or requirements of this chapter, or any other ordinance of the City, or of any law, or operate as an estoppel against the City in action or proceeding based upon, or to enforce, any such provision or requirement, or as a waiver or release of any right, title or interest which the City, may have, or claim to have, in any property covered by such permit, or as an estoppel against the City from asserting any rights which it may now or hereafter have in any such property. The issuance of a permit, or anything therein contained or referred to, shall not in any way affect, or be deemed or considered to affect, the responsibility or liability of the City to third persons while the City is acting in its governmental capacity. Division 5—Tax Collector's Permit Fees And Collection Thereof SECTION 3300.40-011 Well Permit Fees —Each applicant for a Tax - Collector's Oil Well Permit shall, at the time of filing each such application, pay to the Tax Collector a permit fee in the amount of Eight Hundred Dollars for each well for which such permit is desired. )Amended by Ord. C-3632, 5-29-56) 1410V SECTION 3300.41—Refunds on Oil Well Permit Fees —In the event any application for a Tax Collector's Oil Well Permit is denied by the Tax Col- lector, or in the event the application therefor is withdrawn by the applicant prior to the issuance of the permit thereunder, the fee which is herein required to be paid at the time of filing such application, less the necessary costs and expenses expended or incurred by or in behalf of the City in making investi- gation of such application as herein provided, shall be refunded to applicant by the Tax Collector upon order by the Council made upon a written and verified application therefor filed with the Council; provided, however, that the minimum amount of such cost and expenses of investigation is hereby fixed in the sum of Fifty Dollars, and said minimum amount shall, in any event, be retained by the Tax Collector and shall not be subject to refund. No claim for refund of said fee or any part thereof, made by an assignee of • the applicant, or by anyone other than the applicant or his guardian, or in case of his death, by his executor or administrator, or, in case of a corporation, its successor corporation, shall be recognized or honored. SECTION 3300.42—Annual Renewal Oil Well Permit Fees —Each applicant for a Tax Collector's Annual Renewal Oil Well Permit shall, at the time of filing each such application, pay to the Tax Collector, an annual permit fee in the amount of One Hundred Dollars for each permit applied for; provided, however, that if, and only if, the permit applied for is for a "pumping well", said annual permit fee to be paid to the Tax Collector shall be the sum of Thirty-five Dollars for each such well for which such permit is desired. For the purposes of the foregoing proviso, the term "pumping well" shall be deemed to be every well from which, during at least fifty per cent of the hours of actual production from such well during the six calendar months imme- diately preceeding the date upon which the last production was obtained from said well prior to the first day of July upon which the payment of such annual permit fee is due, the oil was brought, to the surface of the ground by or with the aid of any force or energy artificially applied in or through such well from the surface of the ground. If the application for a Tax Col - lector's Annual Renewal Oil Well Permit is made for or on account of a well LONG BEACH MUNICIPAL CODE — Reprinted 7-1-56 (3) — Sec. 3300.43 which was not completed, and oil produced thereby and therefrom, at or prior to a date which is more than six months prior to the first day of July of the fiscal year for which such permit is sought, or if the application for a Tax Collector's Annual Renewal Oil Well Permit is made for or on account of a derrick or production equipment used, or erected or maintained for use, for or in connection with a well or well -hole which has not been completed and placed on production at the time of filing such application, the applicant shall pay the Thirty-five Dollars annual renewal permit fee. (Amended by Ord. C-3632, 5-29-56) SECTION 3300.43 repealed by Ord. C-3632, 5.29.56. SECTION 3300.44—Penalty for Delinquency —If any fee herein required to be paid to the Tax Collector is not paid at the time and in the manner herein provided, the same shall, thirty days thereafter, automatically be • and become delinquent, and a penalty in an amount equal to twenty-five per cent of such fee shall be added thereto for such delinquency, which penalty shall be and become a part of such fee and shall be enforced and collected as a part of such fee. SECTION 3300.45—Persons Liable for Fees —Each of the persons whose duty it is to obtain, or cause to be obtained, any permit from the Tax Col- lector, as hereinabove provided, shall be and is hereby declared and made to be jointly and severally liable for the payment of the fee required to be paid to the Tax Collector for such permit. SECTION 3300.46—Fees A Lien —Each and all of the fees required by this chapter to be paid to the Tax Collector shall constitute a Lien upon the derrick, well, well -hole and production equipment for which the respective permits provided for herein are required, and upon the property on which • t • LONG BEACH MUNICIPAL CODE Sec. 3300.47 such derrick, well, well -hole and production equipment, or any part of any thereof, are situated. Said lien for any fee for the Tax Collector's Oil Well Permit shall atttach when the first work is commenced in connection with the erection, construction and installation of the oil well derrick for which such permit is required, and said lien for any fee for said Tax Collector's Annual Renewal Oil Well permit shall attach on the first day of July of the fiscal year for which such permit is required. Each such lien shall have the effect of an execution duly levied against all such property on which said lien exists, and shall remain until the fee is paid for the property sold in payment thereof. SECTION 3300.47--Collection of Tees by Suit —In the event of the non- payment of any fee required by this chapter to be paid the Tax Collector, the City Tax Collector may transmit to the City Attorney a notice of such fee being unpaid, and the City Attorney shall thereupon proceed to collect such fee from any such person so liable therefor by appropriate action in a court of competent jurisdiction. SECTION 3300.48—Collection of Tees by Seizure and Sale —In the event of the nonpayment of any fee required by this chapter to be paid to the Tax Collector, the City Tax Collector may seize and take possession of the derrick, well, well -hole and production equipment for which the permit is required and for which such fee has not been paid, and thereafter sell the property so seized at public auction, provided that a sufficient sum is bid at such auction to pay the fee owing and unpaid to the Tax Collector, together with any and all costs that may have been incurred on account of such seizure and sale. Written notice of such intended sale and of the time and place thereof shall be given at least ten days before the date set for such sale, to the owner, or owners, of the real property upon which such derrick, well, well -hole and production equipment, are situated, end to the owner of any separately assessed interest in said real property, as such owner or • owners of said property or of any separately assessed interest therein, may be disclosed upon the records of the Assessor, and also to any other person who shall have filed with the Tax Collector a written request for such notice in respect to said property. Such notice shall be given by enclosing a form of such notice in an envelope addressed to the respective persons entitled thereto as herein provided, at their respective addresses as disclosed on said records of said City Assessor, or in said request for notice, and depositing said envelope in the United States mail, postage prepaid. Notice of said intended sale and of the time and place thereof shall also be given by publi- cation in the official newspaper of the City one time at least ten days before the date set for such sale. Said notice so mailed and published shall contain a description of the property to be sold, together with a statement of the amount of the fee and costs required to be paid, and the further statement that unless such fee and costs are paid on or before the time fixed in said notice for said sale, said property so seized will be sold in accordance with the law and said notice. SECTION 3300.49—Pureluise and Abandonment of Well by City Tax Col. lector —In the event no person bids at such public auction a sum equal to the fee and costs for which such sale is held, the Tax Collector shall purchase said property for the City, for said fee and costs, and the Tax Collector may thereupon cause said derrick and production equipment to be dismantled and removed from the surface of the property on which said well and well -hole are situated and may cause the well and well -hole to be permanently and finally abandoned in accordance with the provisions hereof and the rules and regu- lations of the Division of Oil and Gas of the State of California, or any regu- latory authority having jurisdiction thereof. SECTION 3300.50—Remedies Cumulative —It is expressly provided that the foregoing remedies for the collection of said fees shall be cumulative, and that no action taken, or caused to be taken, by the Tax Collector, or by the City Attorney, shall be construed to be any election on the part of the City or any of its officers to pursue any remedy hereunder to the exclusion of any • other remedy for which provision is made in this chapter, or to the exclusion of any remedy at law or in equity. LONG BEACH MUNICIPAL CODE Sec. 3300.51 Division 6—Bonds SECTION 3300.51—Bonds Required to be Filed —Except as hereinafter provided, no permit or supplemental permit for any well, well -hole, derrick or production equipment, shall be issued hereunder by the Tax Collector or he valid or effective for any purpose, unless at the time of such issuance there is on file with the Tax Collector, and in full force and effect, an indemnity bond covering such well, well -hole, derrick and production equipment, and executed, filed, approved and maintained as provided in this chapter. Said bond shall name the City as obligee, shall be in the principal sum hereinafter provided, and shall be executed by the applicant, as Principal, and as Surety, by a corporation authorized and admitted to engage in the business of and act as surety upon such bonds pursuant to state laws. Said bond shall not be effective for any purpose hereunder unless and until the same has been approved, as to the Surety and otherwise as to the sufficiency thereof, by the City Manager, and as to form thereof by the City Attorney. The main- tenance and keeping in force and effect, of a bond as herein provided, at all times during which such permit Is in force and effect or is required to be in force and effect, shall be a condition to the maintenance and keeping in force and effect of such permit required hereunder. The obligations of such bond and the liabilities thereunder shall be continuing obligations and liabilities, and may be terminated solely and only at the time or times, and in the manner as in this chapter hereinafter provided. SECTION 3300.52—Exemptions to Requirement for Bonds —The provisions hereof in regard to the execution, filing and maintenance of indemnity bonds shall not be applicable to, nor obligatory upon any public corporation whether the same be a municipal corporation, a county, a state, a national government, a political subdivision, a municipal, county, state or national agency, board • or commission, a water district, a utility district, or a drainage, irrigation, levee, reclamation, flood control or water conservation district, which is acting for itself alone, and is acting solely by and through its own officers and employees, and not by and through any independent permittee, lessee, operator, agency or contractor; provided however, that the provisions hereof in regard to bonds shall not be applicable to, nor obligatory upon, the Los Angeles County Flood Control District, in regard to any wells drilled or to be drilled in and upon that portion of the City hereinabove described as Area 2, whether such wells in and upon said Area 2 are drilled, operated or maintained by said Flood Control District by and through its own officers or employees, or otherwise; provided, further, that if the foregoing proviso is determined to be invalid, such determination shall not affect the validity of the other pro- visions of this section, but said Los Angeles County Flood Control District shall thereupon and thereafter be subject to said other provisions of this section. Nor shall the provisions hereof in regard to the execution, filing and maintenance of indemnity bonds be applicable to or obligatory upon any applicant for, or permittee under, any permit issued by the Tax Collector hereunder which covers exclusively a well in which the City has any interest, and which well was or is to be drilled and is being or is to be operated and maintained, under and pursuant to a contract, permit, or lease, between such applicant or permittee and/or its assignor on the one hand, and the Board of Harbor Commissioners of the City of Long Beach, and/or the City of Long Beach, on the other, and which contract, permit or lease requires the con. tractor, permittee or lessee therein named to furnish a bond to guarantee the faithful performance of the terms, covenants and conditions of said contract, permit or lease, including the compliance with all laws, ordinances, rules and regulations applicable to the operations of said contractor, permittee.or lessee. SECTION 3300.53—Form of Bond —The bond required hereunder shall specifically refer to and Identify the application or permit in connection with which the same is given, and the well to be covered thereby and shall describe the premises covered by said '•cord (which premises shall be the same as the premises required to be covered by said permit), and shall be conditioned as • follows, and the conditions thereof shall be stated in substantially the fol• lowing language: • LONG BEACH MUNICIPAL CODE See. 3300.53 I. If the above bonded Principal shall well and truly indemnify, save and keep harmless the City from and against any and all costs, expense, loss, damage, liability or claim of liability, either directly or indirectly caused by, contributed to, arising out of or incidental to the drilling, operation, main- tenance or existence of said well, or the erection, operation, maintenance or existence, in or upon the above described premises, of any and all derricks, drilling equipment, production equipment, or any other structure, machinery, equipment, apparatus or facility erected, installed or created by or in behalf of Principal for use, or used, in connection with the drilling, operation, main. tenance or existence of said well, or the erection, operation, maintenance or existence of the derrick, drilling equipment or production equipment and facilities therefor, A. By reason of loss of, or damage, or injury to any property of the City, aside from ordinary wear and tear of the public streets and highways, and B. By reason of the failure or neglect by said Principal to faithfully comply with and abide by, or to cause to be faithfully complied with and abided by, any of the provisions, requirements, terms or conditions of this chapter, and of the building and electrical construction provisions of this code, including any amendments to any of said ordinances duly and regularly adopted, and of that certain initiative ordinance adopted by a vote of the registered qualified electors of said City at a Special Municipal Election held on the 9th day of March, 1927, pursuant to the provisions of Ordinance No. C-615, Ordinances of the City of Long Beach, as said initiative ordinance is amended by that certain initiative ordinance adopted by vote of the registered qualified electors of said City at a Special Municipal Election held on the 15th day of June, 1937, pursuant to the provisions of Ordinance No. C-1505, Ordinances of said City, and of any other ordinance of the City, or of the Board of Harbor Commissioners and of any law of the State of California • (including the Charter of the City of Long Beach) or of the United States of America, and of any rule or regulation of the Building Inspection Division, Department of Engineering -Public Service, of the Division of Fire, Department of Public Safety, of the Bureau of Fire Prevention, of the City, and of the Board of Harbor Commissioners, and which ordinance, law, rule or regulation In any manner pertains or applies to any of the PrincIpal's operation, as permittee, under the permit Issued under this chapter to operate and maintain said well; and C. By reason of the failure or neglect by said Principal to faithfully comply with and abide by any of the provisions, requirements, terms or conditions of said permit; II. Further, A. If, upon the final and permanent cessation or abandonment of all operations for the production of oil, gas or other hydrocarbons by or from said well, whether completed or not, or upon the revocation, under the pro- visions of this chapter, of the permit issued thereunder by the Tax Collector, to operate and maintain said well, whichever occurs at the earlier date, the Principal (1) Shall cause to be dismantled, demolished and removed from the premises on which the same are situated, and in a manner approved by the Building Inspector of the City, every part and portion of the derrick, drilling equipment and production equipment for such well (including any concrete foundations) which are not necessary to be maintained on the premises on which the same are situated for the operation or maintenance of other wells of Principal in the vicinity, and for which other wells the necessary permits hereunder have been obtained and kept and are then in full force and effect, and (2) Shall cause said well, and the well -hole therefor, to be permanently and finally abandoned in strict accordance with the rules and regulations of • the Division of Oil and Gas of the State of California, or any regulatory authority having jurisdiction thereof, and LONG BEACH MUNICIPAL CODE Sec. 3300.54 (3) Shall cause all sumps, cellars, and ditches which are not necessary to be maintained for the operation or maintenance of such other wells of Prin- cipal in the vicinity, as aforesaid, to be cleaned out and all oil, rotary mud and rubbish removed therefrom and the sumps, cellars and ditches levelled or filled with dean dirt, and, where the same are lined with concrete, shall cause the walls and bottom to be broken up and removed, all to the satisfaction of the Building Inspector, and (4) Shall cause the premises on which said well, well -hole, derrick and production equipment so abandoned, dismantled and removed are, or were, situated, and the premises in the vicinity thereof, including all of the premises covered by the permit issued to Principal, or under which Principal Is operating, to be cleaned and graded and left entirely free of oil, rotary mud, oil -soaked earth, asphalt, tar, concrete, litter, debris and other substances, and left in a clean and neat condition, all to the satisfaction of the Bureau of Fire Prevention of the City and the Building Inspector of said City, and (5) Shall cause all streets, sidewalks and other public places in, and property of, the City, which may have been disturbed or damaged, either directly or indirectly, by reason of or in connection with, or incidental to, any operations of Principal, or any operations on or from the premises covered by said permit, including operations for the abandonment of said well, to be cleaned, and, except for ordinary wear and tear of public streets and highways, restored to substantially the condition thereof at the time of the issuance of such permit, or at the time the first operations were commenced in connection with the drilling, operation or maintenance of said well, whichever may be the earlier, all to the satisfaction of the Building Inspector of said city, or B. If upon the failure or neglect of said Principal to faithfully perform and comply with each and all of the provisions and requirements hereinabove set forth in the sub -paragraph marked A, of this paragraph II, and said City is shall elect to perform and shall perform any or all of the acts therein set forth, and said Principal shall well and truly pay to said City all moneys ex- pended by it either directly or indirectly in performing or causing to be per- formed any of said acts, whether the performance of said act shall constitute the abatement of a nuisance or not, and without regard to any other remedies which said city may have or may be claimed to have, Then This Obligation Shall Be Null and Void, otherwise it shall remain in full force and effect. Each and all of the obligations herein imposed and made binding upon the Principal and the Surety shall, in like manner, bind, jointly and severally, the respective heirs, administrators, executors and successors of said Principal and of said Surety. The obligations and liabilities under this bond are continuing obligations and liabilities, and the liability of Surety under this bond may be terminated solely and only at the time, or times, in the manner, and by strict compliance with the provisions for termination of liability as set forth in this chapter. SECTION 3300.54—Amount of Bond —The bond as required by this chapter to be furnished to and filed with the Tax Collector must, at all times, be kept and maintained in full force and effect in the amount of One thousand dollars for each well; provided, however, that any person who intends to apply for, or any permittee who may have had issued to him, permits hereunder for the drilling and operating of five, or more, wells may, if he so desires, furnish to and file with the City Tax Collector an indemnity bond in the principal sum of Five Thousand Dollars, to cover his operations under each and all of the permits applied for, or to be applied for, by him and/or issued to him hereunder, in lieu of the furnishing and filing of a bond in the principal sum of one thousand dollars in connection with each permit applied for or issued to him hereunder. Such five thousand dollar bond shall be conditioned the same as, and be in form similar to, and be executed, and be subject to approval the same as is required in connection with the one thousand dollar bond pro- vided for herein; provided, however, that said five thousand dollar bond shall • specify that it is given for and on account of any and all wells for which permits have theretofore been or may thereafter be issued to Principal here- • LONG BEACH MUNICIPAL CODE Sea 3300.55 under, and that the terms and conditions of such bond shall apply jointly and severally to each and all such wells except that the extent of the liability of the Principal and/or Surety thereunder shall not exceed the sum of one thousand dollars for or on account of any one of said wells covered by said bond. SECTION 3300.55—Questioning Sufficiency of Bond —If after a bond filed hereunder has been approved as to the Surety and otherwise as to the sufficiency thereof, as herein provided, the City Manager questions, or desires to question, the sufficiency of the Surety on said bond, said City Manager shall notify the Principal named in said bond, or his agent designated as provided in this chapter, and also the Surety on said bond, in writing, of the City Manager's intention to inquire into the sufficiency of said Surety and of the time at which said City Manager shall hear, at his office, any persons desiring to be heard in this regard, and if after such hearing the City Manager determines that Surety on the existing bond is insufficient, he shall so notify, in writing, said Principal or his said agent, and said Surety, where- upon said Principal shall, within five days after receipt of such notice by said principal or agent, file with the Tax Collector a new bond in the amount and approved as in this chapter then provided, so that there shall be on file with the Tax Collector at all times a bond or bonds as in this chapter provided with financially adequate Sureties thereto. SECTION 3300.56—Proceedings by Surety to Require Principal to File New Bond —If any Surety upon any bond filed hereunder shall give written notice to the Tax Collector, and to the Principal on said bond, of the desire of said Surety to terminate its liability on said bond, and if the Principal there- upon fails or neglects to file with the Tax Collector, within ten days after such notice has been filed with said Tax Collector, a substitute bond in the principal sum then required by ordinance of the City, upon the conditions, • and in the form, and executed and approved, all as then provided by such ordinance, the Tax Collector shall immediately thereupon institute proceedings before the Council, in the manner provided in division 8 of this part, for the revocation of the permit or permits of said Principal in connection with which said existing bond was filed. The failure of Principal to so file said substitute . bond shall constitute and additional and separate ground for revoking the permit of Principal hereunder, and after such revocation and the abandonment of the well as herein provided, the liability of said Surety upon said existing bond may thereupon be terminated as in Section 3300.57 provided. SECTION 3300.57—Termination of Liability of Surety Under Bonds Filed Hereunder —The Surety, under any bond filed hereunder, may have its liability under any such bond terminated in whole or in part, at the time or times, and in the manner as follows: (1) Upon the permittee's furnishing to and filing with the Tax Collector a substitute indemnity bond in the principal sum required by this code at the time of such substitution, which substitute bond shall be conditioned, and in the form, and executed, and approved, all as then provided by this code, the liability of the Surety upon the bond for which said substitute is so filed shall be terminated. (2) Upon the final and permanent cessation or abandonment of all operations for the production of oil, gas or other hydrocarbons by or from any well in connection with which the bond was given, or upon the revocation under the provisions of this chapter of the permit issued hereunder to operate and maintain any well in connection with which the bond was given, whichever occurs at the earlier date, then, if the Principal or Surety shall thereupon or thereafter fully and completely comply with and perform, with respect to such well, each and all of the conditions and obligations required of and imposed upon them by the provisions of Paragraph II of the bond form set forth in section 3300.53, and upon the giving of a thirty day notice by said Principal or Surety, in writing, to the City Manager that such requirements and obligations have been complied with and performed as to such well, and • upon the determination by the City Manager (a) that said Principal or Surety has fully and completely complied with and performed, with respect to such LONG BEACH MUNICIPAL CODE Sec. 3300.58 well, each and all of said conditions and requirements set forth in said para- graph numbered 1T of said Section 3300.53, and the further determination (b) that there are no outstanding liabilities or claims of liability under or upon said bond, for or on account of any fees, charges or costs owing to said city by said Principal on account of said well, the City Manager shall termin- ate said bond as to such well; PROVIDED, however, that any such termination of liability shall be effective solely and only as to acts committed or omissions occurring, or both, after the date of the termination of such liability, and such termination of liability shall be evidenced solely and only by a written consent to termination of liability signed by the City Manager and approved as to form by the City Attorney. SECTION 3300.58-Termination of Liability of Surety Under Bonds Here- tofore Filed —Upon the filing of a bond in the form, and executed, and ap- proved as herein provided, covering any well for and on account of which a bond has heretofore been filed under and pursuant to the provisions of Ordinance No. C-206, Ordinances of the City of Long Beach, or of any amend- ments thereto, or of Ordinance No. C-927, Ordinances of the City of Long Beach, or of any amendments thereto, or of Ordinance No. G1549, Ordinances of the CIty of Long Beach, or of any amendments thereto, the liability of the Surety under such bond heretofore filed shall be terminated solely and only as to acts committee or ommissions occurring, or both, after the date of the approval of said bond filed hereunder, and to the extent that the liability of the Surety under such bond filed hereunder is coextensive with the liability of the Surety under such bond heretofore filed. Such termination shall be evidenced solely and only by a written consent to termination of liability signed by the City Manager of the City of Long Beach (if the bond heretofore filed was filed under the provisions of said Ordinance No. C-927 or of any amendment thereto) or by the General Manager of the Harbor Department of the City of Long Beach (if the bond heretofore filed was filed under the provisions of said Ordinance No. C4549 or of any amendment thereto), and approved as to form by the City Attorney. SECTION 3300.59—Inunediate Termination of Existing Bonds Permitted Even Before Any Permit Is Required Hereunder —Nothing herein contained shall be deemed to preclude any person who has heretofore obtained a permit for any well for the fiscal year ending June 30, 1941, under and pursuant to the provisions of Ordinance No. C-1815, Ordinances of the city, as amended, from filing a bond or bonds as required herein, at any time after the effective date hereof, and although not in connection with any application to the Tax Collector for a permit hereunder, and thereupon terminating, to the extent and in the manner herein provided, the liability of the Surety under any bond covering such well, heretofore filed under the oil well bond provisions of Ordinance No. C-927, Ordinances of the city, or any amendment thereto, or under the provisions of Ordinance No. C-1549, Ordinances of said city, or any amendment thereto, and Ordinance H. D. No. 22, Ordinances of the Board of Harbor Commissioners of said City, or any amendment thereto. Division 7-31iscellaneous Duties Of Permittees SECTION 3300.60—Duty of Permittee, in General —It is unlawful and a nuisance for any person to drill any well or well -hole, or to erect any derrick or production equipment, or to operate or maintain the same, or any thereof, unless such drilling, erection, operation and maintenance are conducted and performed in accordance with, and unless such derrick and production equip- ment at all times conform to, the standards and requirements hereinafter In this Division set forth, and any permit which is issued or required here- under is and shall be conditioned upon the faithful observance by permittee at all times of each and all of said standards and requirements, whether or not it is so specified in such permit. SECTION 3300.61--Compliance with Ordinances and Rules—Permittee • shall, at all times, comply with each and all of the provisions, requirements and conditions of this Chapter, and of all other ordinances of the City, �J TANG BEACH MUNICIPAL CODE See.3300.62 particularly the building and the electrical provisions of this Code, and of that certain initiative ordinance adopted by a vote of the registered qualified electors of said City at a Special Municipal Election held on the 9th day of March, 1927, pursuant to the provisions of Ordinance No. C-615, (Section 3300.3) Ordinances of the City of Long Beach, as said initiative ordinance is amended by that certain initiative ordinance adopted by vote of the regis- tered qualified electors of said City at a Special Municipal Election held on the 15th day of June 1937, pursuant to the provisions of Ordinance No. C-1505, (Section 3300.4) Ordinances of said, City, together with any amendments to any of said ordinances hereafter duly and regularly adopted, and with the provisions, requirements and conditions of any other ordinances of the City, and of the laws of the State of California (including the Charter of the City of Long Beach) and of the United States of America, and of any rule or regulation of the Building Inspection Division, Department of En- gineering -Public Service, and of the Division of Fire, Department of Public Safety, and of the Bureau of Fire Prevention of the City of Long Beach, and of the Board of Harbor Commissioners, and which ordinance, law, rule or regulation in any manner pertains or applies to any of the operations or proposed operations of applicant or permittee. SECTION 3300.62—Payment of Taxes and Charges—Permittee shall pay promptly, when due, any ad valorem or other property tax, or excise tax, or license tax assessed and levid, and any permit fee, permit renewal fee, annual inspection fee, license or other fee imposed by any ordinance of the city; and shall also promptly pay, to wit, within ten days after demand therefor by the city, any cost or expense incurred by the City, and which is or may be authorized by law or ordinance to be incurred by the city and imposed upon permittee in connection with or as a result of the operation of permittee or the maintenance by permittee of any improvement, structure, equipment or facility, or the failure of permittee to abandon the same as • herein provided. SECTION 3300.63--Standards—For Operations in General —The drilling, operation and maintenance of the well, and all other operations of permittee under the permit, shall at all times be carried on in a lawful, careful and workmanlike manner, in accordance with modern and approved methods and practices then prevailing in the oil industry in the field in which said operations are conducted. SECTION 3300.64—Standards — For Derricks —All derricks hereafter erected within the City shall be constructed of non-combustible material, except that the derrick floors, pumphouse floors, double board, fourble board, pipe -racks, sills, postings, walkways, mud -ditches, bull -wheels, calf -wheels and band -wheels may be of wooden construction. All derricks hereafter erected shall meet the minimum requirements of American Petroleum Institute. Standard 4-a, 14th Editions, a copy of which is on file in the office of the City Clerk, unless otherwise designed as an alternate method of erection as hereinafter provided. Any alternate method proposed for the erection of steel derricks, which may be deemed to be equal or better than required by said Standard shall require the approval of the Building Inspector. All portable masts shall meet the requirements of American Petroleum Institute Standard 4-D, 2nd Edition, January 1953, a copy of which is on file in the office of the City Clerk. No derrick shall be enclosed until a permit has been issued by the Building Inspector. Application for such permit shall be accompanied by an engineering design showing compliance with the following wind load conditions: Derricks shall be designed to resist 15 lb. per sq. ft. on those portions of the derrick less than 60 ft. above grade and 20 lbs. per sq. ft. on those portions of the derrick more than 60 ft. above grade. The dead load moment of is stability of oil derricks shall not be less than one and one-half times the over -turning moment caused by the application of the lateral force. LONG BEACH MUNICIPAL CODE Sec. 3300.65 Existing Wood Oil Derricks —No person who is the owner or is in control or possession, either legal or actual, or who has the right to, or to obtain, the control or possession or use, of any existing wood oil derrick, shall operate, control or maintain at any time, after two years from the 23rd day of July, 1955, a wood oil derrick if any of the following conditions exist: 1. If any of the supporting members are structurally unsound. 2. If the stress in any derrick member, due to all dead and live loads, is more than one and one-half times the working stress or stresses allowed by the building regulations of this Code. The live loads shall include the loads imposed by drilling or operating equipment, and wind loads as specified in A. P. I. Standard 4-B, 14th Edition, January, 1952. 3. If any of the foundation plates, blocks or piling are deteriorated by rot, decay, termites or any other condition in such a manner that the structural strength is less than the minimum requirements of A. P. I. Standard 4-B, 14th Edition, January, 1952, for such members of a new wood oil derrick. 4. If more than five per cent of the exposed surfaces of the derrick have absorbed or become coated with petroleum or other hydrocarbon substances. 5. If any derrick has sumps, pits, or other excavations, excepting cellars, extending under the derrick or pump house. 6. If any derrick is less than one hundred fifty feet from a public street, road, or highway or occupied building. Provided that if any wood derrick constitutes a present nuisance by reason of the existence of any of the above listed six conditions, or because it con- stitutes an immediate fire hazard, proceedings may be instituted immediately to abate said nuisance by following the provisions of Part 5 herein or to revoke the oil well permit issued by the City Tax Collector by following the • provisions of Division 8 of Part 2 herein. In event an oil well becomes inoperative continuously for a period of six months, the derrick shall be removed; provided, however, that the provisions of the preceding paragraph and all other provisions contained in this chapter for the abatement of nuisances shall be applicable at all times. Guy Wires —Guy wires attached to oil well derricks shall not be suspended over a public thoroughfare. SECTION 3300.65—DeiTlelc Name Plate —Every oil well hole site shall have placed thereon, in a conspicuous place, as designated or approved by the Building Inspector, a legible sign not less than twelve by twenty-four inches, with the name of the owner, name or number of lease, and number of well, printed thereon. Such sign shall be placed within forty-eight hours after the erection of the derrick, and shall be maintained in good condition at all times. SECTION 3300.66—Lights on Derricks —Lights shall be installed, and at all times maintained, on each and every derrick erected in those portions of the City hereinbefore described as Areas 1, 2, 3 and 4, in compliance with the rules and regulations of the United States Bureau of Air Commerce, United States Navy Department and the various subdivisions thereof, and of the United States War Department and the various subdivisions thereof. SECTION 3300.67 — Drilling Notices and Reports for Harbor Board or City Manager — Each permittee, under any permit covering any premises, any portion of which is in any of those portions of the city hereinbefore described as Areas 1, 2, 3 and 4, shall, at all times, faithfully make, record and keep complete and accurate drilling and other records, specifically including a log of the well, cores, and the core record of the well, including any electrical core record, history of the well, monthly production and gas production and disposition report, all of which shall be open to inspection at all times by the Board, its engineer, or other • agent designated by the Board for that purpose, and permittee shall also furnish to and file with the Board, as and when required to be filed with • LONG BEACH MUNICIPAL CODE Sec. 3300.68 the Division of Oil and Gas, State Department of Natural Resources, executed duplicate copies of all such drilling records, including, but not exclusive of, "Log of Oil or Gas Well," "Log and Core Record of Oil or Gas Well," "History of Oil or Gas Well," "Monthly Oil Production and Gas Production and Dis- position Report," "Notice of Intention to Drill New Well" required to be filed by applicant with the State Oil and Gas Supervisor, any other notices required to be filed by applicant with the State Oil and Gas Supervisor, relating to or in connection with the drilling of a new well, "Report on Proposed Opera- tions," any other report issued to and delivered to applicant by said Super- visor by way of report upon applicant's proposed operations as set forth in any of said notices, any "Notice of Intention to Deepen, Redrill, Plug or Alter Casing in Well," and any other notice required to be filed by permittee with said State Oil and Gas Supervisor, relating to or in connection with any work upon any existing well. All said duplicate notices and reports shall be ,filed by said applicant or permittee with said Board at the time of filing his application for said permit or at the time or immediately after the originals thereof are or have been filed with or received from said Supervisor; and when the same shall have been filed with said Board said notices and reports shall be open to inspection only by the members of the Board, officers of the city, General Manager of the Harbor Department and their assistants, and deputies and to such others as shall be authorized, in writing, by the permittee to make such inspection. Each permittee, under any permit covering any premises, any portion of which is in any of those portions of the City hereinbefore described as areas 5, 6, 7 and 8, or any drilling areas which may be established in the future, shall furnish to and file with the City Manager as and when required to be filed with the Division of OR and Gas, Department of Natural Resources, State of California, executed duplicate copies of such reports, records and application and any other notices required to be filed by the permittee with the State Oil and Gas Supervisor relating to or in connection with the drilling • or redrilling of a new well or redrilling of any existing well, except that the filing of the electrical log or electrical core record is not required. Any other report or notice issued to or delivered to permittee by said Supervisor relating to or in connection with any new well or the redrilling of an existing well shall likewise be filed immediately with the City Manager. All said duplicate notices and reports shall be filed by said applicant or permittee with said City Manager at the time of filing his application for said permit or at the time or immediately after the originals thereof are or have been filed with or received from said Supervisor; and when the same shall have been filed with said City Manager said notices and reports shall be open to inspection only by the officers of the City, their assistants and deputies, or such others as may be authorized by permittee in writing. SECTION 3300.68—Directional Surveys Required —AREAS 1, 2, 3 and 4. Whenever permittee under any permit covering any premises, any portion of which Is in any of those portions of the city hereinbefore described as Areas 1, 2, 3 and 4, shall drill, redrill or deepen any well or well -hole, he shall, from time to time, faithfully make, record and keep true and accurate subsurface directional surveys of the well, or well -hole, drilled, redrilled or deepened under his permit, as follows: 1. Prior to the time each primary water string of casing is cemented; 2. At the time actual drilling has been completed, and prior to placing the well on production. The result of each such survey shall be fully and accurately shown on a plat, upon which shall appear: (a) The exterior boundaries of the property upon which such well, or well -hole, has been or is being drilled, redrilled or deepened; and, if such property is part of, but less than the whole of, a larger parcel of land owned, leased or controlled, or operated or to be operated, as a single drilling or operating unit or lease, the exterior boundaries of such larger parcel; . (b) The location of such well, or well -hole, on the surface with relation to such boundaries; E LONG BEACH MUNICIPAL CODE Sec. 3300.69 (c) The subsurface location of the point of cementing each string of casing; (d) The subsurface location of the lowest point in such well, or well -hole, and of each place in such well, or well -hole, from which production of oil, gas or other hydrocarbon substances is procured or obtained; (e) The continuous and entire course of the well -hole, as surveyed, shall be represented accurately on one plat. SECTION 3300.69—Additional Directional Surveys for Certain Wells — Whenever permittee shall drill, redrill, or deepen any well, or well -hole, and the location of which at the surface of the ground, or the location of which well -hole at any point below the surface of the ground, is within one hundred feet of any exterior boundary line of any and all city owned property, per- mittee shall, in addition to any and all other subsurface directional surveys required of him, make, record and keep true and accurate subsurface di rectional surveys of such well, or well -hole, with stations at not greater than one hundred foot intervals in such well or well -hole. The result of each such survey shall be fully and accurately shown on a plat made and prepared in like manner, giving like information as is required in connection with the subsurface directional surveys required to be made as in Section 3300.68. SECTION 3300.70—Filing Copies of Surveys --A copy of the plat of each subsurface directional survey, together with a written report from the en- gineer who made the survey, fully and correctly interpreting such survey, and accompanied by the affidavit of such engineer, made under oath, that the survey, plat and report thereof were made by him, or under his direction or personal observation, and that the result as shown thereon and thereby is a full, true and correct representation of such survey, shall be filed with the Tax Collector, and if the well or well -hole, or the derrick or production • equipment therefor, or any portion of any thereof are within any of those portions of the City hereinbefore described as Areas 1, 2, 3 or 4, a copy of such record shall be filed with the Board of Harbor Commissioners. When any well is drilled pursuant to the provisions of section 3300.14, or In any manner drilled to be intentionally diverted from the vertical, permittee shall, in addition to the other requirements of this section, clearly delineate upon the said plat the perforated or producing portion of the well, and shall superimpose the same upon a map of a parcel of land of not less than one acre, and shall clearly describe the said parcel of land. SECTION 3300.71—Risk of Loss of Copies —Any and all subsurface di- rectional surveys required of permittee by this Chapter shall be made, kept and recorded, and shall be filed, as herein provided, at the sole risk, cost and expense of permittee. The plats, information and other evidence in connection with all subsurface directional surveys, as in this ordinance required to be made and filed, shall be so filed, as the case may be, within five days after such surveys have been completed as required herein. SECTION 3300.72—Drilling Into City Property —In the event any survey made of the well -hole shall disclose that such well -hole, during any part of its course, trespasses upon any land owned by or in which the city has or claims to have any right, title or interest, the permit may be revoked as hereinafter provided; and, in the event any such survey shows that the well, during any part of its course, does so trespass, all proceeds and avails of any sale, or the market value of all oil, gas or other hydrocarbon substances produced and saved or sold from or through such well -hole, or well, shall, immediately upon the production or sale thereof, be deposited and impounded, without any deduction whatsoever for royalty, or cost of producing or market- ing such oil, other than any reasonable expense of dehydration, in a solvent and reputable bank in the city and shall not be released or withdrawn there- from until the ownership thereof has been determined by a court of com- petent jurisdiction. • SECTION 3300.73—Standards for Casings —All wells shall be equipped with casings of sufficient strength, and with such other safety devices (in- • LONG BEACH MUNICIPAL CODE _ Sec. 3300.74 eluding blowout prevention equipment), as may be necessary or required by and in accordance with methods approved by the State Oil and Gas Supervisor, which casings and other safety devices shall at all times be kept, Installed and maintained, and the utmost care and diligence shall be used, to effectually prevent blowouts, explosions and fires. Permittee shall at all times comply with and abide by all Safety Orders of the Industrial Accident Commission of the State of California. SECTION 3300.74—Oil and Gas Separating Equipmen6 Oil and gas sepa- rating equipment of approved design shall be installed and maintained for every well or wells connected thereto until the quantity of gas produced from the well is less than twenty thousand cubic feet per each twenty-four hours; provided, however, when the gas produced is separated from the oil In tanks which are equipped with vapor collecting system of an approved type or design, the gas separating equipment may be omitted from the well or wells. SECTION 3300.75—Discharge of Gas —No person shall discharge, or cause or suffer to be discharged into the air any substantial amount of natural gas, either before or after the removal of the gasoline therefrom, and any such discharge may be temporarily excused solely by an act of God, or other causes beyond the reasonable control of such person while in the exercise of utmost care and diligence. SECTION 3300.76—Discharge of Steam No person shall cause or permit to be expelled, discharge, or blown off, any steam, or other mist forming vapor, into, upon, along or across any street within the city. SECTION 3300.77—Fencing Equipment with Moving Parts No person owning, having possession of or in control of any oil well in this City shall • maintain or allow to exist in connection therewith any moving parts of operating machinery in use or intended to be used at such oil well, including all drilling or production equipment, unless such machinery or moving parts are securely enclosed by a housing, screen, or chain link type fence, or other approved industrial type fence, sufficient to prevent at all times the entry of unauthorized persons to said moving parts. Any fence or screen constructed pursuant hereto shall not be less than six feet in height, and if such housing, screen or fence is equipped with gates, such gates must have secure latches sufficient to prevent the entry of unauthorized persons. A single fence of the type described above enclosing one or more oil wells shall satisfy the requirements of this subsection. All such housing, screens, or fences required by this section must be approved by the Building Inspector and the Bureau of Fire Prevention. All persons owning, having possession of or in control of any oil well within this City are hereby required to comply with the provisions of this section within ninety days after the effective date, to wit, July 22, 1955, of this section. These requirements as to housing, screens and fences shall not apply if a competent person is in constant attendance twenty-four hours a day at each oil well. There shall be attached to the housing, screen or fence on at least two sides, a metal sign with the words "Keep Out" Such sign shall not be less than eight inches by eighteen inches in dimension and letters shall be not less than five inches high on a contrasting background, and shall be maintained in good condition at all times. SECTION 3300.78 — Muffling Exhausts — Permissible Noise Levels— (1) The engines used in connection with the drilling of any oil well and/or any production equipment shall be equipped with an exhaust muffler, or mufflers, or an exhaust muffler box, sufficient to suppress noise and to prevent the escape of obnoxious gases, fumes or sparks or ignited carbon or • soot. The type and design of any muffler or muffler box shall be approved by the Building Inspector and by the Bureau of Fire Prevention. LONG BEACH MUNICIPAL CODE Sec. 3300.79 (2) The operation of oil field production equipment, with the exception of equipment located in industrial zones set forth in the Zoning regulations of this Code, shall not increase the ambient noise level at any given time by more than three decibels in any octave band, when measured at a distance of fifty feet from the oil field production equipment in question. The ambient noise level, for the purpose of this section, shall be the average of sound level meter readings taken consecutively at any given time from four or more diametrically opposite positions within an area of not more than five hundred - feet nor less than two hundred feet from the oil field production equipment In question; all such readings to be taken at a distance and in such a manner so as to obtain the surrounding noise level as distinguished from the noise level produced by the oil field production equipment. However, if the ambient noise level is less than sixty decibels, the production equipment shall not generate a noise level in excess of sixty decibels measured at a distance of fifty feet from such equipment. Provided, that this subsection shall not apply to production equipment located one thousand feet or more from the nearest occupied dwelling (except a dwelling occupied in connection with said oil field operations); provided, further, that any production equipment located one thousand feet or more from the nearest occupied dwelling (except a dwelling occupied in connection with said oil field operations) shall not generate a noise level in excess of eighty decibels at a distance of fifty feet from said production equipment. All sound level meter performance, including definitions and units, shall be in accordance with American Standards Asso- ciation, Standards Z-24.1, Z-24.2 and 7,24.3, copies of which are on file in the office of the City Clerk. SECTION 3300.79—Steam Driven Equipment —No steam driven equipment shall be used in drilling or redrilling operations. SECTION 3300.80—Electrical Equipment and Bonding — All electrical • equipment used, or designed, installed or maintained for use, in connection with the drilling of any well, or well -hole, or the erection of any derrick or production equipment, or the operation or maintenance of any thereof, or installed or maintained on any premises covered by any permit hereunder, shall be installed and maintained in accordance with the provisions of this Code regulating electrical construction, and any and all other ordinances of the city applicable thereto, and in accordance with the California Electrical Safety Orders. Outside work such as power lines, shall be installed in ac- cordance with general order 64-A of the California Railroad Commission. Adequate provision, to the satisfaction of the City Electrician, shall be made for the grounding of all containers or receptacles used for petroleum or any products thereof, or any flammable liquids before any such liquids are moved or deposited therein. All spur tracks shall be electrically bonded in accordance with the regulations of the American Railway Association. SECTION 3300.81—Collecting, Handling and Storing, in General —All oil, gas and other hydrocarbons, and other flammable liquids, and all waste oil, or waste flammable liquids (including water mixed with or contaminated by oil or waste oil, or by flammable liquids or waste flammable liquids, or by oily fluids or substances), which are obtained or produced by or from, or which are collected, kept, stored, held, handled or used in connection with, the drilling, operation or maintenance of any oil well or well -hole, or in connection with the operation or maintenance of any production equipment therefor, and all mud which is kept, stored, held, handled or used in con- nection with the drilling, operation or maintenance of any well or well -hole, shall be collected, confined, kept, stored, held and handled, as hereinafter In Part 3 provided. SECTION 3300.82—Heeping Premises Clean —All lands within twenty- five feet of any part of any derrick or production equipment, and the entire area within any retaining wall around any tank, shall be at all times kept free and clear from dry weeds, vegetation, rubbish or other inflammable waste material, and all of the premises covered by the permit shall be kept free of any rubbish, waste or other substances or materials which may afford • food or a harboring or breeding place for rats or vermin, and from any loose lumber, pipes, materials or substances which, in the opinion of the Bureau • LONG BEACH MUNICIPAL CODE Sec. 3300.83 of Fire Prevention, constitute a fire hazard or an obstruction to or inter- ference with fighting or controlling fires. SECTION 3300.83—No Smoking —No person shall smoke, throw, place or deposit any lighted cigar, cigarette, ash, match or other smouldering sub- stances, within twenty-five feet of any derrick, production equipment, tank or sump containing petroleum or any products thereof, or any inflammable liquids. "NO SMOIaNG" signs shall be posted and maintained upon the property on which such derricks, production equipment, tanks or sumps are located. All such signs shall have letters at least four inches in height, and shall be posted and maintained at locations approved or designated by the Bureau of Fire Prevention. SECTION 3300.84—Fire Extinguishers —There shall be installed on or in the vicinity of every derrick and maintained thereon at all times during the drilling of any well, and at all times when workmen are present during the pulling of rods or tubing or cleaning out of any well, a sufficient number of fire extinguishers, the number, type and locations thereof to be as de- signated by the Bureau of Fire Prevention. All fire extinguishers shall bear the label of the Underwriters' Laboratory, Inc., and shall be kept filled with the proper fluid or gas at all times. When of the foam type such extinguish- ers shall be recharged not less than once every twelve months. SECTION 3300.85—Toilet Facilities —Each operating unit shall be provided with access to a toilet or toilets located so that there shall be a toilet available within five hundred feet of each derrick, or well, and said toilet or toilets shall be installed and connected to the City sewer system or to a cesspool in accordance with law and the ordinances of the City governing such work. SECTION 3300.86—Duplicate Notices and Reports Re Redrilling, Etc.— • Permittee shall file with the Chief Building Inspector an executed duplicate of any "Notice of Intention to Deepen, Redrill, Plug or Alter Casing in Well," or any other notice required to be filed by permittee with said State Oil and Gas Supervisor, relating to or in connection with any work upon any existing well, and an executed duplicate of the "Report on Proposed Operations," or any other report issued and delivered to permittee by said Supervisor by way of report upon permittee's proposed operations as set forth in any of the notices hereinabove referred to. Said duplicate notices and reports shall be so filled by permittee at the time, or immediately after, the original or originals thereof are or have been filed with said Supervisor. SECTION 3300.87—Duplicate Notices Re Transfer of Woll—An executed duplicate of the "Notice of Sale or Exchange of Well" and of the "Notice of Acquisition of Well," required to be filed with the State Oil and Gas Super- visor, shall be filed with the Tax Collector at the time or immediately after the originals thereof are filed with said Supervisor. SECTION 3300.88—Notice of Change of Ownership or of Agents--Permit- tee shall promptly notify the Tax Collector, in writing: if a partnership, of any change made in its partners or designated agent, of any change of any address of any thereof; if a corporation, of any change of its officers who are in charge of, or are to be put in charge of, its opera- tions under the permit, and of its general manager and/or any designated agent, and any change in the address of any such officers or its general_ manager and/or designated agent and of any change of address of its principal place of business in the State of California; if other than a partner- ship or corporation, the change of any address required to be stated in the application, or of any change in any designated agent of permittee and/or in the address of such agent. SECTION 3300.89—Notice of Accidents—Permittee shall give prompt notice to the City of any and all accidents, including injuries to persons and damage to property occurring on property of the City, or other public proper- ty, and arising out of or incidental to any operations of permittee, except • that such notice shall not be required of injuries sustained by employees of permittee while acting within the course of their employment and who • LONG BEACH MUNICIPAL CODE Sec. 3300.90 are subject to and are covered by the provisions of the "Workmen's Com- pensation Insurance and Safety Act" of the State of California. SECTION 3300.90—Abandonment of Wells —Upon the final and permanent cessation or abandonment of all operations for the production of oil, gas or other hydrocarbons by or from any well, whether completed or not, or upon the revocation, neglect or failure to obtain or to maintain in full force and effect under the provisions of this Chapter the permit required to be obtained hereunder from the Tax Collector, to drill, operate or maintain any well or well -hole, or to erect, operate or maintain the derrick or production equip- ment therefor, whichever occurs at the earlier date, the permittee; (1) shall cause said well and well -hole to be permanently and finally abandoned in strict accordance with the rules and regulations of the Division of Oil and Gas of the State of California, or any regulatory authority having jurisdiction thereof, and (2) shall cause to be dismantled, demolished and/or removed from the premises on which the same are situated, and in a manner approved by the Building Inspector, the derrick and production equipment for such well (in- cluding any concrete foundations), and which are not necessary to be main- tained on the premises on which the same are situated for the operation or maintenance of other wells of permittee in the vicinity, and for which other wells the necessary permits hereunder have been obtained and kept and are then in full force and effect, and (3) shall cause all sumps, cellars and ditches which are not necessary to be maintained for the operation or maintenance of such other wells of permittee In the vicinity, as aforesaid, to be cleaned out and all oil, rotary mud and rubbish removed therefrom and the sumps, cellars and ditches levelled or filled with clean dirt, and, where the same are lined with concrete, shall cause the walls and bottom to be broken up and removed, to the satis- faction of the Building Inspector, and (4) shall cause the premises on which said well, well -hole, derrick and production equipment so abandoned, dismantled and/or removed are, or were, situated, and the premises in the vicinity thereof, including all of the premises covered by the permit issued to permittee, or under which permittee Is operating, to be cleaned and graded and left entirely free of oil, rotary mud, oil -soaked earth, asphalt, tar, concrete, litter, debris and other substances, and left in a clean and neat condition, all to the satisfaction of the Bureau of rire Prevention, and (5) shall cause all streets, sidewalks and other public places in, and property of, the city, which may have been disturbed or damaged, either directly or indirectly, by reason of or in connection with, or incidental to, any operation of Principal, or any operations on or from the premises covered by said permit, including operations for the abandonment of said well, to be cleaned, and, except for ordinary wear and tear of public streets and high- ways, restored to substantially the condition thereof at the time of the is. suance of such permit, or at the time the first operations were commenced In connection with the drilling, operation or maintenance of said well, which- ever may be the earlier, all to the satisfaction of the Building Inspector. SECTION 3300.91—Inspection of Premises by City Officers —The Council or any officer or employee of the City, or other agent designated for that purpose, shall have the right and privilege at any time to enter upon any premises upon or from which any operations are being conducted for which any permit has been issued or is required hereunder, for the purpose of making any of the inspections in this Chapter, or in any other ordinance of the Board, or the City, provided to be made, or for any other lawful purpose. Division 8—Revocation Of Tax Collector's Permits SECTION 3300.92—Grounds for Revocation of Permits —Any permit is- sued by the Tax Collector pursuant to the provisions of this Chapter may be • revoked by the Council upon finding, after hearing as hereinafter specified, either: • LONG BEACH MUNICIPAL CODE Sea 3300.93 (a) That permittee has failed, neglected or refused to perform, comply with and abide by any of the conditions of his permit; or (b) That permittee has failed or neglected or refused to comply with or abide by, or has in any way violated, any of the provisions of this Chapter, or of any other ordinance of the City, or the Charter of the City or any other law, rule or regulation, either directly or indirectly, by reason of or In connection with or incidental to his operations under the permit, or upon the premises covered by said permit; or (c) If any of permittee's operations, or the continuance thereof, upon the premises covered by his permit, are, or are likely to become, a menace or hazard to private or public property, or to any interest of the City, or to the lives or safety of persons; or (d) If permittee shall have made any willful misrepresentation of fact in any application for any such permit, or in any report or record required by this Chapter to be filed or furnished by permittee. SECTION 3300.93—Initiating Proceedings to Revoke Permlt—Proceedings before the Council for the revocation of any permit may be instituted by the Building Inspector, or the Bureau of Fire Prevention, or the Tax Collector, or the Board of Harbor Commissioners, causing to be posted in a conspicuous place on the premises covered by the permit, readable from the ground level, a notice entitled "Notice of Intention to Revoke Permit," and by causing a copy thereof to be served on permittee or his designated agent, and a copy to be filed with the Council. Said notice shall set forth the date of the posting thereof, and shall also set forth the reasons and grounds upon which the revocation by the Council will be based unless cause is shown why such revocation is not proper, and shall require permittee, within fifteen days after the date of posting, as so specified in such notice, to cure and • remedy any default under, non-compliance with, or violation of any condition of the permit, or other condition for which suspension or revocation of the permit may be made, or to show cause before said Council, as in this Chapter provided, why said permit should not be revoked. Said notice shall further state that upon the revocation of said permit as in this Chapter provided, any derrick, production equipment, or other structure, appliance, apparatus, machinery, equipment or facility, for the use and maintenance of which such permit is required, will be subject to being abated as a nuisance as in this Chapter or by law provided, and that the costs and expenses of such abate- ment will be made a charge and enforced against any and all persons whose duty it is under the provisions of Section 3300.15 to obtain such permit and to keep the same In force and effect, and also against and as a lien upon the property so abated as a nuisance, and also against and as a lien upon the real property upon which said nuisance exists and from which said nuisance is or will be abated. SECTION 3300.94—Immediate Suspension of Permits —If the Council is of the opinion that the operations of a permittee constitute an immediate menace or hazard to public property, or to any interest of the City, or to the lives or safety of persons, or may become such menace or hazard pending a final decision on any proceeding hereunder for revocation of his permit, the Council may immediately suspend said permit, either in connection with a proceeding for the revocation thereof, or otherwise. If such suspension is ordered prior to the time the "notice of intention to Revoke Permit" is served upon permittee as herein provided, said notice shall also include notice of the action of the Council in suspending the permit and shall give the reasons and grounds therefor. If such suspension is ordered at any other time, notice thereof and of the reasons and grounds therefor shall immediately be mailed to permittee or his designated agent, and a copy of such notice posted on the premises covered by said permit. From and after the giving of notice of such suspension as herein provided, • and pending a remedy or removal of the causes stated in said notice as the reasons or grounds for such suspension, or pending a final determination . LONG BEACH MUNICIPAL CODE See. 3300.95 upon the proceedings for revocation of said permit (if sucli proceedings are being had), no person shall carry on any of the operations authorized to be Performed under the terms of said permit. SECTION 3300.95—Extension of Time for Removing Cause for Revocation or Suspension —Upon written application therefor by permittee, the Council may, in its discretion, extend the time for the curing and remedying of any such default, non-compliance or violation by permittee, but no such extension or extensions of time shall be for a longer period than a total of thirty days from and after the service upon permittee of such notice of intention to revoke or notice suspending such permit. SECTION 3300.96—Written Demand for Hearing Required —Unless a written demand for a hearing before the Council, either as to the right of the Council to revoke and/or suspend said permit, or as to the curing of any such default, is filed by permittee with the Council within said time provided for the curing of such default, said permit shall, without any further or other action on the part of the Council, be and become terminated and revoked. Failure to so file a demand for such hearing shall be deemed to be an admission on the part of permittee and all others claiming any rights under or in relation to said permit or the premises covered by said permit, that valid grounds exist for the suspension and revocation of said permit, and that the same may thereupon, ipso facto, properly be and become terminated and revoked. If a hearing before the Council is so demanded, said permit shall not be or become terminated or revolted unless and until so ordered by the Council after the completion of such hearing, as herein provided. SECTION 3300.97--Setting Hearing; Hearing a Condition to Any Action isby Permittee—Upon the filing with the Council of such demand for hearing, the Council shall fix a time and place therefor. Such time shall be fixed for a day not later than thirty days after the time of filing such demand for such hearing. A five day notice, in writing, of the time and place of such hearing shall be served upon permittee or his designated agent. Such hearing shall be a condition precedent to any action at law or in equity, by or in behalf of permittee, based upon the action of the Council in sus- pending and/or revoking such permit. SECTION 3300.98—Evidence at Hearing —At such hearing, the permittee shall be given an opportunity to present whatever competent, relevant and material evidence he may desire to submit, either through witnesses or by the production of books, records or other documentary evidence, including evidence upon any questions relating to the revocation or suspension of such permit or to the curing of any default for which such permit was ordered revoked or suspended. The Council shall not be bound by technical rules of evidence, nor shall any Informality in any of the proceedings upon such hearing, or in the matter of taking testimony, invalidate or affect any order or decision of the Council. The Council shall have the right to adjourn any such hearing from time to time. SECTION 3300.99—Decision After Hearing —The decision of the Council In regard to the revocation of such permit may be rendered orally or in writing at the conclusion of said hearing or at any time thereafter, and such decision shall be final. In the event the decision is rendered at said hearing no further notice thereof need be given to the permittee, or any other person. If the decision is not rendered at said hearing, written notice of such decision shall be mailed to the permittee, or his designated agent, and a copy of said notice posted on the premises covered by said permit. SECTION 3300.100—Effect of Suspension or Revocation —No person shall carry on any of the operations authorized to be performed under the terms • of any permit, during any period of suspension thereof, or after the revoca- tion thereof, or pending a judgment of the court upon any application for LONG BEACH MUNICIPAL CODE Sec. 3300.101 writ taken to review the decision or order of the Council in suspending or revolting such permit; provided, however, that nothing herein contained shall be construed to prevent the performance of such operations as may be necessary in connection with a diligent and bona fide effort to cure and remedy the default, non-compliance or violation, for which a suspension of the permit was ordered by the Council, or such operations as may be necessary for the safety of persons and the protection and preservation of property (not including the oil or gas or other hydrocarbons underlying the premises on which said well is situated and/or which are recoverable by and from said well). PART 3—,STORING AND HANDLING Division 1—General Provisions —Section 3300.101 Division 2—Tanks—Section 3300.115 Division 3—Foam Fire Protection Systems —Section 3300.128 Division 1—General Provisions SECTION 3300.101—Building Permit Required —No person shall erect, operate or maintain, at any place within the City, any tank, sump, reservoir, or other structure or facility used, or erected or maintained for use, for the purpose of collecting, holding, storing or handling oil or any flammable liquid, or add to, enlarge, move, improve, alter, reconstruct, restore, convert, extend, remove, dismantle or demolish any of the same, whether heretofore or hereafter erected, without first obtaining from the Building Inspector a permit so to do, as provided in, and subject to the provisions of, the building regulations of this Code. No such building permit shall be valid or effective for any purpose unless and until the permit required herein to be obtained from the Bureau of Fire Prevention has been obtained and issued as in this • Part provided. SECTION 3300.102—Bureau of Fire Prevention Permit Required —No person shall erect, operate or maintain, at any place within the City, any tank, sump, reservoir, or other structure or facility for the purpose of collecting, holding, storing or handling oil or any flammable liquid, or add to, enlarge, move, improve, alter, reconstruct, restore, convert, extend, remove, dismantle or demolish any of the same, whether heretofore or hereafter erected, without first obtaining a permit so to do from the Bureau of Fire Prevention. Any person desiring to obtain such permit shall make written application to, and shall file the same with, said Bureau upon forms prescribed and furnished by said Bureau. Said Bureau shall not issue any permit pursuant to such application unless and until said Bureau has made an investigation of the proposed location of said tank, sump, reservoir, or other structure or facility, or of the addition or improvement thereto, or other work or operations intended to be or which may be, performed or conducted under said permit, and has determined to its satisfaction that the same will not be in violation of law, or of this Chapter, or of any. ordinances of the city, or of any rule or regulation of any governmental officer, board, agency or commission applicable thereto, and that all other permits required therefor have been obtained or applied for. SECTION 3300.103—Board of Harbor Commissioners Permit Required — No person shall erect, operate or maintain, at any place within the Harbor District, any tank, sump, reservoir, or other structure or facility for the purpose of collecting, holding, storing or handling oil or any flammable liquid, or add to, enlarge, move, improve, alter, reconstruct, restore, convert, extend, remove, dismantle or demolish any of the same, whether heretofore or hereafter erected, without first obtaining a permit so to do from the Board of Harbor Commissioners. Any person desiring to obtain such permit shall make written application to, and shall file the same with, said Board upon forms prescribed and furnished by said Board. Said Board shall not Issue any permit pursuant to such application unless and until said Board • has made an investigation of the proposed location of said tank, sump, reservoir, or other structure or facility, or of the addition or improvement • LONG BEACH MUNICIPAL CODE Sec. 3300.104 thereto, or other work or operations intended to be or which may be, per- formed or conducted under said permit, and has determined to its satisfaction that the same will not endanger or prejudice the interests of commerce, navigation or fisheries or any harbor facilities of the City. SECTION 3300.104—Applicability of Zoning Ordinance —The zoning regu. lations in this code, shall be applicable to the erection, operation or mainten- ance of any tank, sump, reservoir, or other structure of facility used, or erected or maintained for use, for the purpose of collecting, holding, storing or handling oil or any flammable liquid, except when such structure or facility is erected, used or maintained solely in connection with the drilling, operation or maintenance of any well or well -hole, under and pursuant to permits therefor obtained and maintained in force and effect as herein provided, or is erected, used or maintained solely in connection with any refinery or natural gasoline plant erected, operated and maintained as herein provided. SECTION 3300.105—Duties Rehandling and Storing, in General —All oil and other flammable liquids which are obtained, derived or produced by or from the operation or maintenance of any oil well, production equipment, refinery, natural gasoline plant, commercial dehydration plant or compressor plant, or which are collected, kept, stored, held, handled or used in connection with the drilling, operation or maintenance of such well or the erection; operation or maintenance of any production equipment, refinery, natural gasoline plant, commercial dehydration plant, compressor plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, shall be handled as hereinafter in this part provided, and, except as provided in section 3300.106, (Sumps), and except when being handled or used in con- nection with any of the processes or operations for which such well, produc- tion equipment, refinery, natural gasoline plant, commercial dehydration plant, • compressor plant, loading rack, bulk distributing station, marine on terminal or marine oil service station is used or maintained, shall be collected, kept, stored or held in tanks erected, used and maintained as hereinafter in this part provided, or in containers or underground tanks as provided in the Fire Prevention regulations of this code. SECTION 3300.106--Securing Pits, Sumps and Basins —All pits, sumps, and basins for the storage, separation, evaporation, dehydration or processing of oil, mud or water, heretofore or hereafter constructed, maintained or used In connection with an oil well shall be properly protected by a secure cover, or a fire wall not less than six feet high or surrounded by a chain link type fence or other approved industrial type fence, not less than six feet in height, mounted on posts not less than two inches in diameter, spaced not more than twelve feet apart. If any fence is equipped with gates, such gates must have secure latches sufficient to prevent the entry of unauthorized persons. There shall be attached to the fence on at least two sides, a metal sign with the words "Keep Out" Such sign shall not be less than eight inches by eighteen inches in dimension and letters shall not be less than five inches high on a contrasting background, and shall be maintained in good condition at all times. Provided, however, that the foregoing provisions shall not apply to mud or pump suction pits containing drilling mud or fluids which are used in connection with drilling, redrilling, deepening or remedial work on any on well, provided every such mud or pump suction pit shall not exceed twelve feet by twenty feet by twelve feet in dimension. Provided, further, that every such pit shall be abandoned and the land restored to its natural condition within fifteen days after drilling operations have been completed. On or before October 22, 1955, every existing pit, sump and basin con- structed, maintained or used in connection with the operation of an oil well, which does not comply with the provisions of Section 3300.106 and Section 3300.107 shall be abandoned by removing all petroleum, tar, mud, water and other waste substances therefrom, and by breaking up the bottom where the • structures are lined to permit the passage of ground water, and by filling with earth and restoring the site to its natural condition. LONG BEACH MUNICIPAL CODE Sec. 3300.107 SECTION 3300.107—Construction and Use of Sumps and Reservoirs —All open sumps or reservoirs used, or erected or maintained for use, for or in connection with the drilling, operation or maintenance of any well or well -hole, or for or in connection with the erection, operation or maintenance of any production equipment, refinery, natural gasoline plant or commercial dehy- dration plant, as herein provided, shall be erected, used and maintained as follows: (1) In the Harbor District all sumps have the inner sides and the bottom thereof entirely lined with not less than three inches of concrete or masonry construction. (2) Outside the Harbor District, every pit, sump, or basin for the storage, separation, evaporation, dehydration or processing of oil, mud or water, heretofore or hereafter constructed, maintained or used in connection with an oil well shall have constructed around the perimeter of said pit, sump or basin, a wall or berm to a height not less than one foot above the elevation of the lowest point of the natural ground adjacent to any portion of such wall or berm. Said wall or berm shall be entirely lined with not less than three Inches of concrete, masonry or other impervious material. Said lining shall extend to the bottom of the sump, unless the bottom is more than two feet below the adjacent natural ground level, in which event said lining need not be extended more than two feet below such adjacent natural ground level. (3) All of the foregoing construction shall meet the requirements of the Bureau of Fire Prevention. (4) The level of the fluid or substances in any such sump shall not be allowed to rise to any elevation which is less than twelve inches below the elevation of the lowest point on the top of the enclosing walls of the sump, except that while any such sump is being used solely for the customary purposes of handling or storing and used in the drilling of a well, the level • of the fluid or substances in such sump may be allowed to rise to any elevation which is not less than six inches below the elevation of the lowest point on the top of the enclosing walls of the sump. Such elevations of the lowest point on the top of the walls of the sump and of the maximum heights to which the fluid or substances in the sump may be permitted to rise, shall be marked on a gauge or marker at least four inches square, located at a point accessible for gauging. (5) The walls and bottom of any existing sump which is not constructed In accordance with the foregoing requirements, shall at all times be maintained so as to be capable of holding and confining within such sump, the entire cubical content thereof or therein. (6) No opening, drain or outlet shall be constructed, maintained, or permitted to exist in or to any sump, whether heretofore or hereafter con- structed, which will cause or allow any portion of the contents of the sump to drain, flow or be diverted from the sump into or upon any lands or waters in violation of any provision hereof, or of any provision of law or of any ordinance of the city. (7) Upon the temporary or permanent cessation of drilling or production operations at any oil well, not under constant observation or watchman service, or drill holes, keliy holes, tanks, cellars, pits and approved basins and all other dangerous openings, shall be securely capped or covered, and all stairs or ladders shall be removed to a level of ten feet above grade or floor level or as an alternative, dangerous openings and equipment as stated above may be protected with a housing, screen or fence as provided in Section 3300.77. SECTION 3300.108—Discharge of Waste —No person shall deposit, dis- charge, place, throw, divert, or in any manner dispose of, within the corporate limits of the City, any crude oil, refined oil, waste oil, or any oily product or by-product of oil, or any water or fluid mixed with or contaminated by any of the same, or any oily substance, waste or refuse, or any industrial • waste (including mud) derived from or connected with the drilling, operation or maintenance of any well or well -hole, or the erection, operation or main- • LONG BEACH MUNICIPAL CODE See. 3300.109 tenance of any production equipment, refinery, natural gasoline plant, com- mercial dehydration plant, compressor plant, loading rack, bulls distributing station, marine oil terminal or marine oil service station, as follows: (a) Into or upon the waters of the Pacific Ocean or the waters of any lagoon, bay, inlet or tributary to said Ocean: (b) Upon any beach, beach front, water front, tidelands or submerged lands, within the corporate limits of said city, or upon any lands which are, or may be, at any time, covered by the waters of said Pacific Ocean, or of any lagoon, bay, inlet, or tributary to said Ocean, whether such lands be above or below the ordinary high water mark of said Ocean; (c) Upon any public highway, boulevard, street, road, court, alleyway, place or walk, drainage canal or ditch, storm drain, stream, stream bed or flood control channel; (d) Into any oil or gas well -hole or rat -hole or upon any lands in such manner as will percolate into soil below the surface of the ground so as to cause damage in any manner or to any degree to any underground water supply suitable for irrigation or for domestic purposes; (e) Upon the property of any other person, except with the written consent of the owner of said property, which written consent must be filed with Building Inspector, and except within a sump or tank constructed, used and maintained as herein provided; (f) Upon the property of such person, except with a sump or tank con- structed, used and maintained as herein provided; (g) Upon any land, premises or any place in such a manner that said substances, or any portion thereof, may run or be transferred or carried to or in any manner deposited upon or conveyed to any of the lands, waters or • places specified in paragraphs (a), (b), (c), (d), (e) and (f) of this section In violation of the provisions of said paragraphs. SECTION 3300.109—Filling and Emptying Tanks —No person shall cause or permit any oil or other flammable liquid to be deposited in or to flow into, or to be removed, or allowed to flow or be released from, any above- ground tank used, or erected or maintained for use, in connection with the operation or maintenance of any oil well or well -hole, production equipment, tank farm or oil storage farm, refinery, natural gasoline plant, commercial dehydration plant, compressor plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, except by means of piping, hose, flexible tubing and fittings installed and maintained as herein provided. Adequate electrical bonding shall be provided and maintained at all times during loading and unloading. SECTION 3300.110—Pipe and Plpe FIttings—All pipe, hose, flexible tubing and fittings, including valves, gauge glass fittings and other similar appurten- ances used, or installed or maintained for use, for or in connection with any derrick, production equipment, tank, refinery, natural gasoline plant, com- mercial dehydration plant, compressor plant, loading rack, bulk distributing station, marine oil terminal or marine all service station, shall be designed, installed and maintained to withstand the pressure to which they may be subjected, with a reasonable factor of safety. Every pipe that is attached to any tank whereby any of the contents of such tank can flow out by gravity shall be provided with a shut-off valve located at or near the tank so that such pipe can be effectively closed from liquids flowing through the same and there shall be no branch or connection to any such pipe between any such valve and such tank, except that there may be installed a small by-pass line equipped with a check or non -return valve designed to permit excessive pressure in the pipe line to be relieved into the tank. All valves with a diameter of two inches or more and which directly control the flow of any flammable liquid from any tank shall be of the rising stem or indicating type and shall be marked with a legible mark that will indicate the opened and • closed positions. All such valves, gauge glass fittings for tanks and for con- tainers, sample cocks and other similar fittings, intended or used for the • LONG BEACH MUNICIPAL CODE See.3300.111 purpose of drawing off any flammable liquid from any tank, shall be con- structed of some metal having a melting point of not less than eleven hundred degrees Fahrenheit. Gauge glass fittings or pressure tanks shall be equipped with automatic ball checks. Any system of piping used for or in connection with any flammable liquid, and connected to a positive displacement pump, shall be equipped with automatic pressure relief valve or other means of pressure relief of a type or design approved by the Bureau of Fire Prevention and which will relieve the pressure of any such system and prohibit such pressure from exceeding one hundred twenty-five per cent of the normal safe working pressure of such piping system, or of such pump, whichever is the lower such pressure. The location of all emergency blow -off stacks or automatic or hand controlled releases of wet gases shall be subject to the approval of the Bureau of Fire Prevention. SECTION 3300.111—Electrical Installation —Except as in this Part other- wise specifically provided, all electrical equipment used, or installed or main- tained for use, in connection with any tank, sump, reservoir, or other structure or facility used, or erected or maintained for use, for the purpose of collecting, holding, storing or handling oil or any flammable liquid, shall be installed and maintained as provided in Section 3300.80 hereof. SECTION 3300.112—lieeping Premises Clean; No Smoking —All lands within twenty-five feet of any sump, reservoir or other structure or facility for the purpose of collecting, holding, storing or handling oil or any flammable liquid, except tanks surrounded by retaining walls as in Division 2 of this Part provided, and the entire area within any such retaining wall, shall be at all times kept free and clean from dry weeds, vegetation, rubbish or other Inflammable waste material, and from all substances and materials which may • afford food or a harboring place for rats or vermin; and all such lands and the lands in the vicinity thereof, as designated by the Bureau of Fire Preven- tion, shall at all times be kept free and clean from any loose lumber, pipes, materials or substances which, in the opinion of said Bureau, constitute a fire hazard or an obstruction to or interference with fighting or controlling fires. No person shall smoke, throw, place or deposit any lighted cigar, cigarette, ash, match or other burning or smouldering substance within twenty-five feet of any of the aforesaid structures, plants, equipment or facilities in this Section specified. "No Smoking" signs shall be posted and maintained on the property upon which any of the aforesaid structures, plants, equipment or facilities in this Section specified, are situated. Such signs shall be posted and maintained at locations designated or approved by the Bureau of Fire Prevention, and shall have clear and distinct lettering at least four inches in height. SECTION 3300.113 Fire Extinguishers —As and when required by the Bureau of Fire Prevention, there shall be installed on or in the vicinity of any structure or facility used, or erected or maintained for use, for the purpose of collecting, holding, storing or handling oil or any flammable liquid, a sufficient number of fire extinguishers, the number, type and location thereof to be as approved or designated by said Bureau. All such fire extinguishers shall bear the label of the Underwriters Laboratories, Inc., and shall be kept filled with the proper fluid or gas at all times. When of the foam type, such extinguishers shall be recharged not less than once every twelve months. SECTION 3300.114—Abandonment of Operations; Cleaning Premises — Upon the final and permanent cessation or abandonment of any and all operations in connection with any tank, sump, reservoir or other structure or facility used, or erected or maintained for use, for the purpose of collecting, holding, storing or handling oil or any flammable liquid, the same shall, if used or erected or maintained for use in connection with the drilling, operation • or maintenance of any well or well -hole, or in connection with the erection, operation or maintenance of any derrick, or production equipment therefor, • LONG BEACH MUNICIPAL CODE Sec. 8300.115 be dismantled, demolished or removed from the premises on which the same are situated, in accordance with the provisions of Section 3300,90, hereof, and if used, or erected or maintained for use, in connection with the erection, operation or maintenance of any refinery, natural gasoline plant, or commer- cial dehydration plant, or In any other connection except as hereinbefore in this section stated, he dismantled, demolished or removed from the premises on which the same are situated, in accordance with the provisions of section 3300.156 hereof. Division 2—Tanks SECTION 3300.115--General Standards for Aboveground Tanks —Except as hereinafter specifically provided, all tanks shall be constructed in accordance with the American Petroleum Institute specifications for standard tanks as follows: A. P. I. Standards No. 12-A (For tanks with riveted shells) Sixth Edition, September, 1938; A. P. I. Standards No. 12-B (For bolted tanks) Second Edition, July, 1931; A. P. I. Standards No. 12-C (For all welded oil well storage tanks) Third Edition (tentative), April, 1940; and A. P. I. Standards No. 12-D (For all welded production tanks) Revised Edition (tentative), April, 1940; and with any and all Supplements to said Standards, respectively; provided, however, that if a tank is of a capacity and height for which no specifications are given in said Standards, such tank shall comply with specifications approved by the Bureau of Fire Prevention, which specifications so approved shall be not less stringent than the specifications provided in said A. P. I. Standards for the next smaller capacity and height of tanks for which • specifications are given therein, nor more stringent than the specifications provided in said A. P. I. Standards for the next larger capacity and height of tanks for which specifications are given; provided, further, that spherical spheroidal and horizontal cylindrical tanks may be constructed in accordance with specifications submitted by the applicant, which have been approved by the Bureau of Fire Prevention. SECTION 3300.116—Bolted Tanks —No bolted tank shall have a capacity in excess of two thousand barrels. No bolted tank shall be used for any other purpose than that of a flow tank or production tank in conjunction with an oil well derrick, or as a lease shipping tank used in connection with oil production. Not more than two bolted tanks of two thousand barrel capacity each shall be permitted for each derrick. SECTION 3300.117—Production Tanks —No tank for use or used as a flow tank or production tank in connection with an oil well, or as a lease shipping tank In connection with oil production, (but not including wash tanks) shall exceed sixteen feet one inch in height, or two thousand barrel capacity. SECTION 3300.118—Wash Tanks —Wash tanks or setting tanks and other equipment or facilities for use or used for the purpose of separating sand, water and other foreign substances from petroleum and other hydrocarbons shall be of a type or design approved by the Bureau of Fire Prevention; provided, however, that no such tank shall be of an open type, or be in excess of twenty-four feet in height, or thirty feet in diameter, nor shall any such tank or other such equipment or facility have a capacity In excess of three thousand barrels. In addition to the foregoing requirements If such tank contains oil or other hydrocarbons which at any time exceed a temperature of one hundred and thirty degrees Fahrenheit, such tank shall be equipped with a vent stack of a type or design approved by the Bureau of Fire Prevention. Said stack shall extend upward and terminate at a point at least thirty feet above the ground; provided, however, that in lieu of such vent stack, the vents to • such tanks may be tightly connected by means of a pipe and fittings to a vapor recovery system constructed and maintained in a manner which is • LONG BEACH MUNICIPAL CODE See. 3300.119 approved by the Bureau of Fire Prevention; provided, further, that no pipe line that Is connected to any system containing air under pressure shall enter Into any such tank, nor shall the contents of any such tank be agitated with air in any manner. SECTION 3300.119—Doiler Fuel Tanks —All boiler fuel tanks used in connection with the drilling, operation or maintenance of any well or well -hole, or in connection with the erection, operation or maintenance of any derrick, production equipment, refinery, natural gasoline plant, commercial dehydra- tion plant, loading rack, bulk distributing plant, marine oil terminal, or marine oil service station, shall be constructed of steel or iron of thickness not less than twelve gauge, and may be riveted, bolted or welded, as specified in this Division, and shall not exceed two hundred barrel capacity. Not more than two such tanks shall be installed in one setting, and in no case shall any such tank be nearer than twenty-five feet to any boiler. SECTION 3300.120—Dehydrating Tanks —Every tank in which petroleum or any product thereof is treated by electricity, or any other tank used for the treating of petroleum by means other than electricity, shall not be of an open type, nor shall the capacity of any such tank exceed two thousand barrels. All such tanks into which petroleum or any product thereof exceeding a temperature of one hundred and thirty degrees Fahrenheit is discharged or stored shall be equipped with a suitable vent stack which shall extend upward and terminate at a point at least thirty feet above the ground or, in lieu thereof, such vents may be tightly connected by means of a pipe and fittings to a vapor recovery system acceptable to the Bureau of Fire Prevention, pro- vided, also, that no pipe line connected to any system containing air under pressure shall enter into any such tank, and it shall be unlawful to cause or to permit the contents of any such tank to be agitated with air at any time. The provisions of this section shall not apply to any process of dehydration • in which heat or agitation are not employed, provided, however, that the provisions of this section requiring the design, construction, installation, location and retaining walls around tanks as provided in Section 3300.126 of this chapter shall be applicable in all cases. SECTION 3300.121—Floating or Special Roofs —A floating or diaphragm roof of a type or design approved by the Bureau of Fire Prevention may be installed on any tank in lieu of any fixed roof, as provided in any of said A. P. I. specifications referred to in this chapter. SECTION 3300.122—Location of Tanks with Respect to Other Structures and Property —No tank shall be erected within twenty-five feet of any steam boiler or open flame, or at any location which is not in accordance with the following table (the measurements to be taken from the shell of the tank): LOCATION OF TANKS Capacity of Tank Distance from Distance from All other Struc- in 42 Gal. Barrels Nearest Tank tures or Buildings, and from the Nearest Line of Adjoining Property which may be Built Upon. 1 to 266 2 feet 8 feet 267 to 720 3 feet 10 feet 721 to 1,600 5 feet 15 feet 1,601 to 2,884 5 feet 15 feet 2,885 to 5,031 7 feet 20 feet 5,032 to 10,200 7 feet 20 feet 10,201 to 15,000 10 feet 25 feet 15,001 to 23,500 15 feet 30 feet 23,501 to 40,000 20 feet 40 feet 40,001 to 70,000 25 feet 50 feet 70,001 to 95,000 30 feet 60 feet • 95,001 to 135,000 40 feet 80 feet Over 135,000 60 feet 120 feet • LONG BEACH MUNICIPAL CODE Sec. 3300.123 SECTION 3300.123—Vents and Accessories —Every tank which contains a vapor space shall be provided with vents to conform to A. P. I. Standards for low pressure aboveground or storage tanks. In horizontal tanks or other tanks where entire dependence for relief is placed on some form of emergency relief construction other than a weak seam, a relief device shall have capacity as prescribed in said Table 24a). If, the pressure relief device is in the form of a free circular opening, it shall be designed in accordance with the dimen- sions given in said Table 24a). TABLE &(a) Emergency Relief of Excessive Internal Pressure In Tanks Minimum Approximate Diameter of Free Circular Opening Emergency (Unobstructed by Valve Disc, Etc.,) Required to Relief Discharge Petroleum Vapors at the Given Rates Capacity for the Following Internal Pressures: Capacity Cubic COL.1 COL.2 COL.3 COL.4 of Tank Ft, per 3 In. of 1 Lb. per 9 Lbs. per 25 Lbs. per In Gals. Hour water or Sq. In. or Sq. In, or Sq. In. or Less Less Less Less (Based upon an orifice co -efficient of .7 and vapor specific gravity of 2.5). 1,000 16,000 4 In. 2% In. 13Adn. 1 In. 4,000 44,000 6% 3% " 22/4 " 114 " 18,000 88,000 91h " 5% " 33/4 " 2% " 25,000 105,000 1014 " 6 " 3% " 2% " 56,000 160,000 12% " 714 " 41 " 3% " 100,000 230,000 15% 814 5 4 " • 155,000 290,000 17% 9% 514 " 4% " 222,000 330,000 1814 " 10% " 6 " 414 " 475,000 395,000 20 11�/4 " 61/, " 5 " 735,000 410,000 201 " 111h " 69 " 51/4 " Unlimited 410,000 20% " 11% " 614 " 5�/4 " SECTION 3300.124—Nozzles and Openings —Ali nozzles and other openings through the shell of tanks, other than bolted tanks, shall be designed, con- structed and maintained in accordance with American Petroleum Institute specifications (Standard Nos. 12-A and 12-C). SECTION 3300.125—Foundations—Tanks, the bottoms of which set more than one foot off of the ground, shall have foundation and supports of non- combustible materials, provided, however, that subject to the approval of the Building Department and the Bureau of Fire Prevention of the City, wooden cushions or other platforms may be permitted. Where such supports are of metal, they shall be covered by at least three inches of concrete or masonry. SECTION 3300.126—Retaining Walls —Every tank or group of tanks here- tofore or hereafter constructed or maintained, except tanks used for storage, of liquefied petroleum gases as defined by the Liquefied Petroleum Gases and Safety Orders issued by the State Industrial Accident Commission, and which are protected as required by said safety orders, shall be surrounded or adequately protected by a retaining wall or natural barrier as herein provided. Each such retaining wall in the Harbor District shall be constructed of reinforced concrete or specifications approved by the Building Inspector, and shall have a suitable coping or deflector at the top projecting inward and approved as to design and construction by said Building Inspector. If any of the tanks surrounded by any such wall within the Harbor District contains oil or flammable liquid which has a flash point below two hundred degrees Fahrenheit, such wall shall be constructed so that it will retain and impound the total cubical capacity of all of the tanks surrounded by such wall, and if • any of the tanks surrounded by any such wall in the Harbor District contains crude oil or other 'hydrocarbons or petroleum products having boil -over LONG BEACH MUNICIPAL CODE See.3300.127 characteristics, such wall shall be so constructed as to be capable of retaining and impounding the entire cubical capacity of the tanks surrounded by such wall, plus twenty-five per cent of said capacity of said tanks. Outside of said Harbor District such retaining walls may be constructed of masonry or earth work in a manner approved by the Building Inspector. Each retaining wall outside of said Harbor District shall be so constructed as to retain and impound the entire cubical capacity of the largest tank in the area surrounded by such wall, plus ten per cent of the capacity of all other tanks within the area surrounded by such wall. No portion of such retaining wall shall be located nearer than five feet to any portion of any tank. Each such retaining wall shall be constructed so that the same will not leak and there shall be no doors or windows or any other opening in or through such wall or underneath the same except piping Installed and maintained in a manner approved by the Bureau of Fire Preven- tion. Each such retaining wall shall be provided with such means of ingress to and egress from the enclosures within the area surrounded by said retaining wall as may be required by the Bureau of Fire Prevention. The maximum amount of oil storage permitted within any one earthen dike or retaining wall shall be twenty thousand barrels, provided that oil storage in excess thereof may be maintained when the same has been approved and a permit therefor has been issued by the Bureau of Fire Prevention. No combustible material, other than the oil within the storage tanks, shall be permitted in, or as a part of, any such retaining wall, provided, however, that evergreen shrubs may be planted to cover the surface of earth- work retaining walls, provided, further, that wooden stairways or ramps over retaining walls may be erected and maintained if, and only if, no portion of such stairway is located within ten feet of any tank surrounded by such • wall. SECTION 3300.127 Provisions Applicable —Nothing contained in or omit- ted from this Division or Part shall be deemed to exempt any person erecting, operating or maintaining any tank, sump, reservoir or other structure or facility used, or erected or maintained for use, in connection with the drilling, operation -or maintenance of any well or well -hole, or in connection with the erection, operation or maintenance of any derrick or production equipment, from complying with all of the provisions of Part 2 of this Chapter, including the provisions requiring permits therefor to be obtained from the Tax Col- lector, or to exempt any person erecting, operating or maintaining any tank, sump, reservoir or other structure or facility used, or erected or maintained for use, in connection with the erection, operation or maintenance of any refinery, natural gasoline plant, commercial dehydration plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, from complying with all of the provisions of Part 4 of this Chapter. Division 3—Foam Fire Protection Systems SECTION 3300.123—Foiun Fire Protection Systems —When Required —A foam fire protection system, or systems, including fixed and/or portable equipment, chemicals, pumps, generators, pipe lines, hydrants, hoses, foam towers and all miscellaneous accessories necessary to the efficient and success- ful operation of a foam system for oil fire extinguishment, shall be erected, Installed and maintained as hereinafter provided, for each and every tank used for holding, storing, or handling oil or other flammable liquids and which tank has an oil surface area exceeding thirteen hundred square feet, and for each and every group of oil tanks spaced not to exceed fifty feet apart shell to shell, which group of tanks has a combined oil surface area exceeding thirteen hundred square feet; provided, however, that the tanks in any plant handling liquefied petroleum gases, or oils of a flash point over one hundred seventy-five degrees Fahrenheit, exclusively, shall not require • such foam protection regardless of oil surface area; and provided further, that tanks fitted with pontoon type floating roofs, horizontal cylindrical tanks and spheriodal tanks shall not require such foam protection. . LONG BEACH MUNICIPAL CODE Sec. 3300.129 SECTION 3300.129—Location of Foam Systems —The entire foam fire protection system and equipment for any tank or group of tanks shall be located as designated or approved by the Bureau of Fire Prevention, but in no event at a location exceeding a thirty minute transportation radius from the tank or tanks protected thereby. Suitable means for such transportation shall be available at all times and shall be demonstrated to the satisfaction of the Bureau of Fire Prevention at any time upon request. SECTION 3300.130—Nature and Capacity of Foam Systems —in General — Each foam fire protection system required by the provisions hereof, shall be of a type or design approved by the Bureau of Fire Prevention, and shall be erected, installed and maintained in accordance with recognized and accepted standards therefor, and in a manner and with materials and equipment ap- proved by said Bureau, and shall be capable of creating or generating, and supplying, foam in the quantities and in the manner hereinafter specified. Upon request of the Bureau of Fire Prevention any such system or equipment shall be operated and demonstrated to the satisfaction of said Bureau. SECTION 3300.131—Chemicals Required —Loam for any foam fire pro- tection system required by this chapter, may be created by mixing solutions of foam chemicals or may be generated by mixing foam chemicals in powder form with water. Each person required to maintain any foam system hereunder shall at all times maintain for use In connection with such foam system, an adequate supply of foam powder or foam solutions, as the system may require, to create or generate the quantity .of foam which is required by the provisions of sections 3300.135 and 3300.136 hereof, and, in addition, the quantity necessary to fill all pipe lines used or maintained for use to transport or conduct the foam -producing solutions from the point where the same are stored to the • point where the foam is or may be created therefrom, and also the quantity necessary to fill all pipe lines used or maintained for use to transport or conduct the foam from the point where it is created or generated to the most remote point where it is or may be used. In determining whether an adequate supply of foam solution is being maintained to create the foam as required hereunder, one gallon of combined solutions shall be assumed to be capable of creating eight gallons of foam, and in determining whether an adequate supply of foam powder is being main- tained to generate the foam required hereunder, one pound of Underwriters Laboratory Approved powder, mixed with one gallon of water, shall be assumed to be capable of generating eight gallons of foam; provided, however, that if upon actual test under normal operating conditions it is established that the foam solutions or foam powder maintained for any system hereunder is or are not capable of creating or generating the foregoing assumed quanti- ties of foam, then, the amounts of dry chemicals or of solutions deemed necessary to meet the requirements as set forth in this Section and in Section 3300.132 hereof, shall be based on the gallons of foam actually produced by such tests; provided, further, that in no event shall any such chemicals in powder form be maintained for use in, or be considered in determining the capacity of, any such system, unless one pound of such chemicals mixed with one gallon of water is capable of producing and does actually produce, In such test, at least six gallons of foam, nor in any event shall any such foam solutions be maintained for use in, or be considered in determining the capacity of, any such system, unless one gallon of combined solutions is capable of producing and does actually produce, in such test, at least six gallons of foam. SECTION 3300.132—Foam Applicators —In General —Equipment (appli- cators) for applying foam onto the surface of the oil in tanks, shall meet with the approval of the Bureau of Fire Prevention, and may be either fixed or portable; provided, however, that portable applicators shall not be permissible for use on or in connection with tanks which are not so situated that at least three -fourths of their perimeter is, in the opinion of the Bureau of Fire • Prevention, conveniently accessible for the erection and use of such portable applicators. LONG BEACH MUNICIPAL CODE Sea 3300.133 Each portable applicator maintained for use hereunder shall be capable of discharging foam into the tallest of such tanks, and shall be of a capacity suitable, in the opinion of the Bureau of Fire Prevention, for use with the foam fire protection equipment maintained for use in connection with such applicator. Each fixed applicator installed or maintained for use hereunder, shall be securely attached to the tank shell, and, where necessary, to the top angle, and shall be so located and connected as to preclude the possibility of the contents of the tank overflowing Into pipe lines, and also to preclude the possibility of discharging foam below the surface of the oil in such tank. Each fixed applicator shall be securely attached so that the blowing off of the tank roof as the result of an explosion will not, in the opinion of the Bureau of Fire Prevention, be likely to subject such applicator to injury. Hose streams shall not be used as the sole means of applying foam for fire protection, except in connection with vertical tanks not exceeding twenty- one feet six and one-half Inches in diameter and not exceeding thirty feet in height, and except wash tanks as defined herein. SECTION 3300.133—Types of Foam Applicators —For the purpose of this Chapter, applicators shall be classified as follows: Type I —Fixed applicators which under severe service conditions will deliver foam on the surface of burning oil without undue submergence or undue agitation of the surface of the oil. Type H—Portable applicators which under severe service conditions will deliver foam on the surface of burning oil without undue submergence or undue agitation of the surface of the oil. Type III —Fixed applicators NOT fitted or supplemented with means for delivering foam on the surface of the burning oil without undue submergence • or undue agitation of the surface of the oil. Type IV —Portable applicators NOT fitted or supplemented with means for delivering foam on the surface of the burning oil without undue sub- mergence or undue agitation of the surface of the oil. Type V—Hose stream application. For the purposes of this Chapter, a free fall of foam for a distance of over four feet to the oil surface will be considered to cause undue agitation of the surface of the oil, and deflections of foam against the shell of the tank shall not be recognized as preventing a free fall. SECTION 3300.134—Number of Applicators Required —Where fixed ap- plicators are used, or installed or maintained for use, there shall be installed and maintained a sufficient number of such applicators to deliver foam on the burning oil surface at the rate specified in section 3300.135 hereof; pro• vided, however, that tanks having a diameter of sixty-five feet or less, shall have at least one such applicator, approved by the Bureau of Fire Prevention, and tanks having a diameter In excess of sixty-five feet and less than one hundred seventeen feet six inches, shall have at least two such approved applicators, and tanks having a diameter in excess of one hundred seventeen feet six inches, shall have at least three such approved applicators, except that when such fixed applicators are Type I, as defined in section 3300.133, hereof, the Bureau of Fire Prevention may authorize the use of two such approved applicators. Where portable applicators are used, or maintained for use, they shall be maintained in the number required by the Bureau of Fire Prevention. SECTION 3300.135—Quantity of Foam Required —For Tank Fires —For the purpose of determining the quantity of foam required to be created or generated for tank fires, oils and other flammable liquids and petroleum products shall be classified in four types, as follows: Type A —Consisting of Viscous High Flash Oils, such as lubricating, dry residuum and dry fuel oils and other similar oils of 50 Sec. Furol vis. at • 122 degrees Fahrenheit or over and with a flash point above 175 degrees Fahrenheit, closed cup tester. • LONG BEACH MUNICIPAL CODE Sec. 3300.136 Type B—Consisting of Non -Viscous High Flash Oils, such as kerosene and light furnace oils, diesel oils, and other flammable liquids with a flash point above 100 degrees Fahrenheit, closed cup tester. Type C—Consisting of Low Flash Refined Petroleum Products such as gasoline, naphtha, benzol, and other flammable liquids with a flash point below 100 degrees Fahrenheit, closed cup tester. Type D—Consisting of all Crude Petroleum. Each foam fire protection system required by the provisions of this ordinance shall at all times be capable of creating or generating for, and delivering to and applying in the tank or tanks for or in connection with which such system is maintained, the following quantities of foam, per square foot of oil surface of the largest single tank protected by such system, according to the type of oil contained in said tank, and the type of foam applicator used or maintained for use in said system, as specified in the following table, to wit: TYPE OF OIL OR GALLONS (PER SQUARE FOOT OF OIL FLAMMABLE LIQUID I SURFACE OF FOAM REQUIRED) FOR VARI- (as hereinabove defined OUS TYPES OF APPLICATORS AS FOL. as to types) LOWS: Types I Type Type Type and H III IV V Applicator Applicator Applicator Applicator Type A (Viscous High Flash Oils) .................................. 15 gals. 25 gals. 35 gals. 50 gals. Type B (Non -Viscous High Flash Oils) .......................... 20 30 40 60 " • Type C (Low Flash Refined Petroleum Products) ....25 " 50 60 so " Type C (Crude Petroleum) .................................... 30 " 50 " 60 „ 80 If the plant or group of tanks protected by said system handles or con- tains more than one type of oil or flammable liquid, the largest tank shall be assumed to contain the oil or flammable liquid requiring the greatest amount of foam in accordance with the foregoing requirements, if, in the opinion of the Bureau of Fire Prevention, this is advisable in order to provide adequate fire protection. SECTION 3300.136—Quantity of Foam Required —For Hose Streams —In addition to the quantities of foam required for fires in tanks, as hereinabove In Section 3300.135 provided, each foam fire protection system required by this ordinance shall at all times be capable of creating or generating for hose stream use (for extinguishing ground fires and for assistance in extinguishing tank fires), the following quantities of foam, according to the total oil surface area of all of the tanks protected by such system, to wit: TOTAL OIL SURFACE MINIMUM QUANTITY OF FOAM AREA OF TANKS REQUIRED FOR HOSE STREAMS 1300 Sq. Ft. to 2300 Sq. Ft. 5,000 Gallons 2300 Sq. Ft. to 3300 Sq. Ft. 10,000 " Over 3300 Sq. Ft. 20,000 " SECTION 3300.137—Quantity of Foam Required —Minimum Requirements —Notwithstanding any other provision hereof, each foam fire protection system required hereunder shall be capable of creating or generating and of delivering and applying the following minimum quantities of foam: (1) Not less than five hundred gallons of foam per minute, in any event; (2) Not less than one gallon of foam per minute for each two and one- half square feet of oil surface of the tank to which such applicator is affixed, when Type I applicators are used; • LONG BEACH MUNICIPAL CODE Sec. 3300.138 (3) Not less than one gallon of foam per minute for each two and one- half square feet of oil surface of the largest tank protected by such applicator, when Type II applicators are used; (4) Not less than one gallon of foam per minute for each one and one- fourth square feet of oil surface of the tank to which such applicator Is af- fixed, when Type IH applicators are used; (5) Not less than one gallon of foam per minute for each one and one- fourth square feet of oil surface of the largest tank protected thereby, when Type IV applicators are used. SECTION 3300.138—Piphig and Foam Lines --The entire system of piping for delivering foam solutions, foam, or water for use in connection therewith, shall consist of pipe lines of such size as to permit the delivery equipment or applicators to meet the requirements for foam discharge, as provided in this Chapter. Friction loss in pipes and fittings carrying foam solutions or water shall be determined by Hazen & Williams formula, using a value of C-100. Suitable bends or swings shall be provided at the base of tank risers to take care of shock, expansion or curling of tank shells. All tank riser fittings shall be of malleable iron or steel. The length of foam lines, from the point where the foam is created or generated to the point where it is to be used, shall meet with the approval of the Bureau of Fire Prevention, and shall not in any event, alone or in combination with foam hose lines, exceed the lengths shown in the following table for the respective sizes or diameters of pipe or hose, to wit; Foam Pipe Foam Pipe Lines in Combination Gallons of Foam Per Minute Lines Alone With Foam Hose Lines Discharged from Generator isMin. Max. Min. Max. Max. Min. Pipe Pipe Pipe Pipe Hose Hose Size Lgth. Size Lgth. Lgth. Dia. 1" 150, 2" 100, 50, 11/-" Up to 300 3" 200' 3" 150, 50, 2%" Over 300 to 1000 4" 4001 4" 3501 50, 21/2" Over 1000 to 1500 SECTION 3300.139—Pumps for Foam Systems —Pumps intended for, or which are a part of, or which are used, or installed or maintained for use, in connection with, any foam fire protection system, shall not be used for moving or handling oil. PART 4—REFINING, PROCESSING AND DISTRIBUTING SECTION 3300.140—Refineries Prohibited in General —Except as in this Chapter otherwise provided, no person shall erect, operate or maintain any oil refinery or commercial dehydration plant at any place within the City. SECTION 3300.141—Refineries Permitted in Certain Areas —Upon obtain. ing the necessary permits therefor, as hereinafter provided, and as provided by law and the ordinances of the City, and during such time as such permits are kept in full force and effect, and each and all of the regulations and provisions of all laws and all ordinances of the city applicable thereto, are complied with, the permittee designated therein may erect, operate and maintain a refinery or commercial dehydration plant as authorized in said permits, upon the premises covered thereby, but only within the M-2 or M-2A use districts, as classified by the zoning regulations of the City, which lie within those portions of the City hereinafter in this section described: (1) AREA 10 DESCRIBED —(Signal Hill, Cemetery and North.) —Area 10 is that portion of the City described as follows: Beginning at the intersection of the north line of Willow Street with the west line of Orange Avenue, said point being in the boundary of the city; • thence westerly along the boundary of the city, and following the various courses of said boundary, to its intersection with the east line of Walnut . LONG BEACH MUNICIPAL CODE See. 3300.142 Avenue; thence east along the easterly prolongation of the last preceding course of said boundary line to a line 150 feet west of and parallel to the west line of Cherry Avenue; thence south along said parallel line to the north line of Spring Street, being a boundary line of the city; thence westerly along said boundary line and following its various courses to the point of beginning. (2) AREA 11 DESCRIBED —(Signal Hill, Reservoir District.) —Area 11 Is that portion of the City described as follows: Beginning at the intersection of the southwesterly line of Alamitos Boulevard with a line 150 feet north of and parallel to the north line of Pacific Coast Highway (said southwesterly line of Alamitos Boulevard being also a boundary line of the City;) thence northwesterly along said boundary of the City, and following the various courses of said boundary, to the northeasterly line of the Alamitos Tract, as per map recorded in Book 36, pages 37 to 44, Miscellaneous Records of Los Angeles County, California; thence southeasterly along said northeasterly line of the Alamitos Tract to a line 300 feet east of and parallel to the east line of Termino Avenue; thence south along said parallel line to a line 150 feet north of the aforesaid line 150 feet north of and parallel to the north line of Pacific Coast Highway; thence west along said parallel line to the point of beginning. (Said Area 11 is that part of the portion of the city hereinabove described as Area 7, which is situated northerly of a line 150 feet north of and parallel to the north line of Pacific Coast Highway.) (3) AREA 12 DESCRIBED —(Hynes District.) —Area 12 Is that portion of the city bounded on the north by Artesia Street, on the south by South Street, on the east by Paramount Avenue and on the west by Cherry Avenue. SECTION 3300.142—Locations of Refineries With Reference to Other • Property and Structures —Notwithstanding any other provision hereof, it is unlawful and a nuisance hereafter to erect, operate or maintain any refinery, commercial dehydration plant or compressor plant unless all portions thereof are at least twenty-five feet from the center, at the surface of the ground, of any well or well -hole the erection of the derrick for which has theretofore been commenced and at least fifty feet from the nearest lot line of any ad- joining property which may be built upon, and at least five hundred feet from any real property used for public school purposes, or any church, theatre, public assembly hall, hospital, sanitarium, asylum, jail, detention home, or building or structure for similar purposes, and unless all portions of any building, structure, apparatus or facility used, or erected or maintained for use, in connection with such refinery or plant, for the storage or holding of liquefied petroleum gases, or which is subject to the accumulation or discharge of flammable vapors in quantities which, in the judgment of the Bureau of Fire Prevention, are dangerous, are at least fifty feet from any derrick, tank, boiler, open flame or other source of ignition not within the refinery or plant itself. SECTION 3300.143—Zoning Ordinance, When Inapplicable —The Zoning regulations of this Code, relating to the issuance of special permits for non- conforming uses thereunder, shall not apply to the erection, operation or maintenance of any refinery or commercial dehydration plant, at any place within the City, and no special permit under said regulations in this Code shall be required in order to erect, operate or maintain any such refinery or commercial dehydration plant within those portions of the City hereinabove described as Areas 9, 10, 11 and 12, nor shall any special permit under said zoning regulations in this Code ever be issued to erect, operate or maintain any such refinery or commercial dehydration plant at any location which is not entirely within said areas, or any thereof. SECTION 3300.144—Zoning Regulations, When Applicable —The zoning regulations in this Code shall be applicable to the erection, operation or maintenance of any natural gasoline plant, loading rack, bulk distributing • station, marine oil terminal or marine oil service station at any place within the CIty. FJ LONG BEACH MUNICIPAL CODE Sec. 3300.145 SECTION 3300.145—Building Permit Required —No person shall erect, operate or maintain, at any place within the city any refinery, natural gas- oline plant; commercial dehydration plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, or to add to, enlarge, move, improve, alter, reconstruct, restore, convert, extend, remove, dismantle or demolish any of the same, without first obtaining from the Building In- spector a building permit so to do, as provided by and subject to the building regulations of the city. No such building permit shall be issued or valid or effective for any purpose unless and until the permit required herein to be obtained from the Bureau of Fire Prevention has been obtained and issued as in this Part provided. SECTION 3300.146—Bureau of Fire Prevention Permit Required —No person shall erect, operate or maintain, at any place within the City, any refinery, natural gasoline plant, compressor plant, commercial dehydration plant, loading rack, bulk distributing station, marine on terminal or marine oil service station, or add to, enlarge, move, improve, alter, reconstruct, restore, convert, extend, remove, dismantle or demolish any of the same, without first obtaining a permit so to do from the Bureau of Fire Prevention. Any person desiring to obtain such permit shall make written application to and shall file the same with said Bureau upon forms prescribed and fur- nished by said Bureau. Said Bureau shall not issue any permit pursuant to such application unless and until said Bureau has made an investigation of the proposed location of the refinery, natural gasoline plant, commercial dehy- dration plant, compressor plant, loading rack, bulk distributing station, marine oil terminal marine oil service station, or of the addition or improvement thereto, or other work or operations intended to be, or which may be, per- formed or conducted under said permit, and has determined to its satisfaction that the same will not be in violation of law or of this Chapter, or of any ordinance of the city, or of any rule or regulation of any governmental officer, board, agency or commission applicable thereto, and, if the permit desired is • for a refinery or commercial dehydration plant, compressor plant, or addition or improvement thereto, or other work or operations in connection therewith, that the same will not, in the judgment of said Bureau, cause a dangerous or hazardous condition or create a menace to adjacent property from fire or explosion. SECTION 3300.147—Board of Harbor Commissioners Permit Required — No person shall erect, operate or maintain, at any place within the Harbor Dis- trict, any loading rack, bulk distributing station, marine oil terminal or marine oil service station, or add to, enlarge, move, Improve, alter, reconstruct, re- store, convert, extend, remove, dismantle or demolish any of the same, without first obtaining a permit so to do from the Board of Harbor Commissioners. Any person desiring to obtain such permit shall make written application to, and shall file the same with, said Board upon forms prescribed and furnished by said Board. Said Board shall not issue any permit pursuant to such applica- tion unless and until said Board has made an investigation of the proposed loca- tion of the loading rack, bulls distributing station, marine oil terminal or marine oil service station, or of the addition or improvement thereto, or other work or operations intended to be, or which may be, performed or conducted under said permit, and has determined to its satisfaction that the same will not endanger or prejudice the interests of commerce, navigation or fisheries or any harbor facilities of the city. SECTION 3300.148—Fence Required at Refineries —There shall be erected upon the property or premises on which any refinery is located, a substantial fence at least five feet high, which fence shall surround such refinery and all portions thereof, and which fence, and all portions thereof, shall be at least fifty feet from the nearest portion of such refinery. Such fence shall be constructed of non-combustible materials and shall be provided with a sufficient number of gates, as approved or designated by the Bureau of Fire Prevention, to insure adequate accessibility to the Fire Department for fire extinguishing purposes in the event of fire. SECTION 3300.149—Keeping Premises Clean —All lands within the fence . surrounding any refinery, as herein provided, and all lands within twenty. five feet of any portion of any natural gasoline plant, commercial dehydration 1] LONG BEACH MUNICIPAL CODE Sec. 3300.150 plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, shall at all times be kept free and clear from dry weeds, vegetation, rubbish, or other inflammable waste material, and from any rubbish, waste or other substances or materials which may afford food or a harboring or breeding place for rats or vermin, and all such lands and the lands in the immediate vicinity thereof, as designated by the Bureau of Fire Prevention, shall be kept free and clear from all loose lumber, pipes, materials, or substances which, in the opinion of said Bureau, constitute a fire hazard, or an obstruction to or interference with fighting or controlling fires. SECTION 3300.150—No Smoking —No person shall smoke, throw, place or deposit any lighted cigar, cigarette, ash, match or other smouldering substance at any place inside of the fence surrounding any refinery, as herein provided, or within twenty-five feet of any natural gasoline plant, commercial dehy- dration plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station "NO SMOKING' signs shall be posted and main- tained upon the property on which any such refinery, natural gasoline plant, commercial dehydration plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, are located. All such signs shall have letters at least four inches in height, and shall be posted and maintained at locations approved or designated by the Bureau of Fire Prevention. SECTION 3300.151—Fire Extinguishers Required --There shall be installed and maintained in every refinery, natural gasoline plant, commercial dehy- dration plant, compressor plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, a sufficient number of fire extinguishers, the number, type and locations thereof to be as approved or designated by the Bureau of Fire Prevention; provided, however, that in locations such as compressor buildings or other locations where oil is not normally present, small water hose streams, such as garden hose or equiva- lent, may, with the written approval of the Bureau of Fire Prevention ob- tained In advance, be used in lieu of said fire extinguishers. All fire extin- guishers shall bear the label of the Underwriters Laboratories, Inc., and shall be kept filled with the proper fluid or gas at all times. When of Foam Type, such extinguishers shall be recharged not less than once every twelve months. SECTION 3300.152—Portable Foam -Type Fire Extinguisher Equipment Required —There shall be provided and at all times maintained at each loading rack, bulk distributing station, marine oil terminal or marine oil service station adequate portable foam -type fire extinguishing equipment, approved by the Bureau of Fire Prevention. SECTION 3300.153—Handling and Storage of Oil —All oil and other flammable liquids, (including industrial waste, and water mixed with or contaminated by oil or any flammable liquid or by oily fluids or substances), which are obtained, derived or produced by or from, or kept, stored, held, handled or used in connection with, the operation or maintenance of any refinery, natural gasoline plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, shall be kept, stored, held and handled as provided in Part 3 hereof. SECTION 3300.154—Boilers and Engines —All boilers or engines used, or installed or maintained for use, in connection with any refinery, natural gasoline plant or commercial dehydration plant shall be installed and main• tained as provided in Sections 3300.78 and 3300.79. SECTION 3300.155—Electrical Equipment —All electrical equipment used, or installed or maintained for use, in connection with any refinery, natural gasoline plant, commercial dehydration plant, compressor plant, loading rack, bulk distributing station, marine oil terminal or marine oil service station, shall be installed and maintained as provided in Section 3300.80 hereof. SECTION 3300.156—Abandonment of Operations; Cleaning Premises — Upon the final and permanent cessation or abandonment of operations in or by any refinery, natural gasoline plant or dehydration plant, all sumps and 0 LONG BEACH MUNICIPAL CODE Sec. 3300.157 ditches shall be cleaned out and all oil and industrial waste from said refinery or plant removed from said sumps and ditches and from any other property or premises in or upon which the same may have been deposited or allowed to come to rest or accumulate, and the sumps and ditches levelled or filled with dirt, and where the same are lined with concrete, the walls and bottom shall be broken up to permit the passage of ground water, and the premises on which said refinery or plant are located, and any other property or premises in or upon which any oil or industrial waste from said refinery or plant may have been deposited or allowed to come to rest or accumulate, shall be cleaned and graded and left entirely free of oil, oil -soaked earth, asphalt, tar, concrete, litter, debris, industrial waste and other substances, and left in a clean and neat condition. PART 5--ABATEMENT OF NUISANCES SECTION 3300.157—Abatement of Nuisances Hereunder, in General —If any nuisance exists or is alleged to exist under the provisions of this Chapter, the Building Inspector, Bureau of Fire Prevention, or Tax Collector may abate the same as hereinafter provided. SECTION 3300.157a—Abatement of Certain Nuisances without Further Hearing —If the Building Inspector, Bureau of Fire Prevention, or Tax Col- lector, desires or elects to abate any nuisance which exists hereunder by reason of any necessary permit having been revolted by the Council after hearing as herein provided, he may proceed as herein provided for the abate- ment of any other nuisance, or he may, at any time after notice of such revocation has been given the permittee as herein provided, immediately proceed to abate said nuisance without further notice, hearing or proceedings. SECTION 3300.158—Notice to Abate Nulsancee--If said Building Inspector, • Bureau of Fire Prevention, or Tax Collector, desires or elects to abate any nuisance which is alleged to exist hereunder, other than a nuisance which exists by reason of any necessary permit having been revoked by the Council after hearing as herein provided, he shall proceed as follows: He shall cause a notice entitled "Notice to Abate Nuisance or Show Cause" to be posted in a conspicuous place upon the real property occupied by or used in connection with said alleged nuisance, which said notice shall be readable from the ground level. Said notice shall set forth the date of the posting thereof and shall contain a description of the real property on which a nuisance is alleged to exist hereunder and shall set forth the reasons and grounds upon which said alleged nuisance is claimed to exist, and shall state that unless, within fifteen days after the date of posting as so specified In said notice, the defect, deficiency or condition set forth in said reasons and grounds is or are cured or remedied, or unless cause is shown as provided In this Chapter why such defect, deficiency or condition does not constitute or create a nuisance hereunder, said nuisance will be abated by the Building Inspector, Bureau of Fire Prevention or Tax Collector, as the case may be; as herein provided, and the costs and expenses of such abatement will be made and be a charge and enforced against any person who is the permittee under any permit issued hereunder covering the premises, or any portion thereof, on which said nuisance is alleged to exist, and against any person who is the owner or is in control or possession, either legal or actual, or who has the right to or to obtain the control or possession, or who has the right to control the possession or use, of said real property or any portion thereof, or any interest therein, or who has or had, at any time while such nuisance existed, the right or duty to drill the well or well -hole or to erect the structure, plant, machinery, equipment, apparatus or facility, which is alleged to con- stitute the nuisance hereunder, or to use, operate or maintain any of the same, in or upon or from said real property, and also against any person who Is the owner or is in control or possession, either legal or actual, or who has the right to, or to obtain, the control or possession, or who has the right to control the possession or use, of the well, well -hole, structure, plant, machin- ery, equipment, apparatus or facility which is alleged to constitute the nuisance hereunder, or of any portion of any thereof, or of any structure, machinery, equipment or facility used, or erected or maintained for use, in connection • LONG BEACH MUNICIPAL CODE Sec. 3300.159 with any thereof, and also against and as a lien upon the property so abated or to be abated as a nuisance, and also against and as a lien upon the real property upon which said nuisance exists and from which it is or will be abated. A copy of said 'Notice to Abate Nuisance or Show Cause" shall also be given to the owner or owners of said real property upon which said alleged nuisance exists and to the owner of any separately assessed interest therein, as such owner or owners are disclosed upon the records of the City Assessor, by enclosing such copy in an envelope addressed to said owners, respectively, at their respective addresses as disclosed upon said records of the City Asses- sor, and depositing the same, within two days after the posting of said notice as aforesaid, in the United States mail, with postage prepaid. SECTION 3300.159—Demand for Hearing —Any person interested in oppos- ing such abatement may, within fifteen days after the date of posting said "Notice to Abate Nuisance or Show Cause", as such date is shown on said notice, file with the Council a written demand for a hearing before the Council as to whether such a nuisance exists under the provisions of this Chapter. In said demand said person shall specify his interest in said real property, or in the property constituting the alleged nuisance thereon, and shall state the ground upon which it is contended that no such nuisance exists hereunder, and shall specify the address to which notice of the time and place of hearing may be mailed to such person, as hereinafter provided. Failure to file a demand for such hearing shall be deemed to be an admission on the part of all persons not so filing that a public nuisance does exist upon said premises, and that the same may properly be abated by said Building Inspec- tor, Bureau of Fire Prevention or Tax Collector without further proceedings hereunder, or at all. SECTION 3300.160—Fixing Time for Hearing —Upon the filing with the Council of such demand for hearing, the Council shall fix a time and place therefor. Such time shall be fixed for a day not later than thirty days after the filing of such demand for hearing. A notice in writing of the time and • place so fixed for the hearing shall be mailed to the person or persons de- manding such hearing at the address specified in such demand, at least five days in advance of the date so fixed for such hearing. SECTION 3300.161—Evidence at Hearing —At such hearing the person or persons who demanded a hearing, as herein provided, shall be given an op• portunity to present whatever competent evidence he or they may desire tc submit, either through witnesses or by the production of books, records or other documentary evidence which may be material upon the question of the existence of a nuisance, as herein provided. The Council shall not be bound by technical rules of evidence, nor shall any informality in any of the proceedings upon such hearing, or in the matter of taking testimony, invalidate or affect any order or decision of the Council. The Council shall have the right to adjourn any such hearing from time to time. SECTION 3300.162—Decision, Upon Hearing —The decision of the Council, in regard to the existence of a nuisance hereunder, may be rendered orally or in writing, at the conclusion of said hearing or at any time thereafter, and such decision shall be final. In the event the decision is rendered at said hearing no further notice thereof need be given to any person, and, if the decision is not rendered at said hearing, written notice of such decision shall be mailed to the person or persons who demanded such hearing, and a copy of said notice posted on the premises in question, and the building Inspector, Bureau of Fire Prevention or Tax Collector, as ordered by the Council, shall thereupon immediately proceed to abate said nuisance from said property. SECTION 3300.163—Abatement by Court Action —If any nuisance exists under the provisions of this Chapter, the Building Inspector, Bureau of Fire Prevention or Tax Collector may, in lieu of proceeding to abate the same, as herein provided, transmit to the City Attorney, a notice of such nuisance and a request that an action be brought for the purpose of obtaining a judicial declaration and determination that such nuisance exists and must be abated, and the City Attorney shall thereupon proceed to file and maintain such action. IsSECTION 3300.164—Remedies for Abatement Herein Cumulative —The foregoing remedies provided herein for the abatement of nuisances, shall be LONG BEACH MUNICIPAL CODE See.3300.165 cumulative, and nothing herein contained shall be deemed to require said Building Inspector, Bureau of Fire Prevention, Tax Collector, or the City Attorney, or any other officer or employee of the City to elect to pursue one remedy hereunder to the exclusion of any other remedy for which pro- vision is made in this Chapter, or to the exclusion of any remedy at law or in equity, nor shall any action taken, or caused to be taken, by said Building Inspector, Bureau of Fire Prevention, the Tax Collector, or the City Attorney, or any other officer or employee of said city, be construed to be such an election. SECTION 3300.165—Compliance with Laws in Abating Nuisance —All of the provisions of law and of the ordinances of the City, and all rules and regulations of the State Oil and Gas Supervisor relating to the abandonment of oil wells, shall be strictly observed and complied with by said building Inspector, Bureau of Fire Prevention, Tax Collector, or any other person, in abating any nuisance which is declared or determined to exist by reason of the provisions of this Chapter. SECTION 3300.166—Costs of Abatement a Charge and Lien —Each person who is permittee under any permit issued hereunder covering any premises on which it is determined that a nuisance exists hereunder, and each person who is the owner or is in control or possession, either legal or actual, or who has the right to, or to obtain, the control or possession, or who has the right to control the possession or use, of any real property on which it is determined that a nuisance exists hereunder, or of any portion of said real property, or any interest therein, or who has or had, at any time while such nuisance existed, the right or duty to drill the well or well -hole, or to erect the structure, plant, machinery, equipment, apparatus, or facility which is determined to be a nuisance hereunder, or to use, operate or maintain any of the same, in or upon or from said real property, and every person who is the owner or Is in control or possession, either legal or actual, or who has the right to, or to obtain, the control or possession, or who has the right to control the possession or use of said well, well -hole, structure, plant, machinery, equipment, appara- tus or facility which is determined to be a nuisance hereunder, or of any portion of any thereof, or of any structure, machinery, equipment or facility used or erected or maintained for use in connection with any thereof, shall be and is hereby declared and made to be jointly and severally liable for the costs of abating such nuisance, (whether the same is abated by proceedings as provided in section 3300.158, hereof, or otherwise), including the cost of obtaining any necessary or convenient search and report as to the record of title to the property on which said nuisance exists, and said costs shall also constitute a lien upon said well, well -hole, structure, plant, machinery, equip- ment, apparatus and facility, and any thereof, which are so determined to be a nuisance hereunder, and a lien upon the real property upon which the same are, or any part of any thereof is, situated, which lien shall remain until said costs are paid or said property sold for the payment thereof. PART 6 LOS ANGELES COUNTY FLOOD CONTROL DISTRICT APPLICATIONS OF PROVISIONS SECTION 3300.167—Notwithstanding any other provision of this Chapter, no provision of this Chapter shall apply to or be enforced against the Los Angeles County Flood Control District, or any agent of said District, If the application or enforcement of such provisions to or against said Los Angeles County Flood Control District, or its agents, would constitute a violation of any provision of that certain judgment of permanent injunction made and entered by the Superior Court of the State of California, in and for the County of Los Angeles in an action entitled "Continental Corporation, et al" vs. City of Long Beach, at al.", and numbered 442081 in the records and files of said Court, and to the extent that any provision of this Chapter is by its terms applicable to or enforceable against said Los Angeles County Flood Control District, or its agents, in violation of said permanent injunction, said provision, to that extent, shall be construed as if said Los Angeles County Flood Control District and its agents, were specifically exempted from the application of such provisions. 4J8 IR Fillaillk PRODUCTION REGULATIONS COUNTY OF ORANGE CALIFORNIA OIL DRILLING • AND PRODUCTION REGULATIONS a 4 Petroleum drilling and producing operations con- ducted within the unincorporated area of the County of Orange are regulated by Ordinance No. 1511, and Ordi- nance No. 1510. ¢' 77.011 OIL DRILLING AND PRODUCTION REGULATIONS $ 77.012 DIVISION 7 Oil Drilling and Production Regulations . Article 1. The Orange County Oil Code. Index Article 1 THE ORANGE COUNTY OIL CODE Section 77.011. Title —reference to Code. Section 77.012. Purpose. Section 77.013. Definitions. Section 77.014. Permits. Section 77.015. Permit procedure. Section 77.016. Bonds. Section 77.017. Permit fees. Section 77.018. Drilling and operating. Section 77.019. Abandonment procedure. Section 77.0110. Called inspections. Section 77.0111. Notices required. Section 77.0112. Storage facilities. Section 77.0113. High pressure pipe systems. Section 77.0114. sire prevention; sources of ignition. Section 77.0115. Enforcement. Section 77.0116. Appeals. Section 77.0117. Penalty. Sec. 77.011. Title —reference to Code. This Division shall be known and may be cited as "The Orange County Oil Code." Code as referred to in this Division, unless the con- test clearly indicates otherwise, shall mean The Orange County Oil Code. (Ord. No. 1097, Sec. I.) Sec. 77.012. Purpose. The purpose of this Code is to regulate the drilling, redrilling and servicing of oil wells and the production and storage of hydrocarbon substances. (Ord. No. 1097, Title.) 70-1 77.013 LAND USE AND BUILDING REGULATIONS 177.013 Sec. 77.013. Definitions. The following terms as used in this Code shall, unless the con. text clearly indicates otherwise, have the respective meanings herein set forth: ABANDONMENT is the restoration of the drill sito as required by these regulations. A. P. I. is the American Petroleum Institute. • APPROVED: Approved by the Superintendent, "Approved type", or "approved design", is and includes improvements, equipment or facilities of a type or design approved by the Superintendent. A. S. M. E. is the American Society of Mechanical Engineers. BLOW-0UT is the uncontrolled discharge of gas, liquid, or solids or a mixture thereof from a well into the atmosphere. BLOW-OUT PREVENTER is a mechanical, hydraulic or pneu- matic or other device or a combination of such devices secured to the top of a well casing, including valves, fittings and control mechanisms connected therewith designed and capable of preventing a blow-out. CELLAR is an excavation around or above the top joint of the casing in a well. COMPLETION Or DRILLING: A well is completed, for the purpose of these regulations, thirty (30) days after the drilling crew has been released, unless drilling or remedial operations are resumed before the end of the thirty (30) days. DERRICKis any framework, tower, or mast together with all parts of an appurtenances to such structure, including any foundations, pump house, pipe racks, and each and every part thereof, which is or are re- quired, or used, or useful for the drilling for and the production of oil, gas or other hydrocarbons from the earth except tanks used for storage purposes. DESERTION is the cessation of operations at a drill site without compliance with the provisions of the Code relating to suspended operations or abandonment. DILIGENCE as used in these regulations, shall mean that the drilling derrick is in its operating position over the well, properly anchored and supported and that an operating crew is on duty at the drill site at all reasonable times. DIVISION Or OIL AND GAS shall mean the Division of Oil and Gas of the Department of Natural Resources of the State of California or any other state agency .that may in the future be charged with its responsibilities. DRILLING means digging a hole in earth formation with a power driven drill bit for the purpose of exploring for or developing of oil or 70-2 § 77.013 OIL DRILLING AND PRODUCTION REGULATIONS § 77.013 gas. Drilling includes those operations that are concerned with the com- pletion of a well. "Drilling" does not include "shot hole". DRILL SITE is the premises used during the drilling and sub- sequent life of a well or wells, which is necessary for the safe operations thereof. GAS means the gaseous components or vapors occurring in or derived from petroleum or natural gas. LESSEE is the possessor of the right to exploit the premises for minerals. LESSOR is the mineral right owner. MAINTENANCE means and includes the repair and replacement of parts of a structure where same does not alter or lessen the strength or stability of the structure. NATURAL GASOLINE PLANT or ABSORPTION PLANT, is a plant for the processing of natural gas from the production wells and processed into its various components. OIL includes petroleum, and PETROLEUM includes oil. OPERATOR is the person, whether proprietor, lessee or inde- pendent contractor, actually in charge and in control of the drilling, maintenance, operation or pumping of a well or lease. 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 line" means the exterior limits of the land included in the lease or unit. In determining the contiguity of any such parcels of land, no street, road or alley lying within the lease or unit shall be deemed to interrupt such contiguity. OWNER is a person who owns a legal or equitable title in and to the surfaces of the drill site. PERSON includes any individual, firm, association, corporation, joint venture, or any other group or combination acting as a unit. RE -DRILLING shall mean the deepening of an existing oil well or otherwise drilling beyond the extremities of the existing well casing. The provisions of this Code relating to drilling shall be equally applicable to re -drilling. SEISMIC PETROLEUM PROSPECTING: Prospecting for oil by means of drilling holes into the ground, placing an explosive charge therein, and detonating such charge, thereby exciting an energy or sound wave through the earth, the results of which are recorded and read by seismograph equipment placed at various locations on the surface of the earth. Seismic petroleum prospecting is prohibited in the following areas: 70-3 ¢ 77.014 LAND USE AND BUILDING REGULATIONS Q 77.014 (a) The area within :Y4 mile of the boundary of O'Neill Park and of Irvine Park. (b) The area within one mile landward of the line of Upper Newport Bay as established and adjudicated by Superior Court Case No. 20436. (c) The area within one mile landward of the coast line measured from mean lower low water datum as established by the U. S. Coast • and Geodetic Survey from the easterly jetty of the harbor entrance at Newport Beach to the San Diego County line. SHOT HOLE: The hole drilled in seimic petroleum prospecting. SOURCE OF IGNITION means any flame, are, spark, or heated object or surface capable of igniting, flammable liquids, gases, or vapors. STRUCTUl#E is that which is built or constructed; a tank, edifice, or building of any kind. SUPERINTENDENT shall mean and include the Superintendent of Building and Safety of the County of Orange, his assistants, deputies, inspectors, and officers of the Department of Building and Safety of the County of Orange. SUSPENDED OPERATIONS is the approved, temporary sus. pension of drilling or re -drilling operations pending a resumption of operations or abandonment. TANK is a container, covered or uncovered, used in conjunction with the drilling or production of an oil well, for holding or storing liquids at or near atmospheric pressure. WELL or OIL WELL is a well or hole drilled into the earth for the purpose of exploring for or extracting from the earth oil, gas, or other hydrocarbon substances, or a well or hole in the earth by means of and through which oil, gas, and other hydrocarbon substances are extracted, produced, or capable of being produced from the earth, or a well or hole for the purpose of secondary recovery or disposal thereof. "Well" does not include "shot hole". WELL SERVICING is remedial or maintenance work performed within any existing well wbich does not involve drilling or re -drilling. (Ord. No. 1097, Sec. 2; amended by Ord. No.1271, Sees. 1, 3, d.) See. 77.014. Permits. (a) A permit from the Superintendent shall be obtained: (1) For drilling or re -drilling operations in connection with the exploration for or the production of petroleum, or for the purpose of secondary recovery. (2) To erect, construct, enlarge, alter, repair, move, im- 70-4 4 77.015 OIL DRILLING AND PRODUCTION REGULATIONS 5 77.015 prove, remove, convert, or demolish any structure. (b) No permit shall be required for well servicing or maintenance of or for any structure for which a building permit is not required. (Ord. No. 1097, Sec. 3.) See. 77.015. Permit procedure. The applicant shall file an application in writing for a permit on a form furnished for that purpose by the Department of Building and Safety. The application shall be accompanied by: (a) A complete legal description of the property. (b) A fully informative plot plan showing the location of the well, the location of which has been staked on the ground, appurtenant structures and their relation to any existing hospital, sanitarium, church, rest home, airport, school, and dwelling within the radius re- quired by this Code. (c) Plans and engineering specifications of structures, drilling derricks, drilling masts, tanks, and high pressure systems regulated by this Code. Applicant need not file plans and engineering specifi- cations of standard derricks, masts and tanks when such plans and spec- ifications are already on file in the office of the Superintendent. (d) A corporate surety bond in conformity with provisions of Section 77.016. (e) A verified statement signed by the applicant certifying that be is duly authorized by operator to make and file the application and that he has read the application and the same is true and correct. (f) An acknowledged statement in writing subscribed by the owner of the surface rights of the drill site and by the owner of any pri. vate land over which access is had to the drill site granting to the County of Orange the right to enter upon the drill site and such private land for the purpose of inspection and restoring the premises in the event the applicant should fail to do so. Any operator may in lieu of filing the statement required by the preceding paragraph of this Section file a bond in the penal sum of • Fifty Thousand Dollars ($50,000) for the drilling or re -drilling of each well, said bond to conform in all other particulars to the bond require- ments of this Section. Upon later compliance by the operator with the provisions of this Subsection or upon the abandonment of the well in compliance with the provisions of law relating thereto, the said $50,000 bond may be exonerated. (g) A statement as to the means by which liquid spills will be removed from diked area or catchment basins. 70-5 4 77.016 LAND USE AND BUILDING REGULATIONS 177.016 (h) Such other pertinent information as may be required by the Superintendent. (i) A drilling permit may be amended insofar as it relates to the drill site area and a drill site may be modified as to size and shape by filing with the Superintendent of a modified plot plan if the modified drill site conforms to the applicable provisions of this Code and of Sea tion 78.024 of this Title, but not otherwise. (Ord. No.1097, Sec. 4; amended by Ord. No.1134, Sees. 2, 2; amended by Ord. No. 1187, Sees. t, 3, 4.) Sea 77.016. Bonds. (a) Existing soefls. A bond in the form required by this Section shall be filed for each existing well within thirty (30) days following the effective date of this Code. (b) New icells A bond in the form required by this Section shall accompany every application for the drilling or re -drilling of any oil well for which a bond is not on file. (e) Bond forms. Bonds shall be on a form approved by the County Counsel and shall be filed with the Department of Building and Safety. (1) SINGLB BONDS. Corporate surety bonds in the penal sum of rive Thou. sand Dollars (85,000). The bond shall be executed by the operator as Principal and by the authorized surety company as Surety and condition• ed that the Principal named in the bond shall faithfully comply with all the provisions of this Code in drilling or re -drilling and maintaining all production facilities as required by this Code until properly abandoned in conformity with the provisions hereof. The bond shall secure the County of Orange against all costs, charges and expenses incurred by it by reason of the failure of the Principal to fully comply with the pro• visions of this Code. The bond shall include the correct name or number • of the well and such other information as may be necessary to readily identify the oil well. (2) BLANKET BONDS. Any operator may, in lieu of filin a single bond for each well as required by the foregoing Subsections (a) and (b) of this Section, file a bond in the amount of Twenty-five Thousand Dollars ($25,000) to cover all of his said operations conducted within the 70-6 § 97.016 OIL DRILLING AND PRODUCTION REGULATIONS § 77.016 County of Orange. A rider to said bond shall be filed with the Superin. tendent showing the correct name or number of the well and such other information as may be necessary to readily identify the oil well for each well covered by the bond. (d) Default in performance of conditions; notice to be given. (1) Whenever the Superintendent finds that a default has occurred in the performance of any requirement of condition of these regulations, written notice thereof shall be given to the Principal and to the Surety on the bond. (2) Such notice shall specify -the work to be done, the esti- mated cost thereof and the period of time deemed by the Superintendent to be reasonably necessary for the completion of such work (3) After receipt of such notice, the Surety shall within the time therein specified either cause or require work to be performed, or failing therein, shall pay over to the Superintendent the estimated cost of doing the work as set forth in the notice, plus an additional sum equal to twenty-five percent (25%) of said estimated cost. Upon receipt of such moneys, the Superintendent shall proceed by such mode as he deems convenient to cause the required work to be performed and com- pleted, but no liability shall be incurred therein other than for the ex- penditure of said sum in hand. In the event that the well has not been properly abandoned under the regulations of the Division of Oil and Gas, such additional moneys may be demanded from the Surety as is necessary to restore the drill site in conformity with the regulations of this Code. (e) Exoneration: Any bond issued in compliance with these regulations shall be terminated and cancelled and the Surety be relieved of all obligations thereunder when the well has been properly abandoned in conformity with all regulations of this Code and in conformity with all regulations of the Division of Oil and Gas and notice to that effect has been received by the Department of Building and Safety. (f) Substitution: A substitute bond may be filed in lieu of any bond on file here- under and the Superintendent shall accept and file the same if it is qualified and in proper form and substance and the bond for which it is substituted shall be exonerated but only if the Superintendent finds that all of the conditions of last mentioned bond have been satisfied and that no default exists as to the performance upon which the bond is con. ditioned. (0rd. No. 1097; added by Ord. No. 1187, Sec. 2.) 70-7 1 77.017 LAND USE .AND BUILDING REGULATIONS 177.017 Sec. 77.017. Permit fees. (a) Drilling or re -drilling permit fees. A fee for each drilling permit or re -drilling permit shall be paid to the Superintendent as set forth in Subsection (e) hereunder. Where drilling, re -drilling, construction, or other work for which a permit is required by this Code is started or proceeded with prior to • obtaining said permit, the fees hereunder specified shall be doubled, but the payment of such double fee shall not relieve any persons, firms, corporations or employees from fully complying with the requirements of this Code or the execution of the work, nor from any other penalties prescribed herein. (b) Plait -checking fees. A plan -checking fee shall not be charged for the derrick, or its appurtenances. A plan -checking ice shall be charged for all permanent buildings, production tanks, washing tanks, skim ponds and such other structures not directly connected with the derrick itself. A plan -checking fee shall be charged for oil well cellars designed to accommodate more than one oil well. Said plan -checking fee shall be equal to one-half of the building permit fee as set forth in Subsection (e) hereunder. (c) Annual inspection fees. The Superintendent shall inspect annually and at such other times as he deems necessary, each producing oil well and suspended oil well re fated by this Code for the purpose of ascertaining whether the well is being operated or maintained in conformity with the minimum stan• dards of this Code. To meet the expense of such inspection, the operator shall pay to the Department of Building and Safety an annual inspection fee as specified in Subsection (e) hereunder. The year for which each fee is applicable runs from July 1 to June 30. The fees shall be based upon the total number of wells existing (whether producing or not) on July 1. The fees all be due prior to July 1 of the year to which they pertain. No additional fee shall be charged for additional inspections which may be required during the year. The Superintendent a keep a permanent, accurate account of all annual inspection fees collected and received under this Code, the name of the operator for whose account the same were paid, the date and amount thereof, together with the well . name and designation and the general location of tha well. A report of the Superintendents annual inspection findings shall be furnished operator. (d) Building ,permit fees. A building permit fee shall be charged for the erection or con- struction or relocation of any permanent building, tank or other struc• 70-8 § 77.018 OIL DRILLING AND PRODUCTION REGULATIONS § 77.018 tures hereinabove included and such fee shall be based on the total val. uation of the structure when completed. (e) Permit and inspection fees. (1) The sum of One Hundred Dollars ($100.00) shall be charged for the drilling or re -drilling of any oil well, no part of which shall be refundable. (2) Annual Inspection Fees. The sum of Ten Dollars • ($10.00) per well shall be charged for the annual inspection of each existing, suspended, or producing oil well. (3) All construction work for which a building permit is required shall be based upon the fees listed in the current Uniform Building Code adopted by the Board of Supervisors of this County. (f) Permit utilization. No permit issued hereunder shall be valid unless utilization of the privileges granted thereby be commenced within sixty (60) days form and after the date of issuance of the permit and diligently and progres- sively prosecuted thereafter. (Ord. No. I097, Sec. 5; amended by Ord. No. 1237, Sec. 7; amended by Ord. No. 1312, Sec. 1.) , See. 77.018. Drilling and operating. (a) Location of oil wells. (1) No oil well shall be drilled within the following dis. tances measured from the centerline of any local street, or any highway shown on the Master Plan of Arterial Highways, as amended: Major Highways: 210 feet Primary Highways: 200 feet Secondary Highways: 190 feet Local Streets: 180 feet, except that in the case of a local street, the right of way of which is more than 60 feet in width, the distance shall be 150 feet plus one-half of the exist- ing right of way. In the case of a local street, the right of way of which • is more than sixty (60) feet in width, the Superintendent may determine that because of the degree of slope or other feature of the topography, a lesser distance than one-half of the right of way in addition to the one hundred fifty (150) feet is reasonable to insure the safety of the travel- ing public in conformity with the purpose and intent of this provision, in which case the distance thus set by the Superintendent shall prevail. No oil well shall be drilled within one hundred fifty (150) feet of the nearest rail of a railway which carries passengers for hire. 70-9 1 77.018 LAND USE AND BUILDING REGULATIONS 177.018 (2) No oil well shall be drilled within one hundred fifty (150) feet of any building used for human occupancy, nor shall any such buildings be erected within one hundred fifty (150) feet of any oil well not abandoned, except buildings incidental to the operation of the well. No oil well shall be drilled within one hundred fifty (150) feet from the outer boundary line. (3) No oil well shall be drilled within three hundred (300) feet of any building used as a place of public assemblage, institution, or school; nor shall any such building be erected within three hundred (300) feet of any oil well not abandoned. (4) In any area adjacent to an existing oil well, the Super. intendent may suspend any provisions of Subsection (a) in whole or in part, or impose less restrictive requirements if such provisions or requirements are rendered unnecessary or unreasonable by the then existing special features, such as: topography, nature of the use and occupancy of and the proximity to buildings on adjoining property, the height, character and structure of such buildings, the type and character of oil field development and may impose additional safety requirements rendered necessary because of such special features. (b) Private roads and drill sites. Prior to commencement of any drilling operations, all pprivate roads used for access to the drill site and the drill site itself shall be sur- faced by clean, crushed rock, gravel or decomposed granite, or oiled, and maintained to prevent dust and mud. In particular cases these requirements governing surfacing of pri- vate roads and drill sites may be altered nt the discretion of the Super- intendent after consideration of all of the circumstances including but not limited to distances from public streets and highways, distances from adjoining and nearby property owners whose surface rights are not leased by the operator and the purposes for which the property of such owners are or may be used, topographical features, nature of the soil and exposure to wind. (c) Derricks. All derricks and masts hereafter erected for drilling or re -drilling shall be at least equivalent to the American Petroleum Institute Stan- dards 4A, 14th Edition and Q, 3rd Edition. (d) Signs. A sign having a surface area of not less than two (2) square feet and no more than six (6) square feet bearing the current name and number of the well and the name and/or insignia of the operator shall be displayed at all times from the commencement of drilling operations until the well is abandoned. In the event there are more than two (2) 70-10 • $ 77.018 OIL DRILLING AND PRODUCTION REGULATIONS 3 77,018 producing wells on one leasehold, it shall be sufficient if the entrances to said leasehold are posted with a sign not less than 18 inches by 24 inches bearing the name of the operator together with the name or designation of the lease, together with an openly visible sign on each producing well designating the particular number thereof. (e) Blow-out prevention. • Protection shall be provided to prevent the blow-out of an oil well, during drilling and re -drilling operations and shall conform to the requirements of the State of California, Petroleum Safety Orders — Drilling and Production Section 6691 of the Administrative Code of California. (f) Blow-out prevention for wells other than drilling Wells. (1) Protection shall be provided to prevent the blow-out of an oil well, conforming to the requirements of the State of California Safety Orders —Drilling and Production, Section 6692 of the Adminis- trative Code of California in the following cases: a. During perforating, shooting or cutting off a string of casing. b. During well servicing operations on a well that is known to have sufficient gas pressure to cause the well to flow, or where the gas pressure is unknown. (2) The operator shall notify the Superintendent, in writ- ing, at least one (1) day before any of the operations described in this Subsection are commenced. In the event that the day following the day on which notice be given falls on a Saturday, Sunday, or holiday, then such additional days notice must be given as may be required so that there shall be one day, Saturday, Sunday and holidays excepted, be- tween the date notice be given and any of the said operations com- menced. (g) Waiver of blow-out prevention requirements. The blow-out preventive requirements of the foregoing Subsec- tions (e) and (f) may be waived by the Superintendent upon such con- ditions and for such operations as he may determine, upon written • application by the operator and upon a showing by him of sufficient cause therefor based upon information regarding depth of hole, probable gas pressures to be encountered, the proposed drilling, completion or abandonment program or whatever further information the Superin- tendent may require. (h) Sumps or sump holes. Rotary mud, drill cuttings, oil field waste, oil or liquid hydro- 70-11 4 77.018 LAND USE AND BUILDING REGULATIONS 177.018 carbons and all other oil field wastes derived or resulting from, or con- nected with the drilling of any well shall be discharged into a sump hole or steel tank. Such drill cuttings, rotary mud, and drilling waste materials shall be removed from the drill site upon completion of drilling operations. Tanks used as and for sump ppurposes shall be re• moved' from the drill site and sump holes shall be drained and back filled within thirty (30) days from and after completion of drilling. (f) Fencing. All sumps or sump holes and all oil well production equipment having external, moving parts hazardous to life or limb shall be at. tended 24 hours per day or be enclosed by a steel chain link type fence not less than six (6) feet in height and in addition having not less than three (3) strands of barbed wire sloping outward at approximately a 45° angle and for eighteen (18) inches from the top'of the fence. There shall be no aperture below such fence greater than four (4) inches. Fence gates shall be placed at nonhazardous locations and shall be locked at all times when unattended by a watchman or service man. (j) Cedars. The following regulations shall apply to cellars: (1) Every cellar shall be constructed in accordance with Chapters 23, 26, and 33 of the Uniform Building Code, adopted by the Board of Supervisors of the County of Orange as set forth in Division 1 of this Title. (2) Such cellars shall be kept free from water, oil drilling fluids, or other substances which might constitute a hazard, except during drilling and servicing operations. (3) The depth of such cellars shall be the vertical measure• ment between the lowest point of the floor area in the bottom of such cellar and the lowest point of ground or any surface adjacent to the top of the cellar wall. (4) All multi well cellars exceeding three (3) feet in depth and twenty-five (25) feet in length shall have two separate means of exit or entrance. If the cellar exceeds fifty (50) feet in length, one of - the means of entrance or exit shall be a stairway. If the cellar exceeds two hundred (200) feet in length, a third means of entrance or exit shall be provided. (5) Multi well cellars shall have a steel grate covering with no unobstructed openings in excess of three (3) inches. Materials, equip- ment, or other appurtenances shall not be stored or placed on the grating so as to interfere with the escape of gases and vapors, W05-a § 77.018 OIL DRILLING AND PRODUCTION REGULATIONS § 77,018 (k) Removal of equipment. All drilling equipment and the derrick shall be removed from the premises within sixty (60) days following the completion, abandonment or desertion of any well. Once the well is a producing well, it shall be serviced with a portable derrick when required. Drilling operations shall be diligently prosecuted until the well is completed or abandoned. . (1) Soundproofing. Soundproofing shall comply to the following specifications when required by the provisions of Section 78.024 of this Title. Soundproof- ing accoustical blankets for the drilling derrick and accessory structures shall be: fibrous glass insulation 11/2" thick, 0.50 pounds per cubit foot, density, .063 pounds per square foot, weight, .00010 to .00015 fiber diameter (inches) with a phenolic binder having a temperature limit of 450° F. sewed between layers of fire retardent, vinyl fiber glass cloth, 15.17 ounces per square yard sewed with dacron thread D-92 with stitches not more than 6 to the inch. The lacing cord shall be Rat vinyl coated tape composed of fibrous glass yarn braided, heat set and bonded. The tape shall have a 90 pound tensil strength. Grommets shall be #4 brass. All doors and similar openings shall be kept closed, during drill. ing operations, except for ingress and egress. (m) Alternate materials and methods of construction. The provisions of this Code are not intended to prevent the use of any material or method of construction not specifically prescribed by this Code, provided any such alternate has been approved. The Superintendent may approve any such alternate provided he finds that the proposed design is satisfactory and complies with the intent of this Code, and that the material or method offered is, for the purpose intended, at least the equivalent of that prescribed in this Code in quality, strength, effectiveness, fire resistance, durability and safety. The Superintendent shall require that sufficient evidence or proof be submitted to substantiate any claims that may be made regarding its use. Whenever there is insufficient evidence of compliance with the intent of this Code or evidence that any material or any construction does not conform to the requirements of this Code, or in order to sub- stantiate claims for alternate materials or methods of construction, the Superintendent may require tests as proof of compliance to be made at the expense of the owner or his agent by an approved agency. Test methods shall be as specified by this Code, for the material in question. If there are no appropriate test methods specified in this Code, the Superintendent shall determine the test procedure. Copies of the results of all such tests shall be retained for a period 70-13 ¢ 77.019 LAND USE AND BUILDING REGULATIONS i 77.019 of not less than two (2) years after the acceptance of the materials or methods. (Ord. Na. 1097, Sec. 6; amended by Ord. No. 1187, Secs. S, 6, 7; amended by Ord. No. 1237, Secs. 1, 2; amended by Ord. No. 1312, Sec. 2.) See. 77.019. Abandonment procedure. It shall be the responsibility of the Superintendent to determine that the drill site and all facilities pertinent thereto have been restored to their original condition as nearly as practicable in conformity with the regulations of this Code including the following requirements: (a) Standard. (1) It shall be the responsibility of the operator to comply with the abandonment provision of this Code and he shall furnish the Superintendent the approval of the Division of Oil and Gas, Department of Natural Resources, confirming compliance with all abandonment proceedings under the State laws. It shall be the responsibility of the operator to comply with the abandonment provision of this Code and be shall furnish the Super- intendent with a) copy of the approval of Division of Oil and Gas, Department of Natural Resources, confirming compliance with all abandonment proceedings under the State law, and b) a notice of in- tention to abandon under the provisions of this Section and stating the date such work will be commenced. Abandonment may then be com- menced on or subsequent to the date so stated. Abandonment shall be approved by the Superintendent after restoration of the drill site and the subsurface thereof has been accomplished in conformity with the following requirements: a. The derrick and all appurtenant equipment thereto shall be removed from the drill site. b. All tanks, towers and other surface installations shall be removed from the drill site. c. All concrete, pipe, wood and other foreign mate• rials shall be removed from the drill site to a depth of six (6) feet below grade, unless part of a multi well cellar then being used in connection with any other well for which a permit has been issued. d. The oil well casing shall be cut off at a point six feet (6') below the drill site grade at the cellar, but in no case below sea level. Nothing shall be placed in the hole above the point of cut-off until the cut-off has been inspected by the Superintendent and by him found to be in compliance with a applicable provisions of law. 70--1h 17J 0 5 77:0110 OIL DRILLING AND PRODUCTION REGULATIONS 3 77.0110 e. The top ten feet (10') of the remaining casing shall be filled with a cement plug to prevent gas fumes from escaping. f. A steel cap of not less than the same thickness as the well casing shall be tack welded to the casing in a minimum of four (4) places. g. All holes and depressions shall be filled and packed with native earth. All oil, waste oil, refuse or waste material shall be • removed from the drill site. (b) Conversion to water well. A well may be converted to a domestic or agricultural water well upon the approval of the Superintendent after: (1) A request in writing by the land owner has been made to the Superintendent. (2) An original or certified copy of the approved conver- sion permit from the Division of Oil and Gas has been furnished the Superintendent. (3) All the provisions of abandonment in the preceding Subsection have been complied with except that those appurtances nec. essary in the opinion of the Superintendent for the operation of a water well may be retained. (Ord. No. 1097, Sec. 7.) Sec. 77.0110. Called inspections. Except as provided in Subsection (b) hereof no drilling, re - drilling, work or construction shall be done beyond the point indicated in each successive inspection without first obtaining the written approval 6f the Superintendent. (a) Site preparation. (1) The well location shall be clearly marked by a stake or other suitable means and identified as the "well location". (2) The drill site shall be prepared as required in these regulations and shall be of such size so as to provide for the safe • erection of the mast or derrick and all appurtenant structures thereto as indicated on the approved plot plan. (3) Any private road used for ingress and egress of equip- ment to the drill site shall be prepared as required by these regulations. (4) The proposed well shall be located in conformity with these xegulations as to the distances from streets, outer boundaries, public buildings and dwellings. 70-15 1 77.0111 LAND USE AND BUILDING REGULATIONS i 17.0111 (b) Commencement of drilling. The Superintendent shall be called and notified when the drilling derrick or mast has been erected in conformity with these regulations and all necessary equipment pertinent to the drilling operations thereof has been installed and is on the site. Drilling may proceed prior to inspection of the derrick or mast, provided that its design has been previously approved by the Superintendent. It will be the obligation of the Superintendent to inspect such facilities as to their conformity • with these regulations as soon as reasonable practicable. (c) Release of drilling crew. The Superintendent shall be notified immediately in writing, when the drilling crew is released and it shall then be his duty to inspect. (d) Completion of drilling. Upon completion of drilling operations an inspection request shall be called for. (e) Abandonment. An inspection shall be made subsequent to the approval of the abandonment notice and the Superintendent shall certify that the well has been abandoned in conformity with all regulations to a depth of six (6) feet below grade. (Ord. No.1097, See. 8.) See. 77.0111. Notices required. (a) Service of notice. Every operator of mi oil well shall designate an agent who is a resident of the State of California, upon whom all orders and notices provided in this Code may be served in person, or by registered, or certi- fied mail. Every operator so designating such agent shall within ten (10) days notify the Superintendent, in writing, of any change in such agent or such mailing address unless operations within the County are discon- tinued. Service by registered, or certified mail, or in person on the agent so designated shall constitute service for all purposes of this Code. (b) Transfer of operator. The operator shall notify the Superintendent in writing of the sale, assignment, transfer, conveyance, or exchange by said operator of wells, property and equipment within ten (10) days after such sale, assignment, transfer, conveyance or exchange. The notice shall contain the following. (1) The name and address of the person to whom such well and property was sold, assigned, transferred, conveyed or exchanged. 70-.16 9 77.0111 OIL DRILLING AND PRODUCTION REGULATIONS 177.0111 (2) The name and location of the well. (3) The date of sale, assignment, transfer, conveyance, or exchange. (4) The date when possession was relinquished by the former operator. (5) A description of the properties and equipment trans- ferred. Every person who acquires any well, property, or equipment, whether by purchase, transfer, assignment, conveyance, exchange, or otherwise shall within ten (10) days after acquiring such well, property, or equipment notify the Superintendent, in writing, of his ownership. The notice shall contain the following: a. The name and address of the person from whom such well and property was acquired. b. The name and location of the well. c. The date of acquisition. d. The date possession was acquired. e. A description of the properties and equipment transferred. f. The person designated for service of notice and his address. (e) Suspension of drilling and re -drilling operations. The operator of any well shall notify the Superintendent, in writ- ing, of any temporary suspension of operations, pending a resumption of operations or abandonment. The Superintendent, for good cause, may approve temporary suspension of operations. Such notice shall be filed with the Superintendent within thirty (30) days from and after release of drilling crew. Failure of the Superintendent to act within ten (10) days shall constitute approval thereof. The operator shall notify the Superintendent, in writing, upon resumption of operations giving the date thereof. (d) Change in drilling contractor. The operator before changing drilling or re -drilling contractors, . shall file with the Superintendent a written notice of the change, giving the name of the original contractor, and the name of the proposed con. tractor, and such information as was originally required to meet the design and structural requirements of this Code. Such notice- shall be attached to and become a part of the original oil drilling or re -drilling permit. (Ord. No. 1097, Sec. 9.) 70-17 ¢ 77.0112 LAND USE AND BUILDING REGULATIONS 117.0112 See. 77.0112. Storage facilities. (a) Storage capacity. (1) Maximum Tank Capacity for each Producing Oil Well: If oil or other liquid storage facilities are established incidental to a producing well on a drill site, such storage facilities shall not exceed a total of 2,000 barrels per well. (b) Design and construction of tanks. All tanks shall be constructed in conformity with the current Uni• form Building Code adopted by the Board of Supervisors of this County. (c) Foundations and supports. Tanks shall rest directly on the ground or on foundations, sup- ports or pilings of concrete, masonryy, steel, crushed rock or wood. Tao - posed piling or steel supports shall be protected by fire resistive mate- rials to provide a fire resistance rating of not less than two (2) hours. Stairs, platforms and walkways which extend more than three feet (Y) above the surrounding ground level shall be of incombustible construc- tion. (d) Spacing between tanks. (1) No tank for the storage of any flammable liquid shall be located closer than three feet (3') to any other such tank. (2) For tanks above 50,000 gallons individual capacity for the storage of any flammable liquid, except crude petroleum, the distance between such tanks shall not be less than one-half the diameter of the smaller tank. (3) Tanks for the storage of crude petroleum having capa. cities not exceeding 126,000 gallons (3,000 barrels) shall not be less than three feet (T) apart; tanks having a capacity in excess of 126,000 gallons (3,000 barrels) shall be not less than the diameter of the smaller tank apart. (4) The minimum separation between a liquified petroleum gas container and any other tanks for the storage of any flammable liquids shall be twenty feet (20'). Suitable means shall be taken to pre- vent the accumulation of flammable liquids under adjacent liquified - petroleum gas containers such as by diking, diversion curbs or grading. When flammable liquid storage tanks are diked, the liquified petroleum gas containers shall be outside the diked area and at least ten feet (10') away from the center line of the dikes. The foregoing provision shall not apply when liquified petroleum gas containers of 125 gallon or less capacity are installed adjacent to Class III flammable liquid storage tanks of 275 gallons or less capacity. 70-18 § 77.0112 OIL DRILLING AND PRODUCTION REGULATIONS § 77.0112 (e) Location of tanks. Minimum distance between any outside above ground tank to the nearest building or line of adjoining property which may be built upon: (1) Flammable liquids other than those having boil -over characteristics similar to crude petroleum: Class of • Flammable Minimum Capacity of Tank Liquid Distance 0 to 275 gals. III 0 feet 276 to 750 gals. III 5 feet 0 to 750 gals. I and II 10 feet 721 to 12,000 gals. III 10 feet 751 to 12,000 gals. I and II 15 feet 12,001 to 24,000 gals. I, II and III 15 feet 24.,001 to 30,000 gals. I, II and III 20 feet 30,001 to 50,000 gals. I, II and III 25 feet (2) Crude petroleum and other liquids having boil -over characteristics similar to crude petroleum and flammable liquid tanks with capacity in excess of 50,000 gallons: STORAGE FACILITIES Crude Petroleum and Tanks with Capacities in Excess of 50,000 Gallons Tanks with capacities in excess of 50,000 gallons and all tanks for the storage of crude petroleum shall be located in accordance with the following provisions (applicable to gas -tight tanks including con- servation type tanks constructed in compliance with these or equivalent standards) : 70-19 Distance From Line of a Adjoining Property Which o Product Stored Tank Protection May be Built Upon Shall f Be Not Less Than Refined Petroleum Products or other flammable liquids not subject to boil -over. Crude Petroleum' 0 Group A Tanks Group B Tanks Group C Tanks 1) An approved permanently attached extinguishing sys- tem or 2) An approved floating roof. Not equipped with either of the above 1) An approved permanently attached extinguishing sys. tern or 2) An approved floating -roof Greatest dimension of dia- meter or height of tank, ex- cept that such distance need not exceed 120 feet. 1% times the greatest di- mension of diameter or height of tank except that such distance need not ex- ceed 175 feet 2 times the greatest dimen- sion of diameter or height of tank except that such dis- tance shall not be less than 20 feet and need not exceed 175 feet Not equipped with either of 3 times the greatest dimen- Group the above. sfon of diameter or height I) of tank except that such dis- Tanks tance shall not be Iess than 20 feet and need not exceed 350 feet tv m M td GG't3 P tv c� �i z u, M 0 N 9 77.0112 OIL DRILLING AND PRODUCTION REGULATIONS 3 77.0112 a. GROUP A TANKS. Any gas -tight tank* constructed in compliance with these or equivalent standards and equipped either with: 1. An approved permanently attached extinguish- ing system or, 2. An approved floating roof, which is to be used • only for the storage of refined petroleum products or other flammable liquids not subject to boilover, shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than the greatest dimension of diameter or height of the tank, except that such distance need not exceed 120 feet. b. GROUP B TANKS. Any gas -tight tank* constructed in compliance with these or equivalent standards but not equipped either with: 1. An approved permanently attached extinguish- ing system or, 2. An approved floating roof, which is to be used only for the storage of refined petroleum products or other flammable liquids not subject to boil -over, shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than 1% times the greatest dimension of diameter or height of the tank, except that such distance need not exceed 175 feet. c. GROUP C. TANKS. Any gas -tight tank* constructed in compliance with these or equivalent standards and equipped either with: 1. An approved permanently attached extinguish. ing system or, 2. An approved floating roof, which is to be used for the storage of crude petroleum, shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than twice the greatest dimension of diameter or height of the tank except that such distance shall be not less than 20 feet and need not exceed 175 feet. d. GROUP D TANKS. • Any gas -tight tank* constructed in compliance with these or equivalent standards and not equipped either with: 1. An approved permanently attached extinguish• ing system or, 2. An approved floating roof, which is to be used for the storage of crude petroleum, shall be so located that the distance from the line of adjoining property which may be built upon shall be not less than three times the greatest dimension of 70-21 1 77.0112 LAND USE AND BUILDING REGULATIONS 177,0112 diameter or height of the tank except that such distance shall not be less than 20 feet and need not exceed 350 feet. NOTE: The term "approved attached extinguishing system", as used in the foregoing description may be interpreted to apply to: 1. A fixed foam or other recognized extinguishing system embodying a supply of the extinguishing medium, or, 2. A system employing a pipe lisle for conveying foam . from a point outside the dike to the tank, or, 3. Portable overshot devices for applying foam over the rim of the tank. Where reliance is placed on a pipe line for convey- ing foam, the pipe line shall be so installed and attached as to be an integral part of the tank. Where reliance is placed on a portable over- shot device, the practicability of its use shall be demonstrated before approval. Approved foam generating equipment of sufficient capacity should be available on the property, by response of a municipal or other public fire department, or otherwise readily available; and there should be on hand or otherwise readily available a sufficient supply of foam• producing materials as specified in NBrU Standards for roam Ex- tinguishing Systems, No. 11. 4. Buildings Essential to the Operation of the Storage facilities : (Building Location) No building used for human occupancy, except buildings essential to the operation of the storage facilities shall be erected within the distances set out in the tables above, from such storage tanks. "The term gastight tank includes so-called conservation type tanks. (f) Diverse ownership. Where tank locations of diverse ownership have a common boun- dary, the Superintendent may, with the written consent of the owners, waive the required distances from the common property line and sub. stitute the space between tanks as provided in this Section. (g) Dikes, diversion walls and catchment basins. (1) REQUIRED. Tanks used for the storage of crude petro- leum and other flammable liquids having similar boil -over character• istics shall be diked, or provided with approved diversion walls and catchment basins, or combinations thereof. (2) REPEALED. (3) LOCATION .No catchment basin or diked impounding area shall be located closer to the outer boundary line, or to any building designed for human occupancy than the diameter or height (whichever is greater) of the largest tank served by such basin or area, nor shall any building designed for human occupancy be erected or placed closer than such distance to any catchment basin or diked impounding area. 70-22 § 77.0112 OIL DRILLING AND PRODUCTION REGULATIONS § 77.0112 (4) CAPACITY. The net capacity of a catchment basin, diked impounding basin, or any combination thereof shall be equal to the capacity of the largest tank, plus 10% of the aggregate capacity of all other tanks served. In computing the required capacity of a catch. ment basin, diked impounding basin or combination thereof: a. The volume of the largest tank up to the height of the dike shall be considered as part of the available capacity of a . diked impounding basin. b. No part of the volume of tanks other than the largest tank shall be considered as part of the available capacity. c. The capacity of a separate catchment basin may be used to reduce the required capacity of a diked impounding basin provided drainage sufficient to prevent overflow of the dike and effective control of flow are provided. d. The capacity of a single separate catchment basin may be applied to reduce the required capacity of each of the diked impounding basins draining into it. (5) CONSTRUCTION. Dikes shall be of earth, concrete or solid masonry designed to be liquid tight and shall be maintained. Where piping passes through dikes, provision shall be made for movement without damage to the dike and to minimize leaks under emergency conditions. Earthen dikes shall be built and maintained at a minimum height of two feet (2'), have sloping sides consistent with the angle of repose of the material used, and be not less than two feet (2') wide at the top. The distance between the inside toe of any dike and the shell of the tank shall be not less than five feet (5') for tanks not more than thirty feet (30') in diameter and ten feet (10') for tanks in excess of thirty feet (30') in diameter. a. Spill Dikes. Where tanks within a common diked impounding basin may cause mutual exposure from spills, spill dikes shall be provided between tanks of 10,000 barrels or greater individual capacity. Groups of tanks of less than 10,000 barrels individual capacity and not in excess of 15,000 barrels aggregate capacity may be enclosed within a single spill dike. The height of such spill dike shall not exceed 507o of the height of the main or perimeter dikes. • b. Drainage. Drainage shall be provided at a con- sistent slope of not less than 1% away from tanks and fittings to a SUMP, drain box or other safe means of disposal located within the diked impounding area and at the greatest possible distance from the shell of the tank. Traps with not less than six (6) inches of liquid seal shall be provided between the sumps, drain boxes or sewer open- ings within any impounding area and the sewers or drains intended for the disposal of spills. A valve, operable from outside the dike, shall 70-23 1 77.0112 LAND USE AND BUILDING REGULATIONS 177.0112 be provided in the dike drain system and shall normally be kept closed. c. Disposal. Approved provisions shall be made for disposing of water and of oil retained by dikes, impounding or catch- ment basins. (h) Suspension of requirements. In particular installations, some or all of the requirements of Subsection (d), (a), and (g) of this Section governing storage facilities may be suspended, in whole or in part, or less restrictive requirements may be imposed pending further order of the Super- intendent, where such requirements are rendered unnecessary or unreasonable by reason of the then existing special features such as: topography, nature of occupancy and proximity to buildings on ad• joining property, the height and character of construction of such buildings, capacity and construction of the proposed tanks and the character of liquids to be stored, the degree of private fire protection to be provided and the facilities of the fire department to cope with flammable liquid fires. (i) Skim ponds. Any open, accessible, surface or subsurface installation used for the disposal of permitted waste liquids shall be fenced in accordance with the preceding fencing provision. (j) Loading by truck from production tank sites. LOCATION. Tank vehicle loading racks, loading platforms or movable loading spouts or arms dispensing flammable liquids shall be separated from tanks, warehouses, other buildings, public streets and nearest line of property that may be built upon by a clear distance of not less than twenty-five feet (25 ), measured from the nearest po- sition of any fill stem. Buildings for pumps or for shelter of loading personnel may be part of the loading rack or platform. No person shall load or unload, or permit the loading or unloading of a tank vehicle unless such vehicle is located outside of any public street right of way. - LOADING AND UNLOADING OPEMTIONS. During the loading or unloading of a tank vehicle, a qualified person shall be at the loading or unloading controls. Provision shall be made for the safe disposal of the oils released by overflow and from loading spouts or lines. (Ord. No.1097, See.10; amended by Ord. No.1237, Secs. 3, 4, 5, 6, 8.) 7 0-24 A 77.0113 OIL DRILLING AND PRODUCTION REGULATIONS 9 77.0114 Sec. 77.0113. High pressure pipe systems. All piping subjected to pressures in excess of 150 P.S.I. shall be constructed and installed in accordance with the Building Code of the County of Orange, adopted by the Board of Supervisors as set forth in Division 1 of this Title. (Ord. No.1097, Sec.11.) Sec. 77.0114. Fire prevention, sources of ignition. (a) Electrical equipment. All electrical equipment used, installed or maintained within fifty feet (50') of a drilling well and within twenty-five feet (25') of a producing well shall be installed and maintained in accordance with the regulations of the California Electrical Safety Orders, Article 22, Hazardous Locations, Class I, Division 2, heretofore adopted by the Board of Supervisors as Ordinance No. 786 of the County of Orange. (b) Internal combustion engines, storage tanks, fired equipment and open flames. No internal combustion engine, storage tanks, boiler, fired equipment or open flames except welding supervised by the production foreman, drilling foreman, drilling engineer, drilling supervisors, or safety supervisors shall be located closer than twenty-five feet (25') to a producing well nor closer than one hundred feet (IO0') to a drill- ing well. Internal combusion engines (and their fuel tanks) used in the drilling, production and servicing of oil wells are exempt from the above provisions. During drilling operations on a drill site of 2 acres or less in area where two or more wells are drilled and drilling and production equipment are located on such sites, the provisions in this Subsection relating to distances of storage tanks may be altered at the discretion of the Superintendent after consideration of the special features such as: topographical conditions; nature of occupancy and proximity to buildings on adjoining property and height and character of construction of such buildings; capacity and construction of pro- posed tanks and character of liquids to be stored; degree of private fire protection to be provided, and facilities of the fire department to cope with flammable liquid fires. (e) Muffling exhaust. • The engines used in connection with the drilling of any oil well or in any production equipment of any oil well shall be equipped with an exhaust muffler to prevent excessive or unusual noise. Means shall be provided on all engines used during drilling operations to prevent the escape of flames, sparks, ignited carbon and soot. (d) Flammable waste gases and vapors. Flammable waste gases or vapors escaping from a production 70-25 1 77.0114 LAND USE AND BUILDING REGULATIONS 177.0114 drill site shall be burned or controlled to prevent hazardous concen. trations reaching sources of ignition or otherwise endangering the area. (1) FLARES. Approved means of ignition sball be provided whenever hydrocarbon gases are released to the air through flares (2) VENTING. Gases or vapors not burned maybe discharg. ed to the atmosphere at not less than twenty feet (20') vertically above grade and not less than twenty-five feet (25') horizontally from any source of ignition and at locations that do not create a hazard to the general area. (c) Waste control of drill site, (1) No person shall permit or cause to be permitted the discharge of any liquid containing crude petroleum or its products into or upon any street, public highway, drainage canal or ditch, storm drain or flood control channel. (2) No person shall permit or cause to be permitted any a11, waste oil, refuse or waste material to be on the surface of the ground, under, around or near any oil well, pump, boiler, oil storage tank or building except within an oil sump, tank, catchment basin or skimming pond. (3) All land within twenty-five feet (25') of any oil well, flammable liquid tank or other appurtenance to any such well shall be at all times kept free and clear of dry weeds, grass, rubbish or other combustible debris. When this distance is not sufficient to provide reasonable fire safety, a greater distance may be required which shall not exceed the height of the derrick or greatest dimension of the tank. (f) Smoking No person shall smoke nor cause, permit or allow another person to smoke within fifty (50) feet of any well, tank location, or any area contaminated by oil or waste gas. (g) Fire control equipment. A minimum of Two (2) fire extinguishers shall be maintained at all oil well locations where drilling, servicing or repair work is being conducted. Each such extinguisher sball have a minimum classi- fication of 20B as set forth in N.B.F.U. No. 10, N.F.P.A. No. 10, "First Aid Fire Appliance", as adopted by the Board of Supervisors, County of Orange, as set forth in Division 2 0£ this Title. (Ord. No. 1097, Sec. 12.) 70-26 § 77.0115 OIL DRILLING AND PRODUCTION REGULATIONS § 77.0116 Sec. 77.0115. Enforcement. It shall be the duty of the Superintendent to enforce the pro. visions of the Code. If at any time the Superintendent finds any operator is violating any of the provisions of this Code, he may order immediate compliance. If immediate compliance is not obtained, the Superin- tendent shall order immediate cessation of operations. The operator . shall immediately comply with the order of the Superintendent to cease and shall not resume any operations until written approval by the Superintendent is had. (Ord. No. 1097, Sec. I3.J Sec. 77.0116. Appeals. (a) The Board of Supervisors shall have and exercise the power to hear and determine appeals where it is alleged there is error or abuse of discretion in any order, requirement, decision or determination made by the Superintendent in the administration or enforcement of any of the provisions of this Code. (b) An appeal shall be in writing and shall be filed in triplicate in the office of the Superintendent. An appeal from any order, require• ment, decision or determination by the Superintendent must set forth specifically wherein it is claimed there was an error or abuse of discre- tion by his action or where the decision is not supported by the evidence in the matter. (c) Any appeal not filed within ten days from and after the date of the order, requirement, decision or determination complained of shall be dismissed by the Board of Supervisors. (d) Within five days from and after the filing of the appeal, the Superintendent shall transmit to the Board of Supervisors all papers in. volved in the proceedings and two copies of the appeal. In addition, he may make and transmit to the Board of Supervisors such supplementary report as he may deem necessary to present clearly the facts and circum- stances of the case. (e) Upon receipt of the record, the Board of Supervisors shall set the matter for hearing and give notice by mail of the time, place and • purpose thereof to appellant and to the Superintendent and any other party at interest who has requested in writing to be so notified and no other notice need be given. (f) Upon the date for the hearing, the Board of Supervisors shall hear the appeal, unless for cause the Board of Supervisors shall on that date continue the matter. No notice of continuance need be given if the order therefor be announced at the time for which the hearing was set. Z��AI 1 77.0117 LAND USE AND BUILDING REGULATIONS 177,0117 (g) Upon the hearing of such appeal, the Board of Supervisors may affirm, change or modify the ruling, decision or determination ap- pealed from or in lieu thereof may make such other or additional deter- mination as it shall deem proper in the premises subject to the same limitations as are placed upon the Superintendent by this Code and by other provisions of law. (Ord. No.1097, Sec. 14.) Sec.77.0117. Penalty. • Any person violating any of the provisions of this Code shall be deemed guilty of a misdemeanor and upon conviction thereof shall be punishable by a fine of not more than five hundred dollars ($500.00) or by imprisonment in the County Jail for a period of not more than six months or by both such fine and imprisonment. Each such person shall be deemed guilty of a separate offense for each day or portion thereof during which any violation of any of the provisions of this Code is committed, continued or permitted by such person and shall be punish. able therefor as herein provided. (Ord. No..1097, See. 25.) 11 70-28 0 0 151M .A - ABANDONMENT PROCEDURE Conversion to water well, 77.019 (b). Standard, 77.019 (a). APPEALS, 77.0116. BONDS Bond forms, 77.016 (c). Default, 77.016 (d). .Existing wells, 77.016 (a). Exoneration, 77.016 (a). New wells, 77.016 (b). Substitution, 77.016 (f). CALLED INSPECTIONS Abandonment, 77.0110 (e). Commencement of drilling, 77.0110 (b). Completion of drilling, 77.0110 (d). Release of drill crew, 77.0110 (c). Site preparation, 77.0110 (a). DEFINITIONS, 77.013. DRILLING AND OPERATING Alternate materials and construc- tion methods, 77.018 (m). Blow-out prevention, 77.018 (e). Blow-out prevention for wells other than drilling wells, 77.018 (f). Waiver of blow-out preventive requirements, 77.018 (g). Cellars, 77.018 W. Derricks, 77.018 (c). Fencing, 77.018 (1). Location of oil wells, 77.018 (a). Private roads and drill sites, 77.018 (b). Removal of equipment, 77.018 (k). Signs, 77.018 (d). Soundproofing, 77.018 (1). Sumps or sumo Sioles, 77.018 (h). ENFORCEMENT, 77.0115. FIRE PREVENTION - SOURCES OF IGNITION Electrical equipment, 77.0114 (a).• Fire control equipment, 77.0114 (g). Flammable waste gases and va- pors, 77.0114 (d). Internal combustion engines,stor- age tanks and open flames, 77.0114 (b). Muffling exhaust, 77.014 (c). Smoking, 77.0114 (f). Waste control, 77.0114 (e). HIGH PRESSURE PIPE SYS- TEMS, 77.0113. NOTICES REQUIRED Change in drilling contractor, 77.0111 (d). Service of notice, 77.0111 (a). Suspension of drilling and re - drilling operations, 77.0111 (c). Transfer of operator, 77.0111 (b). PENALTY, 77.0117. PERMIT FEES Annual Inspection, 77.017 (c). Building permit, 77.017 (d). Drilling, or redrilling, 77.017 (a) - ,Plan -checking, 77.017 (b). Permit and inspection, 77.017 (a). Permit utilization, 77.017 (f). PPIUM PROCEDURE, 77.015. PERMITS, 77.014. PURPOSE, 77.012. STORAGE FACILITIES Design and construction of tanks, 77.0112 (b). Dikes, diversion walls and catch- ment basins, 77.0112 (g). Capacity, 77.0112 (9). Construction, 77.0112 (g). Location, 77,0112 (g). Required, 77.0112 (g). Diverse ownership, 77.0112 W. Foundations and supports, 77.0112 (c). Loading by truck from produc- tion sites, 77.0112 (j). Location of tanks (Crude petroleum, 77.0112 (e). Flammable liquids other than ,crude petroleum, 77.0112 (e). Skin ponds, 77.0112 W. Spacing between tanks, 77.0112 Storage capacity, 77.0112 (a). Suspension of requirements, 77.0112 (h). TITLE, REFERENCE TO CODE, 77.011. g 78.023 PLANNING g 78.023 C2 "General Business" Districts. MI "Light Industrial' Districts. BI "Buffer" Districts. MR "Manufacturing -Research" Districts. M2 "Unrestricted" Districts. (b) The boundaries of said districts shall be determined and • defined from time to time by the adoption of sectional district maps covering portions of Orange County, each of which said sectional dis- trict maps shall be, upon its final adoption, a part of the Official Land Use Plan of said County. (c) Each sectional district map showing the classifications and boundaries of districts, after its final adoption in the manner required by law, shall be and become a part of this Article and said map and all notations, references and other information shown thereon shall thereafter be as much a part of this Article as if all the matters and information set forth by said map were fully described herein. (d) Where uncertainty exists as to the boundaries of any dis- trict shown on said sectional district maps, the following rules shall apply: (1) Where such boundaries are indicated as approximately following street and alley lines or lot lines, such lines shall be construed to be such boundaries. (2) In unsubdivided property and where a district boundary divides a lot, the locations of such boundaries, unless the same are in- dicated by dimensions, shall be determined by use of the scale appearing on such sectional district map. (3) In case any further uncertainty exists, the Planning Commission shall determine the location of boundaries. (4) Where a public street or alley is officially vacated or abandoned the regulations applicable to the property to which it is reverted shall apply to such vacated or abandoned street or alley. (e) The boundaries of such districts as are shown upon any sectional district map adopted by this Article or amendment thereto are hereby adopted and approved and the regulations of this Article governing the uses of land, buildings and structures, the height • of buildings and structures, the sizes of yards about building and struc- tures and other matters as hereinafter set forth are hereby established and declared to be in effect upon all land included within the boundaries of each and every district shown upon each said sectional district map. (f) Except as hereinafter provided: (1) No building or structure shall be erected, and no existing building or structure shall be moved, altered, added to or enlarged, nor 7P-li COUNTY OF ORANGE 1 78.024 LAND USE AND BUILDING REGULATIONS 178,024 shall any land, building, structure or premises be used, designed or in- tended to be used for any purpose or in any manner other than a use listed in this Article or amendments thereto as permitted in the district in which such land, building, structure or premises is located. (2) No building or structure shall be erected nor shall any existing building or structure be moved, reconstructed or structurally altered to exceed the height limit established by this Article or amend • . ments thereto for the district in which such building or structure is located. (3) No building or structure shall be erected, nor shall any existing building or structure be moved, altered, enlarged or rebuilt, nor shall any open spaces surrounding any building or structure be encroached upon or reduced in any manner, except in comformity with the building site requirements and the area and yard regulations estab- lished by this Article or amendments thereto for the district in which such building or structure is located. (4) No yard or other open space provided about any build• ing or structure for the purpose of complying with the regulations of this Article or amendments thereto shall be considered as providing a yard or open space for any other building or structure. (Ord. 351, Sec. 3; amended by Ord. No. 417, See. 1; amended by Ord. No. 561, Sec. 1; amended by Ord. No. 616, Sec. 1, amended by Ord. No. 643, Sec. 1; amended by Ord. No. 663, Sec. 1; amended by Ord. No. 666, See. 1; amended by Ord. No. 2279.) V/Sec. 78.024. OR production. (a) Permitted. In any district where the district symbol is followed by, as a part of such symbol, parenthetically enclosed letter "0", thus: (0), oil drilling and production of oil, gas and other hydrocarbon substances is permitted. (b) Prohibited. The following areas are hereby declared scenic and recreational areas: • (1) The area within X/4 mile of the boundary of O'Neill Park and of Irvine Park. (2) The area within one mile landward of the line of Upper Newport Bay as established and adjudicated by Superior Court Case No. 20436; (3) The area within one mile landward of the coast line measured from mean lower low water datum as established by the U.S. Coast and Geodetic Survey from the easterly jetty of the harbor entrance 7P-12 9 78.024 PLANNING 9 78.024 at Newport Beach to the San Diego County Line. (c) Permitted. Subject to conditions. (1) Within any district not designated with (0) and not above described as a scenic and recreational area, the use of land for the drilling and production of oil, gas and other hydrocarbon substances, is permi'tted upon the hereinafter described "primary conditions", if at the time of the application for a permit to drill there exist either: • a. 25 or more dwellings within 1320 feet of the pro- posed location of the well or b. Six or more dwellings within 660 feet of the pro. posed location of the well or c. Any legally established structure used for housing of mentally or physically ill or aged persons having five or more beds, is within 660 feet of the proposed location of the well. d. In the determination of conditions applicable outside of the "0" Districts, improvements and oil wells located within "0" Districts shall not be considered. (2) Within any district not designated with (0) and not above described as a scenic and recreational area the use of land for the drilling and production of oil, gas, and other hydrocarbon substances is permitted upon the hereinafter described "secondary conditions". if at the time of the application for a permit to drill neither a. nor b. nor c. as described in Sub -subsection (1) above exist. In the determination of conditions applicable outside of the "0" Districts; improvements and Oil Wells located within "0" Districts shall not be considered. (3) The word "Dwelling" as used in this Section means any building or structure which has for its primary purpose human residence. (4) Primary conditions. a. For site selection and preparation. 1. Drill site location. No drill shall be located closer than 1320 feet from any drill site other than a drill site located in an "0" District. For the purpose of this Article the drill site for an oil well existing on May 28, 1958, shall be deemed to be all of the . area within 100 feet from the center of the oil well. 2. Drill site area. No drill site shall contain more than two and one-half acres or be of such size or shape that it cannot be contained within a square three hundred and thirty feet by three hundred and thirty feet. 3. Number of wells. The number of wells which may be drilled shall not exceed one well to each five (5) acres in the 7P-13 4 78.024 LAND USE AND BUILDING REGULATIONS ¢ 78.024 leased area. A.. Distance from dwelling. No oil well shall be drilled within 175 feet of any dwelling. S. Hours of operation. All work in preparation of the site for drilling shall be conducted only between the hours of 7:00 A.M. and 7:00 P.M. 6. Roads and excavations. Roads and other exca- vations shall be planned, constructed and maintained so as to provide stability of fill, minimize disfigurement of the landscape, maintain natural drainage and minimize erosion. 7. Cut and fill slopes. No slope of cut or fill shall have a gradient steeper than 1 foot rise in 1 foot horizontal measure- ment. Where by reason of the soil condition, the condition of the terrain or size or length of the out required it is impractical to provide such gradient, the Superintendent of Building and Safety may grant an exception to such requirement provided lie first finds that compliance with said requirement is impractical and [hat the integrity of the neigh- borhood will be maintained if such exception is granted. 8. Slope planting. All excavation slopes, both cut and fill, shall be planted and maintained with grosses, plants, or shrubs during drilling and production operations, but only to an extent reason- ably comparable with the general status of undisturbed surfaces in the vicinity. 9. Fencing, Prior to the commencement of drilling operations the drill site shall be enclosed by a solid redwood fence or a solid masonry wall 8 feet high on all sides, except those sides on which exists a natural or artificial barrier of equal or greater solidity and height. Solid redwood board gates shall be installed and be equipped with keyed locks and shall be kept locked at all times when unattended. Any and all supporting members of the fence shall be on the interior of said fence. Such fence or wall shall be in lieu of any other fencing requirements. 10. Pipelines. All off -site pipelines serving the drill site shall be buried underground. 11. Off-street parking. An off-street parking area containing not less than 5 parking spaces, each of which shall be at least 10 feet by 20 feet, shall be provided for each well being - drilled and shall be surfaced and maintained in accordance with the requirements of The Orange County Oil Code. 12. Sanitary facilities. Sanitary facilities shall be provided at the drill site and shall be in accordance with Standards of the Orange County Health Department. b. For drilling. 7P-14 § 78.024 PLANNING § 78.024 1. Soundproofing. The derrick and all drilling ma- chinery which produces noise shall be enclosed with soundproof- ing material, which shall be maintained in a clean and serviceable condition. 2. Lights. All lights shall be directed or shielded so as to confine direct rays to the drill site. 3. Delivery of equipment. The delivery or removal • of equipment or material from the drill site shall be limited to the hours between 7:00 A.M. and 7:00 P.M., except in case of emergency. 4. Drill pipe storage. No drill pipe shall be racked and made up except between the hours of 7:00 A.M. and 7:00 P.M. except within the derrick. 5. Power sources. All power sources shall be elec- tric motors or muffled internal combustion engines. c. For production operation. 1. Underground installation. All well head equip- ment shall be installed in cellars and no portion of such equipment shall be or project above the surface of the surrounding ground. 2. Motive power soundproofing. Motive power for production operations shall be completely enclosed in a building or buildings insulated with sound deadening materials. Such buildings shall be of residential appearance and no portion thereof shall ex- ceed 16 feet in height. 3. Motive power location. Motive power for pro- duction operations shall be located on a drill site. 4. Height of installation. Except as otherwise herein specifically permitted, no permanent installations at the drill site shall be or project more than 8 feet above the surface of the surrounding ground. 5. Storage of equipment. There shall be no storage of material, equipment, machinery or vehicle which is not for im. mediate use or servicing of an installation on the drill site. 6. Maintenance. The drill site and all permanent installations shall be maintained in a neat, clean and orderly con- dition. • 7. Storage tank location. Storage tanks shall be located on a drill site. 8. Storage tank capacity. Storage tank capacity at the drill site shall not exceed a total aggregate of 2000 barrels exclusive of processing equipment. 9. All surfaces of permanent installations within the drill site shall be painted flat dark green or flat brown. 7P-15 g, 70.024 LAND USE AND BUILDING REGULATIONS 178.024 10. Removal of Oil. Oil produced at the drill site shall be removed therefrom by an under round pipeline or pipelines at all times more than 130 days from after the date the first well in the drill site is completed. 11. Refineries. No refinery, dehydrating or absorp- tion plant of any kind shall be constructed, established, or maintained on the drill site or within the outer boundary line. 12. Gas burning. Natural gas shall not be vented . to the atmosphere nor burned by open flare. 13. Well Servicing. No well servicing shall be done except between the hours of 7:00 A.M. to 7:00 P.M. except in case of emergency. 14, Signs. No sign which is visible from outside of the drill site shall be caused, permitted or allowed to be or remain any place on the drill site exceppt: (a) Such signs as are required by law, (b) Warning signs, (c) No trespassing signs. 15. Landscaping. Shrubs shall be planted and main- tained along the exterior of the fence or wall enclosing the drill site to relieve its monotonous appearance. This requirement shall not be construed to limit or prohibit additional site beautification by landscaping or other planting. 16. Off -site piplines. Within 30 days from and after completion of the drilling of the first well on a drill site, the work of burying all off -site pipelines shall be commenced and com- pleted within a reasonable time thereafter. (5) Secondary conditions. a. For site selection and preparation. 1. Drill site Location. No drill site shall be lo- cated closer than 1320 feet from any other drill site. For the purpose of this Article the drill site for an oil well existing on the effective date of Ordinance Number 1096 shall be deemed to be all of the area within 100 feet from the center of the oil well. 2. Drill site area. No drill site shall contain more than two and one-half acres or be of such size or shape that it cannot be contained within a square three hundred and thirty feet by three hun. dred and thirty feet. • 3. Roads and excavations. Roads and other ex- cavations shall be planned, constructed and maintained so as to provide stability of fill, minimize disfigurement of the landscape, maintain natural drainage and minimize erosion. 4. Cut and fill slopes. No slope of cut or fill shall have a gradient steeper than 1 foot rise in 1 foot horizontal measure- ment. Where by reason of the soil condition of the terrain or size or 7P-16 §� 78.024 PLANNING $ 78.024 length of the cut required it is impractical to provide such gradient, the Superintendent of Building and Safety may grant an exception to such requirement provided he first finds that compliance with said requirement is impractical and that the integrity of the neigh- borhood will be maintained if such exception is granted. 5. Slope planting. All excavation slopes, both cut • and fill, shall be planted and maintained with grasses, plants, or shrubs during drilling and production operations, but only to an ex- tent reasonably comparable with the general status of undisturbed surfaces in the vicinity. 6. Off-street parking. An off-street parking area containing not less than 5 parking spaces, each of which shall be at least 10 feet by 20 feet, shall be provided for each well being drilled and shall be surfaced and maintained in accordance with the re- quirements of The Orange County Oil Code. 7. Sanitary facilities. Sanitary facilities shall be provided at the drill site and shall be in accordance with standards of the Orange County Health Department. b. For drilling. 1. Lights. All lights shall be directed or shielded so as to confine direct rays to the drill site. 2. Power sources. All power sources shall be electric motors or muffled internal combustion engines. c. For production operations. 1. Motive power location. Motive power for pro- duction operations shall be located on a drill site. 2. Height of pumping equipment. No walking beam type pumping equipment shall project more than ten feet at its high- est point of rise above the surrounding ground level. 3. Height of storage tanks. No oil storage tank shall exceed 18 feet in height above the ground level. 4. Height of wash tanks. No wash tank shall ex- ceed 24 feet in height nor exceed 8 feet in diameter. . 5. Fencing. Within 30 days from completion of the first well on a drill site, such site shall be enclosed by a solid redwood fence or solid masonry wall 8 feet high on all sides, except those sides on which exists a natural or artificial barrier of equal or greater solidity and height. Solid redwood board gates shall be installed and be equipped with keyed locks and shall be kept locked at all times when unattended. Such fence or wall shall be in lieu of any other fencing requirements. 7 P-17 Rev. 1.63 178,025 LAND USE AND BUILDING REGULATIONS 178.026 (d) Basic safety regulations. All drilling and production of oil, gas and other hydrocarbon substances, whether permitted pursuant to this Section, or Section 78.0228 are subject to the regulations of The Orange County Oil Code. (Ord. No. 351; added by Ord. No. 1096, Sec. 3; amended by Ord. No.1133, Secs. 2, 3, 4, 5, 6, 7, 8.) • See. 78.025. Adoption of Sectional District Maps, Precise Plan Maps and Oil Field Maps. Each Sectional District Map, Precise Plan Map and Oil Field Map of Orange County in effect upon adoption of this Code or hereafter adopted is made a part of this Section. All regulations governing the use of land, buildings and structures, the site of buildings and struc- tures, the sizes of yards about buildings and structures and other mat. ters as set forth in this Article are hereby declared to be in effect within the several districts shown upon each and every sheet of said maps of Orange County. (NOTE: The individual Sectional Districts Maps, Precise Plan Maps and Oil Field Maps are not reprinted here but are on file with the Clerk of the Board of Supervisors, County Court House, Santa Ana and with the Orange County Planning Department, Engineering Building, Santa Ann.) (Ord. No. 351, Sec. 5, Ord. No. 1096, Sec. 2; amended by Ord. No. 1404, Sec. 1.) Sec. 78.026. Al "General Agricultural' District regulations, (a) Use permitted: Unless otherwise provided in Sections 78.0227 and 78.0228: (1) Farming, including all types of agriculture and horti- culture, grazing, kennels and small animal farms, poultry and squab farms and similar types of farming. EXCEPT: (S) head. a. Commercial dairies having herds of more than five b. IIog and commercial livestock feeding ranches. c. Farms operated publicly or privately for the dis. posal of garbage, sewage, rubbish or offal. (2) Golf, polo, swimming, tennis, yacht and country clubs, but not including any other sport, recreation or amusement enterprises operated as a business, or for commercial purposes. (3) Public parks, playgrounds and athletic fields. 7P--18 OIL AND GAS REGULATIONS CITY OF OKLAHOMA CITY, OKLAHOMA REVISED ORDINANCES 1948 TITLE 9 - SECTIONS 1 to 135 inclusive CHAPTER 1-GENERAL 9-1 Definitions. For the purposes of this Title the following terms are defined: "Oil Well Inspector" shall mean any person or persons designated by the Chief of the Fire Department to make the inspections provided for in this Title. "Person" shall mean and include both the singular and the plural, and shall also mean and include person, in- dividualj firm, co -partnership, association, corporation, society or any other organization. "Well" shall mean the hole which is drilled or put down for the purpose of mining for and producing petroleum and/or natural gas, within the corporate limits of the City of Oklahoma City, and all distances required by the terms of this Title shall be measured from the center of such hole except where otherwise provided. -2 Drilling and Ordinances. For the purpose of the protection of lives and persons of the citizens of the City of Oklahoma City, and of the public generally, and the protection of property from the darger•of fire; explosion, gas, public nuisances and other hazards dangerous to public peace, health and safety as a result of the drilling for and production of petroleum and natural gas within the oil and Gas District as defined in the ordinances of the City of Oklahoma City, it shall be unlawful and an offense for any person, firm or cor- poration or any individual either for himself or acting as agent, employee or servant of any other person, firm or corporation, to engage in any work, or to erect any structures, tanks, machinery, pipelines, or other ap- purtenances incident to the drilling for or production of petroleum or natural gas, or to operate, maintain, or permit to exist, any equipment, structures or appur- tenances incident to such production or to use or main- tain any property or premises in violation of any pf the terms of this Title. 9..3 Safety Re uirements. The provisions of this Title shall�e deeme to be the minimum requirements for the preservation of the public peace, health and OIL AND GAS -Z- safety, and compliance with all terms thereof shall not be deemed to relieve any person from any duty imposed by law to use all necessary care and take all necessary pre- cautions for the safeguarding of the public peace, health and safety and the rights of any individual or group of individuals, and it shall be the duty of any person drilling, operating or maintaining any well to use all necessary care and take all precautions of whatsoever nature which shall be reasonably necessary under the circumstances to protect the public or the rights of any part thereof. 9-4 Enforcement,f For the purpose of enforcing the provisions of this Title, full police authority is here- by given to the Chief of the Fire Department and the Oil Well Inspector. To assist in the enforcement of such provisions, the City Manager is authorized to appoint additional persons or to designate additional employees of the City to perform such duties of enforcement. Any employee of the City who shall be directed to enforce the provisions of this Title shall have full authority to cause such provisions to be enforeed'and shall have all power and authority imposed by law upon peace and health of- ficers. Accurate information shall be furnished by the Superintendent or other person in charge of the lease to the Chief of the Fire Department or Oil Well Inspector, or any of their authorized representatives, concerning all drilling operations, depths of well, character of equipment, or any other information which may be required for the proper inspection or regulation of all wells, equipment or appurtenances thereto. 9-5 Suspension of Licenses. The City Manager is here- by granted the authority to suspend the license of any per- son covering the operation of any well where any of the provisions of this Title, or any amendments thereto, are violated, which said suspension of any such license shall be effective until such time as said person shall comply with the provisions of this Title. Before suspending any such license, the City Manager shall cause written notice to be served upon the licensee.advising such,lieensee that a hearing will be had at a time and place fixed in said notice to determine whether the license held by such licensee shall be suspended. Five (5) days notice of the time of the hearing shall be given. It shall be unlaw- ful and an offense for any person to operate any well during any period in which the license covering the operation of such well is so suspended. The provisions of this section shall in no way limit or interfere with the enforcement of the penalties for the violation or ordinances generally, but shall be cumulative and in ad- dition to such penalties. OIL AND GAS -3- "- CHAPTER 2-OIL AND GAS DISTRICT 9-11 Oil and Gas District or U-7 Zone Created. There is hereby created in the City of Oklahoma City an Oil and Gas District or U-7 Zone, in which no building, structure, or premises shall be used, and no building or structure shall be erected, moved, altered, or repaired which is arranged, designed, or intended to be used for any purpose other than a use permitted under the regulations of the district within which such property is situated as shown by the District Map and amendments thereto and the zoning regulations set forth in Title 14 and amend- ments thereto, except that such property may also be used and structures erected thereon only for the pur- pose of mining, drilling for and in producing petroleum and natural gas. ji12 Uses Permitted in Oil and Gas District. Within the 0and Gas District, the following uses of buildings .and premises are permitted notwithstanding the zoning regulations set forth in Title 14 and amendments thereto: Petroleum well, natural gas well, derricks, machinery, boilers, tool houses, storage tanks and other appurten- ances necessary for the mining, drilling for and produc- tion of crude petroleum and for natural gas and any other minerals under the restrictions of this chapter and in con- formity with the provisions of this title and all other ordinances of the City of Oklahoma City or laws, rules, or regulations of the State of Oklahoma or any department, board, or bureau thereof, No casing -head gasoline plants or devices or traps for ex- tracting, separating, or collecting natural gasoline from natural gas shall be installed, maintained, erected, or operated at any time upon any piece or parcel of land within the corporate limits of the City of Oklahoma City and no casing -head gasoline shall be transported or stor- ed within the City of Oklahoma City. 9-14 Drilling Permits. It shall be unlawful and an offense for any person, firm, or corporation or any in- dividual, either for himself or acting as agent, employee or servant of any other person, firm, or corporation, to open any well drilled for the production of petroleum or natural gas or to permit to flow therefrom any pet- roleum or natural gas, or to engage in any work or to erect any structures, tanks, machinery, pipe lines or other appurtenances incident to the production of pet- roleum or natural gas, or to operate, maintain, or per- mit to exist any equipment, structures or appurtenances incident to such production or to use or maintain any property or premises for such production within the Oil and Gas District in the City of Oklahoma City as defined in the ordinance of said City, unless a permit for the OIL AND GAS -5- y time of such renewal, a $200,000.00 bond has been in force and effect as long as one year and all drilling on such well has been completed, the am ount of total liability under such bond may be reduced to $10,000.00; provided, however, that any person, firm, or corporation owning or operating more than one well on which a bond is herein required, and on which all drilling has been com- pleted in lieu of filing a separate bond in the sum of $10,000.00 on each well, as above provided may, at the option of such person, firm or corporation file with the City Clerk a blanket bond covering all such wells so own- ed and/or operated by said person, firm or corporation on which drilling has been completed, which said bond shil be conditioned as in the case of such separate bond, and shall be in the sum of $100,000.00; provided that the lia- bility of the surety under said blanket bond shall not exceed $10,000.00 for loss or damage occasioned by any one well, or well site. And provided further nothing herein shall be construed as authorizing a blanket bond or any bond limiting liability to $10,000.00 for any well on which drilling has not been completed and which has not had a separate $200,000.00 bond in force and effect for as long as one year. In case any bond required here- in shall lapse or become void for any reason whatsoever, in addition to the general penalty provided for the viola- tion of any ordinance, the permit or permits issued under the terms of this chapter shall immediately become inopera- tive and void until a new bond shall be provided and filed with the City Clerk or the existing bond reinstated in full force and all wells covered by such lapsed or voided bond shall be shut down and all operation and production there- of shall be suspended and discontinued until the filing of such new bond or reinstatement of such existing bond; said renewal and blanket bond shall be approved by the City Council. The provisions of this section shall apply to all wells including those for which permits have been heretofore issued. 9-17 Drilling Restrictions --Number of wells per Block --Board of Adjustment. A. It sha11 be unlawful and n aoffense for any person, firm, or corporation to drill or put down any petroleum or gas well within the corporate limits of the City of Oklahoma City, except within the limits of the Oil and Gas District, and unless permit therefor shall have been first obtained. B. It shall be unlawful and an offense for any per- son, firm, or corporation, to drill, or put down more than one petroleum or gas well upon any one block. The term "block" as used in this chapter is defined to mean a tract of land which has for its exterior boundary lines, public streets, United States Government lot lines, the channels of streams, the corporate limits of the City ' of Oklahoma City, railway right of way or unplatted tracts of land; provided that in unplatted tracts the term "block" OIL AND GAS shall mean one continguous tract of not less than five (5) acres in area. No alley or street of less than 25 feet in width shall be considered as a boundary line of any such block. C. In unplatted tracts, no well shall be drilled or put down upon any block or tract of less than five acres in area, and in platted tracts no such well shall be drill- ed or put down upon any block of less than two and one-half acres in area except as otherwise provided. Before a per- mit shall be granted upon any platted block or unplatted tract of land which is adjoiffiing, or contiguous to any un- platted tract of less than five acres or any platted blods of less than two and one-half acres in area, upon applica- tion of any owner, lessee, or other interested person, firm, or corporation in said unplatted tract of less than five acres or platted block of less than two and one-half acres, or in any adjoining or contiguous unplatted tracts or platt- ed blocks aforesaid, the Board of Adjustment shall, upon giving notice and holding a hearing in the same manner as is provided for appeals from the Building Superintendent, attach said unplatted tract of less than five acres, or platted block of less than two and one-half acres, in whole or in part, to such contiguous or adjoining unplatted tract or tracts or platted block or blocks, for the purpose of permitting a well to be drilled in which said unplatted tract of less than five acres or platted block of less than two and one-half acres, may participate. The said Board of Adjustment shall provide the pro rata or ratable basis, on which the said unplatted tract of less than five acres or platted block of less than two and one-half acres, shall participate in said well or wells, and in addition thereto shall make any equitable order in relation thereto which may be proper that substantial justice may be done. Any interested party affected by said order may appeal to the District Court as provided by Law. D. If any block shall be of more than five acres in area, one such well may be drilled upon each contiguous five. acre unit within said block, and one additional well may be drilled upon the fractional part thereof remaining, after deduction of such five -acre tract or tracts aforesaid, pro- viding, however, that such fractional part is of an area of not less than two and one-half acres except as otherwise provided; provided, however, that no part of any territory included within any five -acre unit upon which a permit is granted, shall be used, or included in any manner with any other territory or area for the purpose of obtaining any other or additional permit for the drilling of a well. E. Before any permit for the drilling or putting down of any petroleum or gas well is issued, a written application therefor signed by the applicant or some per- son in his or its behalf duly authorized, shall be filed with the Superintendent of the Building Department. Said ^ application shall state the block and the exact lot and lo- cation thereon where the proposed well will be drilled, and there shall be attached thereto either OIL AND GAS -7- certified or photostatic copies of all leases or contracts with the owners of the property in such block or blocks which are controlled or owned by applicant, and in addition thereto, a certificate of title or titles or certificates from a bonded abstracter certifying the name of the last record owner of said property and the character of in- strument or conveyance upon which the ownership rests, ,together with a statement showing the number of lots in said block or tract which the applicant holds under lease or contract from such owner. In addition thereto, there shall be attached to said application a map or plat show- ing all correct dimensions and the exact location of said proposed well or wells, together with tanks, pits, pipe- lines, embankments, fences, and other details of the pro- posed use of such property necessary .or incident to the drilling of said well, together with the correct measure- ments of said locations from the outside boundaries of said block, There shall also be attached to said applica- tion a certificate showing the exact and correct acreage within said block or tract upon which any proposed well is to be drilled and the total acreage owned or controlled by the applicant in said block, which shall be duly cer- tified by a competent engineer. There shall also ac- company said application, in duplicate, a statement show- ing the names and last known addresses of all persons, firms or corporations having any interest in any property within such block or tract. Said application with said cer- tificates, aforesaid, attached thereto, shall be duly verified before an officer authorized to administer oaths within this State. If said application, together with the exhibits attached thereto, shows that the applicant is the owner or has under control or lease all of the property within such block or tract, the Superintendent of the Building Department shall grant a permit therefor, provided that the application shows that it complies with all of the requirements of the city in relation to drilling within the Oil and Gas District. If said application shows that the applicant does not have the entire block or tract under lease but owns or controls or has under lease not less than Fifty-one per cent of all the property within such block or tract, upon appeal from the Super- intendent of the Building Department, the Board of Ad- justment, after giving notice and conducting hearing as hereinafter provided, shall have authority to determine the equities and grant a proper permit for drilling a well upon such block or tract. Before granting said permit, said Board shall cause notice by registered mail to be given to all known owners not less than ten days prior to the date and place of hearing, which shall be sat out in said notice. If the address of any owners be unknown, upon affidavit duly filed setting out the inability on the part of the applicant to obtain service upon such unknown owner, the Board of Adjustment shall cause a notice to be given by publication in not less ' than five issues of a legal daily opape., publishmust ed filed the City of Oklahoma City, ptoof OIL AND GAS -8- before hearing said application, and shall describe the property affected upon which the application is to be heard, and shall affix the date of hearing thereon which shall not be less than ten days after the date of the last publication, said notice shall be dated and signed by the Clerk of said Board. Upon such hearing, the Board shall examine all witnesses under oath and keep a record of its proceedings and shall have authority and shall make any requirements, regulations, or orders which may be necessary, proper or equitable for all per- sons interested therein, and shall protect and safeguard the rights of all parties affected by such order. Any party affected by said order may appeal, as provided by law, to the District Court. F. If permit be granted for the drilling of any well aforesaid, before the holder thereof shall commence any work upon any block or tract of land within the limits of the Oil and Gas District for which a permit has been granted, such holder shall file with the Superintendent of the Building Department, a written statement contain- ing the names and addresses of the rig -building contractor, the grading contractor, or contractors, the concrete Contractor or contractors, the drilling contractor or contractors doing any part of the work incident to the drilling of said well, provided that if the holder of the permit shall perform all of said work through its various employees, the names and addresses of such Super- intendents and Agents,, in charge thereof, shall be fur- nished the Superintendent of the Building Department. In addition thereto, the holder of such permit shall furnish to the Superintendent of the Building Department the name and address of the Superintendent or other per- son placed in charge of the premises upon which any such well is drilled or may be producing oil or gas. 9-18 Corporation Commission. It shall be unlawful and an offense for any person, firm, or corporation to drill or put down any petroleum or natural gas well or to erect, maintain, operate, or permit to exist any such well, structures, equipment, pipelines, machinery, tanks, or other appurtenances in violation of any of the ordin- ances of the City of Oklahoma City, or the laws of the State of Oklahoma, or in violation of any of the regula- tions, rules, or orders of the Corporation Commission of the State of Oklahoma. 9-19 Property Lines. No well for the production of or mining for petroleum or natural gas shall be drilled or put down nearer than fifty feet from the property line of the tract on which such well is situated. 9-20 Oil and Gas District Property Description. The following described blocks, parts of blocks, pieces or parcels of land are hereby included in that district set apart for and under the regulations and restrictions of the Oil and Gas District as described herein: OIL AND GAS Subdivision "A": All the property within the corporate limits of the City of Oklahoma City, within the distirct des- cribed as follows: Beginning at a point in the east line of Pennsylvania Avneue where the same is intersected by the center line of the alley between Main Street and Grand Avenue; thence east and along the center line of said alley to the west line of Blackwelder Avenue; thence south along the west lire of Blackwelder Avenue to the north bank of the cut-off of the old North Canadian River; thence in a southeasterly direc- tion along said bank to Reno Avenue; thence east along Reno Avenue to the west line of Blocks 3 and 4 r Amended Plat of Delmar Park Addition; thence south and along said line pro- duced south to the north right of way line of the Oklahoma Railway Company in Delmar Park Addition; thence in a south- easterly direction along the north line of said railway company's right of way to the north line of Choctaw Avenue produced west; thence east and along said produced north line and the north line of Choctaw Avenue to the west line of Shartel Avenue; thence south and southeasterly along the west line of Shartel Avenue to the south line of llth Street; thence east along the south line of llth Street to the east line of the alley east of Robinson Avenue;thence north along the east line of said alley and along the east line of said alley produced north to the north line of the St. Louis and San Francisco Railway Company's right of way; thence east to the center line of the Atchison, Topeka and Santa Fe Rail- way Company's right-of-way; thence north and along said cen- ter line to the south line of Frisco Avenue; thence east a- long the south line of Frisco Avenue to the east line of said railway right-of-way; thence north along the east line of said railway right of way to the south line of California Avenue; thence east along the south line of California Ave- nue to a point due south of the west line of Central Avenue produced south; thence diagonally in a northeasterly direc- tion to the east line of Central Avenue at a point where the north line of California Avenue intersects said east line; thence north along the east line of Central Avenue to the south line of the right of way of the Chicago, Rock Island and Pacific Railway Company; thence in a northwesterly dLrec- tion along said south line of said railway right of way to the point of intersection of said line with the east line of the right of way of the Atchison, Topeka and Santa Fe RAil- way Company; thence north along said east line of said right - of way to a point where said east line intersects the east line of Santa Fe Avenue north of Northeast 23rd Street; thence west to the center line of the right of way of said railway company; thence north along the center line of said right of wqy to the south line of 50th Street; thence east along the south line of 50th Street to the east line of Santa Fe' Avenue; thence south along the east line of Santa Fe Avenue to the south line of 36th Street; thence east along the south line of 36th OIL AND GAS -10- Street to the east line of Lindsay Avenue; thence north along the east lire of Lindsay Avenue to the south line of the alley in Block 4, Oklahoma Heights Addition; thence east along the south line of said alley to the west line of Philoips Avenue; thence south along the west line of Phillips Avenue to the south line of 36th Street; thence east along the south line of 36th Street to the east line of the Northwest Quarter of Section 23, Town- ship 12 North, Range 3 West; thence south along the said east line of said Northwest Quarter and the east line of the Southwest Quarter of said section to the south line of 26th Street; thence east along the south line of 26th Street to the west line of East Avenue; thence south along the west line of East Avenue to the north line of 23rd Street; thence east along the north line of 23rd Street to the east line of Fairmont Avenue produced north; thence north along the east line if Fair- mont Avenue produced north to the south line of 29th Street; thence east and along the south line of 29th Street to the east line of Southwest Quarter of Section 24, Town- ship 12 North, Range 3 West; thence south along the said east line of said quarter section and the east line of the Northwest Quarter of Section 25, Township 12 North, Range 3 West, to the northwesterly line of the right- of-way of the Missouri -Kansas & Texas Railway Company; thence southwesterly along the said northwesterly line of said right-of-way to the south line of the Northwest Quarter of said Section 25; thence west along said south line of said quarter section to the east line of High- land Drive; thence south along the east line of Highland Drive and the east line of said Highland Drive produced south to the north line of the Northwest Quarter of Sec- tion 36, Township 12 North, Range 3 West; thence east and along the said north line of said quarter section to the east line of said quarter section; thence south and along the east line of said quarter section to the south line of said quarter section; thence west along the south line of said quarter section to the center line of East Avenue; thence south along the center line of East Avenue to the center line of the main track of the right-of-way of the Chicago, Rock Island & Pacific Rail- way Company; thence west along said center line of said railway right -of ,way to the west line of Section 35, Township 12 North, Range 3 West; thence south along the said west line of said section and along the east line of Section 3, Township 11 North, Range 3 West, to the north line of Southeast 15th Street; thence west along the north line of Southeast 15th Street to the west line of Block 38 and 39 of Patterson's Terrace Lawn Addition produced north; thence south along the said line produced north and along said line to the north line of Southeast 17th Street produced east; thence west to the east line of Laird Avenue produced north; thence south along the Sproduced e1 outheastl9thStreet and ine of r8 Southeast d Avenue te 20thStreetbetween alley ;thence east and along said alley line to the center line of OIL AND GAS -11- Kelly Avenue; thence south along the center line of Kelly Avenue to the north line of Block 2 of A-Resub of Block 20 Patterson's South Highland Addition produced West; thence east along said produced line and along said line to the center line of High Street; thence south along the center line of High Street to the south line of Northeast Quarter of Section 10, Township 11 North, Range 3 West; thence West and along said south line to the east line of the Southwest Quarter of said Section 10; thence south along the east ltie of said Southwest Quarter to the north line of View Point Addition produced west; thence east along said produced north line and along said north line of said View Point Addition to the east line of Lindsay Avenue; thence north and along the east line of Lindsay Avneue to the north line of Frost Heights Addition; thence east along the north 11n e of Frost Heights Addition to the center line of High Street; thence south and along the center line of High Street to the north line of Block "B", Corff's Subdivision produc- ed west; thence east along said produced line and said north line to the east line of Block "B", Corff's Subdivi- sion; thence south and along the east line of Block "B", Corff's Subdivision and said east line produced south to the north line of Block 4, Magnolia Heights Addition; thence east to the east line of Lot 2, Block 4, Magnolia Heights Addition; thence South and along said east line to the south line of said Lot 2; thence west along the south line of said Lot 2 to the center line of High Street; thence South and along said center line of High Street to the south line of Grand Boulevard; thence west along the south line of Grand Boulevard to the east line of Block 13, Lawrence Place Addition produced south; thence north along said produced line to the north line of Grand Boulevard; thence west along the north line of Grand Boulevard to t1E east line of Byers Avenue; thence south along the east line of Byers Avenue produced south to the south line of Grand Boulevard; thence west along the south line of Grand Boule- vard to the Northeasterly line of the Atchison, Topeka and Santa Fe Railway Company's right-of-way; thence southeasterly along said line of said railway right-of-way to the east line of the Southwest Quarter of Section 15., Township 11 North, Range 3 West; thence south along said east line of said quarter section and the east line of the Northwest Quarter of section 22, Township 11 North, Range 3 West, to the north line of Southeast 45th Street; thence west along the north line of Southeast 45th Street to a point 140 feet west of the west line of Shields Boulevard; thence North along a line 140 feet west of the west line of Shields Boulevard to a point 150 feet south of Southeast 44th Street; thence along a line 150 feet south of said south line of said street to a point 95 feet east of the west line of South Broadway; thence south along a line %5 feet east of the east line of Broadway a distance of 156.. feet; thence west a distance of 95.5 feet to the east line of OIL AND GAS -12- Broadway; thence in a southwesterly direction along the southeasterly line of Broadway to the north line of South- west 46th Street produced east; thence west along the north line of 46th Street to the west line of Walker Avenue; thence south along the west line of Walker Avenue to the north line of 48th Street; thence west along the north line of 48th Street to the east line of Shartel Avenue; thence north along the east line of Shartel Avenue and along the east line of Shartel Avenue pro- duced north to the north line of Grand Boulevard; thence east along the north line of Grand Boulevard to the east line of Santa Fe Avenue; thence north along the east line of Santa Fe Avenue to the northeasterly line of the Atchison, Topeka & Santa Fe Railway right-of-way; thence in a northwesterly direction along said northeasterly line of said railway right-of-way to the north line of the Oklahoma Belt Railway Company's right-of-way produc- ed east; thence along said produced line and along said North line of said railway company right-of-way to the east line of Harvey Avenue produced north; thence south along said produced east line to the north line of South- west 21st Street; thence west along the north line of Southwest 21st Street to the west line of Hudson Avenue; thence south along the west line of Hudson Avenue to the south line of Southwest 22nd Street produced east; thence west along said produced line to the east line of the Northwest Quarter of Section 9, Township 11 North, Range 3 West; thence north along said east line of the Northwest Quarter of said section to the south line of the Oklahoma Railway Belt line right-of-way; thence in a northwesterly direction to the south line of Southwest 14th Street produced west as platted in South Riverside Addition; thence west and along said produced line to the center of the channel of the North Canadian River; thence in a northerly, westerly and northerly direction follow- ing the meanderings of said river to the south line of the Northeast Quarter of Section 5, Township 11 North, Range 3 West; thence west along the south line of the Northeast Quarwwestter of Quarteraid of saidion 5 Sectiond5the to aouth pointine of the North- west 183 feet east of the Southwest corner of the Northwest Quarter of said Section 5; thence in a southeasterly direction and following the meanderings of the south bank of the North Canadian River to the west line of Kentucky Avenue as platted in Fifth Stockyards Addition; thence south and along the west line of said Kentucky Avenue to the south line of Southwest loth Street; thence west along the south line of said street to the east line of Pennsylvania Avenue; thence north to the center line of Southwest 9th Street; thence west along the center line of Southwest 9th Street to a point 160 feet west of the west line of Agnew Avenue; thence north and parallel to and 160 feet distant from the west line of Agnew Avenue to a point in the center of the North Canadian River as shown by the plat of Fourth Stockyards Addition; thence in a north- easterly direction and along Said center line to the south line of the Northeast Quarter of Section 6, Township 11 North, OIL AND GAS -13- Range 3 West; thence east and along said south line and said south line produced east to" the east line_of Pennsyl- vania Avenue; thence north along'the.east_.line of Pennsyl- vania Avenue to- the point"where the, bast"lih' of,. Pennsyl- vania -Avenue intersects the center line of tl;eei loy.'between Main Street and Grand Avenue, the point or pl.ice of'tiegin- ning. Subdivision "B". All the property within the cor- porate limits of the City of Oklahoma City, within the district described as follows: Beginning at a point where the center line of West- ern Avenue produced south intersects the south line of Grand Boulevard; thence north along the said produced center line and said center line of Western Avenue to the center line of Southwest 29th Street; thence west a- long the center line of Southwest 29th Street to the cen- ter line of Blackwelder Avenue; thence north along the center line of Blackwelder Avenue and said line produced north to the center line of Southwest 22nd Street pro- duced west; thence west along the said produced center line of Southwest 22nd Street to the west line of the Southwest Quarter of Section 8, Township it North, Range 3 West; thence south along said west line of said quarter section to the center line of Southwest 29th Street; thence west along the center line of Southwest 29th Street to the east line of Miller Avenue; thence south along the east line of Miller Avenue to the south line of Southwest 29th Street; thence west along the south line of Southwest 29th Street to the center line of May Avenue; thence south along the center line of May Avenue to the center line of Grand Boulevard; thence east along the south line of Grand Boulevard to the center line of Western Avenue produced south to the point or place of beginning. 9-21 Construction of Ordinance. It is expressly provided that each lot, block, or parcel of land des- cribed in section 9-20 is independent of every other lot, block, or parcel of land and should any court of competent jurisdiction declare that any lot, block or parcel of land, described in said section, is unlawfully included in the Oil and Gas District, then such decision shall affect only that lot, block or parcel of land covered by the decision of such court and shall not affect any other lot, block or parcel of land described in said section 9-20. A-22 Non -Drilling Territory. Having in mind the character and use of the adjoining and nearby property, and in order to preserve and safeguard the life, property, public peace, safety and general welfare of the City of Oklahoma City and the citizens thereof, there are hereby established within the Oil and Gas District certain non - drilling territories in which no well shall be drilled or put down for the production of petroleum and/or OIL AND GAS -1- natural gas, which territories are described as; (1) all property within 300 feet of the boundary line of the Oil and Gas District, and (2) all property within 600 feet of that portion of the boundary line of the area des- cribed in Subdivision "A" of Section 9-20, which is. wholly within the city limits of said City and described as follows, to -wit: Beginning at a point where the South line of the Chicago, Rock Island & Pacific Railway Company right- of-way intersects the east line of Central Avenue; thence south along the east line of Central Avenue to the north line of California Avenue; thence diagonally in a south- westerly direction to the south line of California Avenue to a point" due south of the west line of Central Avenue produced south; thence west along the south line of California Avenue to the east line of the Atchison, Topeka and Santa Fe Railway Company right-of-way; thence south along said east line -of said railway company right- of-way to the north line of Pottawatomie Avenue, produced west, as shown by the plat of McCornack's Factory Addition. No permit shall be issued or granted therefor, and such property within either of the above -described areas shall be known as non -drilling territory in the Oil and Gas District. Before a permit shall be granted upon any block or tract of land which is adjoining, adjacent, or contiguous to, or within 300 feet of any non -drilling territory described in Subsection (1) above, or within 600 feet of any non -drilling territory described in Sub- section (2) above, upon application of any owner, leasee or other interested person, firm or corporation in said non -drilling territory, or in any adjoining, adjacent, or contiguous blocks or tracts aforesaid or upon motion or action of the Board of Adjustment, the Board of Ad- justment shall, upon giving notice and holding a hear- ing in the same manner as is provided for appeals from the Building Superintendent, attach said non -drilling territory, in whole or in part, to such adjoining, ad- jacent or contiguous blocks or tracts for the purpose of permitting said non -drilling territory to participate in any well or wells that may be drilled upon said ad- joining, adjacent or contiguous block or tracts in the drilling territory aforesaid. The terms "adjoining", "adjacent", or "contiguous", as used herein, shall be interpreted to mean that any tract or tracts of ground or any block or blocks located in the aforesaid non - drilling territory shall be taken into consideration and included in the area covered by any permit or per- mits issued within the drilling territory, without re- gard to or respect for any streets or alleys therein, or property upon which no wells may be drilled, and al- though separated by such street, alley or non -drilling territory,l� the same shall be considered as adjoining:, adjacent , or contiguous for the purpose of this chap- ter and amendments thereto. Said Board of Adjustment OIL AND GAS -15- shall provide the pro rats. or ratable basis on which said non -drilling territory may so participate as aforesaid in said well or wells,and shall make any equitable order in relation thereto which may be proper in order that substantial justice may be done from which any interested party may appeal to the district court as provided by law. Provided, that where any property in the Oil and Gas District abuts or adjoins the city limits, the provis- ions of this section shall not apply or be operative in said territory adjoining or abutting the city limits aforesaid. In appeals to the Board of Adjustment in- volving any school property the appellant shall file as a part of said appeal a copy of notice to the Board of Education which shall show service thereof upon the Clerk of said Board of Education not less than ten days prior to the filing of said case. Said notice shall state that the appellant intends to file said case before said Board of Adjustment upon a certain day and shall give the name address of the appellant. If any permit is issued, af- fecting any property within the non -drilling territory, as set forth herein, or any other property which by reason of the terms of this chapter, or any other ordin- ance of the City of Oklahoma City, cannot be drilled upon without compliance with all the terms of the ordin- ances of the City of Oklahoma City, any person affected thereby shall have a right of appeal to the Board of Ad- justment in accordance with the terms of the Statutes, and Ordinances of the City of Oklahoma City applicable thereto, and in compliance with the provisions thereof. 9-23 Effect on Other Ordinances. The provisions of the foregoing section, fixing and defining the width of non -drilling territory shall not in any way supplement, change, alter, amend, repeal or affect the non -drilling territory of other ordinances of the City of Oklahoma City, Oklahoma, now in force and effect and which may be hereafter enacted and which by their terms fix such non -drilling territory at a greater width than three hundred (300) feet, either in general terms or specific delineation of the limit and extent of said non -drilling territory. 9-24 Public School Property. Public school property and property used for public school purposes shall not, after the passage of this ordinance (June 14, 1935), be considered as non -drilling territory. Provided, that no well shall be drilled or put down for the production of petroleum and/or natural gas at any point less than a distance of 100 feet from the outside wall of any school building or building used for public school purposes; and provided further that said distance shall be cal- culated from the center of said well to the closest point of the wall of said school building. 9-25 Consent of Board of Education. Before any per- mit for the drilling of an oil or gas well within 300 OIL AND GAS -16- feet of any property used for public school purposes within the City of Oklahoma City shall be granted, the Board of Education shall make and file with the Building Superintendent of said City, the Board of Adjustment or the District Court before whom said application is pending, a written instrument setting forth the attitude of the Board of Education as to the drilling of such well. If the Board of Education approves the location of any well within 300 feet of such school property, then it shall file with such Building Superintendent, Board of Adjustment or District Court, a resolution regularly adopted by said Board absolving the Building Superintendent of the City of Oklahoma City, any and all officers of said City from all responsibility in con- nection: with the location and drilling of said well, the operation thereof and the production of oil or gas there- from. CHAPTER 3-DRILLING AND OPERATION OF OIL AND GAS WELLS 9-31 Derricks --Construction. All derricks for the purpose of drilling petroleum or gas wells shall be con- structed entirely of steel and shall have a foundation of concrete not less than 8 feet by 8 feet in dimensions and 6 feet in thickness, for each leg of such derrick, and the legs of such derrick shall be securely anchored to such foundation. If a sub -foundation of wood piling is used, such sub -foundation shall be capped with a foundation consisting of a concrete slab not less than 6 feet in thickness. Each derrick shall be braced by a total of'12 guy wires or cables, 3 of which shall be se- curely fastened to each derrick leg and one of the 3 guy wires not less than 40 feet from the top of such derrick, and each such guy wire or cable shall be securely fastened through a turnbuckle to a solid mass of concrete or stone weighing not less than 2400 pounds and buried beneath the surface of the ground not less than 3 feet, and dis- tant from such derrick not less than 75 feet. No derrick shall be erected which has a vertical height from derrick floor to top of header greater than 140 feet. No derrick shall be used or erected which has a strength rating of less than 320,000 pounds according to the regulations prescribed by the standards adopted by the American Pet- roleum Institute and now in force. All guy wires or cables shall be not less than 3/8 inches in diameter, seven strand eleven gauge and shall have a weight of not less than 29 5/10 pounds per 100 feet. 9-32 Cellars --Construction. All cellars for wells shall have a minimum depth of 16 feet below the derrick floor, prior to installation of concrete bottom and shall have lateral dimensions of not less than 6 feet, 3 inches by o feet, 3 inches in the clean, after being lined with concrete not less than 6 inches in thickness.'All cellars shall be equipped with runways.as,provided by the rules, regulations and-orders,of the'Corporation Commission of the State of°Oklahoma. OIL AND GAS -17- 9-33 Well Casings. All casings for wells shall be handle , set, run and cemented in place in accordance with the rules, regulations and orders of the Corporation Commission of the State of Oklahoma, and in addition to such requirements, it shall be unlawful to re-enter such well for the purpose of doing additional drilling or deepening the same until not less than 48 hours after such casing has been cemented; provided, that such hole shall not be reentered for the*purpose�of drilling or deepening the same until after 7 twenty-four hour days shall have elapsed, after the cementing of the casing through which oil or gas is to be produced. All casing used shall be new pipe, and casing other than the sur- face string shall be of Seamless steel not less than Grade "C" according to the specifications of the American Petroleum Institute now in force. The following shall be minimum weights per lineal foot for casing to be used: American Petroleum 0 D Diameter Institute. Grade "C" Grade "D" 9-5/8 Inches OD 45 pounds 40 pounds 9 Inches OD 40 pounds 38 pounds 8-5/8 Inches OD 36 pounds 32 pounds 7 Inches OD 26 pounds 26 pounds 6-5/8 Inches OD 26 pounds 24 pounds 5 Inches OD 15 pounds 4-3/4 Inches OD 16 pounds 15 pounds VALVES AND FITTINGS ON WHEELS All valves and fittings used on wells shall be placed in accordance with the rules, regulations and orders of the Corporation Commission of the State of Oklahoma, and shall have minimum test pressures as follows: 9-5/8 Inches - 3000 Pounds per square inch 9 Inches - 3000 Pounds per square inch 8-5/8 Inches - 3000 Pounds per square inch 7 Inches - 4000 Pounds per square inch 6-5/8 Inches - 4000 Pounds per square inch All fittings on any string of pipe set below the Osewgo Line shall have a minimum test pressure of 4000 Pounds per square inch. 9-34 Separators. Separators shall be used at each well to adequately care for the output of the well, of both oil and gas without spraying oil through the separator vent line. No gas shall be producedwasted or allowed to escape through a separator vent line at any time when the noise caused by such wasting, producing or escaping of gas shall be audible for a distance of three hundred (300) feet or more from the well. When it shall appear that an explosive mixture of gas may be accumulating near the ground, the inspector may require that the well OIL AND GAS -18- be shut down until gas is dissipated. All separators shall be vented either separately or through a manifold into a vent, the minimum height of which shall be sixty (60) feet above the normal ground surface. Said vent shall be not less than eight (8) inches in diameter. It shall not be closer than seventy-five (75) feet to the well hole, center line of street or the lease boundary. No separator shall be used which has less than one hundred twenty-five (125) pounds working pressure; provided, that all separators on which a pressure of greater than one hundred twenty-five (125) pounds per square inch shall be carried, shall be tested by the hydrostatic method so at least one and one-half (121) times the working pressure to be car- ried on said separator. All vent lines shall be securely fastened with at least three (3) steel guy lines to each vent, said guy lines to be securely anchored to "dead -men" weighing not less than six hundred (600) pounds and buried not less than two (2) feet under ground and not less than forty (40) feet from such vent. 9-35 Sump Pits. The sump pits constructed in con- nection with any oil and/or gas well separator, as more particularly described in the preceding section, shall be steel tanks not less than sixteen (16) feet in diameter and not less than four (4) feet deep and shall be set in the ground. 9 36 Casing or Pipe --Master Gates --Fittings. Each string of casing or pipe within any well through which oil or gas is to be produced, shall be equipped with three master gates securely fastened thereto. Each string of casing or pipe within any well (except the outside sur- face casing) shall have the fittings thereon securely anchored to the casing immediately inclosing it. All master valves shall have extensions on the valve stems by which such valves may be operated leading to points not less than 50 feet distance from such well. Such extensions shall be run in at least two different direc- tions. Every valve stem extension, for a distance of at least twenty feet from the derrick, shall be covered with a shield of metal or other non -inflammable material, and there shall be provided a clearance of at least four inches between such valve stem extension and such shield. Such shield shall be adequately supported. The provisions of this Section in regard to requiring three master gates and the stems and valves used in connection with the mas- ter gates shall not apply to wells which are on artificial lift or on pump. It shall be the duty of the Oil Well Inspector to see that the provisions of this Section are complied with. 9-37 Storage Tanks. Permits shall be obtained from the Building Superintendent for the erection of tanks for the storage of crude oil within the city limits; each OIL AND GAS -19- request or permit must be accompanied by a diagram show- Ing exact location, arrangement, size and construction of each tank. The storage of crude oil shall be outside buildings in underground or above -ground tanks. No tank for the storage of crude oil shall be erected except in the Oil and Gas District. Tanks must be set no nearer than 50 feet from non -fireproof buildings or from outside block lines; provided, however, that an application in writing may be made to the Chief of the Fire Department and when approved by him and by the City Manager, setting the tanks at a nearer distance may be allowed. Such distance may be increased at the discretion of the Building Depart- ment after consideration of special features such as topo- graphical conditions, nature of occupancy and proximity to buildings or adjoining property, and height and character of construction of such buildings, capacity and construction of proposed tanks and degree of public fire protection in the vicinity. A total capacity of an above -ground battery of crude oil storage tanks shall be limited to 15,000 barrels, and no individual tank in the battery shall exceed 2000 barrels capacity. All tanks shall be provided with a pressure -vacuum vent system sufficient to adequately dispense excess gas from the tanks. Unless vent openings are adequate to relieve any excessive pressure, a safety valve shall be provided or manhole covers shall be kept closed by weight only and not firmly attached. Any screen on openings may be made removable, but shall be kept firmly attached. The covers for manholes, handholes and gauge holes shall be made tight fitting. All crude oil tanks shall have painted conspicuously upon their sides in letters at least six inches high the wording "FLAMMABLE, KEEP FIRE AWAY" and "NO SMOKING. Metal tanks shall be so constructed as to have a factor of safety of at least 2.5. Openings of roofs or tops of tanks shall be fully protected; they shall be firmly and securely jointed to the tanks and all joints in both sides and top shall be gas tight and free from leakage as nearly as possible. Tanks more than one foot above the ground shall have foundations and supports of non-combustible materials except that wooden cushions may be permitted; no com- bustible material shall be permitted under or within ten feet of any above -ground outside storage tank. OIL AND GAS -20- All tanks containing crude oil shall be diked with a dike impervious to crude oil having a capacity of not less than one and one-half times the volume of the tank or tanks surrounded; minimum height of earth dikes shall be three feet and'masonry dikes thrity inches. The capacity of dikes shall be properly maintained, Earthern dikes shall have a flat section on the top not less than three feet in width and shall have a slope consistent with the angle of repose of the material out of which they are constructed. No artificial light, except as now approved by the United States Bureau of Mines for use in explosive at- mosphere, shall be used within forty feet of the tank, or of any well after such well is completed as a producer of oil or gas. Tanks and embankments or dikes, shall be enclosed in a woven wire fence of not less than fourteen gauge wire with mesh of not less than two inches nor more than four inches, at least six feet high. Such fence shall be constructed not less than three feet distant from the outside of the base of such dike or embankment. One portable foam generator with a capacity or not less than 750 gallons of foam per minute, such generator equipped with Oklahoma City thread, and one pound of foam producing chemical for each square foot of area of sur- face of oil in said tank shall be maintained upon the premises at all times. Said chemical shall be stored in such manner as to protect the same from deterioration by the elements. 9-38 Boilers. Boilers for the purpose of generating steam for operating machinery and equipment shall be sit- uated a distance of not less than seventy (70) feet from any well, and during the time such boilers are operated, or have steam pressure therein they shall be constantly attended by a stationery engineer, licensed by the City, whose exclusive duty shall be attendance upon said boil- ers. All steam fittings shall be installed by a steam fitter, licensed by the City. Blow off pipes shall lead into a reserve mud pit, drain or blow -off box. All engine and pump exhausts shall be muffled by muffling devices or condensing apparatus so that the noise of such exhaust shall not disturb the peace and quiet of the City of Oklahoma City or any part thereof or shall annoy the in- habitants thereof. 9-39 Buildings --Fireproof Construction. No Building constructed of combustible materials snail be located or be permitted to remain within twenty-five (25) feet of any well drilled after May 27, 1935, and for which a permit was issued prior to May 5, 1936. No building constructed of combustible materials shall be located or permitted to remain within twenty-five (25) feet of the derrick or any part of the derrick after May 5, 1936, OIL AND GAS -21- where the permit for the drilling of such well is issued after May 5, 1936. The boiler house and other buildings used in connection with any such well must be of fire- proof construction. No frame or other buildings con- structed of combustible materials shall be located or be permitted to remain within twenty-five (25) feet of any boilers or boiler houses constructed, erected or placed on any oil and/or gas well location after April 21, 1936. 9-40 Electric Wirin . All electrical wiring on or about any derrick�ldings, structures or tract of land upon which any well is drilled or put down, -shall be run inside conduits in accordance with the ordinances of the City of Oklahoma City governing electrical wiring installation. All electrical fixtures for light- ing or power purposes used, shall be of vapor proof design. -Electrical Floodlights of vapor proof design, shall be constructed and maintained in good working order at all times during the drilling of any well at a distance of not less than 40 feet from such well. During the pro- cess of bailing any well, all electrical energy shall be shut off from all wires furnishing energy for lights on or about any derrick, and only such flood lights shall be used during such bailing which are not less than 40 feet from such well. 9-41 Fences. As to wells drilled after May 27, 1935s each well and the derrick, boiler and equipment, operated or maintained in connection with each such well shall be enclosed in a fence, but one fence will suffice if a group of wells is enclosed in one tract or parcel of land which is enclosed by a single fence. Such fence shall be supported by steel posts or other non -inflammable material and shall be of woven wire of not less than four- teen gauge wire with mesh of not less than two inches nor more than four inches and be at least six feet high, Provided, that nothing in this section shall be construed as repealing, or in any wise affecting the existing or- dinance requiring the fencing of tank batteries or other operating equipment. 9-42 Bailing Wells. At least 12 hours before any mud or fluid in any well shall be bailed out or removed, the Chief of the Fire Department of the City of Oklahoma City shall be served with written notice of the hour that such bailing is to be commenced. It shall be the duty of the Chief of the Fire department or his authorized re- presentative, to be present at such well, during the time such bailing is done, and if, in his opinion, the bailing of such well shall be hazardous to the safety of life or property, he is hereby authorized to stop or prevent such bailing until such time as conditions may become favorable to continue the same. It shall be unlaw- ful to bail any well from sundown to sunrise, or during OIL AND GAS -22- a period when gas may settle on the ground, or during any electrical storm, or during any period when the velocity of the wind shall be greater than 2 miles per hour. Be- fore bringing in a well, all of the control devices, in- cluding master gates and safety valves shall be tested 12 hours and shall be in good working order and shall comply with the provisions of this chapter. DhDrlo-w-Dr1111n Mud. Drilling below 3000 92 l dt mud weighing at least 9J pounds per gallon. Before drilling into the checker board lime at approximately 5000 feet, the weight of mud shall be increased to 112 pounds per gallon. The hole should be kept full of mud at designated weight at all times until the producing sand is reached. The mud shall be weighed at such intervals as may be determined by the inspector. When withdrawing the drill pipe, pipe shall be filled with mud after each 11 stands have been with- drawn. Drilling the producing oil sand, however, may be done with•oil.in lieu of the use of any mud; provided, however, that if the oil is in circulation such oil shall not be over 30-B gravity with a flash point of not less than 350 degrees Fahrenheit and after being so used shall be by the operator turned into a circulating tank instead of into the pits. If, at any time, the weight of such mud shall be less than that specified herein, or the con- dition of the oil shall be other than specified herein, any inspector or officer of the City of Oklahoma City shall have the right to suspend drilling and all opera- tions in or about such well until the weight of such mud shall comply herewith or the conditions of the oil shall be made to comply with the provisions of this chapter. is in North Canadian R It shall be unlawful and an offense ror any person, iirui or corporation to deposit, place, throw, divert, or in any manner dispose of or cause or permit to be deposited, placed, thrown, diverted or disposed of within the corporate limits of the City of Oklahoma City, any crude petroleum, oil or oily by-product thereof, or any tar or any product containing tar or any liquid with petroleum content or any oily substance thereof upon the waters of the North Canadian River, or any lagoon, creek or tributary whereof, or upon the banks thereof or upon any land adjacent thereto which by reason of this location may cause such petroleum, oil or liquid with petroleum content to be deposited or diverted or may run or be transferred or carried into said river or the banks or tributaries thereof, except that the City Council may permit the depositing, placing or dis- charging of mud or slush in such place or places as may be approved by the City Engineer and by the City Council when said mud or slush is carried in pipelines licensed under Section 9-111. 9-45 De ositing 011 Products in Street etc. It shall be unlawful and an offense or any person, firm or corpora- tion to deposit, drain or divert into or upon any public OIL AND GAS -23- highway, street or alley, drainage, ditch, storm drain, sewer, gutter, paving, creek, river, lake or lagoon, any oil or liquid with petroleum content or any oily substance or any mud, rotary mud, sand, water or salt water, or in any manner to permit by seepage, overflow or otherwise, any of such substances to escape from any property owned, leased or con- trolled by such person, firm or corporation and to flow or be carried into or upon any such public highway, street or.alley, drainage, ditch, creek storm drain, sewer, gutter, paving, , river, lake or lagoon within the corporate limits of the City of Oklahoma City, except in such cases where mud or slush is carried in pipelines as provided in the preceding section. No we11 ahallvbe-permitted to produce petroleum at any time during an electrical storm, and it shall be the duty of all person, firms or corporations owning or operating such wells to shut off all production or petroleum therefrom during such storms or during any period when gas may settle, and not be immediately dissipated, on the ground. No gas from any well shall be permitted to escape into the air at any time during such electrical storm or during any period when gas may settle, and not be immediately dissipated, on the ground. Slush Pits --Removal. Within thirty (30) days after any oil and/or gas well within the limits of the City of Okla- hom City shall have been completed for production of oil and/or gas, or within. thirty (30) days after the same shall have been completed in cases where the same is abandoned for the reason that a "dry hole is found," the slush pit shall be filled with dirt and leveled off. In all cases where oil and/ or gas wells shall have been completed for production or abandoned as dry holes prior to April 210 1936, the persons operating or maintaining such wells shall be given thirty (30) days after April 21, 1936 within which to comply with the pro- visions of this section by filling the slush pits as herein required. 9 48 Avandoned Wells --Restoration of Property. It shall be the duty of every person, firm, corporation, or lessee owning any oil or gas well within the corporate limits of Oklahoma City, Oklahoma, and on the officers, agents and employees of such owners, in the event of abandoning opera- tion because of failure of the well or wells to produce oil or gas in paying quantities, or for any other reason to begin within a period of sixty (60) days from too day of such abandon;ient and to continue in a workmanlike manner, to remove all derricks, machinery, concrete foundations and any and all other objections that interfere with the leveling of said land, and to gradelevel and restore said property to the same surface condition as nearly as possible, as when found when the oil or gas well thereon was first commenced. 9-49 Welding. No welding shall be done within sixty feet of any producing well, any tank battery or OIL AND GAS -2$- separator within the corporate n limits of the City of Oklahoma City, unless a city fire inspector has first been called and approved the place where the welding is to be done and the manner of doing same, and if no safe place is available, the inspector shall disap- prove of the welding within such sixty foot distance, but if a safe place is available, he shall issue a writ- ten permit for the doing of the welding. OIL AND GAS -25- CHAPTER 14 -EQUIPMENT FOR ARTIFICIAL PRODUCTION g-51 Approval Rpuired for Installation of Tubbing. and Equipment. Before any person, firm or corpora, shall commence any operation to change the equipment of any oil or gas well for the purpose of installing equip- ment to change from natural to artificial production of oil or gas, or before any person, firm or corporation shall commerce any operation for the purpose of clean- ing, repairing or reconditioning any such well, within the City of Oklahoma City, it shall be necessary to noti- fy the Chief of the Fire Department, or any of his authoriz- ed representatives, that such operation is to be commenced and to receive the approval of such officer, or the City Oil Well Inspector, before the commencement of any such operation. Such officer, or such inspector shall approve any such operation or installation when it appears that the provisions of this chapter have been and are being complied with. 9-52 Installation of Tubing. On each well where tubing is to be installed or removed, before commencing said installation or removal, there shall be placed in or at the top of the Christmas Tree assembly at some point above the master gate on the casing, or oil flow string, an approved blowout preventer, which blowout preventer may, at the option of the operator, be removed at the comple- tion of the work of installing or removing tubing, provid- ed, that if and when said blowout preventer is removed, an approved type of tubing head or support capable of supporting the weight of the string of tubing and tested to withstand a minimum test pressure of 3,000 pounds per square inch, shall be installed on the well. Before tub- ing shall be installed or withdrawn, the well shall either be killed by pumping or flowing a fluid into same, or there shall be placed at the top of the well, or in the well con- nections, a fan or pump, or other devi ce, the choice of which shall be left to the operator of the well, but to be approved by the City Oil Well Inspector, which said fan, pump or other device shall be designed and operated so as to effectively remove or dissipate any gas or gasoline vapor coming out of the well or accumulating about the top of the well. And at all times while said tubing is being installed or withdrawn, there shall be available adequate pumps, proper connections and a sufficient reserve supply of fluid which will permit the pumping or flowing of suf- ficient fluid into the well to kill the same. Provided, however, that if such device is placed at the top of the well, or in the well connections, and it effectively re- moves or dissipates gas and gasoline vapors coming out of the well, or accumulating about the top of the well, it shall be deemed a complete compliance with the provisions cf this..section. OIL AND GAS -26- 9-53 Working Pressure --Booster Plants. In no case shall gas or air be transported through any pipe line within the City of Oklahoma City at a working pressure in excess of 1000 pounds. if it is necessary to use a greater working pressure, a gas or air booster plant shall be installed not closer than 75 feet from the derrick floor of any well or tank battery and the compressor unit not greater than 100 feet from the derrick floor of the well being served. In no event shall more than 1500 pounds working pressure be used in flowing any well by artificial means. 9-54 High Pressure Lines. Any pipe used for the transportation of said air or gas ranging from 600 to 1000 pounds pressure, shall be from 2 to 10 inches in outer diameter and shall be seamless pipe with welded or screwed couplings and the same shall be covered, not less than 42 inches below the regular ground level and shall be placed in conduit whenever laid under any por- tion of any street, roadway, alley or driveway ordinarily used for heavy vehicular traffic. These lines shall be tested before being used and every six months thereafter, said test to be made with water and the pipe must stand 2000 pounds pressure when so tested. 9-55 Air or Gas Lift --Pressure Gauge. At each well where air or gas lift is used there shall be placed on the air or gas lift an indicating pressure gauge which shall show the working pressure of air or gas delivered to said well at all times. When any air or gas shall be supplied in any air or gas lift line from a source of supply out- side of the city limits, there shall be placed on said line, at a point where same enters the city limits, one record- ing pressure gauge, which gauge shall contain charts , and said charts shall be preserved and open to inspection by the City oil Well Inspector. On plants or sources of gas lift gag or air inside the city limits, a recording pres- sure gauge shall be placed between the plant and the well or wells served. All gauges installed on said lines shall be tested and corrected every six months. 9-56 Violations --Order to Cease. When the City Oil Well Inspector shall find any person, firm or corporation is carrying on any activity in violation of this chapter, he shall order said activity to cease until the one of- fending shall comply with the provisions of such sections, as amended; and it shall be unlawful and an offense for any person, firm or corporation to renew such activity when so ordered to stop until such sections, as amended, have been complied with and said City Oil Well Inspector has so found and given permission for such renewed activity. 9-57 Portable Pumping Units. Every person, firm or corporation, operating a portable pumping unit used for the pumping of oil within the corporate limits of the City of Oklahoma City, Oklahoma, shall equip the same, before the operation or use thereof, on both the suction and dis- charge sides, with steel fbxible tubing or pipe or tubing OIL AND GAS -27- . composed of some other material that is approved by the City Oil Well Inspector. CHAPTER 5-SWABBING WELLS 9-61 Compliance with Chapter Required. It shall be unlawful and an offense for any person, firm or corpora- tion at any time to begin the operation of swabbing an oil and/or gas well within the city limits of the City of Oklahoma City, Oklahoma, withdut first complying with all of the provisions set forth in this chapter. 9-62 Installation of Lubricator and Equipment. No well shall be swabbed before a device, commonly known as a lubricator, has been placed on flow casing above all outlets or flow lines of such well, said lubircator to be not less in diameter than the flow casing and to be equipp- ed with an adequate oil saver or stuffing box atthe top of same, total inside length of lubricator to be not less than five (5) feet more than total length of swab and turn back on swab_line,.;.said'indicator to have••a'nipple" 40o less than two (2) inches in diameter nor more than four l4 Inches in length placed nor more than six (6) inches from top of same and on flow line or lines between gate valve on said flow lines and flow casings. Said nipple shall be provided with a gate valve of not less than two (2)'inches in size. All equipment and parts of said lubricator shall be of a type designed and tested to withstand a pressure of three thousand (3000) pounds per square inch. All pres- sure tests shall be by the hydrostatic method. Lubricator must be tied down from top of same to casing next in size to flow casing with wire line of not less than five -eights (5/8) inch in diameter or by iron or steel rods not less than one and one-fourth (1 1/4) inch in diameter. Said tie -down to be equipped with turnbuckles and adequate clamps. Guy lines must be provided from top and bottom of lubricator to derrick legs, said lines to be not less than five -eights (5/8ths) inch in diameter and to be tied into derrick legs at the same level as on lubricator. Small gate valve at top of lubricator shall be tied back to.same, using clamps of required size. 9-63 Valves on Lines Leaving Flow Casing. All lines leaving flow casing must be equipped with a gate valve of not less than three thousand (3000) pounds per square inch test and same size of line and be placed not farther than twenty-four (24) inches from flow casing, said valve or valves to be tied back to flow casing using necessary clamps and wire line ar rods as specified in the preceding section. OIL AND GAS -28- CHAPTER &REGULATION AND INSPECTION 9-71 Annual Fee. There is hereby levied an annual police regulation and inspection fee upon each well operated or maintained for the purpose of producing petroleum and/or natural gas therefrom within the corporate limits of the City of Oklahoma City in the amount of $100.00 to cover the ex- pense of enforcing the provisions contained in this title. 9-72 License Required. It shall be unlawful and an offense for any person to operate or maintain any well for the purpose -of producing petroleum acid/or natural gas there - from within the corporate limits of the City of Oklahoma City without first paying to the City Treasurer the fee provided in the preceding section and obtaining a license from the City Clerk so to do.' 9-73 License Period. The first license period for which the first fee required hereunder shall be paid shall com- mence with the 1st of May, 1935, and expire on April 30, 1936. Thereafter all licenses shall expire on the last day of April next after the same are issued. License paying the $1,0 ing any such we fees until one is paid, and o 280 per day fo and the first be required to ing period of be subject to With Drilling Fee. Any person uu.uu permit fee for the privilege of drill- 11 shall not be required to ay any further year from the time that the $1,000.00 fee n said latter date shall pay at the rate of r the number of days between said latter date of 'May following same, but in no event shall pay more than $100.00 for any such interven- time. Each year thereafter such person shall the fees provided in Section 9-71. 9-75 Boilers. All boilers maintained or operated in connection with any wells shall be inspected by the Boiler Inspector to see that same are maintained in compliance with the provisions of the ordinances of said City relating to boilers. 9-76 Derricks and Equipment --Inspection. The Oil Well Inspector shall check the derrick and equipment operated or maintained in connection with each well to determine if same are maintained or operated in a safe condition from a structural standpoint. 9-77 Dykes and Fences. The Oil Well Inspector shall check the dykes and fences in, and about each well to deter- mine if same are properly maintained as required by this title or any other ordinances of the City. OIL AND GAS -29- 9-78 Electric Wiring. The Oil Well Inspector shall check the wiring on each oil well derrick and between the derrick and the boilers and at the boiler house to determine whether 'same is maintained in com- pliance with the electrical code of the City of Okla- homa City, and if any wiring is found not to comply with said electrical code, he shall report to the Electrical Inspector. Electrical When- ever an electrical storm shall come up and be in progress, all of the inspection department of the Fire Department of the Oil Well Inspector shall go into the Oil and Gas Dis- tirct of the City to check and determine whether all of the wells are closed in as required by the provisions of this title. 9-80 Foam System Maintenance. The Oil Well Inspec- tor, in each inspection of any well location, shall check all foam equipment and see that same is placed in operating condition and see that said equipment is properly maintain- ed'. The Oil Well Inspector shall post instructions at each well location for the proper handling and operation of the foam equipment on such well location. 9-81 Gates Valves, etc. The Oil Well Inspector shall check all he master gates, valves, pipes, pipe lines, tank batteries, pipe connections and fittings upon each well to see if same are maintained in sufficient number and size as provided b the ordinances of the City of Oklahoma City and/or the laws of the State of Oklahoma, and shall also check to see if same are tight, safe and not leaking. 9-82 Guards. Any person operating or maintaining any well flowing oil naturally or producing oil by means of gas lift within the corporate limits of the City of Oklahoma City, Oklahoma, shill at all times during which said well is naturally flowing or producing oil by means of gas lift, have at least one person stationed at such well. It shall be the duty of the Oil Well Inspector to see that the provisions of this section are complied with; provided, however, that nothing in this section shall apply to wells producing solely by means other than natural flow or gas lift. 9-83 Pressure Lines. The Oil Well Inspector shall check any pressure lines, tubing or fittings, equipment or connections maintained in connection with such lines or tub- ing to see if same are tight, safe And not leaking. OIL AND GAS -30- 9the st-84 Steam Lines. The Oil Well Inspector shall check eam lies m naintained in, near or about any well or the boiler or boilers operated in connection with any well or any of the appurtenances of any well to deter- mine if said steam lines and all fittings, connections and valves thereon are tight, safe and not leaking. 9-85 Water Lines. The oil Well Inspector shall check the water lines upon each well location to ascertain whe- ther any cross connections, prohibited by ordinances of the City of Oklahoma City, are maintained between the public water system and any private water system, and shall report any violations of such ordinances to the Superintendent of the Water Department. .9-86 Outside Fires in Oil and Gas District. it shall be unlawful and an offense for any person, firm or corpora- tion to start or cause to be started any fire outside of any building in the oil and Gas District of the City of Oklahoma City, Oklahoma, for the purpose of burning any trash or refuse matter or for the purpose of heating wash pots, or for the purpose of cooking or any other purpose whatsoever, or to ignite or cause to be ignited or con- tinue ignited any other flames, torch, or flare for light- ing or other purpose outside of any building in the oil and Gas District of the City of Oklahoma City, Oklahoma; pro- vided, that dry trash, papers and rubbish may be burned in the Oil and Gas District in non-combustible containers be- tween sunup and sundown. Said containers must be construct- ed of some character of non-combustible material, and secure- ly covered by a screen to precent the escape of sparks and burning material when in use. Such containers must be lo- cated no nearer than twenty-five (25) feet from any frame building, or nearer than one -hundred (100) feet from any live oil or gas well, or oil tank, and before used must be inspected and approved by the Fire Warden of the City of Oklahoma City. 9-87 Premises to Be Kept Clean. The Oil Well Inspec- tor shall check each well location located within the cor- porate limits of the City of Oklahoma City to see that same Is kept clean with all papers, trash and other flammable waste picked up and removed and to see that all waste oil is kept cleaned up and removed. Such inspector shall also check each well location to see that all grass or weeds, which, in the judgment of said inspector constitute a fire hazard, are removed. 9-88 Inspections --Time of. Where any checking or in- spection is required to be done from month to month to deter- mine whether the provisions of this chapter have been com- plied with, the oil Well Inspector shall make the inspecticn and checking required herein at least once every month and/or as often as necessary. OIL AND GAS -31- 9-89 Fire -Department --Training for Emergencies. The Chief of the Fire Department shall train the entire person- nel of the Fire Department in the handling of oil field fires or emergencies and shall assign certain firemen to regular duty in connection with fighting fires in the oil and Gas District in addition to the regular oil field inspectors. Said Chief shall also assign other parts of the personnel of said department to be in readiness and to act in cases where fires or other emergencies occur in the Oil and Gas District. 9-90 Police Officers--Trainin for Emergencies. Chief of Police shall rain a sufficient number of officers in handling of oil field fires or emergencies and shall assign certain men to regular duty in connection with oil field work in the Oil and Gas District, and shall assign others to be in readiness and to act in cases where fires or other emergencies occur in said district. 9-91 Water Department --Inspections. The Superintendent of the Water Department shall cause the personnel of the Water Department to make regular inspections of the fire hydrants in the Oil and Gas District to determine whether the water pressure at said hydrants is maintained at 75 pounds; and shall have said personnel keep records of such inspeCtions in the water department offices. The Superin- tendent of the Water Department shall train a sufficient number of employees of the Water Department in the hand- ling of oil field fires or emergencies, and shall assign certain employees of said department to regular duty in connection with maintaining sufficient water pressure of facilities in the said Oil and Gas District, and shall as- sign others to be in readiness and to act in cases where fires or other emergencies occure in said Oil and Gas Dis- trict. 9-92 Inspection Reports. The Chief of the Fire De- partment shall cause nspec ion report forms to be pre- pared and printed on which shall be listed the various matters required to be insbected and checked by the Oil Well Inspector under the provisions of this Title and subsequent amendments thereto, with a place on said re- port for marking to show whether or not such provisions are being complied with. Such report forms shall be made in triplicate. One copy shall be filed in the central office of the Fire Department, one copy shall be posted in the foam house located on each well location, which copy shall not be removed except by the Oil Well Inspec- tor; and the third copy shall be mailed to the last known mailing address of the licensee. Such report forms shall contain a notice to the effect that if the ordinance pro- visions shown to be violated in said reports are not com- plied with in five days, charges will be filed under the provisions of this Title in the Municipal Court of said OIL AND GAS -32- City, but the failure to give such notice shall not pre- vent the filing of charges. The Chief of the Fire De- partment shall cause a separate file to be made up for each well in which shall be kept the inspection reports covering each such well. 9-93 Gas Accumulations --Fire Hazards. The Oil Well Inspector shall have the authority to require the immediate shutting in or closing of any oil and/or gas well upon find- ing that there has accumulated, within a radius of one hun- dred feet of said well, any gas or gasoline vapor in suffi- cient quantity to ognstitute, in the judgment of the Inspec- tor, a fire hazard. Such well shall remain shut in or closed until such time as saieb fire hazard and the condi- tions bringing the same about are removed. CHAPTER 7 LOADING RACKS 9-101 Definition. For the purposes of this chapter, -a loading rack is defined to be any platform or structure, built alongside of a railroad track for use in loading crude Gil, gasoline, kersosene or other liquid petroleum products into tank cars. 9-102 Consturction Must Comply With Regulations. It shall be unlawful for any person, firm, or corporation to construct a loading rack for crude oil, gasoline, kerosene, or other liquid petroleum products in the City of Oklahoma City, except as is permitted under this chapter. 9-103 Permits for Construction. Before commencing the construction of any loading rack, it shall be neces- sary to obtain a permit from the Superintendent of the Building Department. For each permit, a fee of Five Dollars ($5.00) shall be charged for inspection and re- gulation. Permits shall be issued only after approval b the Fire Warden. 9-104 Fire -Resistant Materials Required. Nothing but fire -resisting materials shall be used in the con- struction of any loading rack or any building or structure used in.connection with same or on the same premises with same. 9-105 Electrical Wiring. All electrical wiring and electric- equipment shal be installed in said loading racks in compliance with the Electric Code of the City of Oklahoma City. All light outlets used in said racks shall be of vapor --proof type. Hand lamps used about said loading racks shall be of a vapor -proof type, approved by the United States Bureau of Mines. OIL AND GAS -33- 9-106 Motors. Any motors used in connection with or near any loading racks shall be of an induction type " or of any type that can be used in connection with an ex- plosive atmosphere. 9-107 Grounding and Eonding. Each loading rack shall be bonded and grounded, and the rails of railroad shall be bonded and grounded into the same wire used for ground- ing and bonding the loading rack. 9-108 Filler Head or Dome. For loading tank cars from any loading rack, a filler head or dome of a type approved by the Fire Warden shall be used. Such filler head or dome to have a vertical vent not less than three inches in diameter and ten feet in height from the dome of the tank car. 9-109 Fire Protection Devices. An adequate water supply for fire protection to a approved by the Fire Warden shall be maintained; and foam producing chemicals to the extent of five pounds for each foot of length of the loading rack, together with such other foam equip- ment as may be required by the Fire Warden shall be maintained at all times. CHAPTER 8- PIPELINES 9-111 Excavations for Pipelines --Permits. It shall be unlawful and an offense for any person, firm or corporation, ether as principal or agent, to make any excavation in any part of the streets, alleys high- ways, parkings, sidewalk areas or other public property or in any public utility reserve for the purpose of lay- ing or installing, or to lay, install, or maintain any pipeline in or upon such property, without first having obtain a permit from the City Council so to do. The applicant for such permit shall file with the City " Engineer a plan showing, in detail, the size of such pipelines, the exact location of such excavation or pipelines, the depth and widthihereof and the location thereof, with particular reference to all structures or lines of the City of Oklahoma City or any public utility company, and the sidewalks, pavement or other public im- provements. Each owner of such pipelines installed or laid before June 30, 1931 shall pay an inspection and regulation fee of $1.00 per rod for each and every rod said pipeline shall occupy of the streets, alleys, high- ways, parkings, sidewalk areas or other public property or in any public utility reserve belonging to the City of Oklahoma City. Each applicant for a permit hereafter shall pay an inspection and regulation fee for such permit based on the number of rods in length such pipeline or pipe- lines shall occupy of the streets, alleys, highways, park- ings, sidewalk areas, or other public property or public OIL AND GAS -34- utility reserves belonging to the City of Oklahoma City in the following amounts, to -wit: Where the width of the ditch excavated for such pipeline.- or pipelines does not exceed 15 inches the fee shall be $1.00 per rod, even though more than one pipe-' line is laid in the same ditch. All ditches shall be excavated in such a manner as to make the smallest possible opening in the public pro- perty, but all ditches shall be constructed so as to pro- vide a width of 6 inches greater than the outside diameter or diameters -of the pipe or pipes and the minimum space between the outside diameter of pipes shall be 6 inches. In any case where pipelines are laid in any public uti- lity reserve, it shall first be necessary that the appli- cant for a pipeline permit obtain written permission or consent from all the owners of property through and over which said public utility reserve runs before applying for a permit under the provisions of this section. 9-112 Annual Inspection Fee. After the year, 1931, each owner of a pipeline shall for each year said pipe- line is continued and maintained under the streets, alleys, etc., pay on the 1st day of May, in each year, an annual inspection and regulation fee of ten cents per rod for each pipeline for each and every rod said pipeline shall occupy of the streets, alleys, highways, parkings, sidewalk areas or other public property or in any public utility reserve belonging to.the City of Oklahoma City, provided, however, that upon the payment of $1.00 per rod for a permit, such owner shall not be required to pay ten cents per rod, until the first day of May following the issuance of such permit. Any permit may be revoked upon ten days' notice for the failure to pay the fees herein required and each day's continuance of said pipeline after such revocation shall constitute a separate offense. 9-113 Removal of Pipeline --Fees. Before any excava- tion is made for the purpose of removing any pipeline or pipelines located in or upon any part of any street, alley, highway, parking, sidewalk areas or other public property, or public utility reserve, the person, firm or corporation, desiring to make the removal shall obtain a permit for such purpose in the same manner as provided in Section 9-111 for the installation of such a pipeline or pipelines and shall pay an inspection and regulation fee to be determined as provided in Section 9-111 for the installation of such a pipeline or pipelines. OIL AND GAS -35- 9-114 Fees Where Pipelines are Interchanged. In any case where any pipeline covered by Section 9-111 is placed in a ditch where another pipeline covered by said section is being removed, it it is not necessary to deepen the ditch and there is not involved a placing of a high-pressure line in a ditch where a low-pressure line has theretofore been, only $1.00 per rod shall be collected upon the rodage as determined under said Sec- tion 9-111, provided, however, that in any case where it is necessary to deepen the ditch and the new pipeline being placed in the said ditch is a high pressure line taking the place of a low-pressure line $1.00 per rod shall be charged for the installation of the line being installed and $1.00 per rod shall be charged for the re- moval of the line being removed as determined under said Section 9-111. 9-115 Plugging of Pipelines Under Paving. The ownercf azY pipeline for which a removal permit has been applied for and issued, as required by Section 9-113, in lieu of the actual removal of any portion of the pipeline located underneath any . paved street or alley, may relinquish ownership and abandon that part and portion beneath any paving by first Pumping the pipe full of mud and securely plugging each end of the pipe left beneath the paving. Provided, the owner of such pipe shall and must, before abandoning and plugging the same, file with the City Clerk, or incorporate in the application for removal permit, a written transfer and assignment to the City of Oklahoma City of all interest, possession and title in and to the abandoned pipe and shall give 48 hours' previous written notice to the City Engineer pf the time and place when and where the owner proposes to plug the pipe, and such work shall be subjectto inspection and approval of the City Engineer or an inspector designat- ed by him. 9-116 S ecificatlons for Pipelines and Fixtures. All pipelines, connections and fixtures nereor, installed or used for the purpose of the transportation of natural gas, shall be equivalent to the specifications of the National Gas Safety Code, adopted and approved by the United States Department of Commerce and now in force as to thickness, weight, size, strength and general character of material workmanship and manner of installation. All pipelines used in connection with the drilling of wells, other than gas lines and the lines used for the transportation of petro- leum or any of its products, shall be of new lapweld or seam- less pipe and shall be equivalent to the specifications there- fore as now adopted by the American Petroleum Institute for lapweld of Grade "A" seamless pipeline. All such lines shall be at all times operated and maintained in a safe manner so as to prevent all leakage or escape of any of the contents of such lines. If any such lines shall become unsafe or shall not be maintained as pro-vided herein, or any of the contents thereof shall escape therefrom, it shall be the duty of the person, firm or corporation in charge, or OIL AND GAS -36- in control thereof, immediately to discontinue the use thereof, and to shut off all of the contents thereof, until such line shall be repaired. Pressure in any such lines shall not exceed those permitted by the rules, regula- tions or orders of the Corporation Commission of the State of Oklahoma now in force. A11 such lines shall, on city streets or alleys, be buried to a minimum depth of 30 inches below the normal surface of the ground, said depth to be measured from top of pipe and to be approved by the City Engineer. In the event it shall become necessary to change or remove any of said pipelines, said change or removal shall be made the the entire expense of the owners thereof, upon the approval of the City Engineer, or an inspector of the City. Said removal or change shall be made within five days after notice is served by the City. 9-117 Testing of Gas Pipelines. Each owner or operator of any gas pipeline for which a permit is re- quired under this chapter, other than high-pressure lines regulated by Section 9-54, shall have the same tested at least once every six(6) months for the purpose of deter- mining whether the same is in a safe condition and is free from leaks, breaks or open spaces and make a report of such test, supported by an affidavit by the person making the test, to the City Engineer. Such test may be by the stench method, electrical detection method, or by any other method, other than a pressure method, ap- proved by the City Oil Well Inspector; provided, that each gas pipeline hereafter installed shall be tested by the City Oil Well Inspector, and a report of such test shall be filed with the City Engineer before the opera- tion thereof. The first test hereunder shall be com- pleted on or before the 15th day of September, 1937, and the next testing period shall terminate March 15, 1938. In subsequent years, testing periods shall end as of September 15th, and March 15th, of each year. It shall be unlawful and an offense for any owner or operator, or any employee or agent or any such owner or operator, to continue the operation of any pipeline after the termina- tion of any testing period herein provided, without having the same tested and making the report thereof as required herein. For the failure to make such test and such report, or if the report discloses, or is other- wise appears that any line is leaking, is defective, or unsafe, the City Oil Well Inspector shall within five (5) days thereof, or within five (5) days .after the clos- ing of any such testing period, close and shut in any such pipeline. CHAPTER 9-PIPELINES FOR NATURAL OR ARTIFICIAL GAS 9-121 Pipeline Franchise or Permit Required. It shall be unlawful for any person, firm or corporation to erect, lay, maintain or operate in, under or upon any of the street, alleys and public places of the City of OIL AND GAS -37- Oklahoma City any pipeline or.pipelines;.meters, valves, gauges, pumps, appliances and equipment which are to be used for the distribution and/or sale of natural and/or artificial gas to consumers in the City of Oklahoma City or its environs, without a franchise therefor from the City of Oklahoma City or without permits therefor as required by this chapter. 9-122. Illegal Pipelinesyeclarea ivu��auoCa--����u��.�• Any pipeline or pipelines and all meters, valves, gau es, PUMP t sd in the saleo acndr ers dist erat- in Oklahoma City and its environs, and maintained or oplaces ed 1n, under or upon any of streets, alleys or public places of said city, without a franchise therefor from the City of Oklahoma City, or without permits therefor as required by this chapter, are hereby declared to be a public nuisance or public nuisances, and any person, firm or corporation whether as owner or leasee, principal or agent, either for himself or itself; or for any person, firm or corporation, or any person or officer of any corporation or employee of any firm or as clerk or employee or otherwise who or which shall erect, lay, maintain or operate or assist to erect, Jay, maintain or operate any such pipeline or pipe- lines or meters, valves, gauges pumps, appliances and equipment used in the sale and/or distribution of natural and/or artificial gas to consumers in Oklahoma City and its environs and maintained or operated in, under or upon any of the streets, alleys or public places of said City without a franchise therefor from said City, or permits therefor as required by this chapter, shall be guilty of an offense, and upon conviction thereof -shall be punished by a fine of not to exceed $18.00 and costs, each day during or upon which said pipeline or pipelines or meters,' valves, gauges, pumps; appliances and equipment are used in the sale and/or distribution of natural and/or artificial gas to consumers in the City of Oklahoma City and its en- virons, and maintained or operated in, under or upon any of said streets, alleys or public places without a fran- chise therefor from said City or permits therefor as re- quired by this chapter, shall constitute a distinct and separate offense. g 123 Fees for Pipelines Without Franchise_. Any person, firm or corporation maintaining or operating any pipeline or pipelines or meters, valves, gauges, pumps, appliances and equipment used in the sale and/or distribu- tion of natural and/or artificial gas to consumers in Oklahoma City and its environs, in, under or upon any of the streets, alleys or public places of said City with- out a franchise therefor from the City of Oklahoma City shall pay, for each year said pipeline or pipelines, or other appliances above referred to, are continued and maintained under the streets, alleys and public places of said City, on the first day of May in each year, an annual police regulation and inspection fee of 10¢ per OIL AND GAS -38- rod for each and every rod said pipeline or pipelines shall occupy of the streets, alleys or public places of said. City. Provided, however, that if any sueb'person, firm or corporation have or secure a franchise from the City of Oklahoma City to maintain and operate such pipeline or pipelines, or any of the appliances above referred to, in, under or upon its streets, alleys or public places of said City, he or it shall not be required to make any further payments as herein provided during the life of said franchise unless provision is made there- for in said franchise. 9-124 Excavations for Pipelines --Permits, Plans, Fees. It sha11 be unlawful and an offense for any person, rirm or corporation, without a franchise therefor from the City of Oklahoma City to make any excavation in any part of the streets, alleys or public places of said City for the purpose of laying or installing or to lay or install any pipeline or pipelines or meters, valves, gauges, pumps, appliances and equipment for use in connection with the sale and/or distribution of natural and/or artificial gas to consumers in Oklahoma City and its environs, unless such person, firm or corporation shall first have obtained a• permit from the City Council so to do. The applicant for such permit shall file with the City Engineer a plan showing in detail the exact location of such proposed excavation or pipeline or pipelines, or other appliances above referred to, the depth thereof and the location thereof with particular reference to all structures or lines of the City of Oklahoma City or public utility companies and the sidewalks, pavement or other public improvements. Each applicant for such a permit shall pay an inspection and regulation fee for such permit of $1.00 per rod for each and every rod said pipeline or pipelines shall occupy of the streets, alleys and public places of said City. Any applicant paying said $1.00 per rod for a permit shall not be required to pay the 100 per rod annual fee provided in the preceding section until the first day of May following the issuance of such permit. From and after the passage and approval of this chapter, if any such pipeline or pipelines, or other appliances above referred to, shall be laid without ob- taining the permit provided for in this section the main- tenance or operation of same in the streets, alleys and public places of said City shall constitute an offense and each day that said pipeline or pipelines or other appliances are so maintained or operated shall constitute a separate offense. Provided, however, that if any such person, firm or corporation have or secure a franchise from the City of Oklahoma City to maintain and operate such pipeline or pipelines, or any of the appliances above referred to, in, under or upon its streets, alleys or public places, he or it shall not be required to obtain K. the permits herein provided, unless provision is made there- for in such franchise. OIL AND GAS -39- 9-125 Construction of Rights Granted. Section 9-123 and 9-124 or any acts and proceedings had hereunder shall not be construed as a grant by said City of the right or privilege to use the streets, alleys or public places of t said City for the purposes therein immediately succeeding the time fixed by said sections for payment to said City and then only in the event such payment is actually made. 9-126 Gross Receipts Tax. Any person, firm or cor- poration who or which shall erect, lay, maintain or operate any pipeline or pipelines or meters, valves, gauges,,pumps, appliances and equipment in, under or upon any of the streets, alleys or public places of said City without a franchise therefor from said City and use the same in the sale and/or distribution of natural and/or artificial gas to consumers in Oklahoma City, shall pay to the City of Oklahoma City, as a gross receipts tax or as reasonable compensation for the use of the streets, alleys and public places of said City so used in conducting such sale/or distribution of such natural and/or artificial gas, the sum and amount of one per cent of the gross receipts resulting from such sale and/or distribution of such natural and/or artificial gas to such consumers in the City of Oklahoma City, and there is hereby levied upon any such person, firm or cor- poration, engaging in the activity in this section des- cribed, a gross receipts tax in the sum and amount herein specified. 9-127 Time of Payment. The compensation provided under the preceding section for the use of the streets, alleys and public places of the City of Oklahoma City, by such person, firm or corporation, shall be paid to the City Treasurer of said City on the first day of May, 1935, for the period from the taking effect of this ordinance, March 4, 1935, to and including the 318t day of March, 1935, and thereafter such compensation shall be paid to the City Treasurer on the first day of May of each year for the preceding year, including the time between March 31st of the prior year and to and including March 31st of the year in which payment is made, and provided further that the payments under these sections shall not be required for the time subsequent to the securing of a franchise and during the life thereof, unless provision is made therefor in such franchise. OIL AND GAS -40- 9-128 Construction. None of the provisions of this chapter shall be construed or operate to prevent or ren- der unnecessary the securing of any franchise for the erec- tion, maintenance or operation of a pipeline or pipelines, or meters, valves, gauges, pumps appliances and equipment in, under or upon any of the streets, alleys or public places of said City where such pipeline or pipelines, or meters, valves, gauges, pumps, appliances and equipment are used in the sale and/or distribution of natural and/or artifi- cial gas to consumers in the City of Oklahoma City and its environs nor shall sections 9-126 or 9-127 or any act or proceedings had thereunder be construed as a grant by said City of the right or privilege to use the streets, alleys or public places of said City for the purposes here- in provided, but the use of the streets, alleys or public places of said City by any person, firm or corporation with a pipeline or pipelines, or meters, valves, gauges, pumps, appliances and equipment as above set forth for sale and/or distribution of natural and/or artificial gas to consumers in the City of Oklahoma City and its environs without first securing a franchise therefor from said City, is hereby de- clared to be unlawful and wrongful and the compensation herein provided for the use of the streets, alleys and pub- lic places of said City during such unlawful and wrongful occupation,, shall be in lieu of damages for such unlawful and wrongful occupation and use, and shall be in addition to the penalties provided in this chapter for its viola- tion; but the City of Oklahoma City does not intend to waive any rights it has to have the charges provided in section 9-126 upheld as a tax as authorized under section 4 of article 8 of the Charter of said City. 9-129 Actions to Collect Amounts Due. The amount or amounts, by this chapter, required to be paid, shall be deemed a debt to the City of Oklahoma City, and upon failure to pay the same the City of Oklahoma City may maintain a civil action in any court of competent jurisdiction for the recovery and collection thereof. 9-130 Statement and Flat to be Filed. Any person, firm or corporation maintaining or operating any pipeline or pipelines, or meters, valves, gauges; pumps, appliances and equipment used in the sale and/or distribution of natural and/or artificial gas to consumers in the City of Oklahoma City and its environs in, under or upon any of the streets, alleys or public places of said City without a franchise therefor from said City, shall, upon the loth day of April of each year, file, with the City Engineer of said City, a statement or diagram verified by an affidavit of the general or local manager or agent of such person, firm or corporation showing the nunber of pipelines and the number of rods of said pipelines which occupy the streets, alleys or public places or said City which are so maintained .. or used by him or it. OIL AND GAS 41_ Any person, firm or corporation so maintaining oroperat- ing such pipeline or pipelines, or meters, valves, gauges, pumps, appliances and equipment as above set forth and con- ducting such business of selling and/or distributing natur- al and/or artificial gas to consumers of the City of Okla- homa City as above set forth, shall also file with the City Clerk of said City, on the loth day of April of each year, a statement verified by the affidavit of the general or local manager or agent of such corporation, firm or per- son showing the gross receipts of such person, firm or cor- poration forihe previous year including the time between March 31st of the prior year and including March 31st of -the year in which the statement is made, resulting from such sale and/or distribution of such natural and/or artificial tgas to consumers ei he verifiedstatementtobe ty of Ok lahoma 10,p1935det shall cover the period from the time this ordinance takes effect until April 11 1935• 9-1 1 Permits --Payment of Pees Prerequisite. No pipe line or pipe liness meters, valves, gauges, pumps, ,appli- ances and equipment used in connection with the sale and/or distribution of natural and/or artificial gas to consumers in the City of Oklahoma Cit and its environs shall be erected or laid in, under or upon any street, alley or pub- lic place of the City of Oklahoma City, and no permit shall be granted by any officer or employee thereof to any person, firm or corporation to erect or lay any pipeline or pipe- lines or other appliances as above set forth in, under or upon any street, alley or public place of said City, unless such person, firm or corporation shall have first secured a franchise from said City to .erect and maintain such pipe line or pipelines or other appliances, as above set forth, in said street, alley or public place, or unless such per- son, firm or corporation shall have paid the Amount requir- ed by section 9-126 for the use of the streets, alleys or public places by such pipe lines or appliances above referr- ed to and maintained or used by him or it, and the police regulation and inspection fee as required in section 9-124. 9-132 Abatement of Nuisance. It shall be the duty of City Engineer, Building Superintendent and the Chief of Police of said City of Oklahoma City, or any or all of said officers to summarily abate or remove any of said pipeline or pipelines, meters, valves, gauges, pumps, appliances and equipment by this chapter declared to be a nuisance immediate- ly upon order therefor given by the City Council of the City of Oklahoma City. It shall be unlawful and an offense to pre- vent or attempt to prevent any officer or employee or agent of said City from abating or removing any such pipeline or pipelines, meters, valves, gauges, pumps, appliances and „ equipment so declared to be a nuisance or to interfere with such officer, employee or agent when engaged in such work or attempting to engage therein. OIL AND GAS -42- 9-133 Enforcement and Supervision. It shall be the duty of t e City Manager, the Street Superintendent, the City Engineer, and the Chidf of Police to exercise constant supervision of such pipeline or pipelines, meters, valves, gauges, pumps, appliances and equipment located in the streets, alleys and public places of said City and to report to the City Council of the City of Oklahoma City all viola- tions of this chapter touching the same, and all dangerous, defective or unsuitably placed pipeline or pipelines, meters, valves, gauges, pumps,appliances and equipment, and to guard the public at all times from the dangers incident to the erection, maintenance and operation of all pipeline or pipe- lines, meters, valves, gauges, pumps, appliances and equip- ment used in connection with the sale and/or distribution of natural and/or artificial gas to consumers in the City of Oklahoma City and its environs, in, under or upon the streets, alleys or public places or said City. 9-134 Penalty. Any person, firm or corporation, whether as owner or lessee, principal or agent, either for himself or itself, or for any person, firm or corporation or any pers m as officer of any corporation or member of any firm or as clerk or employee or otherwise who or which shall lay, erect, construct, maintain or operate or assist to lay, erect, con- struct, maintain or operate sAy-pi-peline or pipelines, meters, valves, gauges, pumps, appliances and equipment in or upon any street, alley or public place of the City of Oklahoma City to be used in connection with the sald and/or distribution of natural and/or artificial gas to consumers in said City and' its environs in violation of the provisions of this chapter shall be guilty of an offense, and upon conviction thereof shall be punished by a fine of not to exceed $10.00 and costs. Each day during or upon which said person, firm or corporation sha117ay, construct, erect, maintain or oper- ate any such pipeline or pipelines or meters, valves, gauges, pumps, appliances and equipment above referred to in viola- tion of the provisions of this chapter shall constitute a dis- tinct and separate offense. 9-135 Amendment or Repeal. This chapter, or any part thereof, may be altered or repealeq a"f any time and no rights or privileges shall ever be acquired hereunder which may not be withdrawn, altered or modified by said City. *OIL A N4D GAS JOURNAL PUBLISHED WEEKLY APRIL 26, 1965 NEWS i Offshore transportation is big business Cook Inlet is alive with wildcat rigs TECHNOLOGY Unicracking-JHC goes commercial Now —faster underwater pipeline tie-ins Where steam stimulation will work kept -of; rexentive ved packed -hole asse 43 me O/A HEATING QL G a��o ELECTRICITY F 71 76 82 _ CO 93 Off 112 e - 1955 T 1966 STAN-DING THE TEST OF TIME In 1965, just as in 1924, our promise for the future is: "We will render useful service to the oil indusby at a reasonable price; we .�-- will give uniform quality of service regardless of location, we will provide N ® U Q }b ma froon a never-ending program of energetic research; we will constantly develop COMPANY. DUNCAN. OKLAHOMA new equipment; in brief, we will' maintain leadership in our chosen field!'- -_ _- --_ -- ==--- *OIL AND GAS CONTENTS April 26,1965 �OYRNAL The week's news Editorial: Confusion on the antitrust front .:.................... 41 General interest: Offshore play gives boost to boat and helicopter business ........ 43 Union, Pan Am pay $42 million for Superior offshore tracts ...... 49 Total -energy concept holds vast potential for oil and gas .......... 50 OR pipelines continue trend toward automation ................ 56 Industry briefs ................................ ......... 59 Supply houses showed gains in 1964 over 1963 ................ 62 AIIvIE head says need will arise for shale oil, manufactured gas .. 63 Phillips plans a helium plant in Kansas ...................... 63 Government: Orrick levels new blast at oil during Senate appearance .......... 58 Imports administrator says controls are here to stay ............ 64 Management: Spaght due top post in Shell's worldwide organization .......... 45 Texaco's Rambin outlines many worldwide projects ............ 54 International news: India wants oil to plug dollar drain .......................... 65 Oil in Mexico takes new direction under Reyes ................ 66 Five companies may drill off Iranian coast this year ............ 67 International briefs ......... ............................ 68 Exploration: Wildcatters stepping up pace in Alaska's Cook Inlet ............ 46 Pan Am pushes exploratory work off Newfoundland ............ 48 Four Corners hit by three -cornered drilling spree ................ 151 Microgravimetric profiles should find more reefs ............... 154 More foothills gas found at two Alberta strikes ................ 160 Pettet play in East Texas follows Sabine uplift ................ 163 Creativity: One of the most important factors in oil finding........ 165 Advertisers ........ 191 Books ............. 117 Calendar .......... 28 Classified advertising . 186 Deaths ............ 178 Editorial ........... 41 Equipment men .... 146 Regular features Exploration ........ 151 Industry statistics ... 179 International news ... 65 Journally speaking .. 39 New equipment ..... 137 Personals .......... 177 Pipeline construction . 119 Technology section on next page Processing notes .... 110 Profile ............ 173 The Journal said .... 39 They say .......... 27 Trade literature ..... 143 Watching Washington. 55 211 S. Cheyenne, r The Petroleum veer $7, 2 Yearn .,enable through Management Tips for engineers ......................................... 80 Three elements in company programs train engineers for management responsibilities: recruiting good prospects in the first place; a sincere desire throughout the company to develop men for higher positions; and a desire on the part of the engineer himself to broaden his usefulness. Technology Refining -processing Unicracking-7HC goes commercial .......................... 71 The first Unicracking-1HC unit went on stream in November 1964 at Union Oirs Los Angeles refinery. The 15,600-b/d unit andrelated facilities have operated smoothly, proving out design and operating features and confirm- ing the validity of pilot -plant data. W. E. Bradley, R. A. Campbell, and P. W. Morgal Gas -processing -plant preventive maintenance ................. 93 Cities Service has developed a unique preventive -maintenance program which takes into account the special needs of gas -processing plants. Daryl Southard Radiant heat transfer-42: Seminar -in -print .................. 102 B. E. Lauer Processing notes ......................................... 110 Two firms join in exploring direct digital control. New LNG} pilot plant is operating. Shell building new sulfolane unit. Mobil building new furfurat system. Equilibrium data reflect new high -activity catalysts. Pipelining Tennessee Gas develops underwater tapping equipment .......... 76 Tennessee Chas Pipeline Co. has taken the initiative in developing tapping equipment which allows it to capitalize on its huge gathering system sub- merged in the vast marshlands of South Louisiana and offshore. D. 1. Berard and E. S. Smith Pipelining high -pour -point crude-2 ........................ 107 Temperatures and burial are critical factors in line design. P. E. Ford, 1. W. Ells, and R. 1. Russell Pipeline -construction report ................................ 119 Producing Steam stimulation for secondary recovery .. I ................. 82 A rundown on where steam stimulation will work, why it succeeds or fails, and what it costs. Data for three California projects are shown, and a theoretical method of calculating oil recovery is given along with a correla- tion of oil viscosity with temperature. W. D. Owens and Vane E. Suter Drilling Improved packed -hole assembly gets results ...... :........... 112 Round -fluted near -bit stabilizers, protected with fine -particle hard facing, offer better wall -support and wear characteristics, API session told. _ THE OIL AND GAS JOURNAL. Newsletter April 26, 1965 News in the making In Washington: Voluntary efforts to reduce the nation's Dalance or pay- ments will be reviewed by industry and government officials this week. Advisory committee headed by Socony's A. L. Nickerson will look over the picture presented in company reports detailing plans for reducing the dollar drain. Some revisions may be made in the program, already labeled a success by Commerce Secretary Connor and the President. Administration is resisting attempts to include lubri- cating oil in its excise -tax reduction program. Still -secret package will be handled in committee to avoid pressure to expand cuts beyond the President's proposed 61.75 billion. House Ways and Means Committee will get the legislation sometime this month and process it behind closed doors. Latest formal casualty of federal regulation is E1 Paso Natural's plan to purchase 200 MMcfd of gas for stipulated nonjurisdictional uses. Supreme Court in January upheld FPC position that the gas, to be commingled in E1 Paso's regulated stream, would be sub- ject to FPC control (OGJ, Jan. 25, p. 102). FPC now has granted E1 Paso's request to withdraw the application since the gas wouldn't be available under those conditions. Another important issue of federal Jurisdiction — whether FPC has control over in -place sales to interstate pipelines — will be heard by the Supreme Court at mid -week. In the Rayne field case before the court, FPC said in 1959 it had no jurisdiction, changed its mind in 1963, and was overruled by appeals court last August (OGJ, Aug. 10, p. 48). Elsewhere around the oil patch: Sun Oil's 1965 goal is 8% of the market in its present gasoline sales area and 47o of the market in the Carolinas and Georgia where it now has only limited distribution. Pres. Robert G. Dunlop told stockholders at their annual meeting that the marketing department has an ultimate goal of 400 new service stations on the interstate highway system. About 80 have been completed, and 40 more are being built. Possible new rules for production off the Texas coast will INDUSTRY SCOREBOARD... Change from Latest week Week before Year ago B/d: Total demand 11,3990000 + 105,000 + 3990000 Production 7,780,100 - 2,200 + 160800 Runs 8,6792000 + 259000 + 1019000 Imports 2,345,000 + 369000 + 2019000 Stocks, bbl: Crude 243,06% 000 + 2,910,000 - 8,804,000 Gasoline 231,5899000 + 71,000 + 1803779000 Kerosine 290820,000 - 360,000 + 1,4351000 Distillate 81,441,000 - 227,000 - 13,2501000 Residual 33,493,000 - 12398,000 - 4,327,000 4-product 37601430000 - 11914,000 + 2,2350000 Wells: Completions 769 + 116 + 17 Rotary rigs 1,318 + 30 - 117 be considered at the next statewide allowable hearing May 19. ,Ben Ramsey, Texas Railroad Commission chairman, says the agency will consider adoption of a yardstick for offshore pro- duction at that time. Texas now regulates offshore production in its statewide orders, but most of the output is gas. There is only one oil well off the coast, and it's producing under a discovery allowable. Good news from Detroit on engine trends for 1966-model cars: • Bigger, more powerful engines will remain in style. • Compacts will practically disappear. Models will be larger and heavier. This adds up to greater gasoline requirements, with emphasis on premium grade. The pipeline industry may soon have a reliable interface detector for product lines. Five companies are testing a two -parameter detector, which measures two properties of the same fluid. This is said to assure accuracy. Lack of a reliable detector has been a major barrier to full automation. Of detectors in use., 73% function on den- sity, 10% on dielectric constant, 5% on color, 4% on vapor pressure, and the rest- on other properties. From overseas: Talks continue in Britain over possible British imports of liquefied natural gas from Nigeria. Negotiating parties are U.K. Gas Council, Conch Methane Services, and Nigerian Shell -BP Petroleum Development. Conch would buy gas from Shell -BP, liquefy it in Nigeria, and ship it to Britain for resale to Gas Council. Conch insists it can land Nigerian gas in Britain at price "fully competitive" with gas derived there from other sources. Sinclair is still eager to make a deal in Venezuela for a service contract or some form of joint venture with CVP, the government oil company. Sinclair Pres. 0. P. Thomas reiterated company interest in personal talks with President Raul Leoni earlier this month some 3 years after Sinclair made its first such advances. Atlantic -Phillips team isn't giving up in its search for oil in Libya's Gulf of Sirte. Joint venture has completed its tenth dry hole in the 2-year=old program. No production has been found. Focal point is moving to the east into Concession 88 waters. Drilling vessel Glomar V is engaged until October. Team's initial 18-month contract has been extended twice by 6-month increments. Significant this week Offshore transportation is changing — and getting more expensive — as boats and helicopters get bigger, travel faster, and operate farther from shore. Industry will spend $40 million this year for boats alone (p. 43). Shell Oil will have 'a change in top management this summer when Pres. Monroe E. Spaght becomes board chairman. Spaght also will be proposed for election as managing director of Royal Dutch Petroleum, parent of Shell Oil, and will become a director of Dutch and English companies making up the Royal Dutch/Shell group. R. C. McCurdy, president -of Shell Chemi- cal, will succeed Spaght as Shell Oil president (p. 45). Five rigs in Alaska's Cook Inlet signal the start of a record drilling year for the area. Rigs are making hole for Pan Am et al., Union -Marathon, Shell-Richfield-Socal, and Mobil (p. 46). this summer to back up its geophysical evaluation of a 31 million -acre block on the Grand Banks. The coring ship Caldrill I will move from the Gulf of Mexico next month (p. 48). Total energy is catching on and offers a lucrative market for both oil and gas. But one leader warns it's a pioneer market and will take lots of work to exploit fully (p. 50). Texaco's star continues to rise. Operating volumes rose during first quarter while profits increased 11.1%. Chairman Rambin discloses several new projects to stockholders at annua'1 meeting (p. 54). Pipeline automation is moving ahead. Half the horsepower on U.S. crude -trunk and product lines is remotely controlled, API survey shows (p. 56). Government will knuckle down on bigness in business, says antitrust chief William Orrick. And, he tells Senate subcom- mittee, Justice may need legislative help in carrying out its attack on concentration (p. 58). Oil -equipment suppliers had a good year in 1964. Larger companies made up for 1963's loss by scoring a $5.4 million profit before federal income taxes. Overall, suppliers had 127o gain in sales and 11.28% rise in gross profits. Biggest dollar gain was in tubular -goods sales (p. 62). Oil -import controls are here to stay. That's the view of J. Cordell Moore, Interior's oil imports administrator, who says the industry apparently agrees controls have accomplished their purpose and are good for the country (p. 64). The government wants companies to accept rupees in payment for their imports or to process Soviet crude. Companies have refused. Government may use low-prioed crude as lever to force companies into complying (p. 65). Mexico's oil industry has taken a new direction aimed at beefing up its reserves by encouraging wildcatting and work - over activity while lessening emphasis on development drill- ing. This was outlined in the first policy speech of the new director general of Pemex, Jesus Reyes Heroles (p. 66). Activity on new Persian Gulf concessions off Iran will pick up soon. Shell has formed its operating company and plans to be drilling in July. Other operating companies are taking shape. All should be drilling by year-end (p. 67). The Unicracking-JHC process solves problems of balancing product output by increasing the yield of gasoline from a barrel of feed, eliminating by-product fuel oil, and producing gasoline at lower cost (p. 71). New underwater tapping equipment — a submersible caisson and an extended -travel hot -tap machine — makes it possible to easily and efficiently tie onto submerged pipelines ranging from 4 to 30 in. in diameter (p. 76). Steam stimulation isn't a cure-all, and it won't work just anywhere. But where it can be applied, it's a valuable and profitable addition to the industry's secondary -recovery tech- niques (p. 82). Brisk drilling in three of the Four Corners — with rigs active in Colorado, Arizona, and New Mexico — will go a long way toward deciding the region's exploration agenda (p. 151). ��� VACUUM IN��TALLED PLA� TIC New VIP ... has no pressure limitations ... reduces paraffin build-up ... won't collapse. Ill' � l'fc luue 1 Ch1e11ae F\as 1 pe1Y'I�nY FULL 40-MIL LINING IS SLEEVE, NOT JUST ANOTHER COATING Undersized PVC PLASTIC SLEEVE is inserted into pipe and vacuum is applied to the annulus. Heat is then applied to soften plastic enough for vacuum to pull sleeve into intimate contact with the LID. of the pipe. Vacuum cannot be applied if holidays exist in the PVC sleeve. The tempera- ture is then increased to remove internal stresses and to stablize the new plastic size. a product of K & E Industries, Inc. MANUFACTURED AND DISTRIBUTED IN CANADA BY RICE ENGINEERING & OPERATING, LTD. EDMONTON, ALBERTA THE JOINT SEAL Plastic ends provide compressive seal for posi- tive corrosion protection through joints, In event of thread leak, overlapping PVC ends convert to differential seal. VIP FOR WATERFLOOD AND OTHER APPLICATIONS Tough, flexible VIP is readily adaptable for use as service lines and downhole tubing ... water - flood injection, flow lines, gathering lines, salt water disposal, water supply system. Distributed Exclusively by THE O SUPPLY COMPANY General Offices: Tulsa, Oklahoma THE OIL AND OAS JOURNAL - APRIL 26, 1965 SEAS'/E.rT rO !N/RF! Removable full -width base plate simplifies field installation of Square D pump control panels Adding the relays, timers and pressure switches is a snap with Square D oil well pump control panels. That's because of the removable full -width base plate. It's standard on all Square D panels at no extra cost And for versatility, there are interchange- able fuse olips—another Square D "exclusive." You have your choice of fusible switch or circuit breaker dis- connects. All switches have Square D "visible blade" construction. Got all the faCtS on class 8940 oil well pump control panels Write Square D Company, Dept. SA, Milwaukee, Wisconsin 53201 electricity is distributed and controlled 2 THE OIL AND OAS JOURNAL - APRIL 26, 1965 If you need a super -rated, oil -resisting, static -conducting multi=V belt, you'll have to pay a premium for it. Either that, or buy a B.F. Goodrich Super Multi-V belt. It's all these things —yet costs no more than a standard belt. Saves you the 27% premium other companies charge. See your BFG distributor. Industrial Products Co. Dept. M-190, Akron, Ohio 44318 THE OIL AND GAS JOURNAL • APRIL 26, 1965 3 What makes Dowell fracturing different from all the rest? All frac service companies offer materials, equipment, people and some sort of engineering help. Why then should you choose Dowell over all the others? Here are some good reasons: Et1GIN EERIt1G AIDS: The Dowell -developed Frac Guide*, first and still the best method of planning frac treatments. Computer Calculations for fast, accurate evaluation of possible treatment variations. Fracture Conductivity Tests to help you decide what size, type and amount of propping agents to use. MATERIALS: Slick Water*, Slick Oil*, and Slick Acid* friction -reducing agents —exclusive with Dowell —that have made really high-speed, high -injection rate fracturing both possible and practical. The most com- plete line of fluids, additives and propping agents in the industry. Plenty. E01JIM,10T: Remote -controlled pumping and blending equipment —for increased safety and better control of jobs. Rugged, powerful pumps and engines. AUXILIAPY .ERVICM Abrasijet* abrasive -jetting service —developed by Dowell —used to reduce break- down pressure and initiate fractures. A complete line of both fluid and solid diverting agents. RESEARCH: An extensive and continuing research program to help assure you of the latest and best pos- sible solutions to your problems. PEOPLE: You'll find that Dowell engineers and service crews have a genuine desire to help you —plus the skills and knowledge you need. Whether your job is tough or easy, let Dowell help you get more for your fracturing dollar. Dowell serv- ices and products are offered world-wide. Dowell, Tulsa, Oklahoma 74114. *TM SERVICES FOR THE GAS AND OIL INDUSTRY y. DIVISION OF THE DOW CHEMICAL COMPANY CALL DOWELL FOR "RED THREAD" GLASS FIBER PIPE AND TUBING AND "DELRIN" PLASTIC PIPE THE OIL AND GAS JOURNAL • APRIL 26, 1965 A. 0. Smith is everywhere in the petroleum industry One place: Pipelines and custody transfer Where bi-directional turbine meters measure flow two ways - Either way you look at it — from the point of view of cost savings or the accuracy involved, A. 0. Smith bi-directional turbine meters are fast becoming the logical choice in custody transfer today. To begin with, you get double your money's worth. By simply adding a second measuring coil, for example, you can accurately measure the flow regardless of direction. This eliminates the need for a second meter and a second set of readout equipment. Savings are two -fold. Secondly, A. 0. Smith bi-directional turbine meters are practically maintenance -free. There's only one moving part. Since lubrication is not necessary, a periodic inspection will do the trick. All A. 0. Smith pipeline turbine meters are standard with simple two wire pre -amplifiers, giving a constant 6-8 volt output to eliminate stray noises. And they are viscosity compensated. Parts are machined to the closest tolerances. Housings and working parts are of superior stainless steel, preventing internal and external corrosion. All parts are interchangeable in the field. It's no wonder they are so highly accepted by both federal and state governments. Get the complete, cost -saving facts. Write: A. 0. Smith, Meter & Service Station Equipment Division, Erie 6, Pennsylvania. FULLY TRANSISTORIZED READOUT EQUIPMENT C�� rAW__...— 1 '� Model 1525... direct Model 1532/1533 ... Model 1521... digital Model 1522... digital reading digital total• stepper drive, trans- totalizer ... pulse totalizer ... pulse Izer ... featuring later units. counter featuring Pre- counter featuring high readout in engineering set option. resolution for meter units and preset. proving. RPrHitti C C A Z m m N m Oi a 0 z O a 0 0 c -I m A C M z -i a r N D O 17 CqJqpk, JUI WEIR iHs�u o s�°OTIS Versatile Life -of -Well Completion Using All Otis Equipment Provides For Wireline Workover of Either Zone Hookup Desighed to Save Cost of Moviog Regular Workover Rig on the Well When designing any well completion it is critically Important to consider not only the present producing condi- tions, but to anticipate future well conditions which necessitate a change in production techniques or possibly require workovers. This "life -of -the - well" concept is the best approach to completing a well for long-term pro- duction economy and efficiency. A typical example of this long-term approach is the Otis dual completion hookup shown here, which is being selected today by many producers for relatively deep, high pressure wells. In this well, the lower oil zone is known to come In at a high pressure but decline quickly to a point where it must be placed on artificial lift.The upper gas zone is producing under ex- tremely high pressure and may be completed for a long flowing life. A Type LO Casing Hanger 1s used to: (a) hang the long casing string in tension and reduce possible buckling of the string (b) move excessive sur- face casing weight to a point down the hole where greater lateral support is available. Two Otis Packers are used to isolate the zones: a Type WA Otis Perman- ent Packer and a Type LCH Dual Packer. The long string set LCH Packer is designed to allow either string to be pulled without unseating the packer or moving the other string. Type CX Otis Concentric Gas Lift Mandrels are installed in the long string on the initial completion in an- ticipation of gas lift. The concentric design of the Type CX Mandrels• is very important in a multiple string completion since the fully concentric mandrels aid in rotating the tubing. The higher working pressure rating of the Type CX Mandrels could also permit the producer to use testing and treating pressures equal to tubing ratings. The Type CX Otis Mandrels provide THE OIL two other !in orient advantages. Each mandrel has a Type X Landing Nipple Profile machined into the upper section, which may be used with the Type•X Locking Mandrel to put an Any of the Typo X Nipple Profiles could be used for plugging of testing. This Type X Gas Lift Mandrel alsc incorporates a standard Typo X Slid- ing Sidc-Doom which may be used for a variety of circulating purposes during completion or production. The short string is completed with Type Doors. Nipples and Sliding Side -Doors. A Typc F Otis Storm Choke'D (Tubing Safety Valve) is in- stalled in the uppermost or first Type X Nipple below the paraffin level in the short string to shut-in the high pressure gas zone should any mishap occur that would damage the Christ- mas Tree or other surface equipment. The Otis Sliding Side -Door placed above the dual packer in the short string may be used to circulate off the top of the packer and an Otis Bast Joint placed opposite the upper zone perforations rods in protecting the long string tubing from the jetting action of the upper zone. The landing nipple above and the polished nipple below the blast joint would be used to set a pack -off across the blast joint if it were ever cut through. The pack - off would be set under pressure with- out pulling the tubing string. No -Go Landing Nipples are located at the bottom of each tubing string to be used in plugging. With unique versatility in equipment hookup for present and future produce tion requirements, this All Otis Com- pletion is an excellent example of the total service, equipment, and tech- nology available only from Otis. You'll have a better chance for more efficient production ... at lower cost per barrel ... over a longer period of time.. Jf you make your next well AN ALL OTIS COMPLETIONI When is a high -low safety valve a wing valve, too ? Only when the high -low safety valve is a Unibolt Pressurematic. This is the only safety valve that serves as a Christmas tree wing valve, too. It opens and closes manually for choke changing. Saves the price of a conventional wing valve. Set it on "automatic" and it's a de. pendable high -low safety valve that protects the well and production equipment against broken flow lines, hydrate freezing, and other mishaps. Having no springs or diaphragms, this valve is practically trouble -free. Write for literature or call your nearest Unibolt repre• sentative. Thornhill -Craver Company, P. 0. Box 1184, Houston, Texas. UNIBOLT pressuremadc HIGH -LOW SAFETY VALVES 8 THE OIL AND GAS JOURNAL . APRIL 26, 1965 The dockw lingers the up; •PtlMt r•Mblt The new Bethlehem BG pumping unit features a relatively Slow upstroke, to which it devotes almost 55% of its stroke cycle. This lifting through 197 degrees of clockwise crank rotation Spreads acceleration forces over a longer distance of rod travel. Peak rod load is thereby reduced, resulting in lower rod stresses ... for improved rod life. Designed to run in a single direction Engineered expressly for clockwise rotation, the sturdy BG transfers power with a maximum of efficiency. Its structural geometry will not enforce negative torque on the gears ... and minimizes that developed by well conditions. Results: lower structural stresses, smoother prime -mover performance, less down -time —and longer service life. Better economy with the BG Rating for rating, the Bethlehem BG outperforms conventional units by its ability to handle heavier rod loads for the same imposed gear torque. Often, a smaller BG—at a lower initial investment —can handle the same load at lower cost. No special foundation is required, no special training to set up or to service. If you're economy -minded, better check out the new BG. Any of our offices or stores has the full story. aathie hom Stool corporation, Supply Dlvislon:BOX 2171, Tulsa, Okla. 74102 BETHLEHEM SUPPLY New Anti -Scale Material Works in 3000 Wells 40 30 l 20 L205mg/IROP /SGP-2 '�0000r oSOP-4 rvu-r Nsu-r Aw-r 220-i 240 F 2WF aau-r COMPARATIVE SOLUBILITIES OF SCALECHEK MATERIALS IN BRINE Note the sharp rise in solubility of SCP-2 material at temperatures exceed. Ing 1800 - 2001 F, compared to the excellent stability of the new SCP-4, working longer at high temperature than any other material yet developed. Halliburton has introduced a new Scalechek material for inhibiting com- mon types of scale in wells having bottom hole temperatures ranging from 180e to 3000 F. Designated SCP-4, the material is a multi -metallic complex polyphosphate. It is designed to supplement Halli- burton's SCP-2, a Scalechek material recommended for temperatures up to 180°-200° F. SCP-4, dissolved in low concentra- tions up to 10 mg/liter of formation water, helps minimize scale forming tendencies thus reducing scale deposits. It is effective for extended periods in controlling such scale as calcium carbonate, calcium sulfate, barium sulfate, strontium sulfate, and some types of iron deposits. SCP-4 is supplied in a 20-40 gran. War form, and can be injected in con- junction with an oil or water -base fracturing treatment. The 20-40 mesh particle size permits SCP-4 to be used with the full size range of sand and other propping agents. This controlled particle size also permits more even distribution of the material in the formation. Since the compressive or crush strength of the material approaches that of ordinary sub -angular propping agents, it may also be injected without sand. SCP-4 is further proof of Hallibur- ton's determination to bring you,better, more efficient solutions to downhole problems, regardless of how difficult well conditions might be. Depend on Halliburton to find these answers — and depend on Halliburton people to put them to work for you. CHEMICAL SERVICES 275 Service Centers — Worid•Wide Mean 1 0 1bu iro®'Im ... lust Minutes Any From Your Weill COMPANY . D U N C A N. OKLAHOMA THE OIL AND GAS JOURNAL • APRIL 26, 1965 U-UhhK MUUrLs fastest, simplest and most economical AVAILABLE p FOR PIPE SIZES method of installing casings or pipelines FROM 4" TO 42" under roads, railroads or runways ♦ I f 0 A. THESE NEW FEATURES MAKE THIS MACHINE BETTER IN EVERY WAY 12 digging speeds on winch plus a high speed wind-up Powered by Ford 172-40 H.P. Con. tinuous-2000 RPM 0 Torque converter drive to offset shock on drive train Reverse•o•matic for fast auger reversal Precision herringbone -gear speed reducer Frame is high tensile rectangular tubing 9 Model J-15 Ramsey Winch-20,000 ib. capacity 380' W cable Oversized auger shaft Exceptional rugged design plus many performance improvements make this our best boring machine. The R.B.E. 0 - 24 utilizes the 172 Ford power unit in conjunction with a Funk Reverse-o-matic, a 4-speed Warner transmission and a larger gear box than the previous model. This newly designed gear box elim- inates the use of a long line shaft, and gives the unit more strength and trouble -free operation. The frame is constructed of rectangular tubing which has a lighter weight with a much stronger metal stress. An oper- ator's seat has also been added for convenience, clrcxa` CCIw-' 1p4mirirl•, A DIVISION OF CROSE-UNITED CORP. Send for catalog MAIN OFFICE, 2765 Dawson Road • Phone Maier 6.2171 • g CABLE, CROSE • Tulsa, Oklahoma • MANOR OFFICES, Houston, polle0n for complete Term • Snyder, Twos • Elizabeth, New Jersey • IN CANADAI Information.... CROSE•PERRAULT CANADA, LTD., Edmonton, Alberta EXPORT OFFICES, Elleabeth. New Jersey and London, England 10 THE OIL AND OAS JOURNAL a APRIL 26, 1965 'FORGED All Cameron Type "U" Blowout Preventers Are Forged for Safe, Long -Life, Dependable Operation • Cameron Preventerforgings are superior to castings • Cameron Preventer forgings are uniform due to greater homogeneity imparted by forging • Cameron Preventer forgings are dependable because defects common to castings are eliminated • Cameron Preventer forgings permit savings in weight • Cameron Preventer forgings allow better delivery through absence of defects often found in castings Cameron's split -die, multiple ram press forging process :ontrols grain flow and provides uniform high strength and iuctility—both longitudinal and transverse —that are unattainable in, castings. Superior properties are assured vhen Cameron Preventers ARE FORGED. n addition to this forged quality the Cameron design, vith all moving parts inside the preventer case, 1SSURES you a SAFE, LONG -LIFE, DEPENDABLE operation, aote� CAMERON IRON WORKS, INC. Houston London Paris Celle Mexico city Edmonton Buenos Aires THE OIL AND GAS JOURNAL • APRIL 26, 1965 I1 Innovation by OILWELL: prestressed rod surface You now get mote for your sucker rod dollar because OILWELL has improved rod quality where it counts most —on the rod surface. By prestressing the surface, OILWELL has added much to performance in the well. And this PLUS value doesn't cost you a cent more. Sucker rod failures are invariably the result of fatigue cracks originating at surface imperfections when the rod Is stressed in tension. The way to reduce such fail- Innovation: Nltrocycle ures is to prestress the skin (in compression) by shot Prom* peening. Shot peening hammers out any minute nicks or scars and Imparts a tougher, smoother surface to the skin. In consequence, vulnerability to fatigue cracks and subsequent failure Is greatly reduced. This PLUS feature adds a con- servative 15%to rated load capacity. The beneficial effects of shot peening have Increased life of automobile springs, aircraft gearing and many other industrial Items. It has also been well proven Innovation: InOILWELL'Shigh strengthYand0sucker rods. Now, rollerbearings this extra value is provided in a lower -priced rod, the N-PLUS. 01LWELLinnovationssaveInevery phase ofoil production.OILWELL'S patented Nitrocycle process, for example, makes it possible to hone subsurface pump barrels before hardening. There are no thin spots in the hardened bores of OILWELL'S HI-BRIN and NITRILINE Barrels — outstanding for their resistance to severe abrasion. Pre -packed grease -lubricated roller bearings at all linkage points of our crank -counterbalanced pump units minimize friction and sig- nificantly reduce maintenance and lubrication requirements. For equipment that's years ahead, come to OILWELL where the big Idea Is INNOVATION. OILWELL, Box 478, Dallas, Texas 75221. OILWELL stores, pump shops, and sales offices serve all oil and gas field oper. ations in the United States and Canada. EXPORT DISTRIBUTOR: United States Steel International (New York), Inc., 100 Church Street, New York, N.Y. 10008. USS, OILWELL, Hi-BRIN and NiTRILINE are registered trademarks. @OILWELLlI 12 THE OIL AND OAS JOURNAL • APRIL 26, 1965 DuPont admits it hasn't come up with anothcP dispersant as good as FOM. But then again, neither has anyone eise, Competitive additive concentration Competitive cost equivalent FOA-2 dispersant to FOA-2 For example, let's compare Du Pont FOA-2 with a leading competitive dispersant additive. 101b1 M bbl y;' ~r iyi.?„t �f Electron micrographs show the effect of each ,• additive in a typical fuel oil blend. All samples were stored 12 weeks at 110° F. ,b \ At the right you can seethe ; �i..• particle size of the insoluble 20lb/M bbl " ; ;AOV' ,.: y: residue formed in the control t. ,j ,'• (untreated) sample: � At the left you seethe effect of each additive. �'� r' Notice that at all concentrations, FOA-2 does a 301b1 M bbl - «:` " , better job of dispersing insoluble residue, i I , �" �', And it keeps doing a better job, as the following ' 2f micrographs prove. One year later a second series of micrographs was taken of the same samples. Storage for 101b1 M bbl '" the additional year was at 75° F. Control sample (right) then looked like this: Treated samples are shown },A on the left. 2016/M bbl But FOA-2 is more than the best dispersant around. It also protects against r incompatibility and contributes some protection against rust. !• Do you need more than a dispersant? Then 301bIMbb/ consider these multifunctional additives in which FOA-2 is used: Du Pont FOA-208, which combines the dispersant power of FOA-2 with DMD, a metal deactivator; Du Pont FOA-11, which combines the properties of FOA-2, DMD, and FOA-3, an effective antioxidant and color stabilizer. These are only a few of the fuel oil additives available from Du Pont. Which one is right for you? Ask your Du Pont Petroleum Chemicals Division representative. He can help you select the right additive, in the right amount, for your fuel oil. ANTIKNOCKS/ADDITIVES/SERVICES Better Things for Better Living... through Chemistry See America Best... by Car DU ('ONT And Vlsft The Du Pont Exhibit '+ •n NflVYORNWORIe'SFAIR'B/'65 " THE OIL AND GAS JOURNAL • APRIL 26, 1965 73 ... e ' ates damage to the tubing upset The new Baash-hoes S40 Elevator has a unique high strength "MM" rubber slip setting device which eliminates damage to the tubing upset. Upon contact with the upset, the rubber slip setting plates flex allowing the tubing load to be transferred directly to the slip gripping means. The rubber setting plates are inexpensive, completely reversible and interchangeable. Other features unique to the S.40 include: • Greater total tubing gripping area. • Lighter -- weighs only 180 pounds ... 71/2% less than others. • A hinge pin spring for easier, faster and safer handling operations. • A strong latch and safety latch which pre- vent premature opening of the elevator. • S.40 has range of 1,050" to 2,875" O.D. A m �y;V sy BAASH-ROSS DIVISION JOY MANUFACTURING COMPANY 5306 CLINTON DRIVE, P.O. SOX 1348, HOUSTON, TEXAS 77001 14 THE OIL AND OAS JOURNAL • APRIL 26, 1965 Can we prove you'll save money with aluminum drill pipe? No. At least, not on this page. Conditions fordrillingoil and gaswells are too diverse. But we say that you, knowing your own peculiar problems, can estimate signifi- cant savings with reasonable accuracy. Those costs that will be the same whether you use steel or aluminum pipe are irrelevant. It's the so-called "differen- tial" costs that count. Let's start with this fact: Alcoa® Alu- minum 4'/2-in. drill pipe is less than one- half theweightof4'/z•In.,16.6-Ibsteel pipe. This means thata given rigcan be uprated with aluminum pipe to do the same job as a larger rig. This points up measurable differential costs —such as lower maintenance, trans. portation and fuel costs with aluminum drill pipe. But it also leads to such im- ponderables as the number of movesyou'II make, the percentage of utilization you will achieve and the useful life of your rig. Unfortunately, many differential costs occur at various times in the future. Since the possession of money overtime is valu- able, the further a cost is in the future the less relevance it has to the present de- cision. How big is the cost„ how far away is it, and what's the value of the money (interest rate)? We've published a comprehensive paper on cost analysis. It proposes a mathemati- cal method by which you can estimate important savings with aluminum drill pipe, based entirely on your own set of circumstances. We think you'll find it in- teresting and valuable. For a copy, write Aluminum Company of America, 958-D Alcoa Building, Pittsburgh, Pa. 15219. Alcoa Brings You America's Finest News Show... THE HUNTLEY-BRINKLEY REPORT, on NBC-TV ©ALCOA THE OIL AND GAS JOURNAL • APRIL 26, 1965 1s E Qo�FE" DIVISION a Area, California WECO Unions • HAMER Valves 6 CHHteAN Joints Offices and Representatives in Principal Cities of the World Mean Chiksan There are other swivel joints on the market, but none are backed by the experience ... the years of research and development of genuine Chiksan swivel joints. None can of- fer you the reliability of Chiksan swivel joints. And Chiksan service remains unmatched. This time be sure you get the best ... insist on genuine Chiksan Swivel Joints! 16 THE OIL AND OAS JOURNAL • APRIL 26, 1965 NEW FROM JOHNSTON THE JOHNSTON WIRE -LINE PERMANENT BRIDGE PLUG Unique design features give you superior setting and sealing Thirty-five years of experience in designing and running downhole tools went into this field-tested permanent bridge plug. You get the benefit of this know-how in these important design features: [D Set- ting head assembly locks in stored sealing energy during set- ting. Q Slip design centers bridge plug in both vertical and deviated holes. Slips expand evenly to load casing 1. D. uni- formly.QAnti-extrusion system has interlocking folded fingers that expand individually to con- form to casing I. D., even when foreign matter or casing defor- mation occurs. ® Non -swab- bing, bonded seal assembly packs off completely under toughest well conditions. 0 Anti -extrusion system com- pletely protects seal against high temperatures and differential pressures. © Properly tapered running -in head directs the plug into staged liners, not on top of them. Available through Wire- Lihe Service Companies. . e..o �...., 011MM/V TESTERS Engineered Testing • Completion Services and Products HOUSTON, TEXAS • CALGARY, ALBERTA ill A IwaysS et P ermanently THE OIL AND GAS JOURNAL • APRIL 26, 1965 17 USA Inc. PAN AM Building, 200 Park Avenue, New York, N.Y., Teti TN 7.6650. Pm further Information In the United Stole% please telephone or write AOIP 18 THE OIL AND OAS JOURNAL • APRIL 26, 1965 777 4 , 1 ' ai Plli ujfl ' �1' ,� 13 No matter how your completion plans change, you can save expensive rig time with the TC head because O-C-T designed it to accept 13 different hangers for tubing or casing. When plans change, just keep the TC in place and select another hanger to meet your changed needs. Both threaded and slip -type hangers are available for single or multiple completions. For added safety, all 13 hangers pack off completely when landed and are available with O-C-T-Otis back -pressure valve grooves. Call your O-C-T representative for a brochure show- ing all O-C-T tubing heads and hangers, or write to O-C-T at Box 3091 in Houston. w,�mce o�o912es es cz cla�Pyp:acY�zz �///i/ 00��Ou OIL CENTER TOOL DIVISION OF FMC CORPORATION 0 HOUSTON, TEXAS 4 "0 the strongest collapse resistance known for new SwSO. 131/8 t ®o®oy 80.7 lbo casing! A. 0. Smith, with its exclusive cold sizing ,process, specializes in ultra high strength casing. Here's another good example. This new 80.7 lb. casing offers the highest collapse strength and burst resistance rating ever known for 133/s" O.D. sizes and S-80 grade. Your large surface and protective strings can now go deeper than ever. Competitively speaking, there's no compar- ison. The secret rests with A. 0. Smith and its unique cold sizing process. Strength is added by compression. Less metal is used. Weights, tension load ... and costs are reduced. And the thinner wall allows greater clearance on the inside diameter of the string which means greater flexibility in your choice of bits. Find out about our complete S-80 range. Or the S-40 or S-95 for that matter. For any given rating, A. 0. Smith produces higher strength casing. Write: A. 0. Smith, Tubular Products Division, Milwaukee, Wis. 53201. Fast delivery is guaranteed by A. 0. Smith's seven convenient gulf coast and southwest shipping outlets. F !Pmleth GAS IN GAS IN ------► 110 OUTIIOUID OUT 17 N With a Rat perforated support plate traffic tarns occur both gas and liquid try to use the some set of openings. 1 i1 /CY-lX 1 In the "gas-inloction" support plate liquid and gas have separate avenues — gas enters the bed above the point where liquid disengages. Is a traffic, jam at the Support Plate 1 robbing you of planned capacity? The basic principle of "gas-tniection" has boon Incorporated In a series of patented support plates of various types, sizes and materials. Illustrated is Fig. 804•R for towers from 3 foot to 10 feat or more in diameter. IN PREPARATION —New Engineering Manual an Tower Internals. To be released soon. To reserve your free copy write, on your letterhead, to Chemical Equip- ment Division, The U. S. Stone- ware Co., Akron, Ohio 44309. Ask for Bulletin TA•60. Users of Intalox® Saddles or Pall® Rings Who find the capacity of their towers isn't up to design figures would do well to look, at their packing support methods. For example, a bed packed with 1-1/2 in. Intalox Saddles has a bed voidage of 80%; with 1-1/2 in. Metal Pall Rings a bed voidage of better than 95%. Yet we still find, occasionally, such beds resting on support plates which have an actual physical free space of 50 % and an effective free space (because of both liquid and gas trying to pass through the same set of openings) of 20% or less. More than half the capacity of the Intalox or Pall Ring bed may be lost. A support plate suitable for use with Raschig Rings may be completely unsuitable for these high -capacity high -efficiency packings. The preferred method of support for Intalox Saddles or Pall Rings is the gas -injection* type of support plate where the gas is "injected" into the bed above the point where the liquid leaves the bed. Separate paths are provided for gas and liquid which make the support plate much less sensitive to actual free area. In practice the effective free area of the support plate may sometimes even exceed that of the tower. To obtain the full capacity potential from your packed columns, support them well — with "gas -injection" support plates. * Patented Chemical Equipment Division nn a> Q90 Jo U .1Li1lan1i ARGON, OHIO 44309 739J-3 22 THE OIL AND OAS JOURNAL - APRIL 26, 1965 R double -whammy for radioactive heliuir How do you build a Gate Valve to handle radioactive helium in high temperature gas reactors? Powell came up with the answer —a' valve with a double wall. Clean helium is present in the space between the walls. In addition we ex- tended the bonnet to accommodate a double bellows seal. Then we tested this 2" valve with a mass spectrometer. Re- sult: cut leakage to less than .005 micron cubic feet per hour. We made it of Inconel* and all castings meet Class 1 radiographic standards. Only 1 out of 4 castings will pass this standard. Such valves could only come out of Powell's wealth of experience in atomic energy. *TM of International Nickel Co. Thanks Bob When you order an exotic valve, welding must be flawless. Rigid spe- cifications must be met. You can count on our experienced welders to do quality work. Take Mr. Bob Hud- son In the left hand picture. We're proud to have Bob in our employ. Been with us 25 years. Like the other senior welders, he's passed the A.S.M.E. Boiler and Pressure Vessel qualifying test, as well as numerous military and government standards. Another reason you are assured quality from Powell. It's men like Bob Hudson who make Powell Valves QUALITY valves. Thanks, Bob. JI POWELL VALVES -v- MEN WHO KNOW VALVES KNOW POWELL WORLD LEADER IN THE VALVE INDUSTRY SINCE'1846 Shutting barn doors behind horses To get very tight, positive shut- off in valves handling gases and hard -to -hold liquids, Powell uses soft, non-metallic inserts on each side of the wedge in Gate Valves. You get POSITIVE shut-off. Wecan putPowell posi- tive shut-off inserts in any Gate Valve you desire. Incidentally, you no longer have to think strictly "Powell Globe" for cer- tain applications: Powell now offers Gate Valves with positive shut-off inserts, that can often be used where only Globes could be used before. So stop worrying about keeping horses in the barn, gases and hard -to - hold liquids from escaping. Check with Powell —we haven't lost a horse yet. THE WM. POWELL COMPANY 2503-31 Spring Grove Ave. • Cincinnati, Ohio 45214 Yes, please see that I get information on the following: ❑ Powell Gate Valves for service ❑ Powell Globe Valves for service City State Zip Code THE OIL AND GAS JOURNAL • APRIL 26, 1965 23 n For Sand -Laden Oil.,. H-F 3 Tu be Rod Pump If your pump repair costs are expensive and frequent because of excessive sand In the fluid, a Harbison - Fischer 3-Tuba Rod Pump may very well be the solution to your high production costs. The "fluid seal" of the 3-Tube Rod Pump effi- ciently handles sand and other entrained solids that usually cause trouble in pumps with a close - fitting plunger seal. When you run an H-F 3-Tube, however, there's no plunger sticking or galling due to sand In the fluid, no plunger wear, and no undue strain on the rod string. And the high -velocity discharge at the bottom of the pump flushes sand into the fluid column after shut down p000ds, and keeps it In suspension when the well is pumping. A no-go ring to position the pump in the seating nipple, standard -sized A P.I. balls and seats, and many more features make the H•F 3-Tube the Hest Pump in the Oil Patch for sand, and as an all-around pump, too. If you have a problem well, find out the advan- tages of an H-F 3-Tube Rod Pump. Ask your store or one of our field men for details, or write us at Box 2477 in Fort Worth for illustrated literature. Berbli on•Flecher Mfg. Co.. Fort Worth,Texul "Every One an Ace in the `Hbtel" • _ ,yZ4"�lx a r..Y,� 24 THE OIL AND OAS JOURNAL • APRIL 26, 1965 PITTSBURGH STEEL COMPANY 8-ACME Oil Well Tubing Pittsburgh Seamless 8-Acme Oil Well Tubing —backed by more than 10 million feet in service —has proved itself the best all-around tubing joint in the business. And it has done that the hard way —down -hole —for any num- ber of major producers, independents and well -servicing contractors. ❑ There are plenty of good reasons for its popu- larity. 8-Acme is rugged and versatile —enough so that it often is used for light drilling when down - hole work is necessary. And it can save plenty on trip time, too. ❑ As for leakers—perish the thought. There's yet to be a serious sealing prob- lem with 8-Acme, even under high pressures. 8-Acme was designed that way —a high strength, square -form thread in a long coupling joint, tin - coated for easy make-up and exceptional leak resistance. ❑ 8-Acme is made in N-80 and J-55 grades, and in all popular sizes and styles, begin- ning with 1.900". ❑ What's yours — and where do you want it delivered? PITTSBURGH STEEL COMPANY GRANT BUILDING . PITTSBURGH. PA. Ic / — THE OIL AND GAS JOURNAL • APRIL 26, 1965 25 i Ave 4 GO ♦'1 teo�° efa° d °r°$fa'a ey �o JtY4o�oat`tht a;`c{�lt p a,,tY' 1deta ° f � is t� *OIL AND GAS April 26,1965 JOURNAL Vol. 63'No. 77 211 South Cheyenne Box 1260, raise, Oklahoma 74101 Phone Luther 44411 EDITORIAL STAFF George H. Weber .............. Editor Robert M. Shaw ........ District Editor Carl J. Lawrence .... Managing Editor Young O. Mitchell ....... District Editor Henry D. Ralph .. Chief Editorial Writer Leo R. Aalund .......... District Editor Gerald L. Farrar .... Engineering Editor John L Bennett .......... District Editor Norman K. Baxter .... ... News Editor Robert G. Lair ....... .. District Editor W. L. Nelson ........ Technical Editor Earl Seaton ... Equipment Editor Lynn M. Nichols .... Presentation Editor Max L Batchelder .. Ant. Pres. Editor John C. Casper ...... Economics Editor Bob L. Starnes ....... Asst. Econ. Editor W. B. Bleakley ....... Production Editor Helen Brown .... ... Editorial Assistant John C. McCaslin .... Geological Editor Alice Burt .. ..... Editorial Assistant Jahn P. O'Donnell ...... Pipeline Editor Allleen Cantrell ...... Editorial Assistant C. Dudley Johnston ........ Art Director Margaret Higgs ...... Editorial Assistant Ed McGhee ............ Associate Editor Helen Hudlin ........ Editorial Assistant Roy Dale ................. Staff Artist NEW YORK DALLAS 500 Fifth Avenue 10036 1238 Mercantile Bank Building 75201 Phone LOngacre 4-1910 Phone Riverside 8-5701 D. H. Stormont ........ Refining Editor Robert G. Burke ...... Southwest Editor Robert J. Enright ... International Editor Frank J. Gardner .... International Editor LOS ANGELES W. A. Bachman .... Management Editor 650 South Grand Avenue 90017 HOUSTON Phone MAdison 2-0722 802 Sterling Building 770D2 Ted A. Armstrong .... West Coast Editor Phone CApitol 4-7726 Howard M. Wilson .... Gulf Coast Editor _ WASHINGTON H. C. Bozeman .. Gulf Coast Eng. Editor 768 National Press Building 20004 Leslie C. Rogan .... Drilling Editor Phone District 7-1710 Kenneth W. Brooks . Petrochemical Editor Gene T. Kinney ...... Washington Editor BUSINESS STAFF P. C. Lauinger .............. President S. H. Rourke .... Executive Vice -President Hanson B. Pigman . Vice -fires. Circulation Mitchell Tucker . Vice-Pres. and Adv. Mgr. Paul McBride ...... Production Manager Philip C. Lauinger, Jr. .... Vice -President . William A. Mueller . Mgr. Industry Census ADVERTISING STAFF TULSA LOS ANGELES 211 South Cheyenne Avenue 74101 650 South Grand Avenue 90017 Phone Luther 44411 Phone MAdison 2-0722 Harry B. Batten ...... District Manager George O. Ruppert ... District Manager NEW YORK 500 Fifth Avenue 10036 Phone LOngacre 4-1910 E. S. Klappenbach .... Eastern Manager John D. Yoder ........ District Manager PHILADELPHIA 1509 Land Title Building Broad and Chestnut Street 19102 Phone Locust 3-0118 John W. Meany, Jr..... District Manager CHICAGO 105 West Madison Street 60602 Phone CEntral 6-2537 Philip S. Griffin ...... District Manager Karel Wegkamp ....... District Manager HOUSTON 802 Sterling Building 77002 Phone CApitol 4.7726 John M. Spears .... Gulf Coast Manager DALLAS 1238 Mercantile Bank Building 75201 Phone Riverside 8-5701 Eric F. J*t*r .......... District Manager PITTSBURGH Law 6 Finance Building 429 Fourth Avenue 15219 Room 1505 Phone GRant 15847 Ernest S. Holmorth .... District Manager ENGLAND 63-65 Piccadilly London W. 1. Phone HYDe Park 1496 R. N. Lees .... Manager, London Office FRANCE 16, Rue de Bassano Paris XVI', Phone Pasty 8019 Jean -Jacques Berreby .. Mgr., Paris Office WEST GERMANY Graf-Adoff-Strasse 71 Dgsseldorf, Phone (0211) 14767 Heinz J. Gargens . Mgr., Dusseldorf Office JAPAN 3, Nakanocho, Akasoka, Minato-ku Tokyo, Phone (582) 5881 Surma Oka .......... General Manager Subscription rates to the petroleum in- dustry United States and Foreign, 1 year, $7.00; 2 years, $11.00; 3 years, $14.00. Outside the petroleum industry, S25ayear. Single copies $1.00. Back copies when over a year aid, $2.00. AMR6er ®; Auld it. of 0rtnldlem Amer. Business Press, Inc -Rioeo Co Ydght under International, Universal, Pan Arnedcon, and Buenos Aires copyright conventions. All rights reserved including right of reproduction In what* or in tart in any firm. THEY SAY Drillability in French Dear Sir: We in our company have been readers of your journal for many years (we even have bought back issues since 1929) and we have al- ways found it extremely useful in our work. If we are writing only today to express our appreciation, it is be- cause our drilling personnel is show- ing such interest in M. G. Bing- ham's articles on rock drillability that we have undertaken the task of translating it into French. L.-Bouvet (Mine) Societe Nationale Des ..- Petroles D'Aquitaine Chef du`Seryice Docu- mentation D.E.P. Pau (B.P.), France Oil and security "National security embraces a complex of policy objectives whose effective pursuit is essential to the continued independence of a nation and the well being of its people. "Within the nation itself its reach of considerations is universal: it ex- tends into every endeavor, touches every facet of activity, impinges upon every life. "Within our own country, it con- cerns itself with conditions which foster justice and freedom and the opportunity for fulfillment of indi- vidual aspirations. "It contemplates security from in- ternal discord as surely as that from external attack. It remains a contin- uous and recognizable goal in both peace and war. It has no beginning and no end. "In the context of today's power alignments, our own national secur- ity is interlaced with the fortunes of a large number of other nations whose independence of action and territorial integrity are essential to Us. "A threat to any of these nations, political or military, is to some ex- tent a threat to our own. The gravity and importance vary according to the circumstances of the individual case. "In their relation to oil, the con- cems of national security thus ex - THE OIL AND GAS JOURNAL • APRIL 26, 1965 27 Do-it-yourself acid treatments can save you money There are several oil field productioa and maintenance problems you can j solve yourself, easily and ecommni- 1 wliy with Dowell bulk inhibited by- r drochlonc (mmatic) acid. } For example, you can use Dowell 1 bulk acid for —ressum g sale and gyp from ore tam of producing formations —removiog scak and gyp from tub- ing and lead lines —cleaning disposal and input welts —drr®plOb sbmWation Uvaments is aid doomiss or livelow wells --a9aaing cast or arI , , scale from valves, linings and mppks f Normally, Dowell bulk ielubited acid ill eappiied as a 15% solution, but pmeo siaa6 up to 34% *m 411W able. Your Dowell toga can help you 1111e9toniae at blot c000eatrmical ad- dhim agsan and app4eaoon soatbod I far yaw pwilcular problem. Do it yamad[ mid sum. Cad yme wares. Dow& atfia or oftAk s► Or +� amble tynadl Tnho. Otbmhoma 14M pfi�ts'��=a Faat`s mil DOWELL tend far beyond the limited objective of assuring a supply to meet our own needs during a national emer- gency. "We must endeavor to assist our allies, to assure that there is ade- quacy for the future long-term growth of our economy and that our vital resources are properly used and conserved. "It is only natural that oil should figure strongly in any consideration of national security. The U.S. in- terest in it extends not only to include provision for adequate supply from both domestic and for- eign sources, but also a related concern for the posture of the oil industry, not only in our own coun- try but in friendly foreign nations as well. Further, to be successful, oil import policy must seek to bal- ance the many other interests pres- ent in a free nation situated in a free world." An Appraisal of the Petroleum Industry of the United States, Jan. 1965, Chap. 2, published by the U.S. Department of the Interior. Letters to They Say should be ad- dressed to The Editor, The OR and Gas Journal, Box 1260, Tulsa, Okla. CALENDAR APRM 26 American Petroleum Institute, an- nual conference on industrial traffic, New Orleans. 26-28 ASNIE, AIPE, plant engineering and maintenance conference, Benjamin Franklin Hotel, Philadelphia. 26.29 American Petroleum Institute, Divi- sion of Production, Rocky Mountain district meeting, Cosmopolitan Hotel, Denver, Colo. 26-29 American Association of Petroleum Geolop'sts-Saciery of Economic Pa- leontologists and Mineralogists, an- nual meeting, Jong Hotel, New Or- leans 26.30 American Welding Society, annual meeting and welding exposthm, Con- rad Hilton Hotel and McCormick Place, Chicago. 27-29 Petroleum Industry Electrical Aso- ciation, conference, Memorial Audi- torium, Dallas. 30 Michigan Basin Geological Society, symposium, $e0o&g Center, Michi- gan State University, East Lansing. nfAY 2.4 Independent Petroleum Association of America, midyear meeting, Dea- ver Hilton, Denver. 2-S American Petroleum Institute, Divi- sion of Transportation, annual tank- er conference, Shamrock —Hilton Ho- tel, Houston. ZS National LP -Gas Association, annual When this happens to your mud pump ... What happens to your profit ? ? ? \ vI %V Read how Wilson protects its customers from loss —be it "Fluid" or "Financial"' Wilson Slush pumps are guaranteed to "Load" fully, and operate satisfactorily at the maximum speed given in the rat- ing tables when the suction flow equalizer Is used. No other pump makers will make this guarantee! You do not have to use a flooded suction or short suction line to make the Wilson Slush Pump ran smooth- ly and efficiently. Wilson will repair or replace F.O.B. our factory at Wichita Fails, Texas, any forged steel pump fluid end of our make, for a period of seven years from the time it leaves our factory, if failure is due to metal fatigue of the metal In the cylinders or valve pats or leakage of the joints between the cylinder and the valve pots. This guarantee is on a declin. ing balance basis. That is, if failure oc. curs after 3 years, then a charge will be made of 3/7 of the cost of a new fluid end, and similarly for any other period, to the nearest month. Be Modern —Buy Wilson WILSON MFG. CO., INC. Wkbita Folls, Twaos a Th. Noes of Rea IRON 28 THE OIL AND GAS JOURNAL • APRIL 26, 1965 Barton Controllers are used throughout the process, oil and gas production, and gas transmission and distribution industries as a highly accurate and reliable method of indicating, recording and controlling. The table at the right ulletin G1-11 Instrument 1, a subsidiary )nal Telephone TYPICL SAFE CONTROL RANGES WORKING MODES CATIONS PRESSURE Flow O - 30" w.c. Up to Proportional, Differential to 10,000 psi Automatic Reset, Pressure 0 - 400 psi Rate Action, Liquid Level Differential Gap Snap Action, 0 - 100°F Temperature to On -Off Snap O - 300°F Action and Direct or Reverse Controller Action O - 30" Hg Vacuum Pressure to O - 10,000 psi DETAILED DATA ALSO AVAILABLE FOR INSTRUMENTS ILLUSTRATED BELOW ROCKY MOUNTAINS CALIFORNIA FOUR CORNERS %SOUTHWEST TEXAS t' Stimulating this hot, high-pressure well demanded dependable retrievable tools. So they called Halliburton. Halliburton successfully acidized four sets of perfora- tions in this hot well in Southwest Texas. The job was conducted in a single trip below 14,000 ft. Here's how it was done: Halliburtods RTTS Packer and Packer Type Re- trievable Bridge Plug were run in tandem on 27/s-in. tubing. Then, by manipulating the tubing, these ver- satile tools were repositioned in the well to straddle each of the four zones scheduled for stimulation. A bottom hole temperature of 330°F and a mud weight of 17.6 lb/gal did not hinder going into the hole, or movement of tools from one set of perforations to another, or maintaining a good packer seat. Differential pressures during treatment reached 6,300 psi, and the tools were tested in blank pipe to 5,000 psi after the job to reaffirm their sealing performance. The complete operation required just 42 hours. Only highly skilled service specialists using truly reliable tools could have effected this complex four -stage job with such dispatch. That's why the operator called Halliburton. In case you're wrestling Nvith a complex stimulation problem, remember: if there's a tool that can do the job, a Halliburton service crew will have it. Lets talk it over. At your service from 275 locations— WORLD-WIDEI SPECIAL TOOLS SERVICES i OANOCNOK*., 30 THE OIL AND GAS JOURNAL APRIL 26, 1965 convention and trade show, Conrad Hilton Hotel, Chicago. 34 Society of.Petroleum Engineers, pro- duction research symposium, Tulsa. 3.7 American Gas Association, transmis- sion conference, Hotel Leamington, Minneapolis, Minn. 3.14 American Association of O i l w e l l Drilling Contractors, Part 2, Gulf Coast School of drilling practices, University of Southwestern Louisi- ana, Lafayette, La. 4.7 American Society of Lubrication En- gineers, annual meeting, Sheraton - Cadillac Hotel, Detroit. 4.7 International Society of Professional Well Log Analysts, sixth interna- tional well logging symposium, Sher- aton Hotel, Dallas. 5 Pacific Coast Gas Association, con- struction and operating standards round table, operating section, Rid - path Hotel, Spokane, Wash. 5.6 Chemical Market Research Associa- tion, product review and forecast meeting, Waldorf Astoria Hotel, New 8.12 Petroleum Equipment Suppliers As- sociation, annual meeting, Greenbrier Hotel, White Sulphur Springs, W.Va. 9 Gas & Petroleum Association of On- tario, annual meeting, Sheraton Brock Hotel, Niagara Falls, Ont. 10.11 Society of Petroleum Engineers Per- mian Basin conference, Midland, Tex. I0d2 American Petroleum Institute, Divi- sion of Refining, midyear meeting. Queen Elizabeth Hotel, Montreal. 11.13 American Petroleum Institute, Divi- sion of Production, P a c if i c Coast district a n n u a l meeting, Hillhouse Motel, Bakersfield, Calif. 12.13.. Rocky Mountain Oil & Gas Associa- tion, midyear meeting, Northern Hotel, Billings, Mont. 12-20 Petroleum and the Sea, international conference, sponsored by La Rowe Petroliere, Monaco. 14 Natural Gas Processors Association, Permian basin regional meeting, Lincoln Hotel, Odessa, Tex. 16.19 American Institute of Chemical En- gineers, fifty-sixth national meeting. Hilton Hotel, San Francisco. 17 West Central Texas OR & Gas As- sociation, annual meeting, Windsor Hotel, Abilene, Tex. 17.21 American Society of Civil Engineers. transportation engineering e o n f e r- ence, Hotel Leamington, Minneapo- lis, Minn. I8.20 American Petroleum Institute, Divi- sion of Marketing, midyear meeting, Rice Hotel, Houston. 19.22 Canadian Pipeline Contractors Asso- elation, annual meeting, Chateau Frontenac, Quebec City. 24.25 American Gas Association, operation section, production conference, Stat- ler Hotel, Buffalo, N.Y. 25.26 Panhandle Producers & Royalty Owners Association, annual conven- tion, Holiday Inn West, Amarillo, Tex. 26.28 American Petroleum Institute, Divi- sion of Finance and Accounting. midyear meeting, Bellevue Stratford Hotel, Philadelphia. 31- Chemical Institute of Canada, forty- June2 eighth Canadian chemical conference and exhibition, Queen Elizabeth Ho- tel, Montreal. JUNE 2.4 American Gas Association, research and utilization conference, Sheraton - Cleveland Hotel, Cleveland. 3.4 Kentucky Oil & Gas Association, 4,727,655 Barrels of Fluid Produced by This REDA Submergible PUMP For over seven and a half years, this REDA unit operated continuously producing one per cent oil, at a profit! During this time, there was no maintenance or repair expense of any kind for the REDA unit. REDA manufactures a complete line of pumps for every well condition. Standard sizes of REDA Pumps range from five to 260 horsepower. Daily production rates are from 20 bbls. to 26,000 bbls. Depths of wells are from 450 feet to 13,000 feet with setting depths from 450 feet to 10,000 feet. REDA Submer. gible Pumps are backed by more than 34 years of experience and technical know-how devoted to the exclusive manufacture of submergible, electrical motors and pumps. You can depend upon REDA for top quality performance and last- ing service. HERE ARE THE FACTS: REDA PUMP TYPE & MOTOR SIZE........................143I-47E, 70 H.P. WELLDEPTH..............................---------..........................2,960 Feet CASINGSIZE...............---...........-----....------................----8%" AVERAGE PRODUCTION RATE................................1,688 BPD OIL/WATER RATIO ...................... LENGTH OF RUN ........................ 1:6% 7 years, 8 months Write For Bulletin R-686 "Reda Pumps for the Oil Industry" R E DA COMPANY BARTLESVILLE, OKLAHOMA Manufacturer of Gufa e0alerl 34lYeerso Motors and Pumps Pumps for 011, Brine, Water Gasoline, Jet Fuel, Chemicels,,LPG THE OIL AND GAS JOURNAL • APRIL 26, 1965 31 DEMCO DESANDERS REMOVE SOLIDS -REDUCE COSTS This modern drilling tool removes undesirable abrasive solids from drilling mud, reducing mud weight increasing penetration and minimizing lost circulation problems. Users have proved that the Demco Desander will pay for itself rapidly in savings in pump parts, bit life, tool joints, round trips and down time ... often on only one drilling location. Eight out of ten nety offshore rigs recently designed or built used Demco Desanders. Hundreds more are in daily use on other drilling, production and processing installations. Demco Desanders are available in 3, 4, 5 and 8 inch single or multiple cone units for any desired capacity. Solids as small as 10 microns in size can be effectively removed. The de - sanders are available separately or with power and centri- fugal pumps. They are also available on a rental or lease purchase basis. WRITE TODAY for Bulletins D&CS for com- plete specifications, or see pages 1698.1701 in the Com- posite Catalog. DRILLING EQUIPMENT MANUFACTURING CO. 845 S.E. 29th Street • Oklahoma City, Okla. annual meeting, Phoenix Hotel, Lex- ington, Ky. 6.3 Petroleum Electric Power Associa- tion, =out conference, Skirvin Ho- let, Oklahoma City. 6.9 American Society of Mechanical En- gineers, lubrication symposlum, Com- modore Hotel, New York City. 8.10 West Virginia University, Appals• china underground corrosion short course, Morgantown, W.Va. 8-10 National Petroleum Refiners Associ- ation, Mid -Continent regional meet- ing, Lessen Motor Hotel, Wichita. &10 Canadian Gas Association, gas mea- surement wheat, Ryerson Polytech. ideal Institute, Toronto, 10.11 Society of Petroleum Engineers, 13.17 American Institute of 4%emical En - �I cers-Britlsh Institution of Chem- ical Engineers, joint meeting, Hilton Hotel, London. 13.18 American Society of Testing and Ma. terials, annual meeting, Purdue Uni. versity, Lafayette, Ind. 14.18 Gordon Research Conferences, by- drocarbon chemistry, Colby Junior Collc&e, New London, N.H. 20.25 American Petroleum Institute, mid- ycar standardization conference, Leamington Hotel, Minneapolis. 21.23 Interstate OE Compact Commission, midyear meeting, Pittsburgh Hilton Hotel, Pittsburgh. 21-23 Cooling Tower Instituto, June meet- Ing, Denver Hilton Hotel, Denver, 22.15 ASME, ISA, AIChE, IEEE, joint automatic control conference, Rens- selaer Polytechnic Institute, Troy, N.Y. 24-26 International Oil Scouts Association, joint IOSA and Canadian OE Scouts meeting, Banff, Alta. 27- Canadian Gas Association, a n n u a l July 1 meeting, Banff. Alta 28.30 Institute of Gas Technology, odorf- zalton course, Chicago. 28. Gordon Research Conferences, cata- July 2 lysis, Colby .J u n 1 o r College, New London, N.H. 30. National Society of Professional En. July 3 gineers, annual meeting, W e s t e r n Skics M o t o r Hotel, Albuquerque, N.M. JULY 12.23 University of Michigan, underground storage of natural gas course, Ann Arbor, Mich. 12.30 Institute of Gas Technology, gas distribution course, Chicago. 15.17 Rocky Mountain Mineral Law Foundation, eleventh annual institute, University of Denver Law Center, Denver. AUGUST 1.8 Ninth Latin AmarIcan Chemical Congress and Inter -American Chem- ical Exposition, San Jeronimo Hilton Hotel, San Juan, Puerto Rico. 8.11 ASME, AIChE, beat transfer con- ference and exhibit, Biltmore Hotel, Los Angeles. 9.12 National Congress of Petroleum Re- tailers, Inc., annual convention, 9.27 Institute of Gas Technology, gas transmission course, Chicago. 24.26 West Virginia University, Appala• china gas measurement short course. Morgantown, W.Va. SEPTEMBER 5.7 Independent Natural Gas Assocta- tion, annual meeting, The Brand - moor, Colorado Springs, Colo. 8.10 Pacific Coast Gas Association, can. 32 THE OIL AND GAS JOURNAL • APRIL 26, 1965I, "We private companies are proud of our record of accomplishment ... of our financial, technical and managerial resources; our diversified sources of supply; our vast system of transportation, refining and mar- keting facilities ... which are constantly being expanded to meet the growing market, and kept technically up-to-date by intensive research and heavy investment." M. L. Haider, Chairman Standard Oil Company (New Jersey) f ft- 1@7 Do 190 Minds Affect Drilling ©perntsons� Yes... for the better... and here are some of the ways: HANDLING "HOT" WELLS Baroid Oil Muds have been used to drill wells with recorded bot- tom -hole temperatures in excess of 500 F. No other mud has the high temperature flow property and filtration stability when con- taminants are encountered. Drill pipe drag is held to a minimum, more energy is transmitted to the bit, and drill pipe failures are virtually eliminated. TAKING THE TROUBLE OUT OF TROUBLESOME SHALES Shale formations that slough, heave or wash -out when con- tacted by water mud are drilled readily with Baroid Oil Mud. The soft, sticky, water -wet gumbo shales of the Gulf Coast come to the surface as distinct cuttings and do not ball up on bits, col- lars and pipe when drilled with Baroid Oil Mud. Penetration rates are normally faster, hole condi- tioning time is greatly reduced, and bits last longer in these formations than when ordinary water muds are used. UNSTICKING STUCK PIPE AND KEEPING IT THAT WAY Baroid's Family of Oil Muds pro- vides a variety of ways of freeing stuck pipe. SF-10OTMI provides the necessary gels and filtration con- trol to prepare a spotting oil mud of any weight for long or short periods of soaking. INVERMUL® oil mud is being used with excel- lent results both as a spotting fluid and for washing over stuck pipe. The INVERMUL oil mud is frequently used for continued drilling after completing the fish- ing job. Where Baroid Oil Mud is used for drilling, the incidence of stuck pipe is extremely low. Oil mud's good lubricating proper- ties play an important role in preventing stuck pipe. Oil mud deposits an extremely thin, oil - saturated filter cake that provides good lubrication wherever the pipe comes in contact with the walls of the hole. This is specially important when drilling deviated holes. Oil mud reduces drag when making trips and reduces rotating friction between the pipe and the wall of the hole. CONTROLLING CORROSION Oil Mud is inherently non -corro- sive. The electrical conductivity necessary for corrosive attack is not present. Drill pipe is pro- tected from corrosion and fail- ures due to salt water, oxygen, carbon dioxide, bacteria and hy- drogen sulfide. This same protec- tion is provided tubing and cas- ing when special oil mud packs are used in completion opera- tions. YOU CAN LOG IN AN OIL MUD Good mud logs can be obtained with Baroid's modern equipment. Gases break out of oil mud more readily, giving a more definitive mud gas curve than is obtained in water mud logging. Cuttings analysis is also improved. Cut- tings are larger, normally, and are not affected by hydration. Coring'is considerably im- proved by using Baroid Oil Mud, particularly where reliable con- nate water data is desired. Be- cause any filtrate is oil, water soluble fragments of the cores are not leached out as they would be with water mud. The basic log for use in oil muds is the simultaneously re- corded Gamma Ray Induction survey to provide correlation, depth control and determine re- sistivity. The Sonic Log, used with the Induction Log, serves as an excellent detector of hydrocar- bon bearing zones. Porosity can be determined with the Forma- tion Density Log. Other wireline tools, such as Neutron, Dipmeter, sidewall coring and wireline for- mation testing are effective in oil muds. IMPROVING CEMENTING Better cement jobs can be ob- tained with oil mud than with water mud. Holes drilled with oil mud are closer to gauge so less cement is needed and placement is easier. There is less inter -mix- ing of cement and oil mud so stronger cement and stronger bonds are obtained. THERE ARE OTHERS If you would like more detailed information on how Baroid Oil Muds affect these and other drill- ing operations, write for our new report, "The First Family of Oil Muds" or ask your Baroid Repre- sentative for a copy. Baroid Division National Lead Company - Main Ice: . . ox , ouston, exas INTERNATIONAL OFFICES: ANCHORAGE - BEIRUT - BENGHAZI - KUWAIT • LAGOS - LONDON - MARACAIBO - PORT OF SPAIN - ROME - SALVADOR - TRIPOLI • VINKEVEEN 0 R l IV t, t tr a•• Install it. Forget it. The Worthington Cub Compressor lives like a hermit and likes it. Why the Worthington Cub for"hermit" Installations? For one thing, the Cub has whipped the enemy of all com- pressors: Vibration. Reason: It's a balanced -opposed compressor —built on the principle of balanced inertia forces (pioneered by Worthington in 1931). So, leave it alone. Let it run full tilt —at 1000 rpm. Then forget it. It won't shake Itself off its base. The Cub runs cool, too, on those lonely jobs. Main bearings of the more expensive spherical roller bear- Ing type keep it cool. Works with less friction and maintains full end thrust. Lubrication? No problem. A built-in filter cleans crankcase oil continuously. Easy to service with- out disturbing piping. And, a force feed system meters exact lubrication requirements to cylinders and packing. What about changing the Cub to meet varying pressure differentials? Easy, too. Built-in clearance plug allows quick capacity adjustment... Liners are easily installed and re- i moved, and it has a wide range of cylinder ratings all the way to 5000 psi. Result —the Cub handles virtually all gas field needs with standard components. What does It add up to? Simple: Profit. A well that won't yield gas profitably with other compressors may be a money-maker with a Cub on the job. Want more proof? Just contact the Worthington distributor in your area. Or write: Worthington Corporation, Compressor Sales Department, Buffalo, New York. 3S•s2 ARGENTINA. AUSTRALK AUSTRIA. BRAZIL, CANADA. COLOMBIA. TRANCE. GERMANY, INDIA. ITALY, JAPAN. MEXICO. SPAIN. U.K. AND U.S.A. �M" WORTHINGTON LEADERSHIP Your authorized Worthington Distributor COLORADO Waukesha Engine & Equipment Co. 4999 Jackson Street Denver, Colorado KANSAS Industrial Engine & Equipment Co. P.O. Box878 Garden City, Kansas LOUISIANA Arkla-Ingersoll Co. P.O. Box 7366 Shreveport, Louisiana OKLAHOMA Knight Mfg. & Supply Co. Box 5426 Tulsa, Oklahoma TEXAS Shelton Equipment & Machine Co. P.O. Box 2767 Amarillo, Texas National Supply Co. P.O. Box 9366 Houston, Texas Southern Engine & Pump Co. P.O. Box1697 Houston, Texas Western Fabricators P.O. Box 2709 Odessa, Texas vention and annual meeting, Olym- pic Hotel, Seattle. 12-17 American Chemical Society, national meeting, Atlantic City, N.J. 1315 Mid -Continent OR & Gas Associa- tion, Louisiana -Arkansas division, annual meeting, Roosevelt Hotel, New Orleans. 13- American Association of O i l w e l l Oct.22 Drilling Contractors, school of drill- ing t e c h n o l o g y, Odessa College, Odessa, Tex. 15-16 National Petroleum Refiners Amoci- ation, fuels and lubricants meeting, Roosevelt Hotel, New York City. 19.22 American Society of Mechanical En- gineers, Rice Hotel, Houston. 23 Natural Gas Processors Association, Rocky Mountain regional, Hilton Hotel, Denver. 26.29 American Institute of Chemical En- gineers, fifty-seventh national meet- ing, Leamington Hotel, Minneapolis. 26.29 American Association of Petroleum Geologists, Rocky Mountain section meeting, Billings, Mont. 28.29 American Gas Association, operating section, organization meetings, Roose- velt Hotel, New York City. 28-30 National Petroleum Refiners Associ- ation Rocky Mountain regional meet- ing, Henning Hotel, Casper, Wyo. 29- Rocky Mountain Oil & Gas Associa- Oct.1 tion, annual meeting, 'Cosmopolitan Hotel, Denver. OCTOBER 3.6 Society of Petroleum Engineers, fall meeting, Shelby Hotel, Denver. 10.13 American Gas Association, annual meeting, Bal Harbour, Fla. 12.14 National Petroleum Refiners Associ- ation, question and answer session on refining technology, Marriott Motor Hotel, Dallas. 13.15 American Association of Oilwell Drilling Contractors, annual meet- ing, Biltmore Hotel, Los Angeles. 13-15 National Association of Oil Equip- ment Jobbers, convention and trade show, Shamrock Hilton Hotel, Hous- ton. 13-15 American Association of Petroleum Geologists, Mid -Continent council of geological societies, Civic Assembly Center, Tulsa. 18-20 Texas Mid -Continent Oil & Gas Association, annual meeting, Hotel Texas, Fort Worth. 18.21 ASLE, ASME, lubrication confer- ence, Jack Tar Hotel, San Francisco. 22 Natural Gas Processors Association, southern regional meeting, Carlton Hotel, Tyler, Tex. 25.27 Chemical Institute of Canada, an- nual Canadian chemical engineering conference, Chateau Frontenac,Que- bee City, Que. 27.30 Gulf Coast Association of Geological Societies, annual meeting, Shamrock Hilton Hotel, Houston, 31. American Society of Testing and Dec.I Materials, fifth Pacific area national meeting and fourth West Coast ma- terials testing exhibit, Olympic Hotel, Seattle. NOVEMBER 3.5 Ontario Petroleum Institute, Inc., annual conference, King Edward Sheraton Hotel, Toronto. 4.6 Geological Society of America, an- nual meeting, Kansas City, Mo. 5 Natural Gas Processors Association, Panhandle Plains regional meeting, Holiday Inn -West, Amarillo, Tex. 7.11 American Society of Mechanical Engineers, annual meeting, Sherman Hotel, Chicago. NEW SCANALOG inspects pipe up to 85/e-in. 0.0. This new -model Scanalog unit in- spects casing, tubing, and drill pipe up to 7%-inch O.D. (threaded and coupled) and plain -end line pipe up to 8%-inch O.D. Scanalog detects all internal and external irregularities, both trans- verse and longitudinal. Its pipe - handling equipment automatically picks up pipe, inspects it, and re- turns it to another rack. One operator in the truck controls the entire automated process. Scanalog uses highly -sensitive electronic instruments to scan the pipe and provide a precise, permanent record of its condition. The unit provides highly refined data, accurate results through con- stant, pre-set inspection speed, rapid inspection, and all-weather operation. PIPE INSPECTORS. Houston and Odessa, Texas; New Orleans, Lafayette, and Morgan City, Louisiana 65S-4 THE OIL AND GAS JOURNAL • APRIL 26, 1965 37 u RA O� Jors¢stet ss °ut tt Vie•° of 6 s"f s1C�a fot ms's tt�ve a9st¢ tgb9O`0¢' e.0Ats s , d $e1Ci ,9 a4¢�e tsao g¢ortiw�¢e f Ott0 .00�,o°off\lb� w� 6' oS a¢, -4 i ��e�1Q t°o iS& ve A04°u�eg ce. f°s 4+steftb¢t d Div° ops e¢t� ete W¢S g of ar° ¢ii¢p s¢tu . gs e0�g yjb�ttV¢s gsUoo �dg �pxe ¢.� fx 26 d° at 1pW aunt t�rg i �>> a tb /r•,. 0 9 i • �1 ^X 4* • i 38 O PRACTIURING SERVICES r t s dI S COMPANY r,,, NC AN OKI AM OMA THE OIL AND GAS JOURNAL • APRIL 26, 1965 THE JOURNAL SAID 50 years ago Apr. 29, 1915 California operators have been trying with some success to in- crease the flow of oil from wells by heating pay zones with electric heaters. The typical h e a t e r is a long brass cylinder containing a large number of coils. It is lowered into the hole and connected by wires to a generator on the surface. The heater consumes about 9 kw/hour. According to one theory, in- creased flows result when gas in the oil zone expands from the heat and causes a greater upward pres- sure in the well. 25 years ago Apr. 25, 1940 This year looks like one of the best in history for the Gulf Coast oil industry. There are 432 rigs running there, 10 new fields have been discov- ered since the first of the year, and steady exploration employing the latest techniques is in progress. Currently, 13,500 wells in 312 fields are producing 625,000 bo/d. N a t u r a l gasoline and recycling plants produce about 750,000 gal of gasoline while processing 1,150 MMcfd gas. With over 1 million b/d of refining capacity the Gulf Coast is the world's largest refin- ing center. 10 years ago Apr. 25, 1955 Oil imports during the first 8 months of this year will be almost 14% greater than during the same period in 1954 according to re- ports filed with the Texas Railroad Commission. East Coast refineries, which get most of the crude coming into the U.S., now rely primarily on for- eign feedstock. A Journal survey shows imported crude comprised nearly 57% of the total runs of East Coast refineries in 1954. Blessings of oil AUSTRALIANS hailed with un- restrained joy the discovery of oil and gas in their country. Hence- forth, it was universally agreed, their troubles would be over and there would be no more problems involving fuel supply. That's what they thought. That was a couple or three years ago. Today Australia's first crude oil is beginning to move into the mar- ket, and what do we see? We see the darndest political rhubarb you can imagine. Producers say the price of crude oil is too low. Refiners say the price is too high. Producers want imports restricted in the interest of national security. Importers say na- tional security demands free access to foreign supplies. In recent weeks the two groups have been slugging it out at hearings before a federal agency. If any of that sounds familiar, remember we're talking about Aus- tralia, not the United States. But the parallel doesn't stop here. Newspaper accounts of the hear- ings before the Australian Tariff Board describe the testimony as acrimonious and bordering on mud- slinging. The domestic industry was accused of being inefficient and wanting a tariff to protect feather- bedding practices. Importers were accused of unfair competition, monopoly, and irresponsible prac- tices. The coal industry got into the act and asked that something be. done to keep cheap fuel oil from undermining the market for coal. The coal men alleged that refiners charge high prices for gasoline in order to subsidize market losses on fuel oil, while domestic oil pro- ducers alleged that refiners keep all product prices too low and recoup market losses from huge profits on foreign crude production. The argument over imports in- volved such subjects as the use of foreign -flag tankers, the nation's balance -of -trade position, and for- eign -tax credits and other alleged advantages of importers. As alternatives to a tariff on oil JOURNALLY_ SPEAKING there were suggestions that domestic producers be put in position to com- pete with imports by means of a depletion allowance, some sort of market -sharing allowables, or a government subsidy. Some argued that a high oil price is a necessary incentive to explora- tion, while others countered that a high price would foster inefficient operations once oil is found. And wouldn't you know it, one witness popped up with the contention that federal control of pipelines would solve all the problems. Natural gas has been discovered in Australia but isn't being mar- keted yet, so the matter of its com- petition with oil and coal entered the tariff debate only as a subject for speculation. Nobody seemed quite sure what its market impact might be, but there appeared to be a general feeling that when natural gas does come in it will provide still another headache for both industry and government. Australia's crude production is still only about 3% of the nation's demand and the drilling density is not yet high, so at present there is no great controversy over well spac- ing, proration, and other aspects of conservation. But Australia is a young country and its oil industry is still relatively simple and unsophisticated. Given a little time, it stands every prospect of being able to acquire all the complexities and perplexities of a "mature" industry in a "developed" country. Australia thinks that the imports - control problem it is now wrestling with is a tough one, but just wait until it gets its own Federal Power Commission, state conserva- tion commissions, and surplus capacity. Then it will really begin to reap the blessings of a domestic fuels in- dustry that seeks government pro- tection in a free -enterprise economy. Oil is nice to have, but it does raise a few problems. Welcome to the club, Australia. —Henry D. Ralph THE OIL AND GAS JOURNAL • APRIL 26, 1965 39 Thinking about steam? Think portable. a . You can lease this portable, fully automatic Baker F5.8 Thermal Injection System for a pilot test... then, convinced that it Is the answer to your problem, you can buy it for cyclic stimulation of several wells as a regular program. Portability offers you many advantages, It keeps you flexible —now and later, when your needs may change. Portability insures that you will get maximum utilization from your investment. Because you can drive the F5.8 as close as you wish to a well, you all but eliminate expensive insulated surface lines and greatly reduce the resulting heat loss. After stimulation, you can move your F5.8 to a new location. Let us give you the full facts on the latest word in steam injection. Write or call. ll�',, . THERMAL PRODUCTS DIVISION BAKER OIL TOOLS, INC. HOUSTON / LOS ANGELES / NEW YORK 7 40 THE OIL AND GAS JOURNAL • APRIL 26, 1965 EDITORIAL Confusion on the antitrust front THE CONFUSION in gasoline marketing is further confused by the latest actions of the Department of Justice and the Federal Trade Com- mission. On the eve of a trade -practice conference called by FTC to discuss the whole subject, Justice has brought an antitrust suit against major mar- keters in the New Jersey area. It is virtually impossible to divine exactly what either agency has in mind, but apparently each would like to remake the marketing structure to conform to its own concept. And the two concepts are not the same. THIS IS ANOTHER EXAMPLE of the long-standing conflict between advocates of "hard" and "soft" competition. Those terns are not used by two agencies to define their goals. But over the years the general philosophy of the Antitrust Division has been to outlaw anything that appeared to dampen the most rigorous sort of compe- tition, while FTC has leaned toward mitigating the harshness of that doctrine by defining "fair" competition. Applied literally, the 1890 Sherman Act would enforce the tooth -and - claw competition of the jungle —every man for himself and the devil take the hindmost. The FTC's law, enacted a generation later, envisioned a live -and -let - live policy by "rationalizing" competition and protecting some competitors from certain forms of competition. The basic conflict in these two antitrust philosophies has never been admitted by the enforcement agencies, nor resolved by Congress. But it has caused untold confusion in the business world. This is nowhere better illustrated than in gasoline marketing. One of the objectives of the New Jersey indictments appears to be to prevent any distribution or pricing practices of major refiners which affect the degree of competition offered them by independent or private -brand marketers., On the other hand, one of the objectives of the FTC conference appears to be to apportion the market between majors and independents and establish recognized price differentials for different classes of competitors. THE AIM OF BOTH agencies is to curb the market power of the majors, but Justice would do this by making marketing more competi- tive while FTC would snake it less so. The New Jersey indictments tossed a monkey wrench into FTC's hope of straightening everything out by frank discussion and agreement, for the accused companies will be understandably wary of saying anything. But some good could come front it if the conference does nothing more than air the dilemma of business and plant seeds for eventual resolution of this conflict of policies in antitrust enforcement. THE OIL AND GAS JOURNAL • APRIL 26, 1965 41 ^ 016" �)- - 1 �) 'Ir1 1 Ica f (�) on 1 (i) PIo i 1 (: 1 ql7 over . Ig " gand airez in 1 . gaiz (:onG i); 31£ industry. ZhougdnN you roe an oimil. rC.WR= A= C E AVISON CHEMICAL �� ADSORB. ©--GRAM from Davison...ADSORB ..._... .nr-. from Davison.*.ADSORB-O--GRAM OPTINUM SILICA GBL LIFE It Seer ;- ^ �+um�- xd '' -_mrL t- h {r a Certain built-in, wu h ' tate to "t r W. R. Grace & Co. Chemical Division , uently ,Davison Industrial Chemicals Dept.1304 apparent Baltimore, Maryland 21203 There ' Please add my name to your Adsorb-0-Gram mailing ' is a stra listt ' dew points a Name ijust a ' Company , bit". ' Address Cl ' ing sever ; State SIP aY a very new, it t� I on a regu- lar Both or these attitudes 'seem to be a bit extremr, .knd it is probable that most plants CouJIi d^•rivr, economic benefit^a from some intermediate course. 42 THE OIL AND GAS JOURNAL • APRIL 26, 1965 Helicopters and boats riding high on far-out gulf activity Companies to pay $40 million for larger, faster boats this year. Helicopter use expands. Howard M. Wilson Gulf Coast Editor THE OFFSHORE transportation industry —just like offshore drill- ing —is booming today. And it's changing. Companies operating on the U.S. Gulf Coast will spend an estimated $40 million for boats this year, and millions more will be invested in aircraft. As the drillers move into deeper water, and farther from shore, boat builders and helicopter companies are designing their craft to meet the more demanding requirements of their customers. Boats and planes are bigger, more powerful, have longer travel capabilities, and they cost more money. Some 15 boat -building companies are now in business on the Gulf Coast —most of them spawned by the postwar offshore drilling indus- try. Many are working at capacity to cut down the backlog of orders LANDING on a tender is the 26-passenger Sikorsky S-61N helicopter which recently completed a 10- day offshore test. which has accumulated in the past year or two. The growth in offshore transpor- tation has also spawned competition and debate on such things as alu- minum vs. steel for crewboats, crew - boats vs. helicopters for crew changes, and the need for versatil- ity in boats of all kinds. Crewboats. In 1948, when off- shore drilling was mostly within 6 miles of land, a 60-ft crewboat was a "monster," and it traveled around 10 mph. Today, with distances as great as 100 miles from shore, operators spend as much as $2,000 in a month on the single item of hourly pay for crewmen during travel time. This means they want big, powerful, safe boats that will carry 40 to 50 men at speeds of 20 to 30 mph. A crew - boat meeting these requirements can cut that $2,000 hourly pay bill in half. One major offshore operator pays $135 to $140/day for boats carry- ing a dozen men at 10-15 mph to installations within 20 miles of land. He is willing to pay $325 to $350/day for a boat carrying 20 to 25 passengers and making 25 mph. Operators also want more versa- tility. If it's feasible, they want to use crewboats partly as supply ves- sels. The builders. To meet operator demands, boat builders are turning out boats with speed, long-range ca- pability, safety, versatility, and rea- sonable cost. Some are meeting the speed problem with aluminum construc- tion —either all -aluminum or par- tial —to cut down on weight. Although still in its infancy, alu- minum crewboat construction has acquired important supporters. Likewise, there are important hold- outs for steel. The pro -aluminum builders claim longer life and 30% greater speed for their craft and much less maintenance because alu- THE OIL AND GAS JOURNAL • APRIL 26, 1965 43 minum doesn't rust in sea water. Further, say these supporters, alu- minum boats can take the pound- ing of Gulf Coast seas and hold course as well as steel. The pro -steel builders claim the 25%-plus greater cost of aluminum is too much to pay, and, besides, now high -strength steel is cutting down on the amount of metal re- quired in construction. This per- mits greater speeds which approach those of aluminum boats. Breaux's Bay Craft, a major builder of both aluminum and steel boats near New Iberia, La., has just produced a crewboat which com- bines high -strength steel for the hull and aluminum for the cabin. It claims a 25-mph top speed. The company has developed a secret method for preventing galvanic cor- rosion which usually occurs when aluminum is placed next to a simi- lar metal. Although aluminum boat lengths have stretched to 100 ft—and a 120-footer is scheduled for comple- tion this year —one charter com- pany, Houston's Astro Marine, has deliberately held the length and width of a boat it has ordered to smaller proportions. This keeps the boat under 100 gross tons and makes possible U.S. Coast Guard certification, which permits the com- pany to use the boat for hire. For larger boats, the Coast Guard re- quirements are prohibitively expen- sive to meet, and operating compa- nies which use them must take re- sponsibility for the employees they carry. The boats are considered safe, but some companies want the certification. Astro-Marine's boat, the Saturn, is a slightly scaled -down version of the 95-ft Citation, built by Breaux, and will carry about 40 passengers and still have 36 linear It of deck space aft for minor supplies. Workbouts. In offshore parlance, a "workboat" is any kind of boat except a crewboat. Like the crewboat, the workboat has grown in size, power, versatil- ity —and cost. The demand today is greater than ever because of heavy requirements for current work in offshore Louisiana, the upcom- ing North Sea operations, and new offshore drilling elsewhere in the world. Most builders are behind on their orders to the charter companies, and some service companies are being forced to contract for con- t struction of their own boats to meet customer needs. The trend is moving toward a standard length of about 150 It for general-purpose service boats off Louisiana. Some operators believe a 125-ft craft, which once was con- sidered big, is too small to handle fully the needs of an offshore rig. Boats of more than 150 It some- times have difficulty anchoring be- side an anchored rig. In the stormy North Sea, how- ever, it's a different story. Opera- tors hope eventually to work year- round, and they'll need bigger, stronger. all-purpose boats, possi- bly 200 it long. Other foreign areas, such as the Persian Gulf, are not so demand- ing, and U.S. builders have long been suppliers of the boat market. Today, a supply boat in the 150- It range will cost around $400,000, compared with $200,000 to $250,- 000 for u 135-footer 8 or 9 years ago. Although speed is important for supply boats, it is not a prime fac- tor. For this reason, aluminum has made no inroads on this facet of offshore transportation. The cost is prohibitive. Among the companies which are traveling the own -your -own -boat route is the mud company Magco- bar, which has taken delivery on a boat tailored for mud hauling. The Magcobar Satellite, built by Burton Shipyard at Port Arthur, is bigger and faster than older models in the Magcobar fleet and has more mud capacity. Its 130-ft length, 34- ft beam, and 12-ft-deep hull give it a capacity of 4,000 sacks of bulk mud material, 1,500 bbl of liquid mud, and 3,000 bbl of water. Speed is 17.5 mph. The boat also has an unusual ser- vice feature: a refrigerator and a freezer, each with 400-cu-ft capac- ity, to carry food exclusively for oil company customers. A sister ship is under construction. Geophysical. One reason for the heavy demand on boatbuilders is the rise in offshore geophysical work. Oddly, few boats are built spe- FASTEST service -company boat in the gulf Is Magcobar's 130-ft-long Satellite. The new mud hauler has an average speed of 15 knots. Spaght due top job in worldwide Shell organization SHELL Oil Co. will have a change in top management July 1. Monroe E. Spaght, president since 1961, will become chair- man of the board, succeeding John H. Loudon, who is retiring. R. C. McCurdy, president of Shell Chemical Co., will succeed Spaght as president of Shell Oil. Cecil W. Humphreys, presi- dent of Shell Development Co., will succeed McCurdy at Shell Chemical. Theodore W. Evans, vice president of Shell Develop- ment and general manager of the Emeryville, Calif., research cen- ter, will succeed Humphreys. In addition, S p a g h t will be proposed for election as a man- aging director of Royal Dutch Petroleum Co., parent of Shell Oil. In turn, he will become a director of Bataafse Petroleum Maatschappij, N.V., and a man- aging director of Shell Petroleum Co. Ltd., the Dutch and English companies that make up Royal Dutch/Shell group. He will head- quarter in London. The new assignments will be a distinct honor for Spaght. He will become the first American ever to serve as a managing di- rector of Royal Dutch. The line- up of the new board will be three Dutchmen, three English- men, and an American. cifically for seismic crews, despite demand. The reason: seismic activ- ity varies so much that charter com- panies hesitate to invest several hundred thousand dollars in a ves- sel which will be useless if and when the boom dies. Today conventional service boats are modified to meet the needs of the geophysical company. When this type of work is completed, the boat can be returned to offshore rig ser- vice. A number of service boats under construction will go directly to work for geophysical companies, whose changing requirements fortunately parallel those of the oil company operators. Where once a seismic boat was 75 to 85 ft long, today's shooting procedures call for a 125 Spaght McCurdy Humphreys Big gains. Shell Oil has shown substantial gains during Spaght's tenure as president and has be- come one of the profit jewels in the Royal Dutch/Shell crown. Net profits moved up from $140.3 million in 1961 to $198.1 million last year, meaning per- share profits of $3.27 last year compared with $2.32 in 1961. Shell's U.S. crude and natu- ral-gas liquids production since 1961 has expanded from 363,- 000 b/d to 407,000 b/d; re- finery runs from 551,000 b/d to 664,000 b/d; and product sales from 611,000 to 780,000 b/d. Spaght told stockholders last week that Shell O i 1 earnings reached $54.8 million during the first quarter, 12% above last year and the highest in company history. The men. Spaght joined Shell to 150-ft boat. Crews must travel farther from land, work in rougher seas, stay out longer, use more pow- der, and carry more and bigger equipment. Mangone Shipbuilding, a new Houston firm, has just completed a service -seismic vessel for Astro- Marine, which will charter it to a geophysical company for work off Louisiana. The 125-ft boat has 87 linear ft of deck space aft for equip- ment and features a new deep "V" flare in its hull construction. The flare makes the vessel look more like a boat than the barge -like ap- pearance of most service b o a t s and gives it more maneuverability, speed, and seaworthiness. Also Mangone is using a'radical new method of boat construction. in 1933 following graduate study at Stanford University where he received a PhD in chemistry. He rose through various tech- nical and research posts to the presidency of Shell Develop- ment Co. in 1949. He was ap- pointed executive vice-president of Shell Oil in 1953. Loudon has been Shell Oil chairman since 1957 and the sen- ior managing director of Royal Dutch/Shell group. McCurdy joined Shell as a roustabout in Ventura in 1933 after graduation from Stanford. He had extensive experience in California, Washington, and Venezuela before being named Shell Chemical president in 1953. Humphreys, also a PhD in chemistry from Stanford, joined Shell Chemical in 1931. He has been president of Shell Development since 1962. The hull is built in sections and then assembled. Mangone claims this cuts down building time and has other construction advantages. The demand for geophysical boats is considerably greater than the supply, and companies are standing in line for delivery. State Boat Corp., Houston, for example, has six boats under charter —all of them to geophysical companies — and is awaiting delivery on two more for immediate work. Ownership. Generally, operating companies prefer not to own their own boats. Rather, they lease or charter boats and leave the worry of providing boat crews, mainte- nance, insurance, and other inci- dentals to the charter companies THE OIL AND GAS JOURNAL • APRIL 26, '965 45 which abound on the Gulf Coast. One recent exception to the no - ownership trend was the decision by Shell Oil to buy a $1.7 million seismic research boat. This 175-ft, twin-screw vessel, much larger than the ordinary geophysical boat, will be -built by Jeffboat of Jefferson- ville, Ind. Some drilling contractors have boats of their own but mostly for inland water work. One contractor, Niklos Drilling, is in the charter boat business with its Astro-Marine affiliate. Unique in boat marketing is the "package" arrangement of Stewart & Stevenson Services, Houston. S&S provides engine power appli- cations for General Motors diesel engines and also sells the boats which use them. It has a dozen boats under construction at various ship- yards for offshore customers —a $2 million backlog of orders. Helicopters. The helicopter has been a standard transportation tool in the offshore industry almost from the beginning. But with the distances lengthening and the time factor growing, the function of air travel is changing. The issue is simple but a big one: Should an oil company with far-out operations turn to the whirlybird for crew changes or should it rely on the tine -tested but much slower crewboat? In the past, the helicopter has proved to be the best method for moving two, or three, or four super- visory personnel from shore to rig and for quick delivery of small supplies. Today it has its sights on bigger game —the movement of a dozen or two dozen crewmen to and from the rig on regular duty tours. The andhelicopter argument cen- ters on the uncertainty of operations during bad weather and fog, the safety factor, and higher insurance rates. "Our people have never liked them," says one drilling contractor. "But we do what the operator says. It's not our choice." But another contractor says the trend is toward the helicopter for crew changes for rigs 50 or more miles from shore. Up to 30 miles out, he says, boats are best. Just where the breaking point is on mile- age depends on the company. Some won't use them at all, and others use them for very short distances. Who's he business. Petroleum Helicopters, the Gulf Coast's big- gest helicopter operator with 72 craft, says its business has jumped 50% in the past 5 years. The in- crease has come not only from greater use of helicopters for rig crew changes but also for moving maintenance and inspection per- sonnel within production areas. Although cost of aircraft has risen over the years, the company says it is not increasing rates and in some cases has been able to reduce them because of lower maintenance costs and volume buying of parts and supplies. Petroleum Helicopters contracts out most of its craft full time to op- erators but keeps an available sup- ply in readiness at various bases be- tween Venice, La., and Galveston to ]candle special requests on short notice. A few operating companies — California Co. in particular —main- tain their own fleets of planes, and most of the majors have at least one or two small helicopters or fixed wing planes for executive use in South Louisiana and offshore. Calco's 25 planes constitute the nation's largest noncommercial pri- vately -owned fleet of helicopters and float planes. The fleet employs 85 men, including 36 pilots. Among its larger planes are two I1-passen- ger S-62 Sikorsky turbojets, whose turbine engines weigh much less than piston engines and in c r e a s e distance and speed capability. Sikorsky's latest bid for the crew - change business in offshore work is the S-61N — a 26-passenger, multiengine, 150-mph craft —which recently underwent a grueling test operation in the gulf. Over a 10- day period in February, the S-61N went to 20 platforms in 34 flights, carried 480 passengers and 7,850 lb of cargo, traveled 3,546 offshore miles and nearly a million passen- ger miles, and never was grounded. The federal lease sale of March 1962 gave the helicopter business its biggest impetus of recent years. Many of the leases are 100 miles or more from land. Future lease sales will concentrate on the far-out unleased tracts, and the helicopter is destined to increase its role in offshore work. Five rigs b LIKE SWALLOWS returning to Capistrano, the drilling rigs are back in Alaska's Cook Inlet in force. Five rigs last week were making hole in the inlet, another wasdrill- ing on the Kenai Peninsula, and a seventh was being moved to spud a new wildcat on the Tyonek Indian Reservation. The early start of activity and the number of rigs at work mean a record year in exploring and devel- oping the oil and gas reserves in and around the inlet. Here's a quick look at the active operations: A, (on map). Pan American Pe- troleum Corp. was conditioning its suspended stepout from its West Foreland discovery and preparing to drill ahead from 4,700 ft. It is using the Polar Cub, a three-legged jackup platform owned by Reading & Bates Offshore Drilling Co. B. Union Oil Co., operator for itself and Marathon Oil Co., was spudding its Trading Bay wildcat northwest of Middle Ground Shoal field. The Wodeco 5, newest barge in the fleet of Western Offshore Drilling & Exploration Co., arrived on location in midweek and was scheduled to spud by the weekend. C. Mobil Oil Co. last week had cemented 20-in. surface pipe at 660 ft and was drilling ahead in its wildcat 3ch miles south of Granite point. It is using the Wodeco 2. D. Mobil is getting ready to spud a wildcat on the Tyonek reserva- tion. It has taken over the Rowan Drilling Co. rig which Humble Oil & Refining Co. used to drill its 1 Tyonek Reserve. Humble shut down this operation during last wfn- ter's severe weather and now says the hole is suspended indefinitely. Drilling is expected to begin with- in a week on the Mobil location. E. Shell Oil Co., operating for itself, Richfield Oil Corp. and Stan- dard Oil Co. of California, last week began drilling out cement plugs in the SRS 1 State in prep- aration for deepening the hole. F. Shell was well below 2,000 ft last week on the Cook Inlet's first development well. This is being drilled from the SRS Platform A and will be the first of some 32 to be directionally drilled into the Mid- 46 THE Olt AND GAS JOURNAL • APRIL 26, 1965 Cook Inlet faces big wildcat year Beluga River I Key tests (Gas) making hole Mobi,-- �p Tyonek in Alaska Reservation �tSRS North ply -A J j 1 Tyonek Reserve Cook 0,1 Inlet Granite Point Mobil O E SRS 1 State 0 BUnion -Marathon 0 Middle �'2 ry e, Ground 300 Ga G Socal � Shoal 4. 1O) 0 (Birch'Hi'll J A Pan Am Unit) •SRS 1 MGS _ 0 �O,.,'SRS Platform A West ��� Foreland ���� QIt0 Swanson (Gas) �� NP� River East Foreland West Foreland Nikiski A Refinery Terminal oal, dle Ground Shoal structure in a year -around operation, the first for the inlet. G. Standard OR Co. of California last week was nearing 14,000 ft in this wildcat 4 miles north of Swan- son River field. The well is the Birch Hill Unit 22-25. One other well was drilling in the area. This is the 1 Wallace Knutson, being put down with a cable -tool rig about 35 miles north- east of Anchorage in the Wasilla Lake area. Operator is William A. Wallace. The hole is projected to about 7,000 ft. Deep wildcat. One of the most in- teresting operations in the inlet will be Shell's deepening of the SRS 1 State. This hole was suspended at 14,- 041 ft on Sept. 13, 1962, after en- countering "fantastic" pressures. With winter approaching, Shell set several cement plugs in the hole. When the next spring came around, Shell and its partners de- cided to drill the Middle Ground Shoal structure before returning to the SRS 1 State. The result of that decision was the SRS 1 Middle Ground Shoal, which found flush production, and the subsequent erec- tion of the permanent platform where Shell is now drilling its first development well. How deep Shell will take the sus- pended wildcat in the center of the inlet isn't yet known, but a company official said Shell expects to be on the hole "perhaps 30 days." Shell will be drilling from Global Marine, Inc.'s Glomar II. Big year. As rigs complete their present assignments they'll move to other wildcat locations, making this the top exploration year in the short history of the inlet. Pan American last year indicated it expects to drill a wildcat this sum- mer between the forelands, where the currents are swiftest and the drilling perhaps the most difficult in the entire inlet. It also is expected to resume drill- ing on the North Cook Inlet struc- ture, where Pan Am and Shell have wells indicating major reserves. Negotiations are currently going on among several companies for other tests to be drilled this year. And another platform is in the works. Pan Am is building an all- weather platform similar to that of the SRS group and plans to set it on the Middle Ground Shoal struc- ture this summer. THE OIL AND GAS JOURNAL • APRIL 26, 1965 47 Y 'A 1 a A CHARGE is primed during geophysical work off Newfoundland for ... V I A SHOOTER to detonate electronically. Pan Am pushes work off Newfoundland Core drilling with Caldrill I will back up company's seismic operations. Acre- age tangle developing as grants by province overlap dominion blocks. PAN A M E R I C A N Petroleum Corp. will intensify its exploratory work off the coast of Newfoundland this summer where it has a block of more than 31 million acres on the Grand Bank. The company's program this year will feature core -hole drilling, in addition to gas - exploder marine - seismic and conventional marine - seismic operations. Drilling the core holes will be the 176-ft Caldrill I —a ship spe- cially designed to recover core samples. Formation cores will be recovered using wireline coring equipment. The Caldrill I has core drilled off California, is now work- ing off Louisiana, and will move to Canadian waters in May. Five or six vessels, including the Caldrill 1, will be used in Pan American's operations, four of them being Canada - based. Contractors will employ 120 men. Last year Pan American's ex- ploratory work off Newfoundland included gas -exploder and conven- tional refraction and reflection seis- mic operations. Also, an extensive acromagnetic survey was completed in 1964. Ten Pan American employees will leave Calgary May I for St. Johns, Newfoundland, where the company will set up headquarters for this year's work. Operations will get under way May 15, and run through September, according to John C. Meeker, vice-president and Canadian division manager of Pan American. The core ship. Caldrill I is sched- uled to reach Halifax, N.S., on May 26 for outfitting. It is owned and operated by Caldrill Offshore, Inc., Ventura, Calif. The ship is self-propelled and is kept on drilling location by auto- matic positioning equipment. In the event of storms, complete mobility of the Caldrill t—as compared to an anchored vessel —offers extra safety. Caldrill I will operate on the Grand Banks for 3 months. It will be serviced by a 126-ft tug owned and operated by Foundation Mari- time Ltd. Offshore rights tangle. Mean- while, a jumble of overlapping drill- ing rights is developing in offshore waters around Newfoundland. This came to light when the pro- vincial government granted offshore drilling rights in several areas total- ing 30 million acres to Shaheen Natural Resources and affiliates. Much of the area involved is al- ready covered by grants to other oil companies by the Canadian do- minion government, which claims it controls waters on the Continental Shelf. Conflicting claims ultimately will be settled only when the Canad- ian Supreme Court decides whether the provincial or dominion govern- ments control the nation's offshore areas. Newfoundland granted drilling rights totaling 92,160 acres in the Central Grand Bank, 3,916,800 acres in the St. Pierre Bank, and 1,800,000 acres in the Strait of Belle isle to Shaheen Natural Re- 48 THE OIL AND GAS JOURNAL - APRIL 26, 1965 Where Pan Am will Jt anflc Ocean core drill off Newfoundland NEWFOUNDLAND �oE Socony Mobil CAPE BRETOI) ISLAND Petropar , `..,`,�``,� D. G. Blair OVA SCOr1A Canada " . N " ada Shell oF Canada e," a Ilk Me eC�c Lands a` Socony Mobil ° ���' �� 0 9�0 kooi Miles sources, and 17,187,840 acres in the Northeast Grand Bank and 1,560,521 acres in the Green Bank to Alberta Export Refining Co., a Shaheen affiliate. "Promising" area. Socony Mobil holds the dominion rights to a large section of the Northeast Grand Bank. Pan American has the bulk of dominion rights in the Central Grand Bank. Petropar Canada Ltd. has dominion rights to the Green Bank area, and D. Gordon Blair was awarded dominion grants on two small blocks in the Central Grand Bank. West of the Newfoundland blocks, dominion rights off the coast of Nova Scotia are held by Socony Mobil, Shell Canada Ltd., Canada Oil Lands Ltd., Texaco Explora- tion, and California Standard. A Shaheen spokesman said east- ern offshore Canadian areas hold "geological promise" with "more than 9,000 ft of good marine sedi- ment and several good salt domes being indicated." Shaheen Natural Resources, with headquarters in New York, is an investment company headed by John M. Shaheen with diversified holdings in oil, tar sands, and tim- berlands. Alberta Export Refining, headquartered in Calgary, is an oil holding and operating company in the Shaheen group. Basis for claim. Newfoundland is in an unusual position in its claim to control over its territorial waters. It did not confederate with Canada until 1949. Before that, it held the status of a soverign entity within the British Commonwealth. For nearly 300 years, the econ- omy of Newfoundland has been based upon the fish catch on its off- shore Grand Banks areas which ex- tend as far as 250 miles offshore. The country considers the area an extension of its onshore lands. For these reasons, Newfoundland is putting up a stiff fight to maintain its ownership of the Grand Banks. Offshore area involved in dispute sold SUPERIOR Oil has solved its marketing problem of Vermilion area gas in offshore Louisiana by selling 5,740 acres in leasehold rights to Pan American and Union of California for $42 million. In an ABC agreement, Superior sold to a third party company, Rhinelander Oil & Gas, a $36 mil- lion production payment and re- ceived $6 million in cash from Pan American and Union. The acreage lies in parts of four Zone 2 Vermilion blocks. It in- cludes Nt/2 Block 27, NWT/4 34, N1/2 35, and NEI/4 36. The tracts, all with shut-in gas - condensate wells, adjoin Blocks 14, 26, and 46 fields owned by Union and Pan American. Union is oper- ator in the fields. The sale brought to an end a dispute between Superior and Trunkline Gas, the pipeline pur- chaser in the area. Superior had taken the case to the Federal Power Commission but 2 days before hear- ings were to resume, filed a motion to dismiss its complaint against the p r o d u c e r s and Trunkline, (OGJ, Apr. 12, p. 71). Superior purchased the 625-acre tracts in Blocks 34 and 36 at a drainage sale in April, 1964, for $310,094 and $208,031, respective- ly. It acquired the 1,990-acre Block 27 tract in the October, 1962, drainage sale for $2,159,150. It acquired the 2,500-acre Block 35 at the July, 1955, sale for $1,425,- 000. Superior's bonus payments for the four tracts came to $4,102,275, THE OIL AND GAS JOURNAL • APRIL 26, 1965 49 Total energy holds vast growth potential I Although gas is well ahead of oil in fueling package systems that serve all of a customer's utility needs, study shows there's plenty of room for both. W. A. Bachman Management Editor MARK DOWN "total energy" as a comer. In the years ahead you will hear much about this new concept of using one fuel to provide a cus- tomer's complete utility needs. It is catching on fast now. How- ever, it is still an infant even though its potential as a big market for both natural gas and heating oils can be visioned. For this reason a big -league pro- motion is in the works for total energy. The American Gas Associa- tion is pushing it hard with research, economic analysis, and promotional advertising. Individual gas utilities are backing this up with showcase installations of their own plus a thorough education program. The fuel -oil segment of the oil industry also is coming awake on the idea. The National Oil Fuel In- stitute is making the industry aware of the opportunities. Some individ- ual companies, particularly Ameri- can Oil Co., are plunking hard to advance total energy. Market potential. Only a few hundred total -energy plants current- ly are in operation —estimates range from 200 to 300. American Oil's analysis of the potential market for the systems, however, is 13,500 installations an- nually. Some 5,400 possible instal- lations yearly are in areas of the country where natural gas has a predominant price edge and 8,100 in areas where fuel oil might claim an advantage. This study indicates that 10,000 of the 40,000 new buildings put up annually in this country would show good economics for total -energy systems. In addition, of the 700,000 existing buildings in the country using from 0.2 MM to 50 MM kw- hr, a minimum of 35,000 would justify switching to total energy. Under a 10-year promotion pro- gram, 3,500 installations a year could possibly be sold in the U.S. This makes a potential market for equipment that is almost stag- gering. It's estimated that 35,000 engine -generator units within the 20- kw to 1,000-kw range would be needed. By comparison, the present U.S. market for diesel engines is about 200,000 a year. Auxiliary equipment, such as waste -heat re- covery systems, switchgear, piping, and instruments, also would be needed. Hard sell ahead. These estimates are only of the potential. G. B. Prout of American Oil's product development department stresses, "Thus market . .. must be pio- neered. Everyone concerned must work hard to convert traditional thinking on methods of making elec- tricity." Charles C. Hill, president of Michigan Research Corp., last month warned delegates attending the National Oil Fuel Institute con- vention they must get to work im- mediately if they expect to have a future in the total -energy market. Herber Kunzel, president of Solar division of International Harvester Co., which has developed a low horsepower turbine applicable to total -energy systems, sees a great potential in this market. "We believe that more than 25% of all the industrial firms in the U.S. can be served by energy sys- tems in Solar's power range alone," he declared. Guy W. Wadsworth, Jr., presi- dent of the American Gas Associa- tion, has observed that "while total energy is still in its infancy, it is growing, and the concept is vig- orously supported by the AGA's research, development, technical, sales, and promotion forces." Another indication of the activi- ties within the gas industry is the work of GATE (Group to Advance Total Energy) which provides a cen- tral channel for up-to-date technical data, develops programs of educa- tion, promotion, and sales, and en- courages and coordinates research and engineering. Money -saving "total energy combinesi Typical gas -fired sI« I heating. cooling I, plant so THE OIL AND GAS JOURNAL • APRIL 26, 1965 r oil, gas The advantages. Key factor fa- voring total -energy systems is their efficiency in making best use of input fuel. American Oil Co. researchers say a well -designed total -energy system will recover 60 to 70% of the input energy in actual operation under year -around conditions. Maximum recoverable energy, however, is about 80%-30% electric power, and 50% from the engine -jacket - coolant water or from the exhaust. The other 20% is lost heat. The 60- 70% energy recovery is believed a more practical estimate for year - around operations. The average utility generation plant produces about 32010 elec- tricity from its input energy with no waste -heat utilization. But 3% of the input energy is lost in transmis- sion. Since total -energy plants are 60- 70% efficient and purchase of elec- tricity provides an efficiency to the customer of only about 29%, this is one big reason total energy is at- tractive to the user. The favorable economics show up in the payout. Prout says pay- outs run from 4 to 8 years before taxes. Of some 100 feasibility studies made over an 18-months' NATURAL GAS total -energy package providing heating, cooling, and elec- tricity is exhibited by the gas industry at the World's Fair. period by his group, most showed payouts of less than 8 years. Total -energy systems also can generate good cash flows through depreciation allowances and money saved from not having to purchase power. Dependability is another talking point. With properly designed sys- tems and sufficient standby, elec- trical failures can be avoided. High winds, ice storms, and other disas- ters have no effects on total -energy plants. Both the oil and gas indus- tries are working hard to assure customers of maintenance contracts heat and air-conditioning power THE CONCEPT of total energy is far simpler than its complex results. Essentially, total energy is a single -packaged fuel that can supply ctrical power, hot water, space heating, and air conditioning. It works this way: a fuel —gas, distillates, or LP -gas —powers an engine turbine which rotates a generator, which in turn produces electricity. The heat from the turbine or engine is recovered. In the summer this it is used to energize air-conditioning equipment. In the winter, it tvides conveniently controlled space heating. And year round it supplies hot water or process steam. It is thus ssible to operate a building or building complex without any connec- 1 to commercial power lines. The result, in most cases, is money saved. The savings stem from a re efficient use of the single fuel selected. Possible customers are factories, schools, office buildings, shopping lters, hospitals, and motels. Proponents list these advantages of total energy: high efficiency, 'orable economics, greater dependability, improved appearance, and edom from utilities. for the systems that provide long- term dependability. Not every building owner should install the system. Many factors de- termine the favorable economics. A few are comparative fuel rates (elec- tric power vs. gas or heating oil), ability to use space heating or air conditioning advantageously as well as electricity, and the demand loads of power, heat, or cooling needed. Backers of total energy advise careful feasibility analyses before any decision to go this route. The AGA has developed a briefcase computer programmed for all the factors involved in a total -energy installation which can quickly de- termine payout on investment. The gas story. The gas industry currently is far ahead of the fuel - oil industry in realizing the potential of total -energy systems and is or- ganizing to promote and sell the installations. Chief development at the moment is installation of gas -fueled systems in home offices or plants of the gas utilities themselves. Centers of such installations are in the Northeast, Chicago region, Houston area, and Los Angeles area. These installations pay for them- selves, serve as showcases, give the utility and equipment manufacturers economic and operating data, and arouse interest in the total -energy concept. One study of 118 total -energy in- s t a l l a t i o n s across the country showed that 109 were fueled by THE OIL AND GAS JOURNAL • APRIL 26, 1965 51 natural gas, 7 by diesel fuel, and 2 by LP -gas. Statistics show the early jump gas has over oil in this field. Oil, however, is aware of its poor early showing and is beginning to make more of a stir. It had its foot in the door from the first since most gas installations have an oil -fueled unit available as a standby for emergen- cies. Backers of oil -fueled plants are using this fact as a sales point. One gas engineer has a quick rule -of -thumb for total gas energy. "If natural gas is under 60 cents/ Mef, on an interruptible basis, with no more than 30 days of interrup- tion, and if the structure exceeds 50,000 sq f , then the total -energy concept ought to be explored fur- ther." The gas industry has a price edge over the fuel -oil industry in many areas of the country which will help it keep ahead in the race for posi- tion in total energy. Gas people also claim an advantage in many other areas where their fuel is less com- petitive on a price basis. They con- tend there will be less maintenance expense and longer life on gas en- gines than diesel engines because a less corrosive fuel is used. Among gas installations, the early favorite has been with a gas -oper- ated reciprocating engine. Turbines were rated less efficient producers of shaft power and too large and expensive for most installations. But turbines are catching up fast with introduction of smaller equip- ment designed for stationary appli- cations. With recapture and use of exhaust heat an important consider- ation in the economics of total en- ergy —the turbine becomes one of the most efficient converters of en- ergy available. Gas -turbine total - energy systems can have overall ef- ficiencies of from 65 to 859o. A discount store in Massachusetts shows annual savings of $18,470 on its utility bills from a $150,000 in- vestment in a total -energy system. The oil story. American Oil has taken the lead in pushing total energy among the oil companies. American experts claim total en- ergy is feasible today for establish- ments whose electrical consumption ranges from 40 kw (a large service station) to 5,000 kw. This range would cover about 20% of the na- tion's commercial and industrial AMERICAN Meter Coss two Solar recuperative turbines (260 hp) are the first to be used with recuperators for operational on -site generating plant. consumers and could result in a jump in sales of diesel oil by at least 2.5 billion gal/year. The lure of such a market has prompted American to install a sys- tem at its own facilities and to carry out technical and economic studies to sell oil -fueled total energy. American will have all five of its Illinois Tollway service station lo- cations powered and heated by total -energy systems by next year. Its new Chicago auto -service center will have a diesel -powered system, and the Detroit regional office build- ing may be converted to such a system later this year. The company supplies fuel oil and lubricants for several total - energy systems, including two Illi- nois schools, a soft-drink bottling plant, and the pioneer diesel total - energy system at Stateline Motel facilities near Wendover, Nev., in operation since 1947. It is assisting in feasibility studies at many other commercial and industrial establish- ments. A well -publicized installation of oil total energy is the Bergan High School, Peoria, Ill, It is one of five total -energy schools operated by the Brothers of Christian Schools. Six more ate planned. The Bergan school is showing fuel savings of $12,000/year from the $65,000 extra cost of the system. At American Oil's Lake Forest Oasis service station, the company shows annual savings of $4,190 on its $27,300 investment in total -en- ergy equipment. This is a gross rate of return of 15.3% and a payout before taxes of 6.5 years. American Oil cites the case of a Minnesota engine distributor who invested $6,900 to convert to total energy and realized annual savings of $2,690 for a 2.6-year payout. American Oil contends its studies show that diesel systems definitely have a plate in the total -energy market. But substantial pioneering effort will be requited by engine dealers, manufacturers, and fuel suppliers to approach the potential. 52 THE OIL AND OAS JOURNAL • APRIL 26, 1965 PACKER FOR HIGH TEMPERATURE SERVICE Steam injection wells, fire flood wells and wells with high bottom hole temperature need a special kind of packer. Brown Oil Tools has designed a packer specifically for such wells. Designated the "All -Right" Packer because of right hand setting and release, this packer has the advantages of temperature resistant packing, provision for tubing elongation and contraction, protection against unseating or leakage, and positive setting and release. The packing element continues to seal indefinitely at temperatures well above 600°F and it does not vulcanize to metal. Double `tapered slips are wedged against the casing by upper andlower cones so neither tubing tension nor compression can dislodge the packer or cause it to leak. Allowance for anticipated tubing elongation and contraction due to temperature changes may be provided by additional length of the packer sliding mandrel. Right hand tubing rotation sets the packer when the sliding mandrel is lowered to engage a clutch at the top of the packer. The packer is released by right hand tubing rota- tion when the sliding mandrel is raised to engage a clutch at the bottom of the packer. "All -Right" Packers are available in 51/2" through 133/B" sizes. BROWN BROWN OIL TOOLS, INC. 8490 KATY ROAD' T. 0, BOX 19236, HoustowiTexas 77024 THE OIL AND OAS JOURNAL • APRIL 26, 1965 53 Texaco's star continues to rise Both operating and financial positions increase during first quarter and Ram - bin discloses several new projects at annual meeting in New Orleans, TEXACO Inc, is off to the best year in company history, and record first-quarter profits reflect the in- creased tempo of company activi- ties. Chairman J. Howard Rambin, Jr., told the annual stockholders meet- ing in New Orleans last week that Texaco is making significant dis- coveries of new reserves, good gains in sales of gas and refined product, and expanding its plant facilities in this country and abroad. Much of this activity is aimed for future growth, Rambin said, but at the same time the company is reap- ing the payoff from sizable invest- ments made in recent years. First-quarter p r o f 1 t s increased 11.1% to $162.9 million compared to $146.6 million in the same period a year ago. This was equivalent to $1.20 a share against $1.08 a share for the quarter in 1964. The company's gross production in the first 3 months rose 5.117o, refinery runs were up 8.8%, and product sales up 13.21/b. The increased earnings came en- tirely from operations which more than offset a decline in dividends from affiliated companies. These dividends totaled $47.5 million be- fore income taxes this year com- pared with $54.6 million last year. Texaco assets during January topped $5 billion for the first time. Production. Gross output of crude and natural-gas liquids by Texaco edged to nearly 2,000,000 b/d early this year, a level which is 10% above the average gross out- put for the year 1964. The good production gains came in Louisiana, West Texas, and Cali- fornia. Rambin pointed out two notable production achievements on property acquired from TXL Oil Corp. in West Texas and Superior Oil Co. in Venezuela. From 1962 through 1964, Texaco drilled 375 wells on the 2,000,000 West Texas acres acquired from TXL and 331 of the wells were completed as oil or gas producers. This is a success ratio of 88,2% and resulted in an increase of production on the property of near- ly 50%. In addition, substantial new re- serves have been added by wildcat and extension wells, including deep- er drilling. Rambin declared a very aggressive exploration and develop- ment drilling program will be con- tinued on this valuable property. The company also is going all out to develop prolific properties in Lake Maracaibo acquired from Superior last year. Production cur- rently is running more than 90,000 b/d there. Exploration. Texaco also is writ- ing a good exploration record this year in many sections of the world. Significant new reserves have been added in Garden Island Bay field in Plaqueinines Parish and in Bate- man field in St. Mary Parish, La. A good gas discovery has been made in Anderson County, East Texas, and another is reported in offshore Texas convenient to the Port Arthur refinery. In the offshore Louisiana area, Texaco has validated 12 of the 33 federal leases acquired in 1962. Production is being developed in Eugene Island Block 275 and West Delta Blocks 89 and 90. Texaco exploration activity abroad is showing these results: Canada—Nipisi oil field close to existing pipelines in north central Alberta has been proved. Three promising gas discoveries have been made in Alberta and British Colum- bia. Amazon Basin —Surface and aerial exploration is beginning on large, jointly held concession in Ecuador. This is adjacent to Orito field discovery in the Putumayo area of southern Colombia. Eastern Hemisphere—Toiatly owned affiliates are exploring in Saudi Arabia, Indonesia, Iran, Bah- rain, and Libya to increase proved reserves. Production in Libya should reach 50,000 b/d by midyear as additional reservoirs are brought into production and a pipeline out- let to the Mediterranean obtained. A Texaco subsidiary has been ex- ploring 1,400,000 acres of United Kingdom's North Sea waters since last September. Texaco also has an interest in two small blocks in West German offshore waters and plans the first test well this summer in Norway's Spitsbergen islands. Five oil wells also have been com- pleted in Spain's first oil field with production scheduled later in the year. In Nigeria, where a Texaco wild- cat in 1963 provided first proof of offshore oil deposits, another en- couraging discovery took place in March and a second well drilled on the same structure found produc- tion at a deeper level as well. Texaco is testing further the com- mercial possibilities of two oil and gas discoveries in Western Austra- lia. New plants. Texaco started con- struction on a new refinery in Lou- isiana during the quarter and plans a major expansion of its Los An- geles refinery. The Louisiana refinery will be the second largest of Texaco's do- mestic refineries and will go on stream in the summer of 1966. Ndw facilities planned at Los Angeles i n c l u d e it hydrocracker, gas - oil hydrotreater, catalytic re- former, residual oil processing, and hydrogen generation. These will maximize the yield of top-quality gasolines and virtually eliminate production oLJcss profitable residual fuel oil. '71t , units will increase throughput at the refinery by 25% to 60,000 b/d. A new plant has gone on stream at Escuintla, Guatemala, and site has been bought at Guayanilla, Puerto Rico, for a 25,000-b/d te- finery. The Trinidad refinery has been expanded to rated capacity of 300,000 if/tl. Cheniieals.`Texaco is making a 54 THE OIL AND OAS JOURNAL . APRIL 26, 1965 major stride to expand its world WATCHING WASHINGTON position in petrochemicals, especi- ally in Western Europe. The company's first wholly owned With Gene T. Kinney plant in Europe is now being built a at Ghent, Belgium. It will make petrochemical additives for lubes, greases, gasolines, and heating oils; will compound auto and industrial greases; and blend lube oils. Rambin revealed to stockholders Columbia law professor may replace Swidler that the company will build a Euro- INDUSTRY and consumer groups are building quite a book, some pean research center at Ghent to of it factual, on the man who is considered most likely to succeed carry out basic research of prime Joseph C. Swidler as chairman of the Federal Power Commission. interest to its worldwide operations. Swidler, it is understood, has already had the word from the Rambin also announced that White House that his talents might be more constructively used else - large petrochemical projects are be- where when his term expires June 22. Speculation for his successor ing planned for the U.S. and foreign centers on William Kenneth Jones, 34, Columbia University law profes- areas. These include cyclohexane sor whose specialty is regulation. Prof. Jones' credentials also include and aromatics plants at the Port service as law clerk to Supreme Court Justice Tom C. Clark. Arthur and Trinidad refineries and A political independent, he comes through in print like a tactful a new facility at Trinidad for mak- version of Swidler and his consumer disciple on FPC, David S. Black. ing normal paraffins. He shares with them a skepticism that competition in producer sales will work well enough to give the consumers a fair break. Pipe 1 i n i n g. Rambin reported Publicity about Jones, some of it wildly incredible, is causing a several projects to keep Texaco's run on the Columbia Law Review for 1961. In this volume he reviewed pipeline systems abreast of company a book on monopoly and competition in field markets for natural gas. expansions. Swidler is represented as being definitely out, and Jones as being Texaco plans a 40-mile 18-in. definitely in. But remember the Charles R. Ross episode? He was .crude line from Houma to its new first out, then back in again, before being reappointed for sure. And Louisiana refinery and a 50-mile Jones was supposed to be his successor at one time. 16-in. products line from the plant All this should be viewed against the background of the Preident's to the Colonial Pipeline system. It idiosyncracies on pre -announcement publicity. He recently reversed a has acquired 100% of the Evange- high-level decision on those grounds. But he appears to have a solution line products system and will con- to the "leak" problem which might be used to surprise all on FPC. vert it to gas transmission to serve Last week he disclosed an appointment to the public before letting the the Lake Charles and Baton Rouge appointee in on it. areas. The Olympic Pipeline, one-third FPC insists on take -or -pay changes opposed by producers owned by Texaco, will be com- pleted this fall in the Pacific North- PRODUCERS are challenging another bid by the Federal Power west. It will carry products to Seattle Commission to rewrite the Natural Gas Act via its rule -making power. and Portland later this year. Four years after its first try, FPC came back with proposed rules Work will begin this year on a which would ease take -or -pay obligations of pipelines at the expense of products line across the Puerto producers. Several producers and the IPAA last week demanded their Rican mountains from Guayanilla rights to a hearing. A court battle is in prospect if FPC goes ahead Bay to San Juan. Texaco holds a without one. 40% interest in the project. FPC would like to condition certificates to permit pipelines to take at least 125% of the daily contract quantity in any one day without Outlook. Even gasoline pricing having to take more than 75%. FPC also wants to give pipelines 5 has taken a turn for the better. years to take gas paid for but not taken at the time of payment. Pro- Rambin said that distressed price ducers dispute commission authority to dictate these contract terms. levels in various parts of the U.S. and Western Europe lowered poten- OEP extends resid study, asks decontrol effects appraisal tial realization in the first quarter despite growing marketing volumes. THE OFFICE of Emergency Planning is focusing on key questions Texaco took strong action in mid- in reviewing the national security basis for controls on resid imports. March to restore its gasoline prices, This is revealed in letters received by several companies. with encouraging results. OEP wants their expert views on these points: If controls are to Rambin reported that long-term be eased as Interior favors, what effect this will have on (1) the price of trends point to continued growth in resid and crude oil, (2) the geographical source of imported resid, and U.S. demand at the rate of 2 to (3) domestic production of resid? 3% a year through the next 5 years. I OEP extended the original deadline for receiving initial statements Growth rate in other free - world from May 7 to June 7, by which time it wants answers to these ques- areas will be 8 to 10% a year. tions. Rebuttal is now due by July 7. THE OIL AND OAS JOURNAL • APRIL 26, 1965 S5 Automation wins bigger role in oil pipelines Crude Crude GatherinTrunk R Products Tend Number of pump stations .. 5,620 1,045 568 7,233 Horsepower installed (thousands) 151 1,379 857 2,387 Remotely -controlled stations 56 418 313 787 Remotely -controlled hp (thousands) 12 726 478 1,216 Completely -unattended stations 32 247 177 456 partially- attended stations . 44 304 134 482 Automatically -operated stations 1,847 192 60 2,099 Remote functions, entire system 97 4,005 2,520 6,622 Max. remote functions, one station 9 82 115 Locations telemetering information . 34 503 345 882 Max, variables telemetered, one station 3 42 19 .... Source. Report of Group SA8, Automation and Instrumentation, Central Committee on Pipeline Transportation, American Petroleum Institute. Pipelines swing heavily to automation Over 50% of horsepower on crude -trunk and products lines are now remotely controlled. AN study shows 26% of stations were unattended at end of'64. AUTOMATION is moving ahead swiftly on U.S. crude -oil and prod- ucts pipelines, with 50% of their horsepower now under remote con- trol. Here are some indications of the rate of progress in the past 2 years: • Stations under remote control rose from 692 in 1962 to 788 in 1964, an increase of 14%. (Total stations increased from 6,766 in 1962 to 7,233 in 1964, an increase of 7%), • Horsepower under remote con- trol jumped from 924,000 to 1,216,- 000, a gain of 3290 in 2 years. This indicates that not only are more sta- tions being placed under remote control, but those being so con- trolled are large installations. • At the end of 1964, 40% of all crude -trunk stations and 55% of all products stations were subject to some degree of remote control. This compares with percentages 2 years earlier of 32 and 459o, Trend to automation. These com- parative figures were taken from the 1962 and 1964 reports of the Automation and Instrumentation group of API's Central Committee on Pipeline Transportation. They are based on reports from 66 of 69 companies queried. De- tails of the 1964 report were given by Fred S. Jones — Group 5A8 chairman, and chief engineer, Platte Pipe Line Co. —at the 1965 API Pipeline Conference. At the end of 1964, reporting companies had 2,387,000 hp, of which 1,216,000 hp was under re- mote control. Thus, just a shade more than 50% was under remote control. The big reason for the increase was the fact that almost all stations on new pipelines and most new sta- tions added to existing lines have some degree of remotq-control fa- cilities designed into them. It appears, Jones said, that almost every company using remote con- trol has added a lot of control func- tions to existing systems in the last 2 years. The industry -wide "push- button" count stood at 6,622 at the end of 1964. Half that total is used by the nine largest users. Automatically operated or flow - actuated, trunk -line pump stations are more common than ever. The percentage of these stations rose from 8.7% at the end of 1962 to 15.6% at the end of 1964. Other advances. Unattended op- eration is also on the increase. Two years ago slightly less than 200,'o of the stations were unattended. At the end of 1964, it was 2617o. Parti- ally attended stations, those with one or two operators, rose 5%. Reports from individual compa- nies s h o w e d that one fourth re- garded themselves as more than 70% automated and more than half as more than 5017o automated. These percentages can't be ap- plied to the industry as a whole be- cause of its varying character. For example, only 105'o of crude -gath- ering line stations are remotely con- trolled. Interface detection is generally regarded as the biggest obstacle to full pipeline automation. The com- panies reported 701 installations with 10 different kinds of detectors. The most popular were: density, 514; dielectric constant, 72; color or opacity, 34; vapor pressure, 28; flash point, 21, and radio -activity (tracer), 16. The committee expressed the be- lief that instruments in general use are better than they are reputed to be. It found that some companies use two or more instruments, each sensitive to a different fluid prop- erty. These are combined in logic circuitry to establish positive identi- fication. It said this scheme seems to be emerging as the best way to detect the difference between two liquids with otherwise similar chat- acteristics. 56 THE OIL AND GAS JOURNAL 6 APRIL 26, 1965 Which buys a year's gasoline brand loyalty? It's the dime! That's right ... for only 100 a year per customer . less than a penny a month ... you can add the business -building effectiveness of "Ethyl" MPA to both regular and premium gasolines. Consider the experience of just two major market- ers using MPA: One reports a total premium gain of 24% ... over the past three years ... since adding MPA.. The other, a jump of 13% ... in combined regular and premium gallonage ... in just three months! MPA's performance keeps customers coming back. It cleans carburetors and keeps them clean —saves costly, annoying clean-ups and adjustments. Also, it prevents stalling due to carburetor icing. These are advantages you can promote to build brand loyalty for your product. Your Ethyl Repre- sentative will be glad to give you the full traffic -build- ing story. Call him today. le�� AVENUE ETHYL J� T= �JO LUJi O f1>.i TI01V 1 NOEW W POARK, N.Y. 10017 CHICAGO • TULSA • HOUSTON • LOS ANGELES • ETHYL CORPORATION OF CANADA LIMITED, TORONTO THE OIL AND GAS JOURNAL • APRIL 26, 1965 57 Antitrust target: concentration per se Orrick tells Senate subcommittee legislation may be needed to carry out Government's attack on bigness. Preserving competition is Justice aim. PREVENTION of further eco- nomic concentration in itself may become a goal of future antitrust enforcement by the federal Gov- ernment. This will mean that mergers which in the past have been allowed because they didn't involve direct competitors, for instance, won't necessarily escape hereafter. The antitrust division of the De- partment of Justice is becoming in- creasingly concerned with concen- tration per se and the possible effects in reducing competition. Mergers of unrelated firms are a target along with the more tradi- tional types. Thus, with the backing of the courts and on its own initiative, jus- tice will apply relatively new and more rigid tests in evaluating mergers. • Will the proposed merger fore- close potential competition? • Does it involve reciprocity? • Will it give the merged unit special competitive advantages by reason of its size and financial sources? These questions could have come right out of the suit to block the acquisition of Potash Co. of Amer- ica by Standard Oil Co. (N.J.). They will be asked routinely in checking out mergers which con- tribute to concentration —meaning any substantial deal. William H. Or- rick, Jr., the Government's anti- trust chief, said last week. In addition, he thinks the Gov- ernment may need legislation in ad- dition to antitrust laws to curb big- ness. Orrick has one suggestion stockholders may like better than management. It is for a law to in- crease a corporation's tax incentive to pay out more earnings in divi- dends rather than retain such a large portion for acquisitions and internal expansion. Administration position. Orrick's views were expressed in a delayed appearance before the Senate Sub- committee on Antitrust and Monop- oly which is probing economic con- centration. His statement last week presum- ably had the necessary administra- tion clearance that was lacking when he was first scheduled to test- ify. The antitrust division head had submitted a draft of his testimony a few weeks ago when his appearance was suddenly canceled. Refinery Justice built, In discuss- ing the desirability of blocking mergers that would prevent poten- tial competition, Orrick cited the proposed $329 million Humble - Tidewater deal on the West Coast. One of his basic arguments against any kind of merger is that it forever forecloses competition be- tween the firms involved. At the same time, he contends, it retards national economic growth. The rea- son is that expansion through merg- er takes the place of building new facilities. Thus, he said, elimination of po- tential competition was an argument used against the acquisition of Tide- water's western refining -marketing operations by Humble. Justice's action, which led to abandonment of the deal, was large- ly based on its belief that Humble would then build its own refinery in California, Orrick explained. He took obvious satisfaction in noting that Humble has announced its study of such a project on a site acquired in Monterey County in the San Francisco area. Concentration evils. Orrick took issue indirectly with earlier wit- nesses who told the subcommittee it was not at all clear that business concentration was growing. The Clayton Act is proving ef- fective in dealing with one aspect of the problem with which Congress was concerned —concentration in particular markets and industries, Orrick said. But, he observed, the law is just now developing, with Justice play- ing an active role, with respect to mergers which increase concentra- tion generally. Just because Congress has never defined the degree of economic con- centration that it considers intoler- able does not, in Orrick's view, re- move this f a c t o r from antitrust enforcement to block mergers. One of the reasons, he says, is "the tendency of large companies operating in a concentrated industry to avoid competition." The oil in- dustry, for one, isn't competitive enough to suit him. Other factors to be considered by Justice in evaluating mergers, be- sides potential competition, reci- procity, and special advantage, are these: • Will the merger increase bar- riers to entry into a market? • Will it increase the competitive disadvantage of a single - product firm? • Will it require withdrawal of the acquired or merged firm from markets it had previously served? • Will it destroy or limit the ability of distributors to compete for the business of distributing the acquired or merged company's products? New tax legislation? Orrick be- lieves the goal of halting the trend toward concentrating might also be aided by tax -law changes. "For example," he explained, "Congress might consider whether the impact of the tax laws on the disposition of retained earnings un- duly encourages mergers on the part of cash -rich companies by discour- aging distribution of those earnings to shareholders." At the same time, he wonders whether it is a good idea for such earnings to be spent by management rather than by stockholders as con- sumers and investors. It might be worth Congress' time, he suggests, to see if this doesn't "distort the processes by which a free -enterprise economy is supposed to make the basic decisions con- cerning allocation of our resources." Be THE OIL AND OAS JOURNAL • APRIL 26, 1965 Industry briefs Socal plans big ammonia plant Standard Oil Co. of California will build the world's largest anhydrous ammonia plant at the Pas- cagoula, Miss., refinery of its subsidiary, Standard Oil Co. (Kentucky). Plant will cost $22 million and have capacity of 1,500 tons/day. Feed will be natural gas delivered to the 100,000-bbl refinery through Chandeleur pipeline. This line connects the refinery with company -owned production in the Gulf of Mexico. Ground will be broken for the ammonia plant this summer, with completion scheduled for early 1967. Plant's output will be marketed by California Chemical Co., another subsidiary. In other petrochem news: Du Pont plans a 1,000- ton/day ammonia plant at its Beaumont, Tex., chem- icals and explosives works. Construction of new facility will start this summer with completion expected next summer ... Lone Star Gas Co. has made a tentative deal to buy Deere Chemical Co. for $20 million. Deere has fertilizer plants at Tulsa and Pryor, Okla. Lone Star recently formed NIPAK, Inc., to take over its fertilizer marketing and existing production facilities (OGJ, Mar. 1, p. 42). Court upholds FTC price-fixing ruling Atlantic Refining Co.'s plan for consigning gaso- line to its dealers has been ruled a price-fixing mechan- ism by the Sixth Circuit Court of Appeals in Cincinnati. The decision upheld an earlier ruling on the issue by the Federal Trade Commission. The court decision was based on the U.S. Supreme Court's ruling in Simpson vs. Union Oil which held that consignment plans used to establish prices are illegal. Atlantic maintained its plan differed from that of Union Oil because it did not apply coercion on dealers and it used the plan only temporarily in times of price wars. The court, however, held there was no substantial difference. Transwestern gets nod on gas sale bid Transwestern Pipeline Co. has apparently defeated Colorado Interstate Gas Co: s bid to supply gas to Cities Service Gas Co. A FPC examiner last week filed an initial decision authorizing Transwestern to sell up to 100 MMcfd to Cities. The decision is subject to commission review. This represents partial approval of a joint proposal by Transwestern and Arkansas Louisiana Gas to sup- ply Cities with up to 200 MMcfd. Examiner Max L. Kane rejected Colorado Interstate's application to sup- ply the entire volume. Both Transwestern and Arkla had proposed to deliver up to 50 MMcfd to Cities in the first year of pperation and up to 100 MMcfd beginning the second THE OIL AND OAS JOURNAL • APRIL 26, 1965 year. But the examiner ruled Arkla had not proved the existence of sufficient reserves. To offset the loss of Arkla's volume, the examiner ordered Transwestern to begin delivering the full 100 MMcfd in the first year of operation. Cities' needs the second year, the examiner said, could be met by Arkla if it is able to show sufficient gas supply. Texas to cut back May allowables Texas will slice off another big hunk of its state- wide allowables in May as it continues to try to shore up a slipping market for Texas crude in some parts of the state. The market -demand factor was cut last week to 27.2%, the lowest since August 1964. This is down from the present 28.5% and represents a cut in allow- ables of 74,565 b/d, or an estimated drop of 66,000 b/d in actual production. A number of crude buyers and independent pro- ducers urged the state to make the reduction. Several pointed out conditions in North Texas, West Central Texas, and parts of the Permian basin are seriously threatening purchaser proration. All companies report- ing to the Railroad Commission said their crude in- ventories are 7,224,100 bbl higher than desired. Crude stocks in inventory as of Apr. 1 total 177,197,900 bbl. Drilling firm to leave Mid -Continent Arrow Drilling Co., Tulsa, will leave the Mid - Continent and shift its operations to Mississippi and Canada, where it has been active for several years. H. H. Ward, Jr., company president, said the Tulsa office would be shut down by late summer. He said his new offices would be in Calgary. Location of new headquarters has not been decided. Arrow, a subsidiary of Westates Petroleum Co. of Los Angeles, has had headquarters in Tulsa for over 30 years. The company has 28 rigs, six of them in the Mid - Continent. These six will be auctioned, Ward says. Another company note: Pan American is consider- ing purchasing Magna Oil Corp., Dallas, in a reported $15.7 million deal. Senator Long joins imports fight Senate majority whip Russell B. Long (D.-La.) has joined independent producers' fight to reduce oil im- ports to aid the nation's balance of payments. In a speech on the Senate floor last week, Long asked the administration to cut imports by 250,000 b/d and return half of the military's 200,000 b/d of foreign light -product purchases to the U.S. This, he estimated, would cut the dollar drain by $375 million without hurting growth in foreign oil production, mainly by U.S. international companies. 59 This 1964 Good News Carries Over into 1965: oll Mild Alone ONE OF THE ORFSSEH INDUSTRIES During 1964, the mud cost on wells using Magcobar products averaged 18 cents a foot less than the mud cost for all wells drilled with other mud companies' products,* The saving held despite the fact that Magcobar mud materials were used to drill more below-15,000-foot wells than any other company's products. When you multiply this 18 cents by the footage your company drilled with some other company's products and engineering, you get savings that might have been. But the same fine service that might have produced those savings in 1964 will hold in 1965, too. Magcobar can help you reduce mud costs, even while concentrating on cutting the Big 90 and helping you make a good well. Magcobar wants your business. Even more we want to merit your business.- That's why we work harder and smarter. Magcobar, Drilling 00ar Mud Department, A 0. ,Box .6504, - - - Houston, Texas 77005 oP.s.s *A MAGCOBAR REPRESENTATIVE CAN EXPLAIN THE ARITHMETIC BEHIND THIS STATEMENT TO YOU. THE OIL AND GAS JOURNAL . APRI4,'26, 7966 .t*,"'" ^ _""�'; 61 How supply company sales increased Companies with sales over $50 mullion Companies with sales under $50 million 1964 1963* r+o change 1964 1963� g, ;'o change Tubular products: Oil country goods ......... $213,152 $183,404 16.22 $ 20,159 $ 18,190 10.82 Line pipe ..... ... 31,068 28,841 7.72 7,332 6,912 35.01 All other pipe ,...... 4,258 3,985 6.85 90 47 91.49 Detail not reported ., 41,083 39,444 4.16 Total tubular ..... 248,478 216,230 14.91 70,664 64,593 9.40 Nontubular products; Rock bits .. 40,298 39,731 1.43 13,251 12,346 7.33 Pumping units and parts ..... 20,293 16,058 26.37 1,449 1,427 1.54 Sucker rods ......... ....... 16,730 16,229 3.09 2,377 2,023 17.50 Subsurface pumps and parts 26,153 24,958 4.79 1,367 1,372 -0.36 Drilling equipment . , . .... , 61,221 50,459 21.33 5,032 4,708 6.88 Wire rope . ..... . ...... 6,505 5,559 17.02 1,252 1,225 2.20 Misc, valves and fittings 33,456 35,565 •-5.93 4,875 5,233 -6.84 Wellhead equipment .... 10,086 11,375 -11.33 1,064 1,339 -20.54 Prime movers .. ....... 17,652 14,312 23.34 5,262 2,235 135.43 Used equipment .. .. .. 12,688 10,820 17.26 2,564 1,986 29.10 Misc. nontubular 55,529 51,110 8.65 594 548 8.39 Detail not reported 13,649 12,057 13.20 Detail not reported ......... 37,917 32,912 15.21 Total nontubular ......... 300,611 276,176 8,85 90,653 79,411 14.16 Detail not reported 26,303 20,898 25.86 TOTAL NET SALES ...... $549,089 $492,406 11.51 $187,620 $164,902 13.78 *1964 reports include revised amount for 1963. Oil equipment sales show rise in 1964 Survey of 15 companies shows sales rose 12% over 1963 and profits jumped 215% before income taxes. Biggest gain in dollar volume was tubular goods. How company profits looked in 1964 Companies with Companies with sales over sales under $50 million $50 million Combined Amount So Amount o Amount V0 ($000) clmage ($000) change ($000) change Gross profit 61,598 11.98 21,051, 9.27 82,649 11.28 Operating expenses: Salaries and wages 31,266 -1.15 8,658 14.78 39,924 1.92 Employee benefits 5,145 13.28 751 6.37 5,896 12.35 Automobile, travel, entertainment 6,710 2.39 2,078 11.18 8,788 4.35 All other expenses 13,059 2.92 5,763 -0.95 18,822 1.71 Total operating exp. 56,180 7.38 17,250 8.25 73,430 2.92 Profit, before federal income taxes . 5,418 (") 3,801 14.14 9,219 215.18 *1963 showed $405,000 loss. SUPPLIERS of oil country equipment had a much better year in 1964 than they did the year be- fore. Their gross sales rose 12.08%, and gross profits were up 11.28%. More significant for the sup- pliers, profits before federal income taxes soared 215°lo, up from $2.9 to $9.2 million for the 15 compa- nies participating is the annual sur- vey of the Petroleum Equipment Suppliers Association. The big sales gainer in dollar volume was oil country tubular goods (tubing, casing, drill pipe), which rose 15.73% during the year. Sales went from $202 million in 1963 to $233 million in 1964. Drilling equipment also had a sharp rise of 20.1%, up from $55 62 THE OIL AND OAS JOURNAL - APRIL 26, 1965 million in 1963 to $66 million. Overall, the sales of the 15 re- porting companies rose from $657 million in 1963 to $737 million last year, or 12.08%. The statistics were prepared by Price Waterhouse & Co. for PESA. They were based on data submitted by 15 of the 27 member companies and cover sales in the U.S. and Canada. All prosper. Both the larger and smaller companies shared in the sales growth. The six larger firms (over $50 million in average annual sales in the 1957 base year) had an 11.51 % increase, up from $492 million to $549 million. Gross profits were up 9.279o, from $19 million to $21 million. The rock -bit business, one of the larger supply items, showed a slight increase but well below the aver- age. It rose 2.83%, from $52 mil- lion to $53.5 million. Big percentage gains were report- ed for pumping units and parts (up 24.35%) and prime movers (up 34.48 %). The only equipment categories which suffered a drop in sales were wellhead equipment and miscellan- eous valves and fittings. Wellhead equipment went from $12.7 million to $11.2 million, down 12.3%. Miscellaneous valves and fittings went from $40.8 million to $38.3 million, down 6.05%. Contributing to the huge increase in profits was the fact that operating expenses rose only slightly while gross sales were up sharply. Oper- ations went up from $71 million to $73 million, only 2.929o'. The num- ber of field employees remained vir- tually the same, going from 5,649 to 5,659, and salaries and wages gained only 1.92%, up from $39.2 million to $39.9 million. The large percentage increase of 215% in profit from operations be- fore federal income taxes was at- tributed almost entirely to the six larger companies. In 1963 these companies recorded a loss of $405,- 000, while in 1964 they had a $5.4 million profit. The smaller companies had 1963 profits of $3.3 million, which rose to $3.8 million last year, a gain of 14.14%. The state leader in net equipment sales was Texas with $204,620,000. Following were Louisiana, Okla- homa, California, and Kansas. AIME chief glum about oil In three decades U.S. will be using shale oil and gas from coal to offset declining production, Frick says. DECLINING OIL and gas re- serve ratios will force the U.S. to turn to solid fossil fuels —oil shale and coal —to meet industrial de- mands. Thomas C. Frick, Dallas, nation- al president of the American Insti- tue of Mining, Metallurgical, and Petroleum Engineers, said last week that "within two decades" shale oil will be moving to many refineries of the nation. And "within two or three dec- ades" the nation will need manu- factured gas from coal to supple- ment declining supplies of natural gas. Frick, manager of the natural- gas division of Atlantic Refining Co., told the Society of Petroleum Engineers in Houston: "The story of fossil fuels in the U.S. during the next few decades is: Crude oil and natural gas we do not have; coal and oil shale we have in abun- dance." Citing API statistics on declining crude reserves, Frick said that de- spite the new reserves which will be, found, the nation will fall far short of supplying demand "within a decade or so." "Rather than be totally depen- dent on foreign oil, the petroleum industry must look to the oil shales to supplement its reserves of liquid fuels," he said. "Within two dec- ades; pipelines from Colorado and Utah will be carrying shale oil to many of the refineries of our na- tion." Cost studies indicate shale oil is competitive with crude at present prices, Frick said, and "at very little additional cost over present crude - oil prices our liquid -fuel require- ments can be supplied for another 50 to 100 years with oil recovered from shale." As for natural gas, Frick believes the U.S. is near --or at —its peak of deliverability. While trillions of cubic feet of gas will yet be dis- covered, the nation cannot expect to halt the decline in the ratio of reserves to production. "Additional imports of natural gas from Canada will be of much help," he said, "But, to meet the demand in the U.S. for gaseous fuel, we will again return to manufactur- ing gas from coal within two or three decades. "The U.S. is blessed with over one-third of the world's supply of good -grade coal. Within two dec- ades of so, gas pipelines and gas distributors will be joining up with coal producers to construct large gas generating plants. This will hap- pen even though we import much gas by pipeline and in liquid form. Coal reserves should last the U.S. for hundreds of years." Phillips plans helium -recovery plant PHILLIPS Petroleum Co. will build a 400-Mcfd helium -recovery plant in southwestern Kansas and sell the output to civilian markets. The project will be carried out through Alamo Chemical Co., a wholly -owned Phillips subsidiary which will build a cryogenics plant next to a Colorado Interstate Gas Co. compressor station in Morton County, Kan. CIG asked Federal Power Com- mission approval last week to de- liver gas from Greenwood and Sparks area fields to Alamo for processing. CIG will deliver an average of 71 MMcfd to the plant, but will sell only a b o u t 7.6 MMcfd, the amount of shrinkage from helium and hydrocarbons extraction, plus the gas used in the plant. Alamo will pay $2/Mcf for the helium and 21 cents/Mcf for the overall gas volume. The plant will have processing capacity of 76 MMcfd and will re- cover 94 to 95% of the helium, which runs from 0.5 to 0.69o' of the gas stream. Alamo proposes to complete the helium facilities by Oct. 1, 1966. THE OIL AND GAS JOURNAL • APRIL 26, 1965 63 Oil imports: They'll stay Interior official says Dist. 5 will depend less on crude imports while U.S. resid production will soon die out, THE OIL -IMPORT program has become a fixture that will remain a part of the Government, J. Cor- dell Moore, oil imports administra- tor, said last week. "My recommendation is that those who blame imports for their troubles would be well advised to look elsewhere for the source of their difficulties," the Interior De- partment official declared. He avoided any specific forecast for the program of mandatory im- ports controls in Dist. 1-4 (East of the Rockies) except for resid. But be did hold out these prospects for other aspects of the program: Steadily rising imports of residual fuel oil — either with or without quotas, because domestic output of resid may virtually end in 7 or 8 years. A reversal of the trend toward in- creased dependence on imports of crude oil in Dist. 5, because of ex- panding local supplies from several sources. Some interpreted Moore's re- marks to mean there will be no changes in controls affecting crude, unfinished oil, and finished products other than residual fuel in the next allocation period beginning July 1. Moore did say Interior will re- view the entire imports system, give close attention to the many pro- posals outlined in the Mar. 10-12 hearings. Basic program. Speaking to the northern Oklahoma section of the Society of Petroleum Engineers in Ponca City, Moore said the hear- ings convinced him imports controls are here to stay for the foreseeable future. "The industry appears to be vir- tually unanimous in its conclusions that the oil -import program basic- ally has accomplished its principal objectives —that the oil -import pro- gram is good for the industry and good for the country," he added. Acknowledging some pressures for change, be said it would be hard to find any responsible segment of the industry which would recom- mend that the program be abol- ished. At the same time, the tone of his Ponca City address did not point to any major changes soon for quo- tas on nonresidual imports. For one thing, he rejected out -of - hand criticism that the 433,000-b/d gain in imports since 1959, the first year of mandatory controls, is ex- cessive. Two-thirds of this total, he point- ed out, or 314,000 b/d, represented crude imports into the West Coast area and residual fuel oil on the cast coast —both supply deficits. In Dist. 1-4, the 5-year increase for nonresidual imports was 95,000 b/d. During this period, lie said, domestic output of liquid hydrocar- bons for these districts increased by 887,000 b/d. Thus, he concluded, it would be hard to blame troubles of producers on excessive imports. He also repeated Interior support for two aspects of the program under attack in last month's hear - J. Cordell Moore ... program is good for the industry ings. He defended both on grounds they contribute to national security, the basis for restricting imports under the Trade Expansion Act. The first is giving quotas to in- land refiners who swap them at a profit to coastal refiners who can run the crude. This aids in main- taining dispersion of refinery capac- ity, Moore said. The second is the sliding scale giving preference to smaller refiners who get a larger percentage of their inputs in import quotas. This helps to keep them in a sound economic condition, lie said, providing the country with a refinery capacity away from principal nuclear target areas. Resid, DIsL S. The imports ad- ministrator expects East Coast con- sumers to become much more de- pendent on foreign residual fuel while the reverse will be true of oil supplies on tite West Coast. Noting that the residual yield from domestic refineries supplying Dist. 1 has fallen from 20% in 1950 to 7010 currently, he said this low -value product could well dis- appear from the domestic product barrel in 7 or 8 years. "Consequently," he added, "if re- sidual imports continue under con- trols, we shall have no alternative but to continue to adjust quotas to meet the spread between demand and domestic output." Moore made no reference to In- terior See. Udall's position that the national -security need for resid con- trols no longer exists. They may not last the rest of the allocation year, ending next Mar. 31, in the face of strong pressure against them. "As for the West Coast," Moore continued, "the outlook there is for a steady and sizable increase in do- mestic production, which is likely to diminish the need for imported oils." He cited "several trumps" held by Dist. 5: leasing of East Wilming- ton, supplies from offshore explora- tion, increased production from Alaska, significant supplies from thermal recovery by 1970, and siz- able processing gains. Moore estimated hydrocracking capacity now being installed in Cal- ifornia refineries, perhaps reaching 20% of crude runs, would reduce the need for imports by several mil- lion barrels a year. 64 THE OIL AND GAS JOURNAL • APRIL 26, 1965 INTERNATIONAL NEWS India wants oil to plug dollar drain Government, trying to convince western companies to process Soviet oil or handle Soviet products, may use low-priced crude imports as a lever. RELATIONS b e t w e e n the In- dian Government and private com- panies supplying, refining, and mar- keting oil in the country have hit a new low. The antagonists have been battling for months now —in a dis- pute initially triggered by a foreign- exchange crisis in India which has steadily worsened over the source for oil products sold in the country. Oil purchases represent one of India's largest foreign-exchange leaks. And the government has been applying increasing pressure on private companies to drastically re- vise their sources of supply of either crude or products so as to ease this drain. Key government proposals are that private refiners and market- ers use their facilities either to proc- ess crude or sell products brought in from countries willing to accept rupees in payment. There are only two such countries —the Soviet Un- ion and Romania. Private operators have resisted all such proposals. And the quarrel has become increasingly bitter. Now a new irritant promises to make matters worse. If possible. The state-owned Indian Oil Corp. has signed a supplemental agree- m e n t w i t h Sojuznefteexport, the Soviet export organization, to bring in 800,000 tons of products in 1965 and 1966, These imports would be on top of 1,500,000 tons already contracted for over the same period by the two concerns. Products would be high-speed diesel oil, ker- osine, and furnace oil —those most in demand in India. Three proposals rejected. The government now has made three separate proposals to private firms, Burmah-Shell, Esso, and Caltex— which refine and market in India. Indian authorities first attempted to persuade the companies to proc- ess Russian crude imported for rupees in their refineries. Next, the companies were asked to handle products imported from Russia and Romania on government account and paid for in rupees. The latest proposals was for the private firms to continue to import their crude and products from tra- ditional sources but to accept pay- ment in rupees. All were turned down. Alternative offered. The compa- nies, in some instances, have made counter proposals, however. Burmah-Shell has offered to give the government 6 months credit on its products imports instead of the present 3 months to help it through its foreign-exchange pinch. But it still wants payment in foreign cur- rencies. Esso reportedly has proposed the establishment of a rupee company to handle its refining and marketing operations. Caltex is not known to have made a counter proposal. More moves coming. Indian authorities have expressed "disap- pointment" over the "negative re- sponse" of the three companies. And the government reportedly has several new moves under consider- ation. New Delhi sources say the gov- ernment now is inclined strongly toward making sweeping changes in the country's marketing and dis- tribution setup for oil products. The method for accomplishing this would be to bring all such op- erations under the Indian Essential Services Act whereby marketing and distribution could be assigned exclusively to Indian Oil Corp. The government is reported to be negotiating for supplies of still more rupee -payment products, and crude in addition, from Russian and from independent operators in the Middle East and North Africa. The government, New Delhi sources say, has an offer of crude from an unnamed Middle East source at $1.40/bbl. This is about 15 cents/bbl under the price for present company crude imports. This offer may be used by the government as a lever to attempt to force private companies either to buy their crude from this supplier or to reduce their own imported - crude prices to the same level. Finally, the government's second oil price inquiry committee may soon demand that prices for im- ported products be cut further. Dis- counts offered by the private com- panies, the committee insists, aren't as large as those obtainable from other Middle East -North African sources. Plant deal shaky. Government purchases of oil from communist countries figure strongly in the present precarious situation of a projected big western -sponsored fer- tilizer -plant construction program. This is the multiplant program headed by Bechtel International by which a group of western firms would build new nitrogen -fertilizer capacity in India totaling 1,000,000 tons/year. The entire program now appears in serious jeopardy. Officially, the Indians are grumbling that the price is too high —also that the feasibility report furnished by Bechtel isn't "satisfactory." An e q u a 11 y important reason, however, is that some of the firms participating in the fertilizer con- sortium are oil companies which have been hit by India's oil pur- chases from the Soviet Union. These firms reportedly are demand- ing that India buy their crude as a source of the n a p h t h a which would be consumed by the fertilizer plants as feed stocks. Indian leftists have seized upon this "effort to force American crude oil on India" as an ideal stick for thumping the Bechtel project. THE OIL AND GAS JOURNAL . APRIL 26, 1965 65 Oil in Mexico takes a new direction New director general of Pemex says change in policy "seems to be the most appropriate course of action." Aim is to make Mexico self-sufficient. MEXICO is running out of drill- ing locations. An intense, almost frantic search for new deep oil is likely to develop. Behind all the speculation and guesses as to why Petroleos Mexi- canos (Pemex), the government oil company, has radically cut develop- ment drilling this year, this situation emerges loud and clear. In his first policy speech, Pemex's new director general, attorney Jesus Reyes Heroles, said development drilling had to be limited by the number of "available locations." Reves took over late last year as head of Pemex, a cabinet appoint- ment by President Gustavo Diaz Ordaz. Reyes spoke at the refining com- plex of Minatitlan, Veracruz, on the twenty-seventh anniversary of the expropriation of the oil industry. The 250 development wells planned for 1965 compare with 548 drilled last year and 489 in 1963. Curtailing of the drilling activity will drive a number of private con- tractors out of business because Pemex has plenty of equipment and personnel to undertake most of that reduced drilling program. Not a regulator. Even though Reyes didn't mention the drilling contractors, he went to some length to describe die harmonious climate in which private and government capital coexist in Mexico. He said Pemex's primary goal is the "national interest" and added that even though in some fields it has joined forces with private re- sources for the good of the coun- try, it "cannot slow down, stop, or speed up its plans to compensate for the expansion or reduction of private investment." "Pemex's aims," Reyes stated, "prevent it from acting as a safety valve or as an automatic regulator for private investment" It has become obvious, in the absence of good, productive discov- eries, that Mexico couldn't sustain indefinitely a high level of drilling Cut development drilling Increase exploration, workover activity Encourage 1 121, ' * petrochemical development activity. But no sudden radical slash was expected. Reyes hinted development drill- ing will rise again when new oil is found. Mexico, in Reyes' words, is run- ning out of shallow "easy oil." It must now look for deep "difficult oil." "We will search for it along the plains, up in the sierras, beneath the swamps, and under the sea. And we are certain that we will find it," he said. To find it, Pemex is almost doubling its exploratory effort this year. Reyes talked of about 150 wildcats, 14 more than previously announced. In 1964 only 83 were drilled. The total for 1963 was 70, Tour points. Other hi0ilights of Reyes' speech can be summed up in four main points: 66 THE OIL AND OAS JOURNAL . APRIL 26, 1965 1. Production will climb this year to 378,000 b/d compared to 354,- 000 b/d in 1964. His figures in- clude some 39,000 b/d of absorp- tion -plant liquids. The net crude in- crease, about 24,000 b/d, will be the result of an ambitious work - over program now under way. 2. No refineries will be built in the near future. The trend will be to huge complexes rather than small isolated plants that can only serve a few limited markets. Therefore, the previously planned West Coast plants —a 42,500-b/d refinery at Mazatlan, Sinaloa, and a 30,000-b/d coking plant at Rosa- rito, Baja California — will not materialize. Equipment already ordered for those plants will be di- verted to Ciudad Madero, Tamps., and Minatitlan, where it will be added to existing facilities. Pemex this year will invest more than $44 million in new refining units, mainly to widen downstream processing capacity. 3. Petrochemicals will be pushed at an accelerated pace, but in an organized manner. Pemex will ad- here to the policy of producing only basic feedstocks, leaving to private initiative the manufacture of inter- mediate and end products. Main goal will be to triple to 1,400 tons/day present ammonia output to satisfy increasing demand from private fertilizer plants. Pemex will spend over $46 mil- lion this year in petrochemical -plant construction. 4. Pemex's "administrative reor- ganization" will be carried out to its "ultimate consequences." Its two main goals will be to eliminate waste and to supress duplication. Inventories will likely be sub- stantially reduced. Reyes believes big, fully stocked warehouses gen- erate costly obsolescence problems. Therefore, he reasons, they are no longer justified since ready avail- ability and good communications networks accelerate procurement. As his predecessors, Reyes said making Mexico self-sufficient in oil is Pemex's sole intention. Pemex is not interested in becoming a large importer he said, so production and consumption will continue to be balanced. "This," Reyes said, "seems to be the most appropriate c o u r s e o f action, and only necessity could make us deviate from it." Iranian coast is busy Five offshore companies may drill on new Persian Gulf concessions this year. Royal Dutch/Shell plans July test. THINGS are already humming on the new Persian Gulf concessions granted by Iran in mid -February, and first drilling will start in July. Royal Dutch/Shell, the only single -company operator to win a lease in the February sale, (OGJ, Feb. 22, p. 86) has rounded out the staff of its operating company, Dashtestan Offshore Petroleum Co. (Dopco). The government's Nation- al Iranian Oil Co. (NIOC) is a part- ner in the project. Terms of the concession agree- ments call for an Iranian chairman for each of the five offshore com- panies involved, and a managing director from the oil company groups, along with a board of di- rectors representing both company and government. For the Shell operation, NIOC has named Nushang Farkhan chair- man of Dopco. Shell has appointed Michael Godfrey managing director. Dopco holds a two -block, 2,350- sq-mile concession in the gulf. Two known structures, one astride the coastline at the 28th parallel, and the other about 25 miles to the south, are known to exist on the company's acreage. Drilling on one of these struc- tures is scheduled to begin in July, using the Sidewinder, a mobile drill- ing rig owned by one of Shell's affiliates and now working off Qatar. Base of operations will be the coastal town of Bushire. Con- struction of facilities has begun. First steps in Shell's search will be a sparker survey and a soil -test- ing program to determine hardness of the sea bottom. July through October are the best months for drilling in the gulf, and Dopco hopes to finish its initial drilling program during that time. A 60-man drilling crew will work on a two -weeks -on, one -week -off basis. Atlantic busy too. Atlantic's Le- van Petroleum Co., still in the throes of otganization, has already started operating. These initial activities are being coordinated by Atlantic Explora- tion Co. in cooperation with NIOC while the new company shapes up its staff. Lavan will have a board consisting of four representatives from each of the four American Oil companies (Atlantic, Sun Oil, Union Oil, and Murphy Corp.) and four Iranians. Drilling operations, now docketed to start in September, will be con- ducted by Lavan as a nonprofit or- ganization representing the four companies and NIOC. Atlantic has already begun building a jetty, air- strip, and campsite on Lavan Island, which will be the operations base. Drilling will be done by a Reading & Bates jackup rig now off western Pakistan. The Atlantic group holds 3,120 acres covering at least three struc- tures spanning 160 miles. In its agreement with NIOC, Lavan must reduce its non -Iranian personnel strength to 2% of total manpower by the end of its loth year of operations. An exploration period of 12 years is provided, which expires if no oil is found by then; if a discovery comes, howaver, development can continue for 25 years in each field, plus three re- newals totalling 15 years. An opera -- tor could stretch out Persian Gulf activities 52 years. More drilling. Plans of the three other gulf companies have not been revealed, but indications are that all the operators will start drilling dur- ing 1965. The other groups are Tidewater's Iranian O f f s h o r e Petroleum Co. (partners are Skelly, Superior, Sun- ray DX, Kerr-McGee, Cities Ser- vice, and Richfield), a French part- nership (Bureau de Recherches de Petrole, Regie Autonome des Pe- troles, Francarep, C o p a r e x, and Eurafrep), and a consortium includ- ing Italy's ENI, India's Oil and Natural Gas Commission, and Phil- lips Petroleum Co. NIOC, of course, is a 50-50 partner in all groups. THE OIL AND GAS JOURNAL • APRIL 26, 1965 67 International briefs Transalpine shapes up Final makeup and working plans for the Trans- alpine pipeline from Trieste to Ingolstadt were agreed upon at a recent meeting at The Hague. The operating company, Deutsche Transalpine 011eitung G.m.b.H. (TAL), was founded in Munich Mar. 31 with an initial stock capital of $2.5 million. Partners in TAL as now organized are: Esso 20.4%, Shell 15.4%, BP 14.45o, Mobil 11.4%, ENT 10.417o, Marathon 7%, Gelsenb erg Benzin 617b, Deutsche Erdoel 39o, Scholven-Chemie 3%, SON Mineralprodukte G.m.b.H. (Continental affiliate) 39o' Wintershall 3%, and the newest member of the group, Texaco, with 3%. Construction of the 40-inch, 300-mile pipeline will cost about $160 million and is due for completion in the spring of 1967. The Austrian section is to be built by Transalpine 011eitung in Osterreich G.m.b.H., and the Italian section by Soc. Italiana per 1'Oleodotto Transalpino SPA. Full capacity, expected to be at- tained in 1970, will be 375 million bbl/year; it will be the biggest pipeline in Europe. SP-Hunt turn back acreage The British Petroleum -Bunker Hunt partnership in Libya has relinquished a second big hunk of its con- cession 65 as required by Libyan law. The turnback, of southernmost portion of original block, cuts the concession area to about 6,345 sq miles, roughly half its original size. The trimmed -down block contains Seria oilfield, one of the country's largest, from which a big -inch line now is being laid 400 miles to the sea at Marsa Hariga near Tobruk, Texaco partner in German refinery Texaco has joined with Wintershall A. G., Kassel, Germany, to build and operate a refinery at Eggol- sheim, West Germany, between Bamberg and Forch- heim. Wintershall will hold 51% and Texaco Inc., 49%a. The plant, to be known as Erdoel Raffinerie Franken G.m.b.H., will take crude from a branch of the new TAL pipeline, slated for completion in 1967. Both partners have a 317o interest in the pipeline. Soviets tie in a new field Next month is target date for Russia's new Belo Russian (White Russian) oil field to begin feeding crude into the "Druzhba" (Friendship) pipeline system. The field, near Rechitsa in the Pripet marshes northeast of Mozyr, was discovered last fall (OGJ, Dec. 21, 1964, p. 62). At Mozyr, the pipeline forks, one branch going to Poland and East Germany, the other to Czechoslovakia and Hungary. Belo Russian oil will enter the line through a short spur at a point more than 1,000 miles nearer the satel- lite nations than the Volga -Ural ("Second Baku") fields, which are now the only source for the Friendship line. Soviets claim the first two wells at Rechitsa are good for 3,636 to 4,362 b/d. Venezuelan press hits imports deal The Venezuelan Government has come under sharp fire from the local press for what the latter calls an obvious government failure to obtain more favor- able treatment for Venezuelan oil under the U.S. oil - import program. Press attitude is that government didn't get restrictions on Venezuelan oil abolished or get a quota to split up as it might wish. Anything less represented failure. Reds and ENI may build Syrian plant Syrian Government expects to conclude final agree- ment late this month with the Russians, Czechs, and Italians for construction of a $15.6-million oil -base fertilizer plant. The new Homs plant would reportedly produce 150,000 tons/year of ammonium nitrate using surplus Syrian naphtha as the feed. First construction phase, representing about three -fifths of total project cost, will be a combined effort of the Soviet Union and Czechoslovakia. The second phase would be built by the Italians —probably the ENI subsidiary, Snam. ENI to build Czech petrochem plant Italy's Ente Nazionale Idrocarburi (ENI) has landed contract for construction of a $10 million petrochemi- cal plant at Czechoslovakia's Bratislava chemical com- plex. ENI's engineering division, Snam Progetti, will do the work. Contract signed with Czech government agency, Strojimport, calls for construction of a unit to produce 30,000 tons/year of glycol and ethyl- ene oxide. Completion is expected in 2 years, Australian all hearings ended The Australian Government has ended formal hear- ings to determine the cash value of domestic crude and the protection it needs from foreign oil. The two -man Tariff Board making the inquiry has delayed its decision until it takes a 6-week fact-finding trip around the world to study international oil. The Australian Minister of Trade wants their report by July 31. During the last round of the hearings, a spokesman for 27 independent companies said a price of $4.50/ bbl would promote a vigorous search for oil. Australian Oil & Gas, a partner in the Union-Kern-AOG group, the country's lone producer, proposed it price of $4.34/ bbl at the Brisbane refinery gate. Union and Kern want $3.44/bbl for Moonie crude. Presently they get $2.83/bbl, but one refiner, Ampol Petroleum Ltd., insists it is worth only $2.39/bbl. 68 THE OIL AND GAS JOURNAL • APRIL 26, 1965 'IN tR16 i I THE SCHLUMBERGER FORMATION TESTER Gives you the first look at your oil and gas Your search for oil can be climaxed swiftly with fluid recovery and pressures obtained with Schlumberger's Formation Tester. Numerous questions —on pressures, gas -oil ratios, water cut, and daily production —can all be quickly answered. Thousands of tests since 1957 have provided operators with previews of their production. Improved tools and interpretation techniques have extended testing capabilities to all oil or gas provinces. Rely on the Schlumberger Formation Tester for the information needed for your completions. SCHILYMMERGER H 0 U S T 0 N Orange and black and dependable Here is the most dependable, most versatile cementer in the oil fields today. It has every feature you need to get better cement jobs. For example, the Dowell Twin -Pump Cementer fea- tures an Independent Mixer that does not depend on the triplex pumps to blend slurry. It provides high- speed, continuous mixing of cement, water and admixes into a smooth, uniform slurry. This rugged, heavy-duty cementer is equipped with Two High -Pressure, High -Volume Pumps —both of of Which are free to pump and displace slurry even during the mixing process. Pressurized Pump Suctions permit smooth and de- pendable pump -valve operation, even with the heaviest slurries. This helps assure a steady volume of slurry for complete fill -up behind the pipe. Finally, for accurate control and measurement of slurry weight, Dowell cementers provide a Gmtnnn-Rny Densitometer. With this Dowell -developed innovation you get an immediate reading of the density of the main slurry stream. Be sure you get the reliability of Dowell cementing equipment on your next well. With it you'll get Dowell's engineering, experience and hustle for a dependable, first-class cementing job. Dowell services and products are offered world-wide. Dowell, Tulsa, Okla. 74114. SERVICES FOR THE OIL AND GAS INDUSTRY DIVISION OF THE DOW CHEMICAL COMPANY Technology Unicracking-JHC goes commercial Firstcommercial Unicracking- JHC unit went on stream in November 1964 at Los An- geles refinery of Union Oil Co. of California. Perform, ante of the unit and catalyst activity have been good. W. E. Bradley, R. A. Campbell, and P. W. Morgal Union Oil Co, of California A 15,600-b/d Unicracking-JHC unit and related facilities have been operating smoothly for more than 5 months. This first commercial appli- cation of the process has proved out design and operating features, and has confirmed the validity of pilot -plant data. The Unicracker at Union's Los Angeles refinery converts a refrac- tory -distillate feed —a blend of vacuum gas oil and catalytic cycle oil —to gasoline, with a liquid product yield of 124 vol % of feed and with no by-product fuel oil. Over 50 vol % of feed can be produced as gasoline blending stock which does not require reforming. Because of the West Coast de- mand situation, this unit was de- signed exclusively for gasoline pro- duction. But Unicracking-JHC, which incorporates the hydrocrack- ing developments of Union and Esso Research & Engineering Co., is a flexible process adaptable to a variety of feeds and product re- quirements. There are six other units under construction or being engineered, including three for the refineries of Humble OR & Refining Co.: a 13,500-b/d unit at Baton Rouge, La.; a 3,700-b/d plant at Billings, Mont,; and a 13,500-b/d unit at Baytown, Tex. Other units are in various stages of planning. Trends in refinery product patterns Fig. 1 Million 6/d 10 16.0 —Other products and losses 6 12.4 15.3 12.2 —Residual fuel —Distilled fuels = 8.6 23.5 11.2 23.9 . 9.o 4 20.2 22.0 13.1 6.3. 27.2 19.0 22.4 7.5 —Kerosine and Jet fuel' 8.2 2 14.5 5.6 4.7 44.0 ao,s 43.0 45.2 44.1 46.3 —Gasoline _ xx.x Percent yield 0 1945 1950 1955 1960 1963 1970 Incentives. The shifting demands for petroleum products have given refiners powerful incentives for in- stallation of hydrocracking units. Fig. 1 shows the trends in U.S. refinery product patterns which have occurred since 1945 in re- sponse to the changing demands,' with a projection (based on Stor- mont=) to.1970. Various predictions do not agree in detail, but it is clear that recent trends will continue, with motor gasoline. and jet fuels constituting an increasing• share of total products and fuel oil declin- ing-214 On the West Coast, pressure to increase gasoline yields is particu- larly strong. Besides the increase in gasoline demand and declining use of residual fuel, the West Coast refiner has less demand for distil- late fuels and faces the added prob- lem of high yields of residual fuel and refractory mid -distillates from the heavier California crudes.156 As demands shift to require the production of more and more gaso- line from each barrel of crude oil, efficient hydrocracking processes have become available to the refin- ing industry.113 Total operating hydrocracking capacity was 99,000 b/d by December 1964, and is ex- pected to increase to 700,000 b/d by 1970.13 The Unicracking-JHC process permits the conversion of low -qual- ity distillates to gasgline or quality midbarrel products with liquid yields of over 120 vol % of feed and without the production of any .by- product fuel oil. Direct hydrocracking of residual stocks presents difficult problems, although efforts to develop and im- prove such processes are continuing in many laboratories. Indirectly, the present Unicracking-JHC process may be used to reduce residual stocks by hydrocracking and up- grading oils from such processes as coking, vacuum distillation, and solvent deasphalting. In many cases, hydrocracking is justified through replacement of ob- solete, relatively inefficient proc- esses. For example, the addition of the Unicracker to Union's Los Angeles refinery permits the shut - THE OIL AND GAS JOURNAL • APRIL 26, 1965 71 Two -stage unicracking-JHC process Fig. 2 First stage Second stage Common separator down of a 10,000-b/d bucket -lift TCC unit and 12,000 b/d of ther- mal gas -oil -cracking capacity. Be- cause the butane produced in the Unicracking-JHC process is largely isobutane, it has also been possible to retire a 1,500-b/d butane iso- merization unit. In addition to the yield and product distribution advantages of the Unicracking-MC process, bene- fits are also found in the reduction of operating costs. The Unicracker is simple to operate and control and it requires less staffing and main- tenance than the older units replaced. So the Unicracking-MC process solves the problem of refinery product balancing, by (1) increasing the yield of gasoline from a barrel of cracking stock, (2) eliminating by-product fuel oil, and (3) produc- ing gasoline at lower cost. How it works. The Unieracking- JHC proces97-014-18 is a fixed -bed catalytic hydrocracking process in which low-quallty gas oils are cracked at moderately high pressure in the presence of hydrogen and a highly active catalyst. The Uni- cracking-JHC catalyst has good activity maintenance in the presence of nitrogen and sulfur compounds and is easily regenerable. Either single -stage or two -stage cracking with recycle to extinction may be employed. Typical reaction temperatures are 5000 to 8000 F. and operating pressures range from 1,000 to 2,000 psig. The exact conditions are fixed by feedstock properties and processing objectives. Los Angeles Unicracker. The Los Angeles refinery unit is a two -stage plant which converts a blend of vacuum gas oil, and FCC cycle oil to gasoline. All material boiling above the gasoline range is recycled and cracked to extinction. The process flow for a two -stage Unicracking-JHC plant such as Uniores is shown in Fig. 2. Un- treated feed, which comes directly from refinery tankage, hydrogen makeup, and recycle gas are charged to the first stage where at least 40 vol 5"o of the charge is converted to gasoline. Reactor effluent is proc- essed for heat recovery and conden- sation and is then separated into recycle gas and liquid product in a high-pressure separator. Recycle gas is returned to the reactor and liquid product is let down to a low- pressure separator before fraction- ation. The fractionation system produces fuel gas; a butane stream; light, medium, and heavy naphthas; and recycle oil. The unconverted oil is fed to the second stage where con- version is about 60 vol 17o per pass. Second -stage reactor effluent joins the first -stage product in the com- mon high-pressure separator. Details of construction. Fig. 3 is an overall view of the plant, with the reformer furnace of the hydro- gen plant in the foreground. Two electrically driven reciprocating compressors handle the hydrogen - makeup requirements of the Uni- cracker and the hydrogen -plant feed gas. The drivers are the new brush - less -type synchronous motors and at the time of installation were the largest of their type on the West Coast. Since there is no arcing in these brushless synchronous motors, 72 THE OIL AND OAS JOURNAL • APRIL 26, 1965 purging is not required. The com- pressors and their drivers, the pulsa- tion dampeners, intercoolers, lube- oil system, jacket water, and inter- connecting prefabricated piping were all purchased as a packaged unit. An analog study of the layout of the piping and pulsation damp- eners was made to minimize vibra- tion and pulsation, and the resulting design has been quite satisfactory. Recycle -gas circulation for both stages of the Unicracker is handled by a single induction motor -driven centrifugal compressor. This com- pressor, its driver, Tube and seal -oil accessories were also purchased as a complete prefabricated unit. Per- missible noise levels were specified, and noise has not been objection- able. The reactor section consists of two parallel strings of three reactors each. Parallel strings were elected primarily to obtain earlier delivery of reactors than would have been possible with larger vessels for, a single string. Use of larger vessels is currently increasing because of improving reactor technology. The entire reaction section, including the reactors, fired heaters and ex- changers, is closely grouped to mini- mize the requirements for high- pressure and alloy piping. The reactor effluent is separated into the desired product cuts in the fractionation section. The main fractionator is a 637tray column 190 ft high. Due to its size this column was shipped in three sec- tions and welded together in the field. Reboil heat is provided by a vertical fired heater equiped with an air preheater for fuel economy. Two side -cut strippers produce medium and heavy -naphtha streams. A pentane absorber, debutanizer, and depropanizer columns further fractionate the overhead product. Start-up. From an operating standpoint it is desirable to be able to start up operations independently in both the hydrogen plant and in the fractionation section without operating the reactor section. Ade- quate isolation facilities were there- fore provided between each section, and construction was scheduled so the hydrogen plant was completed first. Then came the fractionation REFORMER FURNACE of the hydro- gen plant, center foreground of lower photo, dominates this view of Los Angeles Unicracker. Hydro - cracking reactor section, shown at right, is just to the left of the re- former furnace. Fig. 3. w:t ur. THE OIL AND GAS JOURNAL • APRIL 26, 1965 73 Cracking temperatures vs, time Fig. 4 Temperalure, ONabove arbitrary reference points 30 20 10 020 30 40 50 60 70 60 90 30 AO 0 g0 Operating time, days Design rate 15r,60D b/d Second stage 60 o conversion Increased 17,r60D b/d 20 First stage 10 — 403o conversion — 020 30 5 60 70 90 section and finally the reactor sec- tion. This arrangement proved very satisfactory and gave the operators time to concentrate on start-up of individual sections of the plant, as well as to establish conditions be- fore bringing the reactor section into operation. Start-up of the Uni- cracker and related facilities tuns accomplished rapidly, although a number of mechanical problems were encountered. A shutdown was caused by leaks in the hydrogen plant, and some Feed properties Table 1 Vacuum FCC straight- cycle Component run oil Blend, Vol % 54 46 Gravity, °API 25.5 22.2 ASTM distillation, °F. Initial 509 395 10% 595 515 30% 661 535 50% 714 560 70% 763 580 90% 829 625 Max. $98 690 Sulfur, wt % 1.08 0.96 Nitrogen, ppm, total 2,080 1,568 basic 804 518 Aniline point, °F. . 153.8 96.1 Type analysis, wt % Paraffins 18 12 Olefins 5 Nophihenes .. 34 20 Aromatics 32 55 Heterocyclics 16 8 periods of half -fate operation were required to correct troubles in the hydrogen -make-up compressors. One unhappy incident involved damage to the centrifugal recycle gas compressor through ingestion of a 4-in.4ong piece of steel plate through the suction nozzle; fortun- ately, a spare internal element was on hand. With the correction of the start- up difficulties, the Unicracker reached steady operation at full de- sign rate within about 4 weeks from the initial start-up. The start-up was highlighted by the fact that no process problems were encountered in the Unicracking-JHC reactor sec- tion. The refinery staff considered the start-up exceptionally successful and trouble -free. Operating data. The feed to the Unicracker is a mixture of 900° F: ep vacuum gas oil and FCC cycle oil. Properties of these components are given in Table 1. This probably is the highest -end point and highest - nitrogen -content feedstock being hydrocrncked to gasoline today. In the operation of the Uni- cracker, rundown yields are com- puted continuously from meter readings an feed and product streams. Since components are not sharply separated by the commer- cial fractionation, laboratory frac- tionation of the naphtha and com- ponent analysis of appropriate streams are used From time to time to obtain Component yields. A typical set of yields from the commercial plant obtained after reaching steady operation at design rate is given in Table Table 2, with prop- erties of the naphtha products in Table 3. The light naphtha produced in the Unicracking-JHC process is high in isoparatfin content and enrrespond- ingiy of ahigh octane rating suitable for blending to finish gasoline. The high isoparaffin content and high octane rating of the Unicracking- JHG naphtha persist well into the gasoline bailing range. In practice, the Los Angeles refinery has Found its economically desirable to raise the end point of the light naphtha to increase the fraction of total product in this stream. By doing so, over 50 vol rlo of feed is produced from the Unicracking-MC wait as gasoline blending stock that does not require subsequent reforming, The total of blending stack is even larger considering that butane is also blended to finished gasoline. The heavy Unicracking-JHC naphtha constitutes prime feed for catalytic reforming" because of its high content of aromatics and napit- thenes. At the Las Angeles refinery unit, the fractionation system pro- duces two reformer feed cute from the heavier naphtha, the medium and heavy naphthas going to sep- arate reformers. At the same time as these com- mercial yield data were being ab- Component yields from commercial operation and from pilot plant Table 2 Pilaf Commercial plant Dry gas, scfi bbl feed Ct —7 9 C. 13 11 C;, 70 52 Total Ct•C;, 76 72 Liquid products, vol %food i•butane 10.5 11.4 n•butano 4.6 4.2 C; to 185° F. light naphtha 28.8 27.9 1850 to 400° F. heavy naphtha 80.3 81.2 Total liquid products 124.2 124.7 Chemical hydrogen consumption, sef/bbl feed 2,170 2,220 74 THE OIL AND OAS JOURNAL - APRIt 26, 1965 Product properties, commercial Unicracker compared with pilot plant Table 3 ,Ca-185° F. fraction, 1850 F.+ fraction--�, Pilot Pilot Commercial plant Commercial plant Gravity, *API . ............ . .. ASTM distillation, D-86, *F. Initial ........ . ... . 10% ..... ..... ... 50% ... .. 90% .... ...... .. Max. ........ . . . ....... Type analysis, vol % Isoporaffins .... .... Normal paraffins ....... .. Naphthenes ........ .. . Aromatics ......... . .. ..... Octane numbers Research -1- 3 nil TEL .. . . Motor -1. 3 ml TEL .. .... tained, feed samples were drawn to permit a run on the identical feed to be made in an adiabatic pilot plant at Union's research center. The pilot -plant yields are also given in Table 2 and naphtha properties in Table 3. The agree- ment, both in yields and properties, is good, increasing the ability to predict commercial results from pilot -plant operations. The efficiency of the Unicrack- ing-JHC process is illustrated by the C,-plus naphtha yields of over 109 vol % of feed, with moderate hy- drogen consumption. Agreement in operating condi- tions between the pilot plant and the commercial unit is also good, although the commercial cracking temperatures are actually below those of the pilot plant, probably because of greater reactor efficiency. Operating experience. Operating personnel have been pleased with the excellent stability and ease of control of the Unicracking-JHC system. In particular, the operators have had no trouble maintaining the plant at 100% conversion of feed and at no time has it been necessary to produce unconverted oil to tankage. Temperature vs. time curves for the commercial operation are given in Fig. 4, for the period since reach- ing uninterrupted operation at de- sign rate. After a break-in period, the catalyst reaches a level of very stable activity, and the curves in- dicate the very low rates of temper- 81.1 79.1 50.0 50.2 90 92 203 220 IDS 108 230 241 143 125 296 285 178 158 364 364 190 184 400 400 78 80 32 31 9 8 2 1 11 11 50 54 2 1 16 14 98.4 98.5 82.7 80.9 99.2 99.6 81.5 80.5 ature increase required to compen- sate for catalyst deactivation. These plots also illustrate another aspect of the high activity of the Unicracking-JHC catalyst: after 37 days of operation, the feed rate was increased from the design rate of 15,600 b/d to 17,600. The catalyst required only minor increases in temperature to maintain 100% conversion. The low starting temperatures for the commercial plant and the low rates of temperature increase were predicted by the pilot plant and indicate that a very long life be- tween regenerations will be ob- tained. The first run is expected to last at least 18 months before re- generation is required. On the basis of extensive pilot -plant data, the Unicracking-JHC catalyst can be regenerated several times before eventual replacement. Process flexibility. The Unicrack- ing-JHC process can be tailored to a variety of feeds and product re- quirements including the production of quality jet fuels and midbarrel fuels. In many applications, depend- ing on feedstocks and the size of the unit, installation of a single - stage Unicracking-JHC unit may appear most attractive. Such a unit has been licensed for operation in the Mid -Continent. Details of other possible applications have been dis- cussed in several earlier papers79 151018 This paper was presented at the annual meeting, National Petroleum Refiners Association, Houston., 1965. References 1. U.S. Department of the Interior, Bureau of Mines, Mineral Industry Surveys (various years). 2. Stormont, D. H., "The Refinery of 1970: What It Will Look Like:" Paper Tech. 64.9, presented at the annual meeting NPRA, San Antonio, April 6, 7, 8, 1964. 3. Hoffman, Harold L., `How Markets Dictate Refining Yields:" NPRA National Fuels and Lubricants Meeting, Cleveland, Sept. 18.19, 1963. Paper Tech. 63-28. 4. Elliot, Kenneth M., Porter, John G., Jr. and Kessler, Hans T., "Petroleum Fuels of the Future": paper VIII-8, presented at Sixth World Petroleum Congress, Frankfurt, Germany, June 19.26, 1963. 5. Slyngstad, C. E., and Feigelman, S., "Fuel -Oil Reduction": Proc. thirty-eighth annual fall meeting CNGA, Oct. 10-11, 1963, pp. 77.85. 6. Cookenboo, Leslie, Jr., "District 5 Sup- ply and Demand in the 1960's": presented at thirty-first California regional meeting, SPE of AIMS, paper 1604-G. 7. Peralta, B., Reeg, C. P., Vaell, R. P., Hansford, R. C., "New Developments in Unicracking Technology": forty-seventh national meeting AIChE, Los Angeles, Feb. 4-7, 1962. 8. Voorhies, A., Jr., Smith, W. M., and MacLaren, D. D., "An Improved Process for Petroleum Hydrocracking": Sixth World Petroleum Congress, Frankfurt, Germany, June 19-26, 1963. Paper III-19. 9. Huffman, H. C., Helf rey, P. F., Draegat, K. E., and Reichle, A. D., "Re- forming of Unicracking-JHC Naphthas": twenty-ninth midyear meeting API Division of Refining, St. Louis, May 12, 1964. 10. Scott, J. W., Robbers, J. A., Mason, H. F. Patterson, N. J. and Kozlowski, R. IT., "Isomax: A New Hydrocracking Process in Large -Scale Commercial Use": Sixth World Petroleum Congress, Frankfurt, Germany, June 19-26, 1963. Paper I1i-18. 11. Kerner, W. M., Watkins, G. H., and Thornton, D. P., Jr., 'Apco's Lomax Unit Completes Its First Year": Hydrocarbon Processing and Petroleum Refiner 42, No. 9, p. 117, Sept. 1963. 12. "Hydrocracking Capacity Climbs in U.S.": The Oil and Gas Journal, 61, No. 45, 96, Nov. 11, 1963. 13. Stormont, D. H., "New Catalysts En- hance the Economics of Hydrocracking": The Oil and Gas Journal 62, No. 42, p. 60, Oct. 19, 1964. 14. Hansford, R. C., Reeg, C. P., Wood, F. C., and Vaell, R. P., "Unicracking—A Modern and Versatile Hydrocracking Proc- ess": presented at forty-eighth annual meet- ing WPRA, San Antonio, Mar. 28.30, 1960. 15. Barnet, W. I., Duir, J. H., Hansford, R. C., and Tulleners, A. J., "Unicracking Provides Refining Flexibility": forty-fourth national meeting AlChE, New Orleans, Feb. 26-Mar. 1, 1961. 16. Duir, J. H., and Helfrey, P. F., "Uni- cracking Improvements Widen Application — Reduce Costs": presented at CNGA annual fall meeting, Long Beach, Calif., Oct. 12- 13, 1961. Published in CNGA Proc., thirty- sixth annual meeting, pp. 45-57. 17. Voorhies, Alexis, Jr., and Smith, W. M., "Some Recent Advances in Hydro - cracking": ACS Division of Petroleum Chemistry Preprints, 7, No. 1, p. 187, ACS meeting, Washington, D.C., Mar. 20-29, 1962. 18. MacLaren, D. D., Cunningham, A. R., Hendricks, G. W., Kelley, A. E., `Hydro - cracking, An Example of Modern Hydrogen Processing": Chemical Institute, Canada, Oct. 19.23, 1963, Montreal. THE OIL AND GAS JOURNAL • APRIL 26, 1965 75 I Tennessee Gas develops New under on its huge gathering Dailey J. Berard and Edwin S. Smith Civil Engineers Tennesee Gas Pipeline Ca, NEW tapping equipment devel- oped by Tennessee Gas Pipeline Co. personnel is making possible quick- er and more efficient tic -ins on underwater pipelines ranging is size from 4 to 30-in. The new equipment includes a submergible caisson and an extend- ed -travel hot -tap machine, It was invented by Fred Clarke, division superintendent at Lafayette, La. Very successful results have been obtained with the caisson in a num- ber of taps made over a 31/z-year perlod. The development of the extend- ed -travel tapping machine, support- cd by considerable test data, is com- plete. It has been used many times for making commercial hot taps. 1. Submergible caisson The caisson is designed with a closed bottom and is lowered and placed laterally on the pipeline, Fig. 1. It is rugged, not unduly expen- sive, and is convenient to handle and use. It may be installed by con- ventional construction equipment. Controlled buoyancy allows safe loading on the pipeline, preparatory assembly on land reduces working time over water, and operations may be suspended without damage in case of sudden bad weather. Caisson design, First decision in- volves maximum and minimum sizes of line to be tapped and the maximum diameter of the tap to be made. Caissons generally are de- signed with the tops at least 5 ft above the water level for the maxi- mum depth anticipated. The 10-ft- SUBMERGIBLE caisson (top) is rea- died for placing around the pipe. Bottom photo shows bracing of the inside of the caisson. figs. 1 and 2. 76 THE OIL AND OAS JOURNAL - APRIL 26, 1965 ater tapping equipment to capitalize in the vast submerged marshlands of Louisiana and offshore diameter, 25-ft-long Clarke caisson is designed to resist 100,000-lb forces and will withstand external pressure up to 40 psi. Design of the inside of the cais- son, Fig. 2, comes next. For the parts to perform their function of absorbing load, the long vertical spuds require stiffness as well as strength. They must withstand the total hydrostatic pressure to prevent the side slot from collapsing. Two short cylindrical nipples on the floor of the caisson hold the spuds in po- sition. Diameter of the tapered flanges depends on pipe size, though the flanges also are somewhat inter- changeable between sizes. Bearing stops are designed to hold the caisson in a centralized Maximum allowable vertical movement of caisson in making hot taps (inches) Table 1 Line pipe Amount of excavation each side of caisson ---� OD 10 ft 15 ft 20 ft 25 It 30 ft 6.625 .... ....... . 2.41 4.34 6.75 9.64 13.01 8.625 ... ..... . ... .. 1.86 3.35 5.21 7.44 10.04 12.750 ........... .. 1.26 2.27 3.53 5.04 6.80 16. ,.,... I...... 1.00 1.80 2.80 4.00 5.40 20. 0.80 1.44 2.24 3.20 4.32 24. .............. 0.67 1.20 1.87 2.67 3.60 30. .... ..... ..... . 0.53 0.96 1.49 2.03 2.88 10-ft-diameter caisson with bottom elevation of 20 ft A=7rrz=3.1416 X 52=78.54sgft V = 78.54 X 20 It = 1,570.80 cu It Buoyant force = 1,570.80 cu It X 64 lb/cu It = 100,531.2 lb 100,531.2 Pressure on bottom of caisson in 20 it of water = = 8.89 psi 11,309.76 Ballast weight requirements Fig. 3 {.-10 it 0 in. OD--�i I Is o v _ - v 20 It 7s/4 in., add 12 wis N I 0 9e In. 19 It 7s/a in., add 11 wts 1 its 18 It 7% in., add 10 wis - 1 it y4 In. 17 it lye In., add 9 wts o 1 it s/e In. 16 it 7 in., add 8 wts 1 it s� 15 it 6% In., add 7 wts I it s/e In. 14 It 6t/4 In., add 6 wis 1 It 1/e In. 13 It 6s/s In., add 5 wis e 1 It 1/4In. 12 it 6% In., add 4 wis £ a r 1 it s/8 1n. 11 It 61/4 in., add 3 wls _ I it q4 in. 10 it 6 In., add 2 wts 1 it !6Lin. 9 it 5% in., add 1 wt 1 [111 In. 0 it 5% In. 40 In. ���(/ n. N z a w 24 In. m 10 It 15/z In. I SEPARATE tower with level is used for tension control on sub- merged pipeline. Fig. 4'. THE OIL AND OAS JOURNAL • APRIL 26, 1965 77 About the authors ... Dailey J. Berard, civil engineer, has worked on design and use of under- water caissons for repair and hot - topping. Since 1955 his activities have been in design and construction of several hundred miles of marsh and offshore pipelines for TOT. Berard first joined TOT in 1951. He also has worked with systems for locating lines offshore, fathomater surveys coring and analyzing bottom samples, and design of bulkheads and pipe support. ing stringers. Berard earned his civil engineering degree In 1956 from I.C.S. He also attended University of Mississippi and University of South. western Louisiana. Edwin S. Smith, civil engineer, is re- sponsible for design and development of the extended-trovol hot -top machine. His present duties at Lafayette, La., are in design and construction, and position and to distribute loads rest- ing on the pipe over the contact surfaces of the pipe on which the stops rest. They also are adjusted to allow a minimum of play. A diver takes severalrepresenta- tive readings of outside coating di- ameter of pipe to be tapped with an adjustable caliper. Then from the average, the bearing stops are set for the desired clearance be- tween coating and stops for both the horizontal and vertical guides. A lead -weight ballast design is selected such that its immersed load equals the equivalent of 1 ft of dis- placed water based on the caisson's outside diameter, Fig. 3. Caisson weight alone is about 8 ft of dis- placed salt water. Permissible move- ment of caisson usually is relative to the amount of excavation on each side of the caisson, Table 1. A catwalk provides access to the caisson from accompanying barge. For operation of the extended -travel hot tap machine, a light aluminum platform is fitted securely in the spreader cables and is placed on top of the caisson. Equipment and mooring. Under- water taps in marsh country or shal- low bays require a considerable complement of equipment A cais- son is usually preferred for under- water taps for structural. reasons .and for efficiency in removal after- ward. In marine work, particularly in water depths less than 20 ft, con- ditions vary at different locations. Thus, a careful mooring procedure is prepared for each site. Where D. J. Berard E. S. Smith maintenance of offshore pipelines. Smith graduated varsity of Kentucky in 1950 TOT to 1951, He has serval pacitics in survey crews, as Construction engineer on at. pipeline and river-crossin. and 5 years as censtructio on compressor-slation consti marsh prevailing wind direction may vary at different times of the day, it may be necessary to surround the cais- son with equipment and work barges. A steady leg against a sta- tionary barge prevents caisson movement in case of wave burreting. In a flotation canal, the dredge, material barge, and work barge have an important bearing on the space to be allotted, particularly if the tap is to have a valve platform. However, the caisson can be in- stalled in very limited areas such as flotation canals with a minimum of additional width. Predredging. Excavating the bell hole is done mechanically, usually by a 41/z-cu-yd dredge and by hand - jetting by a diver. The bell hole is predredged below the elevation of the predetermined caisson bottom Typical arrangement, caisson and hot -tap machine Fig. 5 Elev. -l- iS.3 it 3 it 6 in. Walk Elev. -1- 8.6 it it 7 in. lieu. -I-5.9 it it 4 0.0 MLo M 5 c li 4: 5 N `V Natural tolloni 1 Nov. —9.2it h 1, 11 It T.O.P.C. Elev. —14.2 24 in. 3 it 81n. 78 THE OIL AND OAS JOURNAL • APRIL 26, 1965 elevation. A deep undercut on each side of the pipeline absorbs spoil that is hand jetted from under the line. The bell -hole bottom is inspect- ed and sampled. Where the bottom is very soft mud, a depth and den- sity check of the excavated hole is conducted to assure ample posi- tioning room and to allow sufficient time for settling of floating turf. Excavation is completed before the caisson is set. In general with this type of soil condition, material is left to settle for at least 12 hours before placing the caisson on the line. As soon as the pipe is exposed in the excavated area, the nearest field joint is located. A minimum distance of 10 ft should be main- tained from a field joint. Caisson preparations. The verti- cal door is placed in position with bolts and clamps secured. The horizontal belt door is completely removed, and pipe spuds are raised with locking wedge in position. The spreader frame is attached to the top of the caisson, and cables are adjusted for equal distribution of weight and balanced position of the caisson. End supports are set so that the face of the bearing stops will just come to a bearing without producing any dead -load reactions. Entire dead weight is controlled by buoyancy and the dragline. Operational procedure. A maxi- mum operating radius of 30 ft and a minimum operating radius of 20 ft should be maintained for a Mar- ion 111-M crane, with an 80-ft boom based on 75% of tipping when lifting or positioning the 40,- 000-lb caisson. The exact elevation of the top of pipe coating is measured. A cor- responding depth mark is inscribed on the side of the caisson in a po- sition visible to the crane operator. The caisson is lowered vertically to the required depth adjacent to the pipeline and moved laterally on the line. The diver makes periodic checks for vertical control in final positioning of the caisson. Above water, the belt door is po- sitioned and to it are attached the snap hooks of the chains used in guiding the belt door down into position. Sealing is done by a th- in, closed cell sponge gasket on the horizontal belt door. Thorough PANEL BOARD is used to operate the tapping machine. Fig. 6. greasing with a heavy axle grease assures complete sealing. Neoprene wrapped around a 1-in. nylon rope is used as a hard-core center gasket for sealing the flanges. The pressure differential causes the neoprene gasket to squeeze into the tapered flanges to effect a seal at the start. The seal is effected by keeping the water head slightly lower inside than out. If the seal is tight with no leaks, a full head will eventually develop. The caisson will quit leak- ing excessively after the initial start in removing the water. If leakage continues after pumping down a couple of feet, adjustment of the seal outside the flange is made. To maintain the top of the caisson level, adjustments are made in the cables. Evacuation of the water is done in stages. Large temporary pumps are used to pump out the caisson and smaller automatic pumps keep it dry. At the start, water can be removed by using an 8-in. airlift. Weights are fastened to the top of the caisson by the handling hooks. They should be placed in exact corresponding position on each side to assure optimum stabil- ity. First step in the evacuation of the caisson is to set a tide gauge. Extreme tide fluctuations may be 1 to 2 ft in tidal bays. Prolonged winds also may raise water level appreciably. For tension control, a level is set in an unobstructed posi- tion in the marsh or when in open water on a wooden tower indepen- dent of 'all equipment, Fig. 4. Evacuation procedure. Evacuate 1 ft of water with jet pumps. Be- fore hanging the first 5,1004b weight, reduce or stop pumps to determine the sealing action. If sealing is sufficient, the first weight is placed on the caisson and read- ings are taken to determine calcu- lated forces in relation to actual hydroscale readings. The caisson in air weighs about 39,000 lb and in water ft weighs about 35,000 lb. The buoyant force is partly resisted by the weight of the caisson, leaving the balance to be encountered by the lead weights. As an example of the evacuation procedure, suppose water elevation inside the caisson before evacuation is 18 ft. At this stage, water pres- sure is equal inside and out. The water mark inside the caisson after evacuation of 1 ft is 17 ft. Tension level mark is 0 in. Calculated down- ward force with the first weight on the caisson is 40,000 lb. Calculated buoyant force is 5,000 lb. Hydro - scale reading is 33,500 lb. Calcu- lated weight on scale is 33,500 lb. Downward force on pipe is 1,500 lb. No adjustments are required. The possibility of rupture due THE OIL AND GAS JOURNAL • APRIL 26, 1965 79 to pipe movement for a short dis- tance may be negligible. however, such a stress could cause undesir- able structural effects if the move- ment is appreciable over a long pe- riod of time. As soon as one weight is hung, the operation is repeated. The final 8 It of water remaining after all the weights ate on the cais- son is evacuated a foot at a time. Additional adjustments with the crane are made by decreasing lift on the boom to compensate for the tipping of the barge as the buoyant force is increased. Throughout evacuation, care is taken to insure that the tension -level mark is in di- rect relation to the calculated forces subjected on the pipeline. Removal. When the tap is com- pleted, the caisson is refloodedI and weights are removed. When com- pletely reflooded, the vertical door is removed prior to lateral removal. 2. Extended -travel hot -tap machine Conventional tapping machines tap through a valve and short nipple which is welded to the carrier pipe. In the case of submerged lines, the valve through which the tap is made remains under water after the tap is completed. The TOT group envisoned a de- vice which would travel down any length riser and make the tap. The tap valve would be located above water to eliminate costly watertight gear boxes, valve drive extensions, lubrication fittings, and valve boxes, Fig. S. Thus, development of the Clarke extended -travel hot -tap machine be- gan. A very versatile machine evolved which provides the means for making taps on submerged lines in addition. to conventionally buried lines. All taps make use of a single completion valve located above the surface of the water or earth. Making a tap. In general, the method of making a hot tap is: 1. A riser of proper length, with tap valve in place is welded to the carrier pipe at the designated eleva- tion, Fig. S. 2. Tapping machine with proper mating flange is attached to the tap valve. The tap is made and after- ward the cutting device is retracted through the tap valve. 3. The tap valve is closed, and tapping machine is relieved of line pressure and removed. Tapping machine, The machine consists of an extension unit mount- ed within a pressure -sealed drum and a drilling unit contained within a mixing nipple and attached to the extension unit. The nipple is the same nominal size as the riser pipe and tap valve. The drill portion of the machine is extended through the tap valve and riser pipe to the point where the pilot bit contacts the carrier pipe. An outboard handwheel is used to extend and retract the drilling unit. The main cutter has a pilot bit with spring -loaded balls for retain- ing the coupon which is cut from the main carrier pipe. This cutter is driven at about 32 rpm with a rated torque of 232 lb-ft. After extending into the riser, a locking mechanism holds the drill- ing unit in position and also con- trols the drill force on the pilot bit and cutter. This allows positive con- trol of drill force on the bit and cutter at all times. Desired drill pressures are obtained on charts developed from design data. The entire tapping operation is con- trolled from a panel board, Fig. 6. At the lower end of the mixing nipple, a pressuretight 2-in.-diam- eter sight is installed for visual ob- servation of the machine. The re- tracted position of traveling por- tion of drill unit and position of coupon in cutter on completion of tap can be observed. Design working pressure of the machine is 1,200 psi, and all com- ponents are hydrostatically tested to 1,800 psi. The limit of travel of the present machine is 50 It. This limit can be increased many times by Increasing machine size and mak mg other changes. 3, Future developments The successful taps made thus far seem to be only the beginning for many operations which can be accomplished by this machine. Fur- ther improvements are expected as a result of continued research. Both the submergible caisson and the extended -travel hot -tap machine are available for use on a rental basis, or their manufacturing rights can be acquired by appropriate licensing arrangements under cm- istittg patent rights. Management Tip to engineers engineer bu THE HEART of any company's program to train engineers for man- agement, if it's to be successful, will center around two factors: skill of the original recruitment effort, and i attitudes of management and the man himself toward his develop- ment. This analysis of the problems of training engineers for management responsibilities was given by James E. Nilson, vice-president of Shell Oil Co: s New Orleans area explora- tion and production activities, when he addressed a session of the engi- neering -management committee of AIMS in Chicago. Wilson stressed that recruitment is the realistic starting point in rec- ognizing and selecting potential manager. "It goes without saying," he ex- plained, "that good people must first be hired, Otherwise we select from the unfit." Wilson pointed out that the im- portance of skillful recruiting lies in its long-term effects. The managers of all companies over the next decade already are employed doing some sort of job within the compa- nies, he said. It means, he added, that "by and large the management team we will have to put on the field for the next several seasons must come from that squad now working out under our own colors." As for picking the potential man- agers from engineering ranks, Wil- son has four qualifications he con- siders uppermost: integrity, ability, responsibility, and inspirability. Development. Wilson also pre- sented a few down-to-earth observa- tions on company management -de- velopment programs. Any such program to be effective must have the support of not only the top man but also the key people all along the way, he asserted. Man- agement training must be viewed first as an attitude or philosophy of (with a yen for brass: Be a good ever quit learning Shell executive says there are three elements in company programs to train engineers for management responsi- bilities: (1) recruiting good prospects in the first place, (2) a sincere desire throughout the company to develop men for higher positions, and (3) a desire on the part of the engineer himself to broaden his usefulness. the administration, and second as a program. Wilson contended there are only two simple maxims which are good bench marks for development of managers. They are that: • Men learn to manage by man- aging. N • Men must develop themselves. "If an individual has a clearly defined job," Wilson said, "if he is responsible for results, has to live with decisions —including mistakes, then he gains this thing called ex- perience. Moreover, a concrete rec- ord is made on which his perform- ance can be judged. "I strongly believe that it is best to observe a man in successively more demanding supervisory roles, if at all possible, before he is given a key management job. Among other things, you need to see if he can really get things done. "Despite all psychological test- ing, executive -trait inventory, course training and simulation, a man's past performance is the most valid prediction of what he will do in a managing job." Checkup. Appraisal or evaluation is indispensable in the management cycle. And the Shell executive observed that any checks on a man's work should: L Have candor and insight. For maximum usefulness, he said, an evaluation should be in writing, describing in words a particular in- dividual's accomplishments, weak- nesses, strong points, and potential. It requires more thought and atten- tion on the part of an appraiser than does merely checking a form. 2. Reveal the {°gaps" in a man's experience. Appraisals that indicate the job potential and 'the experience that is desirable preparatory for advance- ment bring out these gaps in which assignments and training can then be planned. Job rotation, I a t e r a I transfers, special assignments, visits, even formal education courses may be indicated to fill the "experience gaps." 3. Made periodically and all along the line. .The evaluations naturally are only as good as the human judg- ments that go into them. Form and method simply are no substitutes for judgment. Motivation. A major part of a manager's development will depend on himself. Wilson said this means more than just working hard in courses and learning new skills. It also means that a future manager must grow in his understanding of man's rela- tionship to man and to his society. "His view of people and the world around him will be deepened through experience primarily," he said, "but I think one's experience can be weighed and extended by acquaintance with imaginative works of literature, philosophy, music, history, art." James E. Wilson: "Men learn to manage by managing." He warned that embracement of the humanities "is no good as win- dow dressing" but if approached honestly on equitable terms can contribute to the fullness of a man's development. Wilson also had a word of cau- tion to the notion that an engineer- ing degree plus another in business administration, liberal arts, or law will practically assure a graduate early promotion into the manage- ment line. "If a man aspires to make his way into management through the professional engineering route," Wilson said, "he ,had better insure that his training as an engineer is completely sound. He should know that satisfactory performance in his field is the first hurdle before he is likely to achieve recognition or be. considered as a candidate for man- agement training." From a firm professional base, an engineer can more profitably broad- en his knowledge. The impact of new technologies, new I a w s , and changing attitudes often requires something more than a straight en- gineering solution, he added. The conversion of these impacts into positive directions will greatly de- pend upon the engineer's grasp of new knowledge, his experiences in managing, his growth in wisdom, and his development of intellect. End THE OIL AND GAS JOURNAL . APRIL 26, 1965 81 Hof secondary petroleum recovery permits storage of heat from the in- jection cycle to be used effectively as the oil is produced back into the well. The petroleum industry, with characteristic humor, has given this process many different names — "huff -and -puff," "steam soak," and "cyclic method." Regardless of what it is called, this process represents a real breakthrough in the oil -pro- ducing business, and it is the new- est form of secondary recovery. It is called secondary recovery because energy is added to a reser- voir —heat energy and lots of it. In 1948, Norris Johnston and N. van Wjngen defined secondary recov- ery as "die recovery by any method of that petroleum which enters a well as a result of augmentation of the native reservoir energy, as by fluid injection."' Why so secretive? There has been a cloak of secrecy surrounding steam -stimulation activities, moti- vated by the hope of acquiring pro- ducing properties susceptible to the steam -stimulation technique. Many of the reasons for secrecy are now gone. As a matter of fact, many of the sellers have a fear of missing out on something and are asking prices that may be more than the actual worth of the property. It is important that the oil indus- try break through the darkness and mysticism surrounding steam stimu- lation. This article is presented as an encouragement to others to pub- lish and exchange information, and to put steam stimulation in its right- ful place as a valuable means of improving recovery and profitability of our more viscous oils. Energy comparison. Table 1 shows the relative amounts of en- ergy added to an oil reservoir by How steam corrlpares'with other energy -injection methods Table 1 Energy input Treatment (Hp-hr) Steam stimulation, 18 MM Btu/hour for 10 days ... 1,690,000 Electric boftam•hole heater, 80,000 Btu/hour for 10 days 7,500 Woterflood injection well, 1,000 b/d at 1,000 psi for 10 days 4,100 Large frac job, 125,000 gal water, 100 bbl/minute at 1,000 psi (30 minutes) .. . .............. .. .. ..... 1,200 Underground nuclear explosion2 ....... .. .. 1,320,000 Rainier event; 1.7 kiloton; heat added to reservoir (this is about one-half of total energy released) various existing and proposed meth- ods. During the short time it takes to inject steam into a well, it is appar- ent that a great deal of energy is injected. Economically, it is hard to beat steam stimulation as a method of heat injection, and it puts the heat energy where it counts — at the producing well bore. 1. Why steam works Steam stimulation has two main effects: reduction of viscosity and well -bore cleanup. Fig. 1 shows the relationship be- tween viscosity and temperature for crudes in the low -gravity range. These data are taken from Carlton Beal's? paper and are plotted'on an ASTM standard viscosity -tempera- ture chart.4 The vertical scale is changed from centistokes to centi- poises, which will cause no great error in the gravity range under consideration because centistokes times specific gravity equals centi- poises. Experience indicates that this cor- relation is valid, particularly the slopes of the lines. Occasionally a 150-API oil will have the viscosity of a 100-API sample on this chart, but the viscosity reduction with in- creased temperature will follow the same slope as this chart. This means that a viscosity -temperature point can be obtained for a particular sample and a reasonable prediction SUBSURFACE DEPTH -500' -600' JEEOAE INJECTION WNS Sr}ER IS NOUNS XinN rUNIXG IMJEFOREM 5DAYS AFTER INJECTION UR AFTER INJECTION RING Well -bore -706 temperature e06 surveys i -e00, Fig. 2 -1000• -11W 50 100 150 260 260 300 350 400 450 500 TEMPERATURE F. THE OIL AND GAS JOURNAL • APRIL 26, 1965 83 of viscosity at other temperatures can be developed. The chart also in- cludes corrections for gas saturation. Many viscosity samples are run on gas -free crude at certain surface conditions, but the viscosity at res- ervoir conditions is the important factor. Many shallow reservoirs have a bottom -hole temperature of 100' F. or less. A crude oil of 10° API gravity at this temperature might be expected to have a viscosity of 20,- 000 cp. Raising the bottom -hole temperature only 10' in this case would cut the viscosity to 13,000 cp, about two-thirds of the original. Further temperature rise to, say, 2000 F., would cut the viscosity to 490 cp, a reduction of about 40 times. Therefore, if the bottom -hole temperature can be raised, major viscosity reductions can be expected. Fig. 2 shows bottom -hole temper- ature before, during, and after steam stimulation. This indicates that a bottom -hole temperature of 3501 F. is easily obtained, and that 5 days after steam injection has ceased, the bottom -hole temperature is still over 2500 F. Reference to Fig. I will show that low -gravity viscous crudes in the low -bottom -hole -temperature reservoirs can easily have a viscos- ity reduction of 100 times. Oil -production rate is inversely proportional to viscosity. If viscos- ity is cut in half, the production rate will double. here is the means of reducing viscosity by fac- tors of 10, 20, and 100, and large increases in the production rate can be predicted. This is exactly what happens when the proper conditions exist. 2. How much recovery? This is a difficult question to answer. It is not yet known how many cycles will be profitable or what the ultimate recovery will be from a series of steam -stimulation treatments. There are many varia- bles involved. Figs. 3, 4, and 5 are examples of steam -stimulation recovery for first - cycle treatments in three separate areas. Pertinent reservoir proper- ties, details of steam stimulation, and production data are included so that the figures are generally solf- explanatory. These are not pre- sented as optimum treatments; how- ever, they are representative of sev- eral treatments on different wells in that particular area. Note that the wellhead tempera- ture declines rapidly immediately after steam injection, and then the rate of temperature decline is less as the temperature becomes lower. Note, also, the oil -production -rate decline. These wells all have high productive capacity immediately Production and temperature decline— Fig. 3. Area A steam -stimulation project. x PRODUC NON RATE 0/0 TEMP OF RESERVOIR PROPERTIES DETAIL OF STEAM STIMULATION after the steam stimulation. The wells in Figs. 3 and 5 were pro- duced at capacity, and the configur- ation of these production -decline curves is probably a reasonable rep- resentation of what might be ex- pected after a successful steam - .stimulation treatment. Incremental oil recovery is de- fined as the extra oil recovered dur- ing the producing period shown. For these three examples incremental oil recovery ranges from 2.2 up to 6.6 bbl/MM Btu injected. These are not average figures for the three areas. Recovery from other wells has ranged from a low of zero to a high of 7 bbl/MM Btu. The higher recovery figures are generally asso- ciated with well -bore cleanup. Note that Fig. 4, and possibly Fig. 5, exhibit what appears to be a permanent improvement in well - bore permeability (well -bore clean- up). This is evidenced by a stabil- ized producing rate greater than the rate before steaming, even after the producing temperature appears to have returned to normal. Based on experience to date, only about 2017o of the wells have shown this well - bore -cleanup effect. Theoretical recovery. Inspection of this type of performance data and observation of temperature and pro- duction decline trends leads one to speculate on the possibility of pre- dicting the production from asteam stimulation treatment. If the temper- ature decline can be predicted, it should be possible to estimate the oil -production -rate decline. We have observed that surface temperatures do follow a definite path for a given area. The difference between the increased temperature and the normal temperature often follows a harmonic decline. Bottom -hole temperatures control the oil -viscosity change and the in- creased production rates. These temperatures are not readily avail- able in most steam -stimulation proj- Sand at 700 it Infected 5 billion 110 OIL: Oil gravity 12' AN 11,500 bbl water Cum. prod. prior to slim. 45,100 bbl Reservoir press. ISO psig Injection Time 12 days Production since slim. 24,700 bbl Reservoir temp. 970 F Shut-in time 11 days Prod, rate before slim. 32 RID + 10% v Oil viscosity 900 cp at rot. cond. Injection temperature 470' F Curren producing rate $1 B/D -I-13% v Zone thickness Soo it Injection pressure 240 psig Incremental oil 17,000 bbi or 3.4 No packer bbl/MM Btu Est. steam quality 700 superheat WATER: Cum. prod. since slim. 4,756 bbl 84 TNe OIL AND OAS JOUNNAL • APRIL 26, 1965 Example of calculations of bottom -hole temperature and production declines Table 2 visa. at AT, Calculated bottom -hole - bottom -hole temp. Multiple Calculated Calc. prod. Actual prod. Time I+Di temp. from Fig. 7, of prod. prod. rate, for period, during days Drt I+ort OF. OF. cp rate` b/dt bbl period, bbl 0 ............ 0.0 1.0 260 $390 6 55.0 1,760 .... .... 5 ..... ...... 0.7 1.7 153 283 16 20.6 660 6,050 ... 10 ............ 1.4 2.4 108 238 30 11.0 352 2,530 717 15 .. .... .... 2.1 3.1 84 214 45 7.3 234 1,465 1,338 20 ..... ...... 2.8 3.8 68 198 60 5.50 176 1,025 1,094 25 . .... .- .. 3.5 4.5 58 188 75 4.40 141 790 1,412 30 ..... .... 4.2 5.2 50 $180 90 3.66 117 650 - 972 60 ...... .. . 8.4 9.4 28 158 150 2.20 70 2,805 6,146 90 . ..... 12.6 13.6 19 149 190 1.74 56 1,875 3,638 120 ..... ....'. 16.8 17.8 15 145 220 1.50 48 1,545 2,732 240 .... _ . ... . 33.6 34.6 8 138 260 1.27 41 5,340 8,667 Eight -month - total ..... ... ... ... ... ... .... .. 24,075 26,716 'Normal viscosity at normal reservoir temperature (330 cp at 130° F.) divided by calculated viscosity. tmultiple times initial of 32 b/d. $Actual measured bottom -hole temperatures. ects. We have made the assumption that decline of bottom -hole temper- ature follows the s u r f a c e trend. Then, from a few spot measure- ments of bottom -hole temperature, the expected temperature perform- ance can be calculated. As an example, consider Fig. 4. Temperature histories from 11 dif- ferent wells in this area show that the surface temperature difference follows a harmonic decline. Then, if the bottom -hole temperature fol- lows the same trend, the following method can be used to develop the temperature history: AT, ATt = 1 + D,t ATt = temperature difference at (t) days AT, = initial temperature differ- ence Production and temperature decline- Fig.4. Area B steam - WATER CUT % ouu 1 W£LLNEAO TEMP. F project. OIL PRODUCT/ON RATE 410 MONTHS D, = initial decline rate in the temperature difference as a fraction of the temperature difference t = time in days after the date of measurement of ATr Two bottom -hole -temperature measurements were made. Immedi- ately following the end of steam in- jection, the bottom -hole tempera- ture was 390' F.; 30 days later- it was 180' F. The normal reservoir temperature is 1300 F. AT, = 390' - 1300 = 2600 at t=0days ATt = 180' - 130' = 500 at t = 30 days From the equation above: 2600 50a = or D, = 0.14 1 + Dr (30) or 14%/day initial decline rate From this information, the decline in bottom -hole temperature can be calculated as shown in Table 2. Assuming that oil -production rate is inversely proportional to oil vis- cosity, we can then estimate the in - RESERVOIR PROPERTIES DETAIL OF STEAM STIMULATION PRODUCTION DATA Sand at 3,000 It Injected 3.1 billion Btu OIL: Oil gravity 10' API 12,500 bbl water Cum. prod. prior to stim. 68,583 bbl Reservoir press. 1,000 psig Injection time 13 days Production since slim. 30,464 bbl Reservoirtemp. 131' F Shut-in time 8 days Prod. rate before stim. 32 B/D + 10%, water Oil viscosity 330 cp at res. rand. Injection temperature 532' f Current producing rate 62 B/D + 110% water Zone thickness 47 ft Iniection pressure 900 psig Incremental oil 20,500 bbl or 6.6 Packer bbl/MM Btu Est. steam quality 60'/, WATER: Cum. prod. since stim. 5,311 bbl THE OIL AND GAS JOURNAL • APRIL 26, 1965 85 Production and temperature decline— Fig.5. Area C steam stimulation project. RESERVOIR PROPERTIES Fractured shale at 1,5500 Oil gravity 8.50 API Reservoir pressure 300 psig Reservoir temp. 1150 F Oil viscosity 10,000 cp at res. cond. Zone thickness 300 D DETAIL OF STEAM STIMULATION Injected 3.6 billion Btu 14,000 bbl. water Injection time 22 days Shut-in time 6 days Injection temperature 440' F Injection pressure 38D psig No packer Fst. steam quality 60% crease in production from increased bottom -hole temperature. For ex- ample, if the well was producing 30 b/d prior to treatment and the vis- cosity is reduced by half, resulting production, theoretically, would be estimated at 60 b/d. The production decline can be calculated as shown in Table 2. Both the temperature and pro- duction decline from Table 2 are Shown in Fig. 6. This can be com- pared to the actual performance in Fig. 4. Results from this method yield a theoretical oil production of 24; 075 bbl. During this 240-day pe- riod, actual oil production was 26; 716 bbl. Part of the difference can be explained by an apparent im- provement in well -bore permeabil- ity because the well is still produc- ing about twice what it was prior to steam stimulation, and temperatures have declined to normal. Note that about half of the theo- retical incremental oil production is available the first month after steam stimulation. This well was not pumped off and not produced at capacity during this interval; there- fore, about 21rz months lapsed be- fore one-half of the available incre- mental oil production was actually produced. Sharp decline. Fig. 6 illustrates the sharp declines in both tempera- ture and production rates. This ;WELLHEAD TEMPT, :i O& PRODUCT/ON RATE SYD r enne:r.� PRODUCTION DATA OIL Cum. prod. prior to stim. 42,645 bbl Production since stim. 9,021 b61 Prod. rate before sitm. 2 B/D +20% water Current producing rate 51 B/D +2901. water Incremental oil 7,780 bbi or 22 bbl/MM Btu WATER: Cum prod. since stim. 4,043 bbl method of calculating stimulation performance is helpful in determin- ing the relative chance for success of several prospects with different API gravity oils and different bot- tom -hole temperatures. It also il- lustrates the fact that the high initial oil -production rates sometimes pub- licized are subject to a rapid decline. These calculations also make it evident that a stimulated well should be placed on production as soon after steaming as possible (short shut-in period) in order to take ad- vantage of the high productivity during the short time that it lasts. Results calculated by this method cannot be expected to consistently match actual performance for these reasons: I. Lack of pump capacity to produce high rates available during eariv production history. 2. Some injecte# water will be produced back, and the resulting change in relative; permeability will tend to reduce the oil -production rate below the calculated rate until the water cut returns to normal. 3. If the total producing interval is contributing to the primary pro- duction rate, but only a small por- tion of this interval takes most of the steam, then stimulation results will be lower than predicted. 4. An increase in effective well - bore permeability due to removal of wax, bitumen, etc., may make actual results better than predicted. Conversely, a decrease in effective w e l l- b o r e permeability from clay swelling could have the opposite effect. 3. Where it applies There are many factors that should be considered in selecting a steam -stimulation project. Some of these factors, such as the cost of fuel, water, water treatment, mar- ket price of oil, and equipment re- quirements to inject steam at an- ticipated injection pressures, lend themselves to a straightforward eco- nomic analysis in selecting one proj- ect over another. There are other important factors, such as forma- tion thickness, amount of oil in place, etc., that may be subject to evaluation when more performance data are available. Experience to date has indicated some general guidelines regarding the factors dis- cussed below. Crude -oil gravity. The gravity of the crude oil in a steam -stimulation project is of interest because it is related to both the price and viscos- ity. The lower -gravity crude is nor- mally more viscous and, therefore, will probably respond more effec- Soo t t Calculated 500 1 PRODUCT/ON B/O production and 400 , temperature aoo declines 200 _ TEMPERATURE OF. --------------- Area B too. Fig.6 O R — 2 3 _ _ _4 MONTHS 86 THE OIL AND GAS JOURNAL . APRIL 26, 7965 tively to an increase in temperature. • However, the low-gravity'cxude also' -' ' These,heat losses can be reduced by us ing,packers.`cn,:tlre injection ,tub= • had primary producing -rates that includ'ed s,ev e,t a.1, hundred barrels', has a lower price and it maybe-dif ing and boiling the.annuhis;dry. In per day of water, and also on wells ficult to keep the cost of steam stint- some cases insulated' injection tub- - •with primary- producing water cuts ' ulation low enough .to be, profitable. . ing strings may be,desirabl8. How : as high as 95%, -• I The margin of profit for Fig; 5' (8.5°-API crude) is very small, and ;•-evers,till'esem'easures•to,iedt:ce'heat" loss.ard costly arid'the profitability' `' 4` , • Problems it is doubtfulthat any lower -priced of steamstimulafion is reduced ac- - Steam -stimulation operations are crude could be recovored,economi- , cordingly.. ,. -,-;,' . nqt likely to, be ,100.%'-success£uli.•, cally by steam stimulation. '-peepei reservoirs usually require , eyep 'if carefully selected" so that On the other hand, the higher= - a, highex:dnjebtion pressure; which' •.favorable coti litionS',exist, Failures gravity crudes 'with higher prices ':means„that high6inpressure steam=,•''can range from' complete loss of the and lower viscosities do not respond' "im j.e�,af iron- etjuipment, may; be rE'-, • 'Nell to •'th'e' pr6ductiog of 'slot ,quit$, ;- • ! well to steam stimulation. Acom- ctuired. The Yrigh---pressure equip-'' � n o u h iricremental ,oil fo brgak parison of what might be expected' nient' Costs more , initially . and few ' 'even with the costs. ' for two exudes of different AP) quires mote horsepower;to 'operate. gravity is shown for •two cases: ' Also; •ibis likely that'tlje,;existing •. ", Injection •rate: I$w steam -inject Case 1: Wellhead: will, to be replaced _ tion rates may "result in, an ,eco- -A s h al;low, low - temperature with one bf a higher .pressure rat- - _ nomic failure. For exaMpie, if steam (1000 l .),., low,pressure, (50 ', psi)- "ing, • . '. ` ;Venerator A; has• italfi 'the• capacity .,,' generator " reservoir contains' 12°-A1?I crude ; . These' factors; plus, the gene"rally:. steam generatoi. $; it will Yake� 0 oil. From Fig. 1, reservoir viscosity '_higher cost ol,working on and' prb-'-'- twice as. long -to• i•aj eCt a given' should be about 2;000 ep. - When ducing a •deeper well, put -wells be- -in""' - amount'of •heat. Reat losses are pro-., - heated to' -300A F, of „500 .psi;;.the. '' low;'3;000., ft categoay;' , ,potfional to temperature; differeriee „ viscosity should drop to about 12 When •considering' p r os.p ae't s, for arid' time so that ;f]re heat'losses ep, a decrease of 166 times,, -steam stimulation:-, - the well,boievill"be approziniately' ' Case 2: A deeper., moderate=temperature.. priniahy production' Yafe.• Steani' 's-timulation r double with generator A. compared, ;to, generator D. For conditipns there " (1.400 F.), higher --pressure-(1,6.00 . is not a •cure=all•. Ares, _; ,heat losses are a sitiabie fracfion-of • '. psi,) reservoir con-t ai ms 20• -API ervoir that will not produce any pri- " heat input, am - sall'steam generator . .- crude oil. From dig. 1, reservoiC;: many -oil because pE lack of perrciea-, -•away 'yield' ,vexy,'pbor results coni-. viscosity 'should be about 12' cp. ' bility or:reseryoir-pressure is a poor paredr`to those 'of it larger ,steam • When heated to 3000E' at 1,000 .''steam -stimulation cars& ate,. If- generatoi•. ' psi, the viscosity, should 'drop to steam can be injected' into4ber:res- about 2 ,cp, a ecrease of ,6 times. ervoir; oil' or' -tan in'hilace can' - Casing failure., One of .the major" - Obviously, the increase in, pro- .and be -heated; to reduce the viscosity; causes -of steam-stimitlation• failures' duction rate and ,the amount of in- calculations might indieate-.that ,the '- 'is c a sing collapse. If a 2 000-ft - , cremental oil produced.will be much; production', rate will increase 'many, string of +caging is heated 400-'F , greater for Case' 2: 1 than for Case . : hi times: owever, many'tirnes"zero is it will expand, !about' S'-,fti'1f it Is With the expected sharp decline in still zero, and,thd'steam-stimulation free to move,,If it, is Dot' free to ` temperature and •producing rate that process is •hot'likely' to create com- ' move,, the;, casing- may buckle ,and'- follows a steam-sthaulttion treat- , rne'rcial -oil production where ,none fail Under .the resulting cogipressive , - went, the incremehtal'oli production' -;' has ever' existed: • Other ' processes; . gdcss: The increase i L "temperature ",be ' in Case 2 would be relatively smal 'such , as - a -steam' drive or combus- of the -well ,casing, can reduced', and steam stimulationwould #rob- lion -drive, may be required- to xe- -, ;by,the use of a packer, and, injection- - ably,.notbe ccongmical: Experience- ..cover •-oil in reserve, this type,:.- -tubing„ phis,•'oi,couisg,,'-"mereases, indicates that unless norma%.reset= the cost of the-.4c' attdn.; voir viscosity -is several hundred. -. -producing wafer cut. High ,pro- cendpoises or more (corresponding. '-;ducing' water opts can' ocean under•, .; other RroblcMs.:Some other oc-' t to about 150 API,ox less), the'pros- whdely 'different .conditioiis, . either -: ` 'curren6es that have, resulted ill fail;- ,' , pect is not likely to be ecougmically with low or high: total fluid produc- ur, of a •particulax 'steam-stimuia successful for steam ,stimulation: lion , rates, and with water .produc- tion, ,effort axe;' j P tiou•fiomeither,anadjaeent;zone.or, 1. Steam,generaiing,equipment, ' I Reservoir depth. A deep reservoir ', from the same' zone falorig'with; the , ' failed rinechanically. y „ is less attractive as .a steam=stimula oil. Iris, therefore; difficult to. make - 2. Packar failed, tion candidate because: lngproduc- a genera.statement,relati '3.-Required injectionpaessure 1, A deep,e,x 'bas•,,a idgwatercut,agd,steam-stidulatioit'', was,too,high fot,the,generator.; - j .reservoir higher normal -reservoir tempera- •success. iTt is; true -that high oil -` 4'. fih'c v✓ellt sanded up with- re;.' '. tore so that, if the saq:e were production will be 'less. profitable sulting: loss of -time antid ,heat: -oil heated to the same- temperature in ; 'a deeper reservoir, 'there, would be,'- than clean=oit'liroductiori. However, a high Water,',cut;alorte.is, not -a .good` 5, -Oil-water emulglons have: - ''Caused• jioductioh-- difficulties. less viscosity reduction than for a; reason td' elimiriafe an.'area from . ` , 5..conomies cooler, shallower reservoir. 2., More heat: lost in the longer } list of .potengal,-,ste'am-'stimulation ;projects. 'Steam stimulation, has been „ 'There is no genetai rule of thumb well bore of the deeper reservvon•. completed psoEita*y on wells;that•' ;available'tq'evaluate.thoieconomics , JB:L Casing Good Egtilpmeyit . 0 . J&L Slim Hole Tubing t Al. LACT Units I Turnkey Waterflood Systems o£,•a' p r o.p o se d steam-stimulatiokr project. Rather, one must consider' the specific set of condition's which apply to the project being evaluated'. The pximq.i,p-al components of steam -generation costs -,are: 1. Fuel 2. Water and chemicals: 3. Amortiation or rentalof 9team- generation equipment 4. Labor Other major costs"are associated.' with the wellJtself-and• are not di- rectly related ,to theamount of beat . injected. This list might include: '1. )Jell pulling , 2: Move -in and hook up 3. Packer, 'if' used ' 4. Mariging. wellhead, 5. Aggravated oil-teating prob- lems ,6.-W,ater disposal' 7. Additions to produtiing.egtip- ment $.,Added supervision These other',cpsts'oam•eaSily';eF-- ceed the actual cost of generating, and injecting steam.' The .greatest potential for cost reduction is, in: this, area qf- costs not;,directly related"to steam generation. Control of these costs is often the determining fac, nor in the economic succesSiorfail' Lire of a steam -stimulation, project: Specific cost figures vary wrth each ',project. One, way, to express them is on the basis- df';dost per mil' - lion Btu injected'. This can then be related to the barrels of incremental oil recovered -per ,million,,B•tu.•inject-°' ed to- develop cost -per -barrel fig- ures. It is also a handy, yardstick •for compar}son of costs of different projects. 6. Whot'to expect tiolitif,to.•the temperature difference are, sev=, (liarnionic $eclina),'111iere . eral• reasons why -'actual xecovey 4nay differ, frord,the calculated xe- covexy7,'.ITowever; '•this 2hzoretical , method' is ,of, value'- in .comparing steam-sfimulation•prospects_and aids : - in understandiiig'the perforinanee of, .:«e,,..a ,:«:.,,.:r iva•c, ell - , . Steam to ;be su( 8•e tb,10 Jess- than all' Viand cannot• be applied •every- 'tyhere with success. Many, mistakes and failures will occur'before"this process•becomes as wel'-uaderstopd as ,but o1A6.'r, s'econditiry-recovery ,techniques'.- . , • The 'Weasure,of'suecessds the im proved'-profit?,froria,%increased pro=.. s. duction. Where steam stitnuation is t is most likely -, applicabl'e, the method is a valua- crude 'oils, from• " ,ble and- ;profitable addition to : our, a , at=deptlis'of;' secondary -recovery 4eoliniques,,' ; nd'in welis.that - This.papet`was presented at the, :rciafpro ducers: _ .spring meeting„ Southwestern Dis- are_les9-attrac-'•u trig,;ApI-pivisioii-;of'Production,'; ill maybe prof- j ttllas,• NTa. 1'0-12, lfable, _Steam stimulations• may fail any IL'eferences :'•' .Where for a••vhriety ;of reasons} and' r'; Morris Johnston' anN d, . vati 'Wjngert, the' degrbe• of failure ranges from ` "Glossary•bf- Terms and Definitions Bee., . ;aornplete; Joss of the yyell to She loss=, ..;of onl)t••a,feW dolla'rs.'Gasing;•fail-:i • gaining to Secondary Recovery Operations": Submitted- to API Standing, Subcommittee Setondary,HteooveryMethods, 'of' ,•'o pdh,2d; as, '';, ' ores are tfie'ihose costly •form ,1 : •' •' . 'failure. ;Slot) injection rates and H.h-eaE.lose •net ' 2, Charles. H.-'-Atkinson, and, robert•T.; Sohansen, A S,tgdy•of• the•keasibih'tj of -,:Ili ;1112. •kes.lt:lil' g y R Using.,lYudear txploslpns to Increase, 1',e. , . hedf-injectionrate',too; smad,,i6yiel'd:. , • teolcu;m RecoveryV:'Rii 64gA, ,USBT$„i964:',, •.,,SUCce65fn1 r'esultS _; - - • ' - 3'. 'Carlton', eal, ."The Viscosity,,'rot' •,Wr � Steam Stimulation can be profrta Water, c ated- Gases -Mt 011-Fiela - Temperdtures ble if;jpgos(ects are' carefully se-, • -and; Bress4rW': ;)trans. AWk •(1946), 16$, ected anddusts are.kepr.to a mini .. 4'. ASTM Committee-D-2, ASM. Stan- _mum .; - - _ - • Steam-st'imillation• is not 'a' care- - dards :on Petroleum. Produtts add- Eubrl• -. Canis; October 14 , p,'' 239. i ,i . j IP..sees, fanner expo 'n,.,1'6.6 EXIfIBiI SPACE is =52% sold; Shown here are ,three •key TPE of - representatives of the 50 states and, ficials,.' currently Javolged in plan- m6re,than.60,•foreign, cquiitries are ?ling for • •o'Vetseas exhibitor's and, being invited, and indications a'year guests., They are, left'to riglit, TRer- in advance •of the, Iuternational' l'e- _, bent C., Fries,.Tulsa, Portable Gas- troleum Exposition' May 12 .to 21 t • oline Plants, Inc.;• 6, 1?:, Williams,, 1,966,`iu•:Tulsa,,poibi"�to one'of the. • •-DowelldiVision,.06wo Chemical,c6. greatest, industrial and equipment.: TuIsa,' and W: K., Warren, Tulsa, exhibrUoirs-.in business'bis•toxy: presidem of IPE. r+ _ Al. Pump Units •.`'t, Electric Motors Fairbanks -Morse Engines Power Oil Pumps �M.�]*4 "o �y tom Hole Pumps Sucker Rods Expert Pump Repairs G.. jj K p 4{ r t 4 a "A 9 nping Units Valves, Fittings, Flanges AL-Jetco Chemicals 'T tiJ Gila ppl V JEL�.I�:LRL�Lii. ,s, Pl rannr�r�n can Tb� LD)M&''4 to_ sal 305, R, More than 5,000 •B"Ql I" VYol OneSb ave been. designed, fa �,i C ated, and delivered for -fluid' , ffuid 6t-, crackers. At Buell's,exte'risive shopfac-ilities, .,c es arefabricat6d,from, carbon aWalloy steels y -A I , 1 :-, 'finings'. 4i 6 ' 'nd"h fshop-i nstal, ed,rpfracto �in s of each ... with and without 1' �r hundreds h,type are, operating efficiently, proving daily that Buell. offers ari-Omatched'record of service-tothe petroleum re- fining industry .,That's why'four out of. ive, cpta'ly'stxeqOv6ry systems,util ize,Buell , vT Cy6lo nes, ,vow what T'd, do? - P'd'se,e Hou'sEdnIs: rirst City National That's the'bank that -know.s the 6i'kbusines's." F F M RST C LTY KOE-HoUSTONNAVON, �iL- BANMEB:� F.b How Cities planned for Built-in preventive maintenance Program starts with maintenance procedures for individual parts. These pro- cedures are then merged into an overall program which takes into account the special problems of gas -processing -plant operation. SINCE FEW pieces of equipment in a gasoline plant have standby spares, equipment downtime usual- ly means a loss in operating revenue. In most cases this is a permanent loss because the gas has to be either flared, lost to other producers, or sold to pipeline companies without processing. The operation differs from that of refineries and chemical plants which can schedule turnarounds, and pipeline companies which will have slack periods on compressor requirements. These companies can plan their maintenance programs more on the turnaround principle, while the gasoline plant is suppos- edly a 100% on-line operation: Daryl F. Southard Preventive Maintenance Supervisor Gasoline Division Cities Service Oil Co. In gasoline plants the equipment will vary from intricate instruments to large stationary engines of the 2,000-hp class. The maintenance crews will consist of as few as two up to possibly 15 men. Plant loca- tions are widely spread. Type of plant can vary from the small re- frigerated unit to the main -line plant with complete fractionating facilities including catalytic reforming for making motor -grade gasoline. Overall preventive -maintenance program is divided into three categories Fig. 1 PHYSICAL CONVENTIONAL SPECIALTY INSPECTION TYPE TESTS TYPE TESTS PREVENTIVE MAINTENANCE PROGRAM PREVENTIVE MAINT. FOR OTHER PLANT EQUIPMENT PREVENTIVE MAINTENANCE INDIVIDUAL EQUIPMENT TESTING TESTS ARE PHYSICAL INSTRUMENT NOT JUSTIFIED EXAMINATION CHECKS CONVENTIONAL SPECIALTY I TESTING TESTING LINSTRUMENTS' INSTRUMENTS Setting up a program. The items which make up a good preventive - maintenance program can best be understood by breaking them down into four main categories: 1. Equipment testing and checks. Specialists are needed for certain types of instruments and equipment. Since most individual plants can't support specialists, they should be made available to all plants on a continuing schedule. 2. Proper records. These are needed to watch and improve equip- ment performance. At the same time they can be used as a basis for evaluating new equipment pur- chases. Only records will give main- tenance problems a basis for invest- igation and solution. 3. Maintenance scheduling. After procedures are developed for main- taining each part of assembly of parts they should be worked to- gether into an overall program. 4. Education. Unless repair work and methods conform to the best maintenance standards known, it is virtually impossible to reduce main- tenance expenses. Equipment tests and checks. There are two main categories of testing instruments. They include the older conventional pressure, temperature, and measuring -type instruments; and the newer elec- tronic instruments. The reason for dividing instru- ments into these categories is that the electronic instruments usually require a specialist to operate, while the older instruments can be used by most plant personnel. Too, the electronic instruments are more costly to buy and use than the others. It is important to understand that almost all equipment or parts can be tested by some method to deter- mine their .condition without the need for an overhaul or physical THE OIL AND GAS JOURNAL • APRIL 26, 1965 93 L'M. P...... nMtlnNiuno hhldull MI Yuen Forms simplify preventive - maintenance scheduling Fig. 2 "c A: MMIhZ p.4n1.Alullul 8.,.11 AlPnet AD i. Yn Nel Ynhln t • I- C . Anvuni hpnn S'A 6. EMrt pl.el Pivp K- p . PaM ClunlnF II .l4pntnn M AI-.rYn exh plel Ne lvv !ae AYttO Aye1 Mvy !mv ury Ay Np A•➢.G A A _ _ A•_ _ A A A•II.� A _ A - A--_ A - - A r A-O-C A=_ A-D•E A_= A__ Ate_ A- Ai - IA-D•= A_- A-- A•-- A -_ A-_ A__ A__ A.➢.E A _ A - A•- _ A A --- A --- A• --- A _ --- A•� _ A A A-➢-C A - - A _ - A•.._ IA _ A _ - IA•II- A _ _ A - A• A - - A- - A - A _ A.D•C A A A• A A A-D.� A - - A A.➢.G --- A --- A _ - --- A• - --- A - - --- A _ --- A.➢•- A _ - --- --- A - - --- A.� --- A - --- A - --- A•p.G --- A _ A•II-C A - A _ Ay A - A:: .A•D.- A A A. A A A A . A.➢.G A A - A.- _ A - A - - A-➢•� A A-�- A A--- A-- A-- Mp.0 A A-• A•-_ A__ A AA•_ A__ A M A A_- A__ M➢.0 A- A_ -IA.-- A -. A A.S.- A-- A__ A A_- A'-- A_- A_- A.➢.0 A_- A-- AL- A-- A_- A.b.� A-- A.bE A A_- A-_ A__ A -_Ab- -L. A A__ IA.�_ A _ A_- A.D-G inspection. Based on this fact, the cost of testing a piece of equipment has to be weighed against the ex- pense connected with any failure. For instance, it is usually cheaper to change oil in a high-speed engine every 60 days than to run lab tests on the oil to check its condition. The cost of lab tests probably will be around $25 for the 60 days versus the cost of oil at $24 for a change. Chances are great that the lab test will show the oil needs to be changed anyway. This example should not be in- terpreted to advocate the elimination of oil tests on a high-speed engine. It means rather that the oil can be checked by cheaper methods, such as field spot tests both for oxidation and water. A preventive -maintenance testing program should start with the small- est piece or part of apiece of equip- ment and work up into the overall program. First, it's necessary to decide which of three routes to take on each part or assembly of parts: • The cost of a failure will not justify the expense of inspection or tests. • The part should be physically How preventive maintenance is coordinated with regular maintenance Fig. 3 YEARLY PROGRAM PREVENTIVE FUTURE MAINTENANCE TESTS PROJECTS P. M. PROGRAM TESTING MONTHLY UNSCHEDULED RESULT WORK PLANNING PLANT MAINTENANCE MANPOWER MATERIAL AVAILABILITY CHECKS h PURCHASE UNPLANNED WEEKLY PLANT WORK TOOLS rt MATERIALS GAILY EM ERCENGY .IOH 'PLANT ORDER WORK 94 D iHt OIL AND OAS JOURNAL- A9RIt 36, 1965 Now available: a new booklet fromAmAir Liquide on LNG �. m:mruawmano.w,.,,n,vn n Air Liquide, one of the oldest and largest cryogenic engineering organizations in the world, has prepared an informative booklet on liquefied natural gas for peak shaving. Along with discussions of some of the eco- nomic and technical questions to be con- sidered by anyone seriously contemplating the use of LNG in his peak shaving opera- tions, many useful graphs offer guides for making first numerical approximations of investment necessary. Other extremely useful features of the booklet include a page of engineering information and con- version factors for gaseous and liquid methane, and a comprehensive question- naire that will help you organize the engineering data you must have before proceeding to the point of requesting an estimate on a turnkey LNG plant. Write on your letterhead for your free copy of this booklet today. For information on specific projects, request an Air Liquide sales engineer to contact you. AMERICAN AIR LIQUIDE, INC: Chrysler Building, 405 Lexington Avenue, New York, New York 10017 1 212 867.3060 IN CANADA LAIR LIQUIDE 1210 Sherbrooke Street, West, Montreal 2, Quebec 1 514 842-5431 Air Liquide engineers and technicians Arzew, Algeria, natural gas -helium have designed and built low ternpera- separation plants at Liberal, Kansas, Lure equipment and facilities for the and Swift Current, Saskatchewan, and world's first operating LNG plant at anore than 1500 other argagenic plants. THE OIL AND GAS JOURNAL • APRIL 26, 1965 95 examined at prescribed intervals. • The performance and condi- tion can be checked by testing methods. By putting each part or assembly of parts into one of these three categories, a program can be devel- oped for each piece of equipment. This in turn leads to an overall program for the plant. The overall program should then be divided into three categories: physical inspec- tions, conventional tests, and spec- ialty tests. A little work and knowledge has to go into assembling an economical maintenance program and each divisional program has to be ad- justed to fit each plant. One cer- tainly cannot maintain a 40-year-old plant the same way as a modem -day plant. Identical equipment down- time costs in one plant might be $1/hour, while in another plant they might be $1,000/hour. These costs will definitely affect the outlook for equipment checks and testing and will make it neces- sary to adjust the program for specific applications. Scheduling. After completing these steps the program can be put m J=DPY Overhaulforms used LOMX-BSHAFT E to record BMX-IO data on crankshaft ( = work WRISE FIR Fig.5 < LH RH A R0D CROSSHEAD PIN i SEARING O z W D ,) )3 DMNN BLARIHD W m CROSS BOLT-_.. M y cpp BOLTS - C STRAIN BAOOC OIAWAM 96 THE OIL AND OAS JOURNAL • ApRIL 26, 1965 Typical Performance Curve 500 450 90 400 00 0350 TO ,1. W300 00 a ¢ t 0 250 050 W e 2 4.200 W40 W W O 4150 JO W N ¢ =100 20 50 10 0 0 orm, pump, ush more enicienoy W1111 NATIONAL Toroue converiers Drilling goes smoother with a Torque automatically increases to perhaps even the hole itself. NATIONALO Torque Converter. Trip match load —providing, within limits, For information on the complete line time is reduced because its torque- the same effect as a liner change. of NATIONAL Torque Converters for multiplying feature provides the pull Fishing is less troublesome with a engines from 100 to 1000 hp, call your to start and accelerate the drill string, NATIONAL Torque Converter on the job. National Supply representative or write then automatically and continually Load on the blocks can be inched up National Supply DIvlslon, Armco Steel adjusts to provide, for a given horse- or down, or held steady, by throttle Corporation, Chamber of Commerce power, the fastest speed at which the control alone. Thus you save time— Building, Houston, Texas 77002. string can be lifted. Pumping of mud is efficient, too. With the help of a NATIONAL Torque Con- verter you can reduce the number of ARv 0 National Supply Division liner size changes required. Speed of the converter output shaft decreases'as mud pressure increases with hole depth. THE OIL AND GAS JOURNAL • APRIL 26, 1965 97 Typical form used to record piston - cylinder measurement Fig. 6 together to cover all justifiable phases. It's then necessary to de- termine the frequency of equipment checks and inspections. These usually are determined by balancing the costs of the tests against the value of the equipment. Experience shows that most of 00. 09 00. IO9 IHD Of GI Np WS O] C INv Dx CI Nn (I ND Of G N. Qd' 01 0] OD I 1 I f � 0 the conventional instrument tests should be performed at least once a month, if not weekly. These cover such items as the "signs and indi- cator" tests, balancing instruments, listening devices, and visual and auditory inspection. Depending on cost, physical in- spection should probably take place semiannually or annually. Equip- ment should probably be tested by electronic or specialty instruments every 2 or 3 months. Electronic instruments will provide more cov- erage and better test results for less money than conventional test in - Computer printout of preventive -maintenance records Fig. 7 PLANT - AMNROSE ENGINE TYpE54- LPLV�G_ YEAR 1943 DATE RF OtL CHANGE 9I 5/64 OWN PEA CAN R FEB 2 U27 9 3`Pnit 19 11 49 15933 SyHR 17 7 4 2 5 0 4514 5954 9453 HAY I. 0 Z 0 0 TS sl 90 269 94 p 110453 9 64 9 933 19475 1104z 53 0 0 0 0 0 9 0 0 6674 7418 1 {73 10917 JUL p 8 UO AMT BERP 9�Q0{ 30 164 1906101 p269 H 194p9 1929p9610 0 9 12381 AUG 26 1{ 8 RYOTS V g9 'gRe02 OCT 80 M90 0 90 12 212 24208 12 212 24209 0 0 0 15�99 AIR CRAVK MANF. J.X. L O. OIL OVER CRANK PI AVG FXH NEUT VI FILTER CAS SCAV. DIMF. DIMFA. FILTER DROP SPEED RPM SP PMO POMP MFTLR PRESS CXRESS U P C FEU 2.5 72.a 0.60 APR 2.9 73.3 S.04 8.Gb 0 11 24 B JHN 2'° 73.5 0.14 U JUL 2.T 75.4 Q.31 O.L2 16 l4 AUG U.5 66.9 0U !.5 6 6.6 15 12 440 40 0.2 SEP 1.2 69.1 g .00 1.4 0 7.5 14 5 44 40 OCT 1.0 69.7 0.00 1.4 0 6.5 15 67 44G 1.4 9.6 12 DEC- 1.7NOV 0 44 40p B.OEARINGI CHANGEER g0.0 T.IGNESYS.-COIL GRREpJEpP. P.UILI CHANGGEVE V.FUEL VCALVE CHGE. 3.SCr'MI-ANMUAL JRP D. GECARBGNVPORTSE� KOOµSSHEAO REPAIRP. q.RUD PACKTNO %.STA TO.SYS.'REPAIR 5. PRUIIEGTREGO.CK. E. POWER CYL. CHErG,,E. L.LUB.SYSTEM REPAIR CHGC. R.PDXER PIST44INGS Y.OVERHAUL G. GOVERNOR REPAtR M.MpGNETO CHANGE T; TUNEKUPIENGI NEE. E.OTHER REASONS &. PLLL��L ANT Ol1XLNL B.AUXIEOFFA LNH.: 98 THE OIL AND GAS JOURNAL . APRIL 26, 1965 struments. They should return better dividends than any other tools available. The use of charts or accounting machines provide two convenient methods for scheduling work. Fig. 2 shows a typical chart that can greatly simplify preventive -mainten- ance scheduling. Accounting -ma- chines use the same principle by punching cards for each month and thus provide the plants with pre- ventive -maintenance schedules for each month. Changes or revisions are handled easily with either method. In addition to providing schedul- ing help, the forms are a useful log for history of work performed on equipment. Accounting -machine forms can also be used as an addi- tional tool to indicate manpower requirements and manhours per job to increase job efficiency. Fig. 3 shows how preventive maintenance is scheduled along with all plant maintenance. The chart shows the coordination of regular plant maintenance, preventive main- tenance, and manpower use. It could easily be called a budget of manpower against work require- ments and should be a useful tool for all plants to improve the work load and efficiency. Record keeping. An important function of any maintenance pro- gram is to have adequate records and methods of record keeping. In order to get the job done, as much pencil work as possible should be eliminated and the forms made simple and adequate. Record forms can be divided into two main categories: preventive - maintenance records and overhaul - type forms. Fig. 4 shows a typical form for recording "signs and indi- cator" tests on an engine. The form can be understood and filled out by plant personnel and it is arranged in a manner that the engine can be tested in a minimum amount of time. Figs. 5 and 6 shows overhaul forms for recording data in con- junction with crankshaft work for a particular engine and piston -cyl- inder measurement for all types of engines. Note that, for the crank- shaft form, different designs of engines will require different forms to record the data. More work will be required to,(I aw up these forms, but pertinent data can be recorded on the back for ready reference by repair crews. There is no justification for keeping records unless they are used to improve maintenance and reduce costs. Fig. 7 shows how four engine preventive -maintenance records are assimilated by a computer to give a good picture of a particular engine's performance and condition. The printout should be useful for both management and repair crews. Education. Education is one of the hardest problems to solve and one of the biggest stumbling blocks to any preventive -maintenance pro- gram. No program is any better than the personnel who carry it out and maintain the equipment in- volved. Personnel hired for gasoline -plant maintenance in most cases have had very little training in equipment maintenance. There are two methods of on- the-job maintenance training. One is to take the school to the plant, and -the other is to take the super- visors to the schools and seminars available on maintenance. The second method is the easier, except the information often is not satisfactorily passed on to the per- sonnel doing the work. This is not intended to criticize supervisors but to point out that they are heavily loaded with overall responsibility and cannot devote much of their time to training personnel. A good way to take the school to a plant would be to use a company - sponsored serviceman to educate plant personnel with on-the-job training. In this way they can be exposed to theory, methods of man- ufacture, factors in machinery de- sign, and shown with actual applica- tion how to properly maintain and repair equipment. The second-best approach would be to use the services of equipment suppliers to conduct these training sessions using films and actual demonstrations. The program requires a continu- ing effort because of the need for retraining„ personnel turnover, and technological advances. Original presentation was made at the forty-fourth annual conven- tion of Natural Gas Processors Association, Mar. 25, 1965, Dallas. Truck crane displays muscle THIS 60-ton truck crane easily moved 71/2-ton lengths of somastic and concrete -coated pipe at Belle Chase, La., yard of Anchor-Wate Co. Inc. Anchor-Wate coated 72 miles of 24-iri. line for Columbia Gulf's pipeline between Lirette field and Venice, La. The 70-ft boom on the BLH Lima 600-T truck crane handled 100 to 500 40-ft lengths per day at reaches up to 60 ft. THE OIL AND GAS JOURNAL • APRIL 26, 1965 99 rl 'stow, A Reading and Bates specifies Reynolds Aluminum Drill Pipe again for maximum efficiency and dependability in offshore drilling. No doubt about it —Reynolds Aluminum Drill Pipe provides even more advantages offshore than it does on land. Witness Reading and Bates Offshore Drilling Company, Tulsa, Oklahoma, who have recently spudded in offshore on Rig #7, some ten miles south of Leeville, Louisiana. They're using Reynolds Drill Pipe again —another 13,500 foot string, equipped with 4%" I.F. Reed ALSTAN tool joints, Reynolds Drill Pipe makes a string that is lighter, safer, easier to handle and more efficient than a steel string. These are vital advantages on platforms, jackup barges and floating vessels in offshore operation. LIGHT WEIGHT MEANS EXTRA SAFETY —Because the aluminum pipe is lighter. Reading and Bates reports it can be handled and stacked faster —a big safety factor for floating vessels when storms and rough seas threaten. The aluminum pipe in this operation is racked in thribbles weighing 966 lbs.; a steel pipe thribble weighs 1,608lbs. When the aluminum pipe is racked in the derrick, its lighter weight makes the vessel more stable, especially In high winds. It is also easier to handle between work boat and barge. The flexibility of Reynolds drill stem gives drillers another advantage. It withstands abnormal stretching, bending and twisting forces caused by pitching and rolling of the vessel, A 30-ft, joint of Reynolds Aluminum Drill Pipe can deflect (within safe stress limits) nearly twice as much as Grade E pipe. PERMITS SMALLER HOISTING EQUIPMENT — Reynolds Aluminum Drill Pipe also offers advantages on jackup barges and on self-contained platforms, where weight and space limitations are critical. The lighter aluminum strings permit smaller and lighter hoisting equipment, larger engines and pumps. Larger stocks of mud, fuel, chemicals, and other supplies, can be carried, enabling a rig to drill for longer periods without replenishing. This is an important factor when supply boats can't reach rigs because of storms or other unfavorable weather. HOOK LOADS REDUCED —Stability in high winds and rough seas is improved. On water locations in frigid areas, the additional crust -ice loads forming on the platform can be more readily tolerated. Due to the lightness of aluminum drill pipe, it may not be necessary to remove the pipe from the racks on some rigs when moving to new locations. Also, aluminum strings used In heavy muds reduce hook loads to one-third that of steel strings. Long fatigue life and excellent flexibility Don Bokenkamp, Reading and Bates drilling superintendent, Inspects aluminum drill pipe on Offshore Rig No. 7. ' characteristics make Reynolds Aluminum Drill Pipe the most suitable tool for directional drilling off platforms. .Weight reduction, improved hydraulics, resistance to sour gas, brine, air and aerated drilling fluids, better resistance to accident damage, greater dependability —all these properties of Reynolds Aluminum Drill Pipe can help you make your operation more profitable whether your locations are on land or offshore. For more details or for free brochure, "Reynolds Aluminum Drill Pipe," contact your local Reynolds office, or write Reynolds Metals Company, P. 0. Box 2346-KR, Richmond, Virginia 23218, EffREYNOLDS whes take shape in Are new LUMINUM Watch "The Celebrity Game," Thursdays, CBS -TV THE OIL AND GAS JOURNAL • APRIL 26, 1965 101 0 N HEAT TRANSFER Part 42 of a Journal series COEMCIEtiT of HEAT MA1SFFR by TMOTAL RADIATION between SWO PARALLEL SMFACFS Surface configuration - surface element dA, and a rectangle whose corner is contained in nor_^.al to dA Surface character - gray or black Dr. E. B. Lauer Professor, Department of Chemical Engineering, University of Colorado 0 Radiation between parallel swfaces An element of sur$acc located on +he newmal thra4h a corn" of a rectangle Gas space - filled irith nonabsorbing (transparent) gas such as air EQUATION hr=o.l72 Fa Et C7.1(o.oiTtr- (o,oi Ti)° 1/(T-,-r:) Use. dA as the area when computing heat transferred hr - Coefficient of radiant heat transfer, Btu/hour aq ft OF. Ey - Emissivity of first surface. - Emissivity of second surface. T, - Temperature of first surface, °Rankine. Ts - Temperature of second, surface, atlankine. Fa - Configuration factor. LII4TATIOHS i<ie normal to the surface element gust pass through one corner of the rectangle. SOURCES OF DATA Pmzy, Chum. Engr. Htbock, qth ed. pp. 10/3-510/36 MaAtl n , Heat Vniasion, 3rd ed. pp. 472-8 Hsu, Engr. Heat Transfer, pp. 580-7 Part 1 of this series REFfRM CFS Parry, pp. 10/36-10/40. McAdams, pp. 63-80. Hsu, pp. 140-52. y SEMINAR r EME No ���MMMMMMM MOMMEMEMEM MEMIMEMEMEME %MMEMON061- EM M Mi"al I Ne 0 M M M M M EM M MEMEMEMEMEM INTERNATIONAL° presents new dimensions in heavy-dutY haulers THE GREAT NEW COm4OOO Designed for toniOPPOW'S roads and heavier loads .... built by the world's heavy=dutY sales leader m New dimensions in an all-aiuminum wide cab THE GREAT NEW C04000 it's roomier, easier to work, costs iess to operate It's the first full -width all -welded -aluminum cab. The sides are sleek and smooth —with no rivets to pop. And we made this new aerody. namically-designed INTERNATIONAL as wide as legal limits permit. Quite a truck —anyway you look at It. Exclusive —the new easier -to -read Instrument panel. it's newly located —lets the driver know at a glance what's going on. His view Isn't blocked by the steering wheel, trailer hand brake controls or tachograph block. Which means It's safer, too. Inside It's as big as a house. More space at the wheel and in the bunks makes drivers more comfortable —and more efficient. Our berths are 80%.In. long. They're 26-In. wide In the 73-in. BBC model, 36dn. wide In the 83-in. BBC model. It's designed for factory -installed air con- ditioning —with an extra -strong roof and Insulation all around. There's a built-in heater -defroster and a separate optional heater for the sleeper compartment. It's built to keep the driver efficient yeararound. Advanced single -piece 110,000 psi drop frame —there's nothing like it. Perfect for accommodating wide V-diesel engines. It also lowers the engine to make maintenance easier, more economical. And allows more room for the driver's compartment. It tilts forward 450 or 900 (optional). The whole CO.4000 cab tilts hydraulically —no sweat, no strain —and there are check valves to keep it safe. The frame -mounted intake and exhaust system also cuts maintenance. More efficiency. Exclusive —new center -tread axle. It makes steering easy —without costly power steer. ing—but keeps the "feel" of the road. You can get one with either 9,000 lb. or 12,000 lb. capacity. Conventional 16,000 lb. axle also available. So is integral power steering. New dimensions in engines, features and options THE GREAT NEW C0m4000 50-in., 734n. or 83-In. BBC; up to 79,000 Id. 6CW They're tractors for the future. Every CO.4000 chassis is in the Yellow Pages. Or call Mr. R. E. Scott, Manager of Fleet designed to handle larger diesel engines. They also have wider Sales, International Harvester Company, 180 North Michigan cabs, long -life components, easy -to -steer center -tread axles, Avenue, Chicago, Illinois 60601. and everything else you'll need Ina tractor to make money. INTERNATIONAL TRUCKS The whole CO.4000 is so outstanding that you should get complete Information about sizes and, engines and features and options. See an INTERNATIONAL Dealer or Branch —listed "Build a truck to do a Job -change It only to do It better" n AD-7aSe-RX.1-Ps nix- 1-1i 11 ruurc u,n:.n,xrvne Pipelining high -pour -point crude 2. Temperatures and burial are critical factors in line design British Petroleum buried eight locations on Libyan temperatures as basis ft tivity of soil. TWO FACTORS, other than the properties of the crude itself, exert a major influence on the design of any particular pipeline. They are: 1. Ambient -temperature condi- tions in the locality of the pipeline. 2. Whether it is buried or above- ground. When the line may be buried or aboveground, it is sometimes argued that there is an advantage in having it aboveground so that heating of the sun's rays can assist in degelling the line. However, in regions out- side the tropics it will most usually be found that, unless the line is thermometers 3 and 6 ft at pipeline route to obtain ground it calculating thermal conduc- P. E. Ford, J. W. Ells, and R. J. Russell British Petroleum Co. Ltd. lagged, the night ambient -tempera- ture conditions will often cause a marked reduction in throughput. In extreme cases it could even stop the line completely. This situation could also arise during the day if the sky is overcast. If the line is lagged the rate of cooling is reduced but so is the effect of the sun. In many parts of the world there are sufficient data to make a reason- able estimate of minimum ground - Temperature profiles —Libya line rig. 2 150 Terminal area U.Benghazi_ N 140 N Pipelines T4Z' 120 Concession 65 - of Libyan pipeline route 110 Sand Rocky.Coasto a 100 _ strip E � Equilibrium temperature condition for 100,000 bid 80 of line after 12 days shutdown /Temperature BO _____---_ 75 __________ __ Minimum ground -temperature condition — — — — — — — — ---- 70 --------- --�'-- — — -- 600 100 128 156 180 200 260 300 320 400 Pipeline distance — miles temperature conditions to be ex- pected at the pipeline depth. However, for the route of the new BP -Hunt Libyan pipeline no such information was available, other than a few measurements taken in the field at the drilling rigs. •- Thermometer use. Thermometers were installed at depths of 3 and 6 ft at eight selected stations along the proposed route to obtain ade- quate information. These were read at intervals of 2 weeks for 18 months. A true record of the ground -temperature conditions for these depths was obtained. Available meteorological condi- tions for adjacent areas were studied to see whether the time when these ground temperatures were measured did, in fact, represent a typical year. Even at a depth of 6 ft it is possible, under the most severe winter con- ditions, occurring, say, in a 25-year period, for the minimum ground temperature to be some 2° to 3° F. below that occurring during a normal winter. . Although not so critical as the minimum ground conditions, the ground -temperature behavior at other times of the year is also of value to examine the behavior of the line throughout the 12-month period. As a result of these readings the minimum ground -temperature pro- file for the line as shown in Fig. 2 wag chosen for design purposes. It was decided that the line would be buried with 3 ft of cover. Soil thermal conductivity—K The type of soil along the 320- mile route of the Libyan pipeline can be divided roughly as follows; the first 180 miles from the field is sand and the remainder is rock plus a thin covering of sand varying in thickness from 2 in. up to 2 ft. THE OIL AND GAS JOURNAL • APRIL 26, 1965 107 Sand section. The K value for the sand section of the line was mca- sured by using a soil thermal -con- ductivity probe at a number of positions along the route. Each determination was made at two depths, i.e. 3 ft and 6 ft. For most normal soils, the K value at 6 ft will increase some 109b above that measured near the surface, due to the increased compaction of the soil. The probe had been used exten- sively by BP for determining K values in connection with the design of fuel -oil lines at many places throughout the world. If used care- fully, the thermal -conductivity probe can give reliable estimates of the K value to within about —10% for homogenous soils. As a result of the tests, the K value selected for design purposes for the sand section was 0.3 Btu/ft/hour/OF. Rock section. The probe could not be used for the rocky section. Quoted K values for rock are very much higher than for sand and are of the order of 1.25 Btu/ft/hour/'F. To protect the wrapping during backfilling of the rock section, the specification calls for a 6-in, pad- ding of sand. The preliminary calculations in- dicated that the K value for the rock section was quite critical. It was decided, therefore, that the effective K value for the sand/rock combination should be verified ex- perimentally. The test was made at Benghazi where rock material of the same nature occurs. Benghazi test. A 12-ft 6-in. length of 14n. pipe was buried to a depth of 24 in., the thickness of the sand padding being approxi- mately 4�/a in. A ]seater cable was installed inside of the bottom of the pipe and the pipe filled with Libyan crude oil. Thermocouples measured temperatures of the oil, pipe wall, and soil. Heat was supplied to the cable at a constant rate. By taking temper- ature readings it was possible to arrive at an effective K value for the combination as given by Equa- tion 1. 2Tr & (Tp — Tg) H — (1) log, (4M/d) Where: ■■■►\■■■■■■■■ H= heat loss to soil, Btu/ft/hour Ke=effective thermal conductiv- ity of the soil combination, Btu/ ft/hour/°F. M = depth of burial from surface to center of pipe, ft. d = outside diameter of pipe, ft. Tp=pipe-wall temperature, OF. Tg = ground temperature at depth M and at a remote distance from the pipe, IF. Formula 1 is the classical formula for heat losses to the soil from it buried pipeline. For this type of construction where the padding around the pipe is of much lower K value than the bulk of the surround- ings and the thickness of the pad- ding is less the 30% of the total cover, it is possible to make some simplifying assumptions and arrive at the effective K value for the com- bination, provided the K values of the two materials are known. The assumptions are made as fol- lows: 1. The padding around the pipe is regarded as a uniform thickness. 2. Tire outside of the padding is assumed to be at a uniform temper- ature, i.e. an isotherm. Making these simplifying assump- tions, it is possible to derive the effective K value as follows. Since the flow of heat across the padding equals the beat flow from the outside of the padding to the soil, we may write: 2arK. (T"—TO_ log,. (D/d) 21rK, (T. — TO log„ (4M/d) 2vK, (Tv — TO log, (4M/d) and solving these equations for K. gives K, = K. K, log. (4M/d) (2) K. log (4M/D) — K, log,. Wd) Where: K.=thermal conductivity of sand, Btu/ft/hour/°F. K,=thermal conductivity of rock, Btu/ft/hour/'F. T.=temperature of `assusned' outer surface of sand, IF. D = outside diameter of assumed uniform sand layer, ft. Other symbols as given for Equation 1. The heat loss per foot run is then given by using K, in Equation 1. The test at Benghazi gave a value of K,.=0.37. Using the measured value for sand (at Benghazi) of K.=0.2 and assuming a value of K, = 1.25 for rock, Formula 2 gives K, = 0.4 The BP research center is investi- gating the use of graphitized paper for determining the heat losses from the pipe to the soil. Before this can be used, however, it is necessary to know the K values involved. Once these are known, a reliable estimate can be made of the heat losses when any combinations of materials are used. This technique can also be used to investigate the heat losses if the soil is not initially at uniform tem- perature throughout, as is assumed in the classical formula; and for determining the heat losses for a pipe buried in an embankment, i.e., when the surface of the ground is no longer flat. Cooling -down time. In addition to evaluating the heat losses occur- ring under equivalent flow eondi- 108 THE OIL AND OAS JOURNAL • APRIL 26, 1965 tions, it is also important, in the event that the line is shut down for any reason, to have an accurate knowledge of the temperature dis- tribution along the whole line after various periods of standing. The extent of this cooling down will vary along the pipeline in relation to the original temperature profile which had been established under equilib- rium conditions. The lack of data on cooling with no flow, was, in fact, the prime reason for installing the test length of pipe at Benghazi. Although it was felt that a reasonable estimate of the effective K value could be made without any tests, the calcula- tion of transient conditions during cooling down is much more difficult. In addition, an assumed K value for the rock had to be taken from pub- lished values and the variation in these is quite large; a program is now in hand to make measures of the K value of the rock experiment- ally. The cooling curve obtained from the test line at Benghazi is shown in Fig. 3. Gel layer. As the pipe wall cools below the pour point of the crude, the insulation provided by the gel layer inside the pipe must be taken into account to arrive at a realistic figure for the cooling -down time. This problem (i.e. gel -layer effect) is being investigated to see if it is amenable to any computer tech- niques. Moisture of soil. The moisture content of the soil can increase both soil conductivity and diffusivity. This is not significant in the Libyan pipeline. Apart from a very short section near the coast, the annual rainfall figure is virtually zero. If this question arises in wetter localities, there are two ways that this factor can be correctly taken into account. The probe should be used to measure the K value when it is known that the soil is in its wettest condition. If this is not possible, the K value is measured by the probe, and samples are taken and analyzed for water content and particle -size distribution. From these analyses and the measured K value, the conductivity at maximum water content is predicted 5 An alternative to using the probe for determining the K value is to obtain a record of the temperature at two different depths over an ex- tended period; normally at least 6 months. If the ambient temperature conditions are known for the same period it is possible to determine the mean diffusivity, and thence by using samples it is possible to obtain the mean value of K The foregoing was adapted as Part 2 of a four-part series from the paper "Handling High -Pour -Point Crudes in Pipelines" given at the 1965 pipeline conference. Tool provides formation data A NEW TOOL, used in a con- ventional testing string, provides a practical means of taking an unlim- ited number of flow tests and shut- in -pressure tests without unseating the packer or making a round trip with the drill pipe. More accurate and comprehen- sive evaluation of formation condi- tions and possible reservoir perform- ance before the casing is set is claimed. In addition, an uncontaminated sample of the produced fluid is taken at the end of the final flow period. The sample is retained in a separable chamber under flow pres- sure and is retrieved for surface analysis. Volume of the sample chamber ranges up to 2,650 cc. A portable test kit at the surface provides: • Sample chamber pressure • Volume of fluid trapped in sampler • API gravity of recovered oil • Resistivity of recovered water or mud filtrate • Chloride content of water and filtrate • Calculated gas -oil ratio Pressure and flow data taken dur- ing two or more closed -in -pressure test periods may be coupled with test interpretation and calculations to provide more specific data on transmissibility, indicated flow ca- pacity, average effective permeabil- ity, damage ratio, theoretical poten- tial, approximate radius of investi- gation, and reservoir limits. These factors will help the op- erator decide whether to set casing and complete the well and whether the well will clean up by itself or will require stimulation. The placement of the tool, called the Halliburton Multiple CIP Sam- pler, in the conventional string does not alter the standard operating pro- cedure. The tool is opened and closed by simple up-and-down mo- tion of the drill pipe. Alternate flow tests and buildup intervals may be extended to any number of de- sired phases without making a round trip or unseating the packer. Differential areas in the testing string convert hydrostatic pressure to mechanical force to help main- tain the packer seat for all opera- tions until the testing string is to be removed: End Sampler positioned in a conventional testing string TESTER ILTIPLE CIP SAMPLER CKED OPEN BY-PASS TENSION JOINT THE OIL AND GAS JOURNAL • APRIL 26, 1965 109 PROCESSING NOTES Two firms join in exploring direct digital control A JOINT development project for direct control of petroleum refineries by digital computer has been acti- vated by Esso Research & Engineer- ing Co. and International Business Machines Corp. The direct -digital -control (DDCI project will physically explore new techniques for automatically con- trolling refinery operations and other processes. A single digital computer can perform the work of hundreds of conventional analog - control devices and help boost a refinery system to peak operating efficiency. The pilot application of DDC in the new development project is scheduled to start operation this spring in the United Kingdom at the Fawley refinery of Esso Petro- leum Co. Ltd. IBM United King- dom Ltd. will service the installa- tion. The control project is being developed cooperatively by Esso Petroluem and IBM (U.K.) in Britain, and Esso Research and ,.f * FAWLEY REFINERY control computer is being checked out before shipment from IBM's San Jose, Calif., plant, by Robert Martin, left, Esso Research & Engineering engineer, and Dr. Gordon Markham of IBM. IBM systems development in the United States. The central controlling unit at the Fawley refinery will be an IBM 1800 digital control system. This equipment will be installed for the duration of the project, which is aimed at devising new DDC tech- niques for achieving improved re- finery control, improved operating costs, and uniformly high product quality. The computer will assume the task of all the independent control devices. New LNG pilot plant is operating A TRANSPORTABLE liquefied- nutural-gns pilot plant recently con- structed at Oak Brook, Ill., incor- porates many of the latest tech- niques found in full-scale plants. Included are provisions for ex- tracting heavy and light ends from natural gas and a system for re- moving carbon dioxide and other undesirable components from the product. The facility is skid - mounted as a single operating unit which can be transported to any location for demonstrations or to liquefy any desired natural gas available. Supplies of natural gas, compressed air, water, and electric- ity are required to operate the plant. A cascade cycle is used to liquefy ENGINEERS check out new liquefied -natural-gas pilot plant. The skid - mounted unit incorporates the latest liquefaction techniques, including cascade refrigeration. 110 THE OIL AND GAS JOURNAL , APRIL 26, 1965 the product. Natural gas is con- densed by ethylene refrigerant which is condensed by Freon. Water is used to condense Freon. The purpose of the pilot plant is to provide information for designing and improving full-scale liquefied - natural -gas plants. The new facility has provisions for collecting pressure, temperature, and flow data. Gas can be with- drawn through sample lines for chromatographic analysis. Informa- tion gained through use of the plant includes: data on vapor -liquid equi- librium constants and other thermo- dynamic properties; studies of sep- aration of heavy and light ends from liquefied gas; effects of vary- ing gas composition and process conditions; and evaluation of par- ticular gas compositions regarding their liquefaction aspects. Data re- covered from such studies are stored on computer programs. The pilot plant was constructed by Chicago Bridge & Iron Co. Shell building new sulfolane unit A SECOND sulfolane-extraction unit is being built by Shell Oil Co. at its Houston refinery. It will make superior paraffinic solvents for the paint and dry-cleaning industries and a new premium -grade aromatic solvent. Sulfolane extraction is a liquid extraction method which uses Shell - designed rotating - disk contactors. Incoming feed is mixed with sulfo- lane solvent in the contactor to effect separation of aromatics. The major pieces of new equip- ment will be two rotating -disk con- tactors. One will be for the sulfo- lane-extraction step and the other will be for washing the product stream. Existing fractionating towers, along with other process equipment, will be rearranged and revised for use in the new process. Completion is scheduled for early 1966. The first sulfolane unit, scheduled for completion in May, will replace a combination extraction -distillation process known as phenol extractive distillation. Primary products made from cat reformate will be benzene, toluene, and xylene. Sulfolane ex- traction will permit higher recovery of aromatics in the feed and also improve product quality, Shell says. Mobil building new furfural system TWO cranes hoist a two -stage, dual-purpose distillation tower into place at Mobil Oil Co.'s Beaumont, Tex., refinery. The 85-ft tower is part of the new furfural-treating system under construction at the refinery (photo). The new unit will upgrade the quality of heavy gas oils used as cat - cracker feed by removing aro- matic compounds. This removal will make possible an improved yield of gasoline and other valuable products from the gas oil, says Mobil. The aromatics removed by treating will be sold .to other manufacturers. Equilibrium data reflect new high -activity catalysts THE TREND toward higher - equilibrium cat -cracking catalyst activity is continuing. A confirm- ing increase in average surface area and pore volume can also be noted in the results of the most recent survey by Davison Chemical divi- sion of W. R. Grace & Co., detailed in the accompanying table. The improvement in equilibrium catalyst quality is directly related to the increased number of refiners operating on SM-30 silica -magnesia, SM-30 + silica- alumina mixtures, XZ-I5, and other zeotite-containing catalysts. It is anticipated that this trend will continue. Other analyses reported in the table indicate that no significant changes have occurred. The current survey covers 106 of 120 units now participating in the testing program. Quality trends in equilibrium fluid cracking catalysts Based on Davison analyses of samples from 65°/, of fluid units in the United States and Canada. PART XXIII PRESENT QUARTER PREVIOUS QUARTER YEAR AGO Aug. -Oct. 1964 May -July 1964 Aug. -Oct. 1963 PERIOD— Mean Range* Mean Range* Mean Range* ACTIVITY + L ........... 32.6 25.8-39.4 SURFACE AREA M'/g .......... ... 127 75.179 PORE VOLUME cc/g . . ....... 0.41 0.31-0.52 APPARENT BULK DENSITY g/cc . ... ..... 0.70 0.62-0.78 METAL CONTAMINATION 32.3 26.7.37.9 31.6 26.2.37.1 124 75-173 116 64.168 0.40 0.30-0.50 0.38 0.27.0.49 0.71 0.63.0.79 0.72 0.63.0.80 Vanadium, V: ppm . t294 52-1,681 t296 53.1,647 236 56.1,000 Nickel, Ni: ppm ..... t133 31.580 t134 32.560 89 23.243 Copper, Cu: ppm ... 17 5.63 19 5.69 19 5.75 Sodium, No: ppm ... 491 131-1,843 514 131.2,015 435 105-1,792 Iron, Fe: wt °/. .... 0.36 0.13.1.01 0.36 0.14.0.94 0.34 0.10-1.09 *950/ of fluid units tested fall within these limits. tNew method. i M THE OIL AND GAS JOURNAL • APRIL 26, 1965 111 Improved packed -hole assembly pays off Round -fluted near -bit stabilizers, pro- tected with fine -particle hard facing, offer better wall -support and wear char- acteristics, API is told. NEARLY 500,000 ft has been drilled in crooked hole country with a new near -bit stabilizer -sub as- sembly designed to eliminate dog- legs and control the rate of well - bore angle change. The new assembly (Fig. 1) con- sists of a full -gauge, round -fluted stabilizer immediately above the bit; a large -diameter spacer sub; a second full -gauge, round -fluted stabilizer about 12 ft above the bit; a large -diameter 30-ft drill collar; and a conventional stabilizer im- mediately above the collar. According to Chad Wiley, of Reed Roller Bit, Odessa, Tex., the round -fluted -stabilizer design re- tains all the desirable features of the earlier square -stabilizer -sub as- sembly plus several additional ad- vantages. The round -fluted stabi- lizer, says Wiley: • Is 42% stiffer than a typical square stabilizer for the same size hole. • Has about three times as much bearing area to reduce the possi- bility of wall penetration and to improve effectiveness of wall sup- port. • Offers improved wear charac- teristics, A high concentration of fragmented sintered tungsten car - Deviation -control tool uses two round -fluted stabilizers Fig. 1 Cross-section of Conventional round -fluted stabilizer (� stabilizer —1 te- 3041 drill collar I U. e• Round-flulod stabilizer _ le.. Spacersub — -� I2• Round -fluted stabilizer _ sit —� bide in a nickel -steel matrix pro- tects the entire bearing' mea. • Allows use of larger -diameter connecting sections — thus adding to overall stiffness of the assembly. ... in vertical hole With square stabilizers, the round connecting sections are limited in diameter to the distance across the square. • Moro readily permits passage ,Absorbs lateral force! caused by buckle - of upper collar string �-� torgoODcollar minimizosbuckle Absorbs any Ic forces cause 30-ft collar buc and holds spacer sub no to hold Lateral Concepts c in straight but inclined hole Heavy collar string above top stabilizer lies / to low side of hole Lateral forces of -V Vht pivot t moment Virtually no buckle y no buckle Rosists hole-straightehinV latoaa foi forces but diametral.on lateral clearance may alloare than on thrust gradual anglochang atght Lateral formation for ees forces B f 112 THE OIL AND OAS JOURNAL 6 APRIL 26, 1065 How formation laminations cause deviation Fig. 2 Effective hole diameter breaks through N causing wedges which, in turn, Effective hale cause lateral forces .;--.... 1 on bit Wedges of cuttings and small pieces of junk. • Reduces pressure loss due to a more favorable ratio of wetted perimeter to annular area. The round -fluted -stabilizer as- sembly has been run in West Texas, East Texas, South Texas, Louisiana, Oklahoma, New Mexico, Arkansas, and the Rocky Mountains, Wiley bilizer action. ... during increase in deviation i r- Heavy collar string above tap stabilizer lies to low side of hole i � Lateral forces off 'drill -collar weight ,pivot across this point . Fig. 4 Properly stabilized bit drills away wedges Fig. 3 Stabilizer bears Resists here, resisting bending —tries lateral force to hold near -bit stabilizer to low side of hole Drilled away stabilizer bears here, resisting lateral force \Lateralforce aused by wedge told the American Petroleum Insti- tute Southwestern District Division of Production spring meeting in Dallas. Results in most cases were very good at relatively high bit weights, he said, and in several wells the assembly apparently even helped straighten the hole. Principle. A packed - hole assem- ... during decrease in deviation Lateral forces, to Resists bendingV�d tries to hold nearts 16teral stabilizer to low sation forces Resists lateral _ / of hformation forcesLateralfor Heavy drill -collar string above top stabilizer lays to low side of hole i 'Lateral forces of drill - collar weight pivot across this point moment -Resists bending — tries }o hold near -bit stabilizer to uPips. dip side .O. Lateral formation forces D bly, Wiley pointed out, resists changes in hole angle by restricting lateral movement of the bit. Dia- metrical difference between stabi- lizer size and hole size, length of the assembly or stabilizer place- ment, assembly stiffness, and ef- fectiveness of wall support govern how well a packed -hole assembly performs. With zero diametrical difference, sufficient length, a very stiff assem- bly, and absolute wall support, a hole could not deviate from that plane in which it was originally started. However, this set of con- ditions will never exist in reality. Bits tend to drill slightly over - gauge hole, said Wiley. The API tolerance on nominal bit size is to the plus side. Walls of the hole tend to wash and erode. The stabi- lizer eventually will wear and be- come undergauge. Since some diametrical difference will exist, the assembly will be free to bend —at least slightly —when sufficient lateral formation forces are applied. Placement of stabi- lizers is calculated to minimize the bending. Full -gauge stabilizers and the largest possible diameter con- necting sections add to stiffness. Full -gauge stabilizers also pro- vide the greatest amount of wall support. However, Wiley said, bear- ing area should be large enough to prevent penetration of the hole wall, and fluid passages should be de- signed to minimize hole enlarge- ment. Square configuration. The first near -bit stabilizer -sub assemblies followed the pattern of the square drill collar and employed square sections as stabilizers. The square stabilizers were full -gauge across the diagonal. Round portions of the assembly were the same diameter as the distance across the squares. The near -bit stabilizer was 3th ft long with 24 in. of full -gauge bear- ing area. The second square stabi- lizer was 41/2 ft long with 24 in. of full -gauge bearing area. Tung- sten -carbide inserts were placed along the entire length of the bear- ing area. Each contractor supplied the 30- ft drill collar for the assembly. Al- though the OD varied somewhat, it usually approximated the diam- eter of the spacer sub between the two square stabilizers. A conven- THE OIL AND GAS JOURNAL . APRIL 26, 1965 113 tional stnbilizer-reamer was used above the drill collar. This type of assembly has drilled several hundred thousand feet of the hole with good results and, in most cases, good wear characteris- tics, Wiley said. Results and wear in some regions, however, indicated that stabilizer configuration might be improved to give even better results and longer life. Roused -fluted assembly. The new design places the conventional stabilizer 48 ft above the bit. The middle round -fluted stabilizer is one-fourth the distance between the bit and the top stabilizer. The bot- tom round -fluted stabilizer, placed immediately above the bit,,com- pletes the assembly in line with Hoch's recommendations for three - stabilizer placements. Stabilizer action. More crooked - hole problems are experienced in laminar formations such as shale and sandstone than in uniform for- mations such as limestone. As the bit drills through each lamination, it will reach a point where the lam- ination can no longer support the load applied to it, and the rock fractures through to the next lam- ination, Wiley said. Many such rocks tend to fracture perpendicu- lar to the bedding plane. This fracturing forms small wedges which create lateral forces tending to deflect the bit (Fig. 2). As drilling progresses, hole angle will increase until it is equal to the formation dip angle if the lateral forces are not restrained. With more weight on the bit, the fracture will occur higher in each lamination — forming bigger wedges, creating greater lateral forces, and causing a more rapid increase in angle. This action not only causes crooked hole but also reduces effective hole size. A stabilizer -sub assembly holds the bit in its original plane until at least a major portion of the wedge is drilled away (Fig. 3). As the wedge forces the bit updip, the How stabilizer assembly performed (Offset wells in Crane County, Tex.) Fig. 5 — Well No. 1 without ..... Well No. 2 with Depth, It stabilizer assembly stabilizer assembly Deviation, degrees Weight on hit,1,000 Its Rotary speed, tpm How stabilizer assembly reduced hole angle (Gaines County, Tex., well) Fig. 6 Depth, it S,00D 6,000 ?,Due s,00D 9,000 1o,o0D 123 103D SD 70 50709D 01070 a _ r g 3 near -bit stabilizer contacts the high side of the hole and limits lateral movement. The middle stabilizer also bears on the high side of the hole and assists the near -bit stabi- lizer in overcoming the lateral for- mation forces. Because of diamet- rical difference, a small angle of the wedge may remain and cause some increase in hole angle. The rate of change, however, will be much less than would result with- out proper stabilization. In vertical hole, When run in a vertical or nearly vertical hole, the assembly keeps the hole in a vertical plane (Fig. 4A). The top stabilizer absorbs the majority of the lateral forces caused by buckle of the drill - collar string above the assembly. The middle stabilizer absorbs the lateral forces caused by any bend- ing of the 30-ft drill collar and holds the spacer sub normal to the hole axis. It also helps resist any lateral forces at the bit which are trans- mitted up the string. The near -bit stabilizer resists any lateral force on the bit. In straight but deviated hole. Past thinking holds that, while a packed - hole assembly would minimize the increase of hole angle, it also would prevent the hole from returning to vertical. In the field, however, there have been instances where the stabi- 114 THE OIL AND OAS JOURNAL • APRIL 26, 1965 g t Ii �ff� II' r •F . 'rRlaaa`� .RA 4- Im .,4 • 'wi .,ylyyLt w Try this formula: * UEP + CO2= isr *Utility Electric Power plus carbon dioxide equals increased secondary recovery In some fields, like the one where this tions. But whether your secondary COz plant is located, liquid carbon recovery operation calls for water - dioxide speeds oil recovery. Economical flooding or COz you can depend on utility electric power is used here in economical utility electric power for utmost processing the carbon dioxide itself efficiency ... see your nearest utility electric as well as in the oil production opera- engineer. Petroleum 'Electric Power Association P.O. Box 35006 • Dallas 35, Texas P.E.P.A.GRRToup of lnvubr awned. .Lr�+1 lex PnY1nR eltth(e WWN eOmDanIN Pmvidl.g dvt.dnble elttlele Emk, la Iht Pelroltum (ndWlry. PUMPING WATERFLOODING GATHERING PIPELINES REFINING Most companies have tomorrow's valves on the drawing board. Rockwell has them in the field. Will one of these twenty-six valves be the forerunner of your 1970 standard valve? We can't make any predictions yet. We only know that one of our most Important jobs is anticipating your fu- ture valve requirements. And one way in which we do that is by taking test racks right to the wellhead. These valves, for example, are each manufactured with different coatings on the moving parts, andare be. ing operated at high pressures on one of the nation's most corrosive gas wells. From these tests, Rockwell hopes to find out more than controlled laboratory experiments can tell them about the effects of "sour gas" on valves. And, this is only one way in which Rockwell Is striving to build better valves for your future. Others Include: maintaining the world's largest valve research labora- tories and developing the Ind ustry's most complete test- ing facilities. Whatever your valve requirements may be In 1970, you can be sure that Rockwell will be able to meet your most demanding needs. .r Rockwell MANUFACTURING COMPANY veeu 1 lizer-sub assembly actually seemed to reduce hole angle, Wiley said. Fig. 4B shows Wiley's explana- tion of how this might be possible. The heavy collar string above the top stabilizer bears to the low side of the hole. This force, pivoting on the top stabilizer, transmits a bend- ing moment into the drill collar im- mediately below. This bending moment moves the middle stabilizer to the high side of the hole and — using the stabilizer as a pivot — transmits a force acting toward the low side of the hole. Diametrical clearance may allow a gradual change in angle back towards verti- cal, provided that lateral formation forces which try to force the bit updip are less than the hole - straightening force exerted by the stabilizer assembly: When dip increases. When the bit encounters formations)which are disposed to cause an increase in deviation angle, the stabilizer as- sembly resists the increase in much the same manner. The assembly acts to minimize the rate of angle in- crease and to eliminate the possibil- ity of severe doglegs (Fig. 4C). When dip decreases. If an in- clined hole is drilled into a forma- tion whose forces tend to return the hole to vertical, the stabilizer as- sembly acts to prevent too rapid a reduction of angle (Fig. 4D). The bending moment in the 30-ft collar opposes any lateral formation force transmitted to the middle stabilizer. The near -bit stabilizer also opposes the hole -straightening tendencies. The assembly, then, allows gradual reduction of angle and again pre- vents excessive doglegs. Field performance. Fig. 5 com- pares two offset wells drilled in Crane County, Tex., by the same rig in the same field. Angles up to 15e are frequently experienced in this area despite intensive devi- ation -control efforts, Wiley said. Well No. 1 was drilled with a single -stabilizer hookup. The new stabilizer assembly was used in Well No. 2 from 3,000 ft to TD. Neither well had a deviation problem until 5,000 ft where the nonpacked hole started to increase angle rapidly. Between 5,000-6,000 ft, deviation in the first well increased from 1 to 131/2 a despite very light drilling weights and high rotary speeds. The stabilized hole did not exceed 3° deviation with normal drilling weights and normal rotary speeds. Well No. 1 required 426 rotating hours and used 30 milled -tooth bits and 3 insert bits, while the packed hole drilled in 361 rotating hours and used 30 milled -tooth bits and 1 insert bit. Fig. 6 illustrates an instance where the stabilizer assembly ap- parently helped decrease hole angle. This well was drilled in Gaines County, Tex.' Without the assembly, deviation problems developed im- mediately below intermediate cas- ing. Hole angle increased steadily to 31 despite low drilling weights and higher -than -normal rotary speeds. The 30 angle was main- tained from 6,750 to 7,275 ft with 15,000 lb bit weight. The stabilizer assembly was run in at 7,275 ft, and bit weight in- creased • to 40,000 lb. Hole angle immediately began to decrease — reaching 11/4° at 9,100 ft where it stabilized. Weight on bit was in- creased to 40,000 lb. Hole angle in angle. With the assembly in the hole, average footage drilled per day more than doubled. Results in the Rocky Mountains, said Wiley, are good but not as spectacular as in other regions. 'Steeply dipping formations in the Rockies make nearly vertical holes impossible, but the assembly has been successful in controlling rate of angle change, allowing more bit weight, and more economical drill- ing., Stabilizers wear well. Many square -sub assemblies drilled as much as 35,000 ft of hole before being worn below usable size. Wear characteristics of the new round configuration are even better. None of the round assemblies manufac- tured to date has been worn out. The stabilizers can be built up to original OD after they wear under - gauge. Too, none of the round assem- blies has become stuck in the hole while drilling. On a few occasions they have become stuck while being run for the first time through open hole drilled without a stabilized as- sembly. In every case, however, they pulled free without undue problems. According to Wiley, there has never been a fishing job caused by any connection or component of the new stabilizer -sub assembly. Reference 1. R. S. Hoch, "A Review of the Crooked - Hole Problem and an Analysis of Packed Bottom -Hole Drill -Collar Assemblies': API Southern and Mid -Continent district meet- ings, 1962. BOOKS FUNDAMENTALS OF DATA PROCESSING by Allan Lytel, pub- lished by Howard W. Sams & Co., Inc„ 4300 West Sixty-second St., In- dianapolis, Ind. 320 pp. $6.95 (soft - bound). This is an authorative and up-to- date reference text that should prove valuable to all who are involved in data-processing equipment and com- puters and their application. It is concerned with the broad picture of data processing in the logical se- quence from desk calculators through punched -card equipment and electron- ic computers. From the applications standpoint, the author divides computers into the three fields of engineering, busi- ness and commerce, and process con- trol. Whenever possible, he uses ac- tual situations as examples and dis- cusses specific equipment. The author goes into the basic mathematics, Boolean algebra and computer arith- metic, and into programming methods and techniques. MATHEMATICS FOR E L E C- TRONICS AND TECHNICIANS, by N. H. Crowhurst, published by How- ard W. Sams & Co., Inc., 4300 West Sixty-second St., Indianapolis 6, Ind. 256 pp. $6.95, This new book should prove of value to the engineer and advanced technician involved in electronic in- strumentation and process control as well as in conjunctions. The author presents a new type of programmed instruction designed to teach not only how mathematics is used in electron- ics but also how to think in the best way for solving ele6tronics problems. The book is divided into five sec- tions, arranged by increasing com- plexity of topics. Starting with Ohm's and Kirchoff's laws, the text rapidly introduces selective networks, trans- fer characteristics, properties of coils and transformers, oscillators, feedback circuits, and on into interacting net- works, and AM and FM modulation. Note: The Oil and Gas Journal maintains a book department. Write to the Book De- partment, PO Box 1260, Tulsa, Okla. 74101, for copies of the book list. Often books re- viewed here may be purchased from this source. THE OIL AND GAS JOURNAL • APRIL 26, 1965 117 r 4pt ��40 p1P Z VVIA1110u/iii%i., I 0 i�J L, The Ashcroft® Duraswitch® line has the widest choice of case designs. This new one is explosion -proof. Ashcroft Dumswitch pressure and temperature controls are now available in an explosion -proof case that conforms to NE1v1A 7 and 9 require- ments. This new case continues to provide a 270° dial arc for accurate visible settings. It is moisture, dust, and vapor -proof ... distinguished by simplicity and ruggedness of interior design. Ashcroft Dumswitch controls are offered in the widest choice of Bourdon tube materials, as well as the widest army of pressure or temperature ranges, and case designs. These controls are ideal for unusual or corrosive atmospheres, for pressures to 10,000 psi, and temperatures from 60V to 420°F. For litera- ture and recommendations on Dumswitch selec- tion, see your industrial distributor. Manning, Afaxwell & Dfoore, A Division of Dresser Indus- tries, Stratford, Conn. DRESSER ASHCROFT CONTROL SWITCH ES MANNING, MAXWELL & MOORE DIV. PIPELINE CONSTRUCTION Who's building where, in U.S., Canada PIPELINE ACTIVITY reported here is compiled from surveys by The Oil and Gas Journal among pipeline companies and contractors. This summary appears in the last issue each month. New projects are reported weekly under Industry Briefs. Projects this month are listed in two groups-U.S. and Canadian - and according to type of line - crude, products, natural gas, or mis- cellaneous. * The star symbol indicates the first appearance of the project in the Journal's survey. U.S. Crude Oil Pipelines BELLE FOURCHE PIPELINE CO., Cas- per, Wyo. Project: N-mile Coyote Creek to South Coyote Creek field, Wyoming. Status: Before Wyoming Public Service Commission. GULF OIL CORP., Houston, Tex. * Pro7'ect- 20-mile 10-in. West Delta off- shore, from Block 41 to Block 117. Status: Work starts in August. Contractor: Brown & Root, Inc. *Project: 27-mile 16-in., offshore southwest of New Orleans to tie into 30-in. in Block 41. Status: Work starts early summer. Contractor: J. Ray McDermott & Co., Inc. HUMBLE PIPE LINE CO., Box 2220, Houston. *Project: 13.6-mile 3-in. gathering line Laura Thompson field, Tex., to Refugio Station, Tex. Status: Under way. Completion: May. LAKEHEAD PIPE LINE CO., INC., 3025 Tower Ave., Superior, Wis. *Project: 13.8-mile 34-in. Joliette, N.D., to Mattson, Minn. Status: Planned. Completion: Aug. 6. *Project: 9.2-mile, 34-in. Stephens, Minn., to Radium, Minn. Status: Planned. Cornpletion: Aug. 6. MAGNOLIA PIPE LINE CO., Dallas. Project: 38-mile 4- to 8-in., Lea and Chaves counties, New Mexico. Status: Planned. PORTLAND PIPE LINE CO., 335 Forest Ave., Portland, Me. Project: Third 24-in. line to parallel exist- ing 225-mile line through Maine, New Hampshire, Vermont, and Quebec. Status: Planned. Spring or summer, 3965. Contractors: J. R. Neill & Co. and Okla- homa Pipeline Constructors. SERVICE PIPE LINE CO., Box 1979, Tulsa. Project: 18-mile 8-in. Lander, Wyo., to Riverton Junction, Wyo. Status: Under way. Completion: May. Contractor: W. C. James, Inc. *Project: 6.5-mile 12-in. Pasadena, Tex., to Genoa Junction, Tex. Status: Under way. Completion: December. SHELL OIL CO., 1007 West 6th St., Los Angeles. *Project: Two 7-mile, 8-in. from Shell - Richfield -Standard of California plat- form Cook Inlet Alaska to onshore terminal. Status: Contract awarded. Completion: Late 1965. Contractor: J. Ray McDermott. SINCLAIR PIPE LINE CO., Independence, Kan. *Project: 15-mite 8-in. to connect Weldon field, McCone County, Mont., to truck- ing pmnt. Status: Under way. Completion: May. Contractor: Landon Construction Co. SUPERIOR OIL CO., Los Angeles. Project: 20-mile 12-in.; 21.5-mile 16-in. submarine line; 8.5-mile 16-in.; 6.5- mile 4. through 6-in. flow line, West Cameron, La., Block 149 to Block 71. Status: Under way. Contractor: Brown & Root. U.S. Products Pipelines BUCKEYE PIPE LINE CO., New York City. Project: 90-mile 12-in., Linden, N.J., to Long Island; dual 12-in. lines Linden to Perth Amboy and Long Island. Status: Under way. Completion: January, 1966. *Project: 16.5-mile 10-in. Caledonia, N.Y., to Rochester, N.Y. Status: Under way. Completion: Early summer. *Project: 33-mile 14-in. Sinking Springs, Pa., to Macungie, Pa. Status: Under way. Completion: Early summer. Contractor: H. L. Gentry. *Project: 10.5-mile 8-in.; 4 miles 4-in., Inglenook, Pa., to Harrisburg, Pa. Status: Under way. Completion: Early summer. *Project: 48-mite 16-in. Toledo, Ohio, to Bellevue, Ohio. Status: Under way. Completion: Fall. CITIES SERVICE OIL CO., Bartlesville, Okla. Project: 39-mile 6. to 8-in. between Lake Charles and Grand Chester, La., gas processing plants. Status: Planned. CENTRAL FLORIDA PIPE LINE CORP., Winter Haven, Fla. Project: 95-mile 6-in., Tampa to Orlando. Extension to Sanford and Daytona Beach. Status: Planned. Contractor: Joyce Pipe Line Co. COASTAL STATES GAS PRODUCING CO., Box 521, Corpus Christi, Tex. {project: 120-mile LP -gas, San Antonio to Corpus Christi. Completion: May 1965. Contractor: Adair Pjpeline Co., Inc. Project: LP -gas line, Fullerton, Tex., to Status; Planned. Project: 200-mile 12-in., LP -gas line, Corpus Christi to Houston. Completion: Mid-1965. COLONIAL PIPELINE CO., 3390 Peach- tree Rd. N.E., Atlanta. *Project: 6-mile 10-in. Delaware River to Philadelphia. Status: Under way. Completion: June. COLUMBINE PIPELINE CO (affiliate of Union Pacific Railroad), Los Angeles. Project: 72-mile 8-in., Denver to Colorado' Springs; 44-mile 6-in., Colorado Springs to Pueblo. Status: Before Colorado Public Utilities Commission. HUMBLE PIPE LINE CO., Box 2220,' Houston. *Project: 15-mile 6-in. loop from Dow Plant, La., to Baton Rouge. Status: Planned. Completion: June. *Project: 9.73-miles 4-in. Baytown, Tex., to Pasadena, Tex. Status: Under way. Completion: May. Contractor: Walter Mischer Co. KANEB PIPE LINE CO., Houston. Project: 175-mile 8-in., Huron, S.D., to Jamestown, N.D.; 175-mile 64n. loop, Geneva, Neb. to Yankton, S.D. Engineering: Pipe Line Technologists, Completion: Late 1965. Contractors: O. R. Burden Construction Co. and Great Plains Construction Co. OLYMPIC PIPELINE CO., Box 900, Dallas. Project: 315-mile 6 to 16-in., Ferndale, Wash., to Portland, Ore. Contractors: R. H. Fulton & Co., Pacific Pipeline Const. Co. PHILLIPS PIPE LINE, Bartlesville, Okla. *Project: 36-mile 8-in. from Alvin plant to Sweeny refinery, Texas. Status: Under way. - Completion, January 1967. *Project: 15-mile 6-in. from Sweeny re- finery to Clemens terminal, Texas. Status: Planned. Completion: Apr. 1, 1967. *Project: 10-mile 84n. Clemens terminal to Pasadena terminal, Texas. Status: Under way. Completion: Jan. 1. *Project: 44-mile 6-in. Clemens terminal to Pasadena terminal, Texas. Status: Planned. Completion: June 1. *Project: 57-mile 4-in. from Morton Coun- ty, Kan., to Hansford County, Texas. Status: Planned. SHELL OIL COp 1007 West 6th St., Los Angeles. Project: 80.4-mile 8 and 30-in., Martinez to San Jose, Calif. Status: Planned. Completion: 1965. SOUTHERN PACIFIC PIPE LINES, INC., Los Angeles. Project: 51-mile 10-in., Concord to San Jose, Calif. Status: Planned. STANDARD OIL CO. OF CALIFORNIA, San Francisco. Project: 125-mile 6- to 30-in., Sacramento to San Jose, Calif. Status: Under way. Completion: August. Contractor: Alex Robertson Bakersfield, Inc. U.S. Natural Gas Pipelines ALGONQUIN GAS TRANSMISSION CO., 1284• Soldiers Field Road, Boston. THE OIL AND GAS JOURNAL • APRIL 26, 1965 119, Now... your own high purity nitrogen with molecular sieves ... when you use Kemp's new Type MS Nitrogen Generator as a low cost, in -plant source. Improved molecular sieve adsorbers on new Kemp Type MS Nitrogen Generators have many advan- tages over other CO, removers: 1. No corrosive chemical solutions to leak away or replenish because adsorption is by efficient granular molecular sieves. 2. High (99% plus) purity nitrogen is produced with no risk of chemical carry-over contamination, thanks to improved use of molecular sieves. 8. Low cost nitrogen, produced right in your plant from natural gas, is available at 85 PSIG and —100° dewpoint. 4. Installation is easy, because all components are factory mounted. Just anchor the assemblies, connect utilities and start up. S. Quick startups provide high purity nitrogen in minutes without lengthy heat -up period or stand• by operation. 6. Continuous automatic operation with cyclic oper- ations programmed. Few moving parts assure minimum maintenance. 7. Compact component arrangement permits ac- cess for routine servicing, yet reduces floor area requirements. S. Kemp guarantees that its equipment must per- form as specified. If you're using high purity nitrogen gas for inertlng, blanketing, purging, etc., it may pay you to look Into our new nitrogen generators with improved molecu- lar sieve adsorbers. Talk to your Kemp representa- tive, or write for Bulletin 1.112 direct to: The C. M. Kemp Manufacturing Co., Glen Burnie, Md. IT ALWAYS PAYS TO COME TO KEM P 140 THE OIL AND OAS JOURNAL • APRIL 26, 1965 PIPELINE CONSTRUCTION Project: 23.9-mile 30-in. Glastonbury to Mansfield, Conn.; 6.4,mile 30-m. Buchanan, N.Y., to Cortland, N.Y. Status: Under way. Completion: Nov. 1965. Contractor; H. C. Price Co. ALABAMA-TENNESSEE NATURAL GAS CO. *Project: 8-mile 6-in. and 8-mile 12-in. in Morgan and Madison counties, Ala. Status: Before FPC. AMERICAN LOUISIANA PIPE LINE CO., 500 Griswold St, Detroit. Project: 293-mile 30-in.; 7-mile 20-in., mainline loops, Louisiana to Michigan. Status: FPC approved. Contractors: Houston Contracting Co.; Latex Construction Co. of Georgia, River Construction Co.; O. R. Burden Construction Co., and Somerville Con- struction Co. ARKANSAS LOUISIANA GAS CO., Box 1734, Shreveport, La. Project: 24-mile fiVa-in.; 6-mile 41J-in.; 3.2-mile 36&-in., gathering lines in Ar- kansas, Louisiana, Texas and Okla- homa. Status: Planned. Project: Replace 23.4-mile 10-in. with 14- in.; replace 19.3-mile 8-in. with 10-in.; recondition 15.1- m i 1 e 12-in., all in Arkansas. Status: Before FPC. Project: 64-mile 24-in., Briggs to Erwin, Ark. Status: To start April 1. Contractor: Ford, Bacon & Davis Const. Co. Project: 158-mile, 24-in. to 8-in., Paris, Ark., to near Centrahoma, Okla. Contractor: Panama, Inc. Status: Under way. ATLANTIC GAS LIGHT CO., Box 4569, Atlanta, Ga. Project: 246-mile (12 laterals) Georgia extension of Southern Natural Gas sys- tem and distribution systems in 27 towns to be served. Status: FPC approved. ATLANTIC SEABOARD CORP., Charles- ton, W.V& Project: 10-mile 36-in., West Virginia; 15.9-mile 26-in., Maryland. Status: Before FPC. BACA GAS GATHERING SYSTEM, INC., Republic Bank Bldg., Dallas. Project: 40-mile 30 to 12-in. connecting Midway, Greenwood & Flank fields, Southeast Colorado to Panhandle East- ern facilities, Morton County, Kan. Status: FPC approved. BISTONE FUEL CO., Corsicana, Tex. Project: 40-mile 123;-in., Como to Wells Point, East Texas. Status: Under way. Contractor: O. R. Burden Const. Co. BLUE DOLPHIN PIPE LINE, subsidiary of Shell Oil Co. *Project: 40-mile 20-in. and 9.2-mile 16-in. from Buccaneer men off Texas coast, to Dow Chemical complex at Freeport, Tex. Status: Start construction this spring. Completion: Early 1966. CALIFORNIA PACIFIC UTILITIES CO., 550 California St., San Francisco. Project: 53-mite 6 to 10-in., Grants Pass to Ashland, Ore. Status: Before FPC. CARNEGIE NATURAL GAS CO., Mun- hall, Pa. Project: 34-mile 20-in., western Pennsyl- vania. Completion: September. Contractor: Joyce Pipe Line Co. CENTRAL ILLINOIS PUBLIC SERVICE CO, Springfield, Ill. Project: 22-miles, Western Division. Completion: 1965. CHATTAHOOCHEE VALLEY GAS DIS- TRICT, Clio, Ala. Project: 159-mile 2N-in. to 65A-in. supply lines and distribution systems in Ala- bama. Status: Before FPC. CITIES SERVICE GAS CO., Oklahoma City. Project: 36•mile 20-in. between Saginaw, MO., compressor station and Jane, Mo. Status: Before FPC. Project: 10-mile 26-in. gathering system at Blackwell compressor station. Status: Before FPC. Project: Loop 5.5-mile Falls City, Neb., 8-in. with 12-in.; replace 6-mile 16-in. with 20•in: between Hunt Junction & Tonganoxie, Kan. & replace 23-mile Ottawa-Tonganoxie I6-in. with 26-in. Status: Before FPC. Project: 10-mile 26-in., Lawrence and Tonganoxie, Kan.; 25-mile 26-in., Ton- ganoxie to North Kansas City. Status: FPC approved. Project: 36-mile 20-m., Arkansas Louisi- ana Gas system to Joplin, Mo. Status: Before FPC. *Project: 8-mile 26-in., Hugoton station to Pan American plant Hugoton field. Status: FPC approved. COLORADO INTERSTATE GAS CO., Box 1087, Colorado Springs, Colo. Project: 275-mile 24-in. Fourway, Tex., to Blackwell, Okla. Status: Before FPC. Project: 58.9-mile 20-in., Colorado Springs to Denver. Status: Before FPC. *Project: 120-mile 16-in. and 125-mile 4 to 12-in. from Wind River Basin, Wyo., to Sweetwatet. Status: Before FPC. COLUMBIA GAS SYSTEM, Charleston Group, New York. Project: 10-mile 36-in.; 2.9-mile 30-in.; 16.1-mile 26-1n.; 17-mile 24-in.; 32-mile 20-in.; 12.1-mile 12-1n. Status: Planned. Project: 201.E-mile 6-in.; 24.3-mile 6-in. and above. Status: Planned. COLUMBIA GULF TRANSMISSION CO., Houston. Project: 41.4-mile 30-in. loop Kentucky; 23.6-mile 30-in. loop, Tennessee; 32.4- mile 30-in. loop, Mississippi; 46.2-mile 30-in, loop, Louisiana; 17.4-mile 30-in. Louisiana. Status: Before FPC. Completion: November. CONSOLIDATED GAS GATHERING CORP., San Antonio. Project: I10-mile 2 and 10-in. the and transmission lines in 011uuo end Pennsylvania. Status: Before FPC. DEL-MEX GAS CORP. (Shell Oil Co. and Pure Oil Co.) Project: Line connecting Delaware and Val Verde basins with Texas markets. Status: Planned. EAST TENNESSEE NATURAL GAS CO., Knoxville, Tenn. Project: 41-mile 24-in. between Oak Ridge and Jefferson City, Tenn. Status: Before FPC. *Project: 8.7-mile 8s%-in. Salem, Va., to Roanoke, Va. Status: Work to start in June. Completion: July. EASTERN SHORE NATURAL GAS CO., Dover, Del. Project: 21.8-mile 64n.; 8.5-mile 4-in. Bridgeville, Del. to East Market, Md., and from East Market to Cambridge, Md. Status: FPC approved. EL PASO NATURAL GAS CO., Box 1492, El Paso, Tex. Project: 69.7-mile 20-in., Goldsmith to Plains. Status: Before FPC. Completion: 1965. Project: 15.3-mile 84k-in., Worsham field to Waha. Status: Before FPC. Completion: 1965. Project: 190-mile 30-in. loops on Permian - Sao Juan crossover line. Status: Before FPC. Completion: 1965. Project: 3933-mile 30-in., Chaco to Needles. Status: Before FPC. Completion: 1965. Project: 18.7-mile 16•in., Gomez field to Waha. Status: Before FPC. Completion: 1965. Project: 7-mile 12s/n-in, Worsham to Waha. Status: Before FPC. Completion: 1965. Project: 463-mile 12- to 16-in., Cowlitz County, Wash., to Columbia County, Ore. Status: Before FPC. *Project: 10.3-mile 6s/a-in. loop for Phil- lips Pacific lateral. Status: Before FPC. *Project: 0.85-mile 16-in. submerged Co- lumbia River crossing. Status: FPC approved. Completion: June. Contractor: Hood Corp. *Project: 3.78-mile 12s/-in. from mainline to flooding area Columbia River. Status: FPC approved. Completion: June. Contractor: Hood Corp. *Project; 4.85-mile 6Ys-in. Pajamas S[a- tion to 6%.in. line. Status: Before FPC. *Project: 2.75-mile 4tfs-in. partial replace- ment of Douglas Bisbee line. Status: Before FPC. *Project: 9-mile 6sVs-in. Willcox -Safford line to Graham and Cochise counties, Arizona. Status: Before FPC. *Project: 5.38-mile 26-in, partial replace- ment of 22-in. Ignacio-Sumas line. Status: Before FPC. *Project: 17.9-[vile 8s/s-in. Shell's Ozona plant to Sonora to Goldsmith line, Tex. Status: FPC approved. Completion: July. Contractor: Great Plains Construction Co. FLORIDA GAS TRANSMISSION CO., Winter Park, Fla. Project: 21.4-mile 6-in, to Boniface and Florida, Fla. Status: FPC approved. Project: 210-mile 30-in., along existing main -line system, Eunice, La., to Brooker, Fla. Status: Before FPC. Project: 51-mile 18-in., B. White Lake field to Port Barre, La. Status: Before FPC. Project: 22-mile 6 and 8-in. loops in Florida. Status: Before FPC. *Project: 6.63-mile 6-in. from lateral in Hillsborough County, Fla, to Central Phosphates, Inc, plant. Status: Before FPC.., GEORGIA-TENNESSEE GAS CORP., Houston. Project: 72-mile 12-in., 8-in. sales lateral, Sharp Top, Ga., to Tyner, Ga. Status: Before FPC. GREAT LAKES TRANSMISSION CO., 1411 K. St., Washington, D.C. Project: 989-mile 36-in. from U.S.-Cana- than boundary between Minnesota and Manitoba, near Emerson, across Minne- sota, Wisconsin, and Michigan to point THE OIL AND GAS JOURNAL • APRIL 26, 1965 121 Lol +, .,,,114 ,1 • ARMCO FIELD ENGINEER 12� THE OIL AND GAS JOURNAL • APRIL 26, 1965 "They gon rug any.pipe io m➢ wicel. VP Every Armco Field Engineer has an office. But he's not an 8 to 5 office worker. He's a field engineer. As an Armco Field Engineer once summed it up, "They don't run any pipe in my officel" Yearly, these tubular experts travel an average of 25,000,miles a man to be where you're working. They're on call day or night, seven days a week. You can get in touch with them through their office "mes- sage centers." Armco Field Engineers work in close partnership with tubular spe- cialists from the network of offices and stores of Armco's National Sup- ply Division and with representatives of leading independent distributors. These oilfield supply specialists are backed by balanced inventories of Armco Casing, Tubing and Drill Pipe, available from strategically - located stocking points. They're your assurance of the best in tubu- lar products, supplied throughout the oil country. Armco Steel Corpo- ration, Steel Division, Department E-2195. P. 0. Box 600, Middletown, Ohio 45042. RMC ARMCO STEEL AV THE OIL AND GAS JOURNAL • APRIL 26, 1965 123 Mission- matches... the parts for the job. Mission Pump Parts are designed and built together to do an outstanding job under any drill- ing conditions. Years of study and testing in the field and in the laboratory have shown the need for matching pump parts with each other for optimum drilling efficiency. This testing has also shown how to match Mission Pump Parts to your particular drilling needs, For highest drilling economy make certain all your pump ��,¢ �,aa�D parts are Mission. ,� ,� MANUFACTURING CO u Mission pump parts/matched with a purpose OT 65.9 MISSION MANUFACTURING CO. • P. O. BOX 4209 • Houston, Texas 77014 • Cable Address-"Mlssco" • Export Office, 30 Rockefeller Plaza, New York In The United Kingdoms MISSION MANUFACTURING CO., LTD. • 9 Berkeley Street - London, W. 1 England • Cable Address—Vssoman" 124 THE OIL AND GAS JOURNAL • APRIL 26, 1965 PIPELINE CONSTRUCTION on international boundary on St. Clair River, near St. Clair. Above Straits of Mackinac, 44-mile 10-in, to Sault St. Mnric. Status: Before FPC. GREAT PLAINS NATURAL GAS CO., Omaha, Neb. Project: 32-mile 8-in., lateral; 27.5-mile 6- in. lateral, to serve Fergus Falls and Breckenridge, Minn. and Wahpaton, N.D. Status: Before FPC. GULF PACIFIC PIPELINE CO., Box 2511, Houston. Project: 1,545-mile from Texas to Cali- fornia, including 1,398-mile 36-in., 45- mile 20-in., 102-mile 16 to 30-in. Status: Before FPC. HOPE NATURAL GAS CO., 445 W. Main St., Clarksburg, W.Va. Project: 21-mile 30-in.; 1-mile 244n., Hast- ings, W.Va. to Ohio River. Status: Before FPC. HOUSTON PIPE LINE CO., Houston. Project: 42-mile 12- and 18-in.; take up 18-mile 18-in., Edna and Victoria, Tex. Status: To start late May. Contractor: Thomas Contracting Co. KANSAS-COLORADO UTILITIES, INC., Colorado Springs, Colo. *Project: 281.5-mile lateral in Texas and New Mexico. Status: Before FPC. *Project: 24-mile 12-in. replacement be- tween Northport and Huntsman field, Neb. Status: Before FPC. KANSAS-NEBRASKA NATURAL GAS CO., 300 North St. Joseph Ave., Has- tings, Neb. *Project: 26-mile 44n. and 4.5-mile Mr. Tribune, Kan., to Sharon Springs, Kan. Status: Under way. Completion: May 15. Contractor: McCathern, Inc. *Project: 24mile 12-in. between Sidney and Northport, Neb. Slntus: Before FPC. *Project: 3-mile 4-in. to gas wells in Texas and Beaver counties, Okla. Status: Under way. Completion: June 1. Contractor: Hall Construction Co. LONE STAR GAS CO., Dallas. * Project: 17.8-mile 16-in.; 13-mile, 12-in. Houston County to Madison County, Tex. Completion: May. *project: 8.7-mile 30-in., Henderson Coun- ty, Tex. Completion: May. *Project: 8-mile 8-in., Brazos County to Madison County, Tex. Completion: August. *Project: 10.4-mile 4-in., Navarro County, Tex. completion: August. MANUFACTURERS LIGHT AND HEAT CO., Pittsburgh, Pa. Project: 15.2-mile 20-1n. connecting Don- egal storage field, Washington County, Pa., to existing 12-1n. line in Brooks County, W.Va. Status: FPC approved. Project: 8.9-mile 20-in. loop, Chester County, Pa. Status: Before FPC. *Project: 3.03-mile 12-in. in Lawrence County, Pa. Status: Before FPC. MICHIGAN CONSOLIDATED GAS CO., One Woodward Ave., Detroit. Project: 60-mite 15V4 through 24-in., dis- tribution, Detroit area.. Status: Plannned for 1965. Project: 36-mile lib. through 12-in., dis- tribution, Grand Rapids area. WANT :SOME HARD FACTS ABOUT SOFT WATER FOR STEAM NJECA/TION ■ 1 ;k an engineer from Call - rain Filter Co. He's got -the Ord on the rugged and reli- ne Calfilco packaged soften - system. Completely portable, mpletely automatic.Asstifes constant supply of ultra -soft aier when you want It,,, here you want it. And at,a trpr`fsingly low cost, too:? CFILCO AFl co LF'-�/-_ California Filter. Company, Inc.- 1300 ROLLINS'ROAD BURLINGAME, CALIFORNIA all, write or ivire... 7r detailed information on ur complete line of water -eating equipment —or the gfne of the Calfilco repre- enLative nearest you. CUSTOM ENGINEERED WATER TREATING SYSTEMS, ,AND , EQUIPMENT SINCE 1014 125 THE OIL AND GAS JOURNAL • APRIL 26, 1865 - _ CONTROL THE FIT • You can repeat, time after time, or you can tighten or loosen by steps of .005" in ring size. Ring flexibility then provides the final Adjustment to a high efficiency working fit. 0 Your control is guaranteed by our exclusive "matched set" method of sizing rings and by the highly accurate Martin grooved bodies, which have never been duplicated successfully. • Insist on genuine Martin Plungers and Rings, on (A) cor- rect plunger length, (B) correct ring undersize and (C) the recommended pre -swell. These simple A-B-Cs of ]sigh perform- ance are fully explained in our catalog. 11"rite for our Iran, catalog or see it in the compposite. All products sold through supply companies, PIPELINE CONSTRUCTION Status: Plannned for 1965, Project: 38-mile 1l'4 through 8-in., dls. tribution, Muskegon area. Status: Plannned for 1965. Project: 24-tales IV4 through 12-1n., dis. tribution, Ann Arbor area. Status: Plnnnned for 1965, Projcct: 187-m0a ly4 through 6dn., Cen- tral, nonhwastent and northeastern Michigan, Status: Plannned for 1965. Project: 278-mile 1 V4 through 8-in., Upper Peninsula area. SMms: Plannned for 1965. Project: 144-mile 6 through 16•in., Me. nominee -Powers Junction -Iron Mountain and Iron River. Status: Planned for 1965. Contractor: Ohio Pipe Line Construction Co, Project: 6.5-Milo 6-M., Petoskey lateral to Bellaire and Central Lake. Status: Planned for 1965. Projecu 62-mile 6 and 8-In., Gaylord north to Mackinaw City. Status: Planned for 1965. Contractor: L. A. Davis Const. Co. Projcct: 33.mile 6 and 84n., Alpena north to Rogers City. Status: Planned for 1965, Contractor: L. A. Davis Const. Co. Project: 8.7-mile 12-In„ Columbus field to Belle River Mills plant. IICIIIGAN GAB STORAGE CO., 212 W. Michigan Ave., Jackson, Mich. Project: 31-mile 26-in. from Gmtot County to connect with Panhandle Eastern system, Saginaw County, Mich, Stntus: FPC approved, Projcct: 14-mile 12-In., Charlotte to Overisel-Laingsburg line. Status- Planned, Completion: August 1965. Project: 5.5-mile 16-hL, Lenox field to St. Clair compressor station. Status: Planned. Completion: August 1965. project: 4.5-Mlle 204n., Ira field to St. Clair compressor station. LINE CO., 30-in.; 8.5-mile 12-in.; 3.3-mile 6-1n, loops in a, and Michigan. MISSOURI POWER & LIGHT CO., Jeffer- son Cl,,, Mo. Project: 2-mile 2- to 8-in. laterals Pnn- handle Eastern system to 13 Mlssourl towns. Status: Before FPC. MOUNTAIN FUEL SUPPLY CO„ Salt Lake City. Project: 26.5.mile 20-in. Green River to near Little America, Wyo.; 17.4-mile 20-in. Eakin station to Bigelow Bench, \Yya; 14.8-mile 164n. Coalville-Ogdon, Utah, line. Status: Before FPC. GAS PIPELINE CO. OF ICA, 122 So. Michigan Ave., 280-mile 24-in.; 70-mile 204n.; n0e 6 to 8-In., Permian Basin field, County, N.M., to existing NOPL in near Amarillo, Tex. Before FPC. Rlant November. : 94-mile 304n., Cameron Parish, to company station, Montgomery ny (near Houston), Tex. Before FPC. Rion: Feb. 1966, : 10.3-mile 36-in.; 5.9-mile 30-In., As, Oklahoma, and Illinois, Status: Before FPC. Completion: November. Project: 481 miles vmyingg diameter in Texas, Oklahoma, Loulslana, New Mexico, Illinois, and Iowa. AT'URAL GAS STORAGE CO. OF ILLI- NOIS, 122 S. Michigan Ave, Chicaggo. Project: 9.5-mile 364n. to connect WJth Natural dos Pipeline Co, of America line near Joliet. 111. storage division, Fiv YORK, STATE NATURAL GAS CORP., 2 Gatoway Center, Pittsburgh. Project: 39-mile 20-in. Clearfield and Armstrong counties, Pa.; 1.5-mlie 64n. Wondhull compressor station to Her. rington connection. Smnw: FPC approved, Contractor. Harford Brothers. S. E. HUEY & CO. ENGINEERS&SURVEYORS BERNMARbT BLQC. MrnNltoli, LA. SURVEYING & MAPPING PIPE LINE SURVEYS 126 THE OIL AND GAS JOURNAL • APRIL 26, 1965 Y Nobody offers you as much high pressure valve experience as W-K-M An example: eight W-K-M balanced stem gate valves control the world's first 20,000 psi wellhead which is on a Union Texas Petroleum well in Louisiana. These valves give perfect pres- sure control because their parallel expanding gates provide positive sealing under all service conditions. In addition, their full bore allows free flow with no turbulence, and the balanced stem design makes operation easy. Ever since we designed the world's first high pressure through - conduit gate valve, we've special- ized in solving high pressure valve problems. Complete details are in our Catalog 200; ask us today for your copy. When so much depends on a valve ... specify W-K-M. W-K-M Division of ACF Indus- tries, Incorporated, P. 0. Box 2117, Houston, Texas 77001. w-K-M QCf Division It's not a remote control system without communications —and AE knows both The best of supervisory control systems control systems Is next to worthless without proper signal Our commur transmission facilities linking the master ing with our c and remote stations. Automatic Electric is truly expert in can recommer work that will b communications. As a leading manufac- nomical for yoi turer of telephone equipment for over 70 We May even t years, we've had to be. We can apply our you can best le experience In signal transmission to €uar tion links from i antee more dependable operation of the saving the time i expense work. AUTOMAT/CAIMPA9/C suoSimnar or �-vr� L� GENERALTELEPHONE & ELECTRONICS G 1&E 128 THE OIL AND OAS JOURNAL • APRIL 26, 1965 PIPELINE CONSTRUCTION Project: 5.7-mile 30-1n., Cortland and Madison counties, New York; 6.7-mile 20-in. Wyoming County, New York. Status: Before FPC. NORTHERN ILLINOIS GAS CO., Aurora, III. Project: 41.5-mile 36-in., Mazon to Good- ings Grove, III. Status: Approved by Illinois Commerce Commission. NORTHERN NATURAL GAS CO., Omaha. Project: 31.5-mile main -line loops Iowa and Kansas; 48.2-mile 20-in. main line to Mesabi Iron Range area; 115.4-mile 31@- to 12?4-in. branch lines serving 17 communities and taconite plants. Status: FPC approved. Project: 6.6-mile 24-in. loop Nebraska; 7,1-mile 30-in. loop Kansas. Status: FPC approved. Project: 365-mile, 264n. Coyanosa field, Winkler County, Tex. to Beaver, Okla. Status: Before FPC. Project: 8-mile to connect four commun- ities in Minnesota. Status: FPC approved. Project: 548-mile to serve 33 communi- ties and seven plants Upper Peninsula Michigan and Wisconsin. Status: Before FPC. Project: 800-mile to serve 127 communi- ties Iowa, Minnesota, Nebraska, and Wisconsin. Status: Before FPC. Project: 73-mile, 8-in. to 30-in. in Iowa, Nebraska, Kansas. Status: Before FPC. Contractor: Great Plains Construction Co. Project: 27-mile, 20-in.; 1-mile, 8-in, to serve Consumers Cooperative Assn. Fort Dodge, Iowa. Status: Before FPC. NORTHERN UTILITIES, INC., Casper, Wyo. Project: 40-mile 16 and 20-in. to connect loops of two existing lines to form third line to operate between Sand Draw & Casper, Wyo. Status: FPC approved. NORTHWEST NATURAL GAS CO., Portland, Ore. Project: 22-mile 6-in.; 11-mile 12-in. Deer Island to Wauna, Ore. Status: Under way. Contractor: Lloyd Clark Pipe Line Co. OHIO FUEL GAS CO., 99 N. Front St., Columbus, Ohio. *Project: 98-mile 3.5 to 24-in. in Ohio. Status: Before FPC. * Pro ect: 11.5-mile 24-in. extension in Knox � ouilly, Ohio. Status: Before FPC. OKLAHOMA-MLINOIS GAS PIPELINE CO., M. & M. Bldg., Houston 1 (Joint Fish Engineering Corp., Pan American Petroleum Corp., and Shell Oil Co. venture). Project: 700-mile 12-24-in., Woodward, Okla., to East St. Louis, I➢., with lat- eral to Red Oak, Okla., field. Status: FPC recommended. OKLAHOMA NATURAL GAS CO., Tulsa. Project: 263-mile i�h- to 16-in. distribu- tion lines; 95.9-mile 2- to 20-in. trans- mission lines, Oklahoma. Status: Planned. OZARK 'TRANSMISSION DISTRICT, INC., Mansfield, Mo. Project: 126-mile 4 to 8-in. in Missouri. Status: Before FPC. PACIFIC LIGHTING GAS SUPPLY CO., Los Angeles, Calif. *Project: 5 miles 26 and 34-in. at various California points. Status: Planned. Completion: October. PANHANDLE EASTERN PIPE LINE CO., 3M Brand Thermoelectric Generators supply electric power anywhere for economical cathodic protection 3M Brand Thermoelectric Generators convert heat directly into electricity to cathodically protect pipelines and well heads from corrosion. These self- sufficient "heat engines" obtain their fuel for power generation directly from the pipelines or gas well they protect. What could be more simple or convenient? 113M" Thermoelectric Generators are an ideal solution to the problem of cor- rosion protection in remote areas. They offer an economical and reliable source of cathodic protection current for well casings, transmission lines, distribution and gathering systems and oil field brine handling vessels. Com- pletely portable, 1131VI" Thermoelectric Generators have no moving parts and are maintenance and lubrication free. They are unaffected by temperature extremes, easy and economical to — — — — — — — — — — — — — — install. Provide appreciable savings 1 314 ComPany I over other protective Current Sources. I Thermoelectric Products Bldg. 220.5W Any wonder they're being used more I St. Paul, Minn. 55119 and more by cathodic protection engi- I Please send me further information on j I veers? For complete information send your Thermoelectric Generators. I in the coupon today, j NAM` I I ADDRESS Electrical Products Division = I CITY STATE ••,wne�nronnuoxneocee,eoneco. L---------------- THE OIL AND GAS JOURNAL • APRIL 26, 1965 129 T103 On Wire Rope use by R. 0. Kasten, Manager of Engineering, Onion Titre Raps Products lubricate 10 prolong rope life Wire rope lubrication is a preventive maintenance practice that results in longer, more efficient rope service. The quantity and frequency of lubri. cation depends on the particularoil. field service conditions. TUFlYO says: "The heavier t�V the duty, orthegreaterthe number of bends, or the more corrosive the fluids in which the rope operates, the more fre. quent should be the lubrication. Remember that the 'built-in' core lubrication preserves only the core fibres, and not the external steel wires." FAN � r Send for free TUFF► TIPS book For tips on oiling devices and oil. ing procedures, as well as useful information on the correct uses (and abuses) of wire rope, send for our illustrated, 26-page booklet, TUFFY TIPS. It's a guide to saving you rope and money. Write now to Armco Steel Corporation, Steel Di. vision, Department W-885A, 7000 Roberts Street, Kansas City, Missouri 64125, manufacturers of TuFFr Ropes and other Union Wire Rope products. ARMCO STEEL PIPELINE CONSTRUCTION .1444 Broadway, Kansas City, Mo. *Project: 32.9-mile 30-1n., 15.5-mde 36-in. Kansas main line. Status: Before FPC. Project: XI -mile 30-in., 14.5-mile 36dn., Kansas main line and Missouri main line. Status: Bcforc FPC. Project: 70.8-mile 30-in., Illinois main line. Status: Before FPC. Project: 32.2-mile 30-in., main line in Indiana and Michigan. Status: Before FPC. Project: 67.2-mile 6 to 22-in, various lateral lines. Status: Before FPC. PEOPLES NATURAL GAS CO., Plus - burgh. Project: 1n.6-mile 12-in., Valley Station to Girty Station, Armstrong Can tyy, Pa.; replace 5-mile 12dn. with &mile 12-1n., tvestmorcland County, Pa. Completion: Sept. 30. *Project: 6-mil; 12-fit. Atcnvin Station to 5 CO. and GASOLINE Project: Large diameter line from Dela- _ ware basin, Nest Texas, to Odessa. Dallas. 0-in., dual purpose line, La., area. 3y McDermott & Co., RED SNAPPER LINE (organized byy 25 companies including Shel! Oil Co.). Project: 300-mile two-phase 30-in, to gather offshore oft and gas. Slams: Feasibility study completed. SABINE PIPE LINE CO., Houston. Project: 127-milo 24-in., Texaco Broth. La., plant to Port Arthur refinery. Status: FPC appproved. SAN MORCOL PIPELINE, INC., Santa Pa, N.M. Pro ectr 84n. line Raton to Los Vegas, .M. Status: FPC aPproved, SBMINOLE PIt'L•• LINE CO. (affiliate of Tennessee G a a Transmission Co.), Ilouston. Project: 1200-mile 30. or 36-1n., Emth, La. to Miami, Fla. Status: Planned. SHAMROCK OIL do GAS CORP.,Dox 631, Amarillo, Tex. *Project: 12-mile 12-in. and 12-mile 10dn. Ochilirce County to Lipscomb County. Tex. :hosing rlghl-of-way. June 1. CO., 1008 West 6th St., Los 1-milo 6 and 30-in„ Dutch i Martinez, CaIU. er way. 1965. COUNTIES GAS CO., Los Way Corp. and Pacific nstruction Co. ATURAL GAS CO., Box Project: 49-mile 14-1m, Bell Mills, Ala., to Rome, On. Status: Before FPC. Project: 62.8-mile 122'.54n., Rome, Go. to Chattanooga, Tenn. Status: Before FPC, Project: 455-mile I6-in., north main line to Alpharetta, On. 130 THE OIL AND GAS JOURNAL a APRIL 26, 1965 Compact top performer now offers ... also fast response! stable control! New Three -Mode Control (propor- tional -h reset + derivative) gives the popular compact Bristol 624 A/D* Indicating Pneumatic Con- troller an even wider range of per- formance. High Pilot Capacity gives it the ability to respond quickly even under the most demanding operating conditions. Control Stability is assured by its high sen- sitivity and a response curve that remains flat even at very high fre- quencies. Use Bristol 624 A/D for pres- sure and vacuum —ranges from full vacuum to 15,000 psi. For temper- ature —ranges from —300OF to + 1200eF. For. flow and differential pressure-0-2 to 0-400 H2O differ- ential. For humidity —zero to 10OVo relative humidity. *Advanced Design Reliable. Compact. Serviceable. The precision measuring elements have a tremendous service reputa- tion Earned through many years of consistent accuracy and dependabil- ity in other popular Bristol automa- tic controlling and recording instru- ments. The compact, aluminum, weatherproof instrument case is designed for flush, surface, panel, or valve mounting. The self-contained modular design of the 624 A/D con- trol unit speeds servicing. Take out two screws and you can remove the whole unit. Write: The Bristol Company,179 Bristol Road, Waterbury, Conn. 06720. A subsidiary of American ACCO Cana Cable Company, Inc. I Canada:: The Bristol Company of Canada, Ltd., 70 Attwell Drive, Rexdale, Ontario. 4•3 AUTOMATIC CONTROLLING, RECORDING, LOGGING AND TELEMETERING INSTRUMENTS{ SUPERVISORY CONTROL SYSTEMS PERFORMANCE CHARACTERISTICS Control Actions Proportional, proportional + reset, proportional + derivative, proportional + reset + derivative, on -off or differential gap. Mode Adjustments Proportional band: 0 to 400%. Reset rate: 0.1 to 100 repeats per minute. Derivative time: 0 to 10 minutes, Differential gap: 0.5 to 100% or 2 to 100%. Response Level 0.0060A of span. Frequency Response Response curve fiat to 400 cpm with proportional control unit, to 300 cpm with proportional + reset unit. Pilot Capacity 3 scfm, exhaust or delivery. Air Consumption 0.1 scfm World-wide Service with manufacturing plants in Canada, Mexico, England, France, Italy, Australia and the United States THE OIL AND GAS JOURNAL • AP.RIL 26, 1965 131 001Y a PHILADELPHIA MINER haS'a PHILADELPHIA DRIVE W11h PHILADELPHIA GEARS (DOES IT MAKE A DIFFERENCEP) Today, only Philadelphia among mixing equipment manufacturers makes the gears and drives for a complete line of process mixers for every liquid agitation need. qua Cutaway PTV DRIVV What does it mean to you 7 You know a Philadelphia Mixer will do the job you specify, be- cause every component of the mixer is designed and engineered to consistent standards of perform- ance efficiency ... by experienced specialists who know mixing — and mixers —from the gears up I Results? A Philadelphia Mixer meets exacting specifications to a degree not possible with conven- tional equipment utilizing drives and other components from out- side sources of supply. Philadelphia Supplies Performance Data And Philadelphia engineers are in a unique position to give straight answers where required to any aspect of mixer performance: horsepower ratings, shaft speeds and diameters, bearing life expec- tancy, impeller diameters, turnover rate, blending time, and factors determining the margin of capacity over and above normal operating loads. They know the answers be- cause they set the design stand- ards ... and build the gears, and the drive, and the completely assembled mixer to match I All ocars and drives manafac- lund in o urKing ofPrnssia Plant Mixing Results Guaranteed Does it make a difference in your fluid mixing operations that Phila- Precision Maeldning of A4ixer Housings delphia —and only Philadelphia — offers total mixer design and manu- facture ... a single source for com- plete application service before and after installation? It does enable us to make this guarantee: A Philadelphia Mixer will do the job you specify. We have to ... there's no way to pass the buck! Write today for more information. All turbines statically balanced ,w PHILADELPHIA MIXERS DIVIBION Of PNILADELPHIA OEAR CORPORATION KING OF PRUSSIA (Suburban Philadelphia) PPINNSYLVANIA MEMeen t i 132 THE OIL AND OAS JOURNAL • APRIL 26, 1965 PIPELINE CONSTRUCTION Status: Before FPC. Project: 35-mile 14-in., Macon to Griffin, Ga. Status: Before FPC. * Project: 10.4-mile 8s/s-m. Calera loop line. Status: FPC approved. Completion: June. Contractor: Latex Construction Co. of Georgia. * Project: 6.3-mile 8s/s-in. Mississippi Chem- ical Corp. loop. Status: FPC approved. Completion: July. SOUTHERN UNION GAS CO., Dallas. Project: 127-mile I. to 4-fir. distribution Imes Arizona and New Mexico; 74.6- mile 4. to 20-in. transmission lines. Status: Planned for 1965. SOUTH GEORGIA NATURAL GAS CO., Thomasville, Ga. Project: 151-mile 2- to 8-in, Weston to Bainbridge, Ga. Status: Before FPC. TENNESSEE GAS PIPELINE CO., Box 2511, Houston. Project: 58-mile 204n. gathering line, off- shore Louisiana. Status: Before FPC. Project: 3-mile 10-in. replacement near Lawrence, Mass. Status: FPC approved. Completion: End of 1965. Project: 9-mile 6-in. replacement line near North Adams, Mass. Status: FPC approved. Completion: End of 1965. Project: 158-mile 36-in. loop in Missis- sippi, Alabama, Tennessee, Kentucky and Ohio. Status: FPC approved. Project: 39-mile 30-in. loop in Pennsyl- vania and New York. Status: FPC approved. Project: 8-mile 12-in. replacement line near Pawtucket, R.I. Status: FPC approved. TEXACO INC., Box 252, New Orleans Proicet: 52-mile 20-in. Berwick, La., to Plaquemine, La. Status: Under way. Contractor: Houston Contracting Co. TEXAS EASTERN 'TRANSMISSION CORP., Box 2521, Houston. Project: 29-mile 30-in., Accident field, Md., to Station 21-A, Pa. Status: FPC approved. Completion: 1965. Project: 11-mile 16-in., Header system to Accident field, Md. Status: FPC approved. Completion: 1965. Project: 154-mile 36-in., 43-mile 30-fir. loops from Mississippi to New Jersey. Status: FPC approved. Completion: Aug. 15. Contractors: River Construction Corp., Houston Contracting Co., H. C. Price Co., J. P. Neill Co., Pentzien, Inc., and Missouri Valley Dredging Co. Project: 57-mile 20-in., Castor to West Monroe, La. Status: FPC approved. Completion: 1965. Project: I8-mile 12-in., Hanover, N.J., to Wanayue, N.J. Status: FPC approved. Completion; 1965. Project: 33-mile 304n., Beaumont, Tex., to Kosciusko, Miss. Status: FPC approved. Completion: 1966. Project: 163-mile 30-in., Kosciusko, Miss., to Delmont, Pa. Status: FPC approved. Completion: 1966. Project: 7-mile 30-in., Delmont, Pa., to Lambertville, N.J. Status: FPC approved. Completion: 1966. Project: 54-mile 30-in., Kosciusko, Miss., to Delmont, Pa. Status: FPC approved. Completion: 1967. Project: 13-mile 30-in., Delmont, Pa., to Lambertville, N.J. Status: FPC approved. Completion: 1967. Pro ect: 26-mile 30-in., between Beaumont, 1ex., and Kosciusko, Miss. Status: FPC approved. Completion: 1965. TEXAS GAS TRANSMISSION CORP., 3800 Frederica SL, Owensboro, Ky. Project: I1-mile 30-in. looping in Ken- tucky and Louisiana. Status: Under way. Completion: June. Contractor: Houston Contracting Co. Project: 8.4-mile 26-in., Lafayette Parish, La. Status: Before FPC. Project: 61-mile 30-in. loops Louisiana, Arkansas, Mississippi, Tennessee, and Kentucky. Status: FPC approved Project: 26-mile 26-in, loops Kentucky and Louisiana. Status: FPC approved. Project: 8-mile 6-in. loop. Indiana. Status: FPC approved. Project: 22-mile 20-in.; 30-mile 16-in.; 17-mile 4-in. laterals, South Louisiana. Status: FPC approved. TRANS -CITIES PIPELINE CO., (jointl) owned by Transwestem Pipeline Co and Cities Service Gas Co., Houston) Project: 180-mile 30-in., Glavfer, Tex„ to Blackwell, Okla. Status: FPC approved. AAF conditions air everywhere. Wherever you're located, whatever you need in conditioned air, AAF capabilities are available to you through the only world wide organization that makes all kinds of airfilters-from single units to complex systems (which can include cooling and/or silencing). AAF Roll-O-Matics provide clean in- take air for this gas turbine generator set at Peoples Utilities Industries, Inc., Bunts, La., peaking plant. This package unit from AAF consists of Roll-O-Matic filters, housing, duct- TINENTAL GAS PIPE LINE Box 1396, Houston. i.3-mile 36-in. main -line loop, Stains: Before FPC. Completion: 1965. Project: 28-mile 36-in. main -line loop, Status: Before FPC. Completion: 1965. Project: 39.3-mile 36-in. main -line loop, Georgia. Status: Before FPC. Completion: 1965. Project: 32.3-mile 36-in. main -line loop, North Carolina. Status: Before FPC. Completion: 1965. Project: 25.6-mile 36-in. main -line loop, Virginia. Status: Before FPC. Completion: 1965. Project: 26.3-mile 36-in. main -line loop, Pennsylvania. Status: Before FPC. Completion: 1965. Project: 74.8-mile 24-in. main -line loop, Pennsylvania. Status: Before FPC. Complect:tion: 1965. Proje11.1-mile 42-in. main -line loop, New Jersey. Status: Before FPC. Completion: 1965. Project: 57.2-mile 30-in, purchase lateral loop, Louisiana. Status: Before FPC. Completion: 1965. Project• 14.&mile 2 to 20-in. purchase lae 1 loop, Louisiana. Status: Before FPC. Completion: 1965. Project: 20.2-mile 8 to 12-in. purchase laterals, Louisiana. work and louvre -damper assembly. Fil- ters clean 105 lbs. of air per second, and the only maintenance required is infrequent replacement of the media roll -an operation as simple as changing film in a camera. Get complete information on your next installation from your AAF repre- sentative, or write: Robert D. Moore, American Air Filter Company, Inc., 444 Central Avenue, Louisville, Kentucky. A A American Air Filter BUTTER AIR IS OUR BUSINESS THE OIL AND GAS JOURNAL • APRIL 26, 1965 133 PIPELINE CONSTRUCTION Status: Before FPC. Completion: 1965. Project: 126-mile 16 to 20-in. line exten. sions, Georgia. Status: Before FPC. Completion: 1965. Project 28-rage 16-in. line extension, South Carolina. Status: Before FPC. Completion: 1965. Project: 7-mile, 12-in, line extension, Pennsylvania. Status: before FPC. Project: 10t6-mile, Louisiana. Status: FPC approved. tANSCONTINENTAL GAS PIPE LINE CO., and UNITED NATURAL GAS CO., Oil City, Pa. Projcct: 24-mile, 10-im, 39-mile 2 to 16- _ in. to develop storage in Pennsylvania. PIPELINE CO., Box 60.4-miles 30- sl Texas. *Project: 3.3-miles 6-in.; KO -miles 26-in.; 10.3-miles 20-in., Panhandle area. Status: Before FPC. TRUNKLINE GAS CO., Box 1642, Hom, ton. * Project: 15.5-mile 16-in. gathering lines in Brooks County, Tex. Status: Before FPC. UNITED FUEL GAS CO„ Charleston, W.Va. Project: 9-mile, 30-in., Wayne County; 14- mile 24-in. between Cobb and Glen- ville stations. Status: Before FPC. UNITED GAS PIPE LINE CO., Box 1407, Shreveport, La. Project: 50-mile 12-in., Corrigan to Crockett, Tax. Status: Planned. Pro77eet: i0-mite 24-In., Webster to Bay- ciitf, Tex. Status: Planned. VERMONT GAS SYSTEMS, INC., Mont. pelier, Vt. Project: 45-mile 10-in. Highgate to Bur. lington; 9-mile 4-in. laterals to Sheldon and Essex. Status: Before FPC. Canadian Crude Oil Pipelines BRITISH COLUMBIA OIL TRANSMIS. SION CO. LTD. (Sun OR Co.), 805 Eighth Ave., S.W., Calgary. Pro) : 12-mlla Ii from Aitken Creek field to terminus of existing gathering system, Blueberry field. Status: Permit received but awaiting field development, CANADIAN PACIFIC OH, & GAS CO. LTD., Calgarryy. Project: 160-rm'lo 6 and 4-in. line from Bantry and Cessford oil fields to Can- tuor, Saak. Status: Permit applied for. CrnEs SERVICE ATHABASCA, INC., Baker Bldg., Edmonton. Pro act: 300-m11a Hne from processing plent at Mildred Leke to Edmonton, GREAT CANADIAN OH. 8ANDS LTD., 403 Sterling Tower, Toronto. Project: 290-mile 16•in. from extraction pant near McMurray, Alta., to Ed- monton Status: Aibcrta oil & Gas Conservation Board approved. Completion: 1966. HUSKY OIL CANADA LTD„ Calgary, Alta. Pro7'ecl: 72-mile 8-1n., Lloydminster to Hardisty. Status: To start May. Completion: June 15. Contractor: Hcnuset thus. Ltd. YOROCARRONS PIPELINE LTD., 250 Elvedon House, Calgary. Project: 124-raga SH-la., Edmonton to Rosyth and 414-in. from Rosyth to Completion: Sppringg 1965. iTERPROVINCIAL PIPE LINE CO., 25 Adelaide St. W, Toronto, Ont. Project: 27.5.n41e 34-in., and 21.4-mile 34-in. loops in Saskatchewan. Status: Work to start July 7, Completion: Aug. 27 Contractor: Marine Pipeline & Dredging Ltd. Project: 13.6-mile M-in., Joliette, N.D., to near Donaldson, Minn. 1965. 34-In., Donaldson, Minn., Minn. t. 1965. LINE CO., 10803 Sher- 24-in., and 25.1-mile Quebec north of U.S. Status: National Energy Board approval. Contractor: Mannix Co. Ltd. PEACE RIVER PIPELINE CO., Calggary. Project: 200-mile, 10-Ib. Rainbow Lakc to Red Earth terminal, Alberta. Status: Application filed. PRODUCERS PIPELINES LTD., 2240 Al- bert St., Regina, Snsk. * Project: 35 to 40-mile 3 to 64n. gathering extensions. Status: Planned. CoonP clino: November. SOCM MOBIL OIL OF CANADA, Cal- gary, Alta. Prcon: 38-mile 2 to 8-in., Winnbarnc Veld, Alta. Contractor: Arnett & Burgess Oil Field Cont. Ltd. *Project: 300-mile 10-in. from Rainbow Lake field to Edmonton, Alta. Status: Seeking nermit. AT'ION CO., Cal garyry. 13%.In. loop on Rlm- ecton of existing line. I,lberte, Conservation PIPELINES LTD„ , Edmonton. Vi-In. Oungre, to Way - Status: Propposed. Project: 195-mile, 8-in. Rainbow Lake, Alta., to Boundary Lakc, B.C., system. Status: Aanlication [lied. Project: 910-mile to transport future oil sands crude from Edmonton, Alta„ to Churchill, Man. WAHISHAW PIPELINES LTD., (Union Oil Co, and Dome Petroleum Ltd.), Edmonton. Project: 170-mile 64n. Red Earth and Loose Lake fields, Alta., to southern terminus Pence River tine near Sturgeon Lake. Status: Planned. Canadian Products Pipelines CANADIAN HYDROCARBONS, Calgary, Alta. Project: 600-mile 6 and 8-in. 50 miles northwest of Calgary to Sumas Peak near Vancouver, B.C., via Crow's Nest Pass. Status: Before Alberta Oil & Gas Con- servation Dead, CANADIAN SUPERIOR OIL LTD., Cal- gary, Alta. Project; 14.5-mile 4-In. ropane, Harman tea -Elkton to CnnadFtn Pacific Rail- way at Didsbury. Status: Before provincial government. HUGHENDEN PIPELINES LTD., Edmon- ton, Alta, Project: 125-mile 6-in., Rimbey•Nevis area to underground storage In Hardlsty, area. Status: Government approved. HURON PIPELINES, LTD., Edmonton, Alta. It Project: 135-mile 4.5-in. from Lethbridge to Calgur, , Alta. (Original plan for 450-mile -donation to Lethbridge was denied permit.) Status: Permit sought. MOUNTAIN PACIFIC PIPELINE LTD., Calgary, Alta, Project: 580-mile 8-in, from Edson, Alta. to Pert Moody, D.C. Status: Incorporation authorized comple- tion. Completion: 1966. Canadian Natural Gas Pipelines ALBERTA GAS TRUNK LINE CO. LTD., Calgary, Alta. Project: 173•mile 30•in. from Carstairs to Edson gas field. Status: Under way. Completion: Sept. 30. Contractor: Hamster Const. (1963) Ltd. GREATER WINNIPEG GAS CO„ Winni• peg, Man. Project: 22-mile 12 and 6-in. extensions to Selkirk. Status: Planned. INTER -CITE' GAS UTILITIES LTD. Project: I06-mile 6-in.; 20-mile 3-in.; 5- mile 2-1n. to serve Dauphin, Grandview, Gilbert Plains, Roblin, Russell, Inglis, St. Lazara, and Hinscarth, Manitoba. Status: To start May 1. Completion: Septemcbr. MIDWESTERN UTILITIES LTD., Edmon- ton. Alta. Projeca 12-mile 4- to 16-in. connceting Hcascr Lake gas field to main system. Status: To start early spring. NORANDA MINES LTD., Toronto, Ont. * Project: 130.mile 12-1n. from Stony Lake area in British Columbia to Prince George. Status: Seeking provincial permit. NORTHERN ALBERTA PIPE LINES LTD., Edmonton Projcct: 110•milo trunk line, plus gather- ing system, from Lac La Biche to Ed- monton. Status: Pending provincial approval. POLARIS PIPE LiNE CO., Calgarryy. Project: Proposed 3,000-mile 36-in. front northern British Columbia to U.S. Midwest. QUEBEC GAS TRANSMISSION LINES, INC., 1610 Sherbrooke St. W, Men - Project: 120-mile 20-In.; 70-mile 10-in.; 20-mile 16-In.; 15-mile 6-in.; 20-mile 6-fn., 70-mile 10-in., six areas of Prov- ince of Quebec. TMANS-CANADA PIPE LINES LTD., Box 500, Calgary, Alta. (through U.S. sub• sidiary to be, formed -Great Lakes Gas Transmission Co.) Project: 65-mile, Montreal terminal to ppboint near Vermont border at Phillips. Status; Before National Energy Board. Completion: Late 1965. *project: 38-mile 34-in. loops in Saskatche. wan and Manitoba. Status: Before National Energy Board. 134 THE OIL AND GAS JOURNAL • APRIL 26, 1965 J r 4 Buy a cooling tower on price alone and you may end up in hot water Or should we say, "with hot water"? The point is, a cooling tower has only one purpose in life — to convert heated water to cooled water. If it can't do that well, it doesn't make much difference what you paid for it. You're in hot water! Here's how you can stay out of hot water, and, at the same time, assure yourself of all, the cool water you need. When buying or specifying a cooling tower, consider these points before price: The Manufacturer's Experience —Since experi- ence is the best teacher, be sure the manufacturer has learned through "doing"... not just "schooling". At Marley you'll find 40 years of cooling tower de- signing and building experience. Engineering —It's no cinch to design a cooling tower. It's a specialized science that confounds and confuses the inexperienced. That's why Marley main- tains a staff of 90 qualified, diversified engineers. Product Quality —Seek single responsibility in the cooling tower you buy. Make sure each part of the tower is designed and built specifically for use in cooling towers. The only part that Marley doesn't make is the motor. Testing —Be sure the manufacturer has based his performance ratings on tests —not theory. Marley bases on tests! Nationwide Service —Even Marley towers need service. ror this we have 55 bffices across the nation. We don't pretend to be able to provide all these benefits at no extra expense. That's why a Marley product sometimes costs more. However, we think it's worth more. So do our customers. The Marley Com- pany, 222 W. Gregory Blvd., Kansas City, Missouri. -MARLEY Dowell can't change your well conditions, but we can offer an acidizing service to fit. The variety of Dowell acidizing services available to you is almost as broad as the variety of well conditions you encounter. To help you get the results you want, Dowell offers the industry's widest number of acidizing services, techniques and materials. For example, if your producing formation is either fast - reacting, vuggy, oolitic or naturally fractured, you can use one of Dowell's five effective Retarded Acids. Or you may find another type of inhibited acid, combined with FLA* X2 super fluid -loss -control agent, makes a better combination to penetrate deep into the producing formation before spending. Perhaps your formation has been damaged by mud or cement filtrates. Dowell offers Mud Acid and BDA* breakdown and cleanup acid. Or, you may want to: pre- vent the swelling of clay minerals, reduce surface ten- sion, prevent or break emulsions, remove water blocks, prevent deposition of iron hydroxides. Dowell offers field -proved acidizing answers for these and other pro- duction problems. What's more, you get more years of acidizing experi- ence from Dowell than from any other service company. Using the exclusive Acid Guide*, your Dowell engineer can help you decide if an acid treatment is advisable and, if so, what materials and techniques would be best. The Acid Guide also provides an engineering basis for predicting results. When you're ready for stimulation, tell us your well conditions. We'll help you engineer an acidizing treat- ment designed to get the results you want. Dowell serv- ices and products are offered world-wide. Dowell, Tulsa, Oklahoma 74114. *TM SERVICES FOR THE OIL AND GAS INDUSTRY • . DIVISION OF THE DOW CHEMICAL COMPANY CALL DOWELL FOR "RED THREAD" GLASS FIBER PIPE AND TUBING AND "DELRIN" PLASTIC PIPE 136 THE OIL AND OAS JOURNAL • APRIL 26, 1965 NEW EQUIPMENT Improved cable layer for track -type tractors A NEW cable layer attachment for Caterpillar track -type tractors has been announced that maintains an effective plowing -in angle for all ripping depths. A tube type of parallelogram linkage gives control of the shank penetration angle. The linkage keeps the laying shank in vertical position and in line with tractor travel, even when the shank is off- set, the maker says. The shank is far enough behind the tractor to permit unrestricted maneuvering. Two 7-in. hydraulic cylinders c o n t r o l shank vertical Internal coating protects pipe The inside of pipe can be pro- tected from corrosive water with a new thick -film (18 to 20 mil) plas- tic coating which is applied to the inside of the pipe by a revolving spray -head system. Trademarked TK-90, the coating is claimed to be holiday free, tight- ly bonded, and flexible, and to be inexpensive and easily applied. The maker says its temperature and placement. Lateral movement also hydraulically controlled, permits the shank to be offset as much as 24 in. to place cable close to roadways, bridges, and other structures. The new cable layer can lay cable, tubing, wire, or any material that can be coiled, to depths from 12 in. with a D4 tractor to 72 in. with a D9 tractor. The maker says material to 3�/2-in. diameter can be laid with accuracy at rates as high as 1 mile per hour. Source: Crutch- er - Rolfs - Cummings, Inc., Kelley Products Div., PO Box 3227, Hous- ton, Tex. pressure capabilities are 160' F. and 10,000 psi, and that it with- stands an elongation of 365%. The coating is expected to be valuable for water -gathering and water -distribution lines, injection - well tubing, and water -disposal sys- tems. Source: AMF Tuboscope, Inc., PO Box 808, Houston, Tex. Modified N-80 casing offered Modified N-80 casing has been announced for hydrogen s u if i d e service which has the following properties: minimum yield strength of 80,000 psi and a maximum of 95,000 psi; an ultimate tensile strength oi; 100,000 psi minimum; and an elongation of 21% mini- r Ei a a O W = Q d u " a a' i E } X, 0 E E o a a E E t � a W d V pWC 3 vi « u mum. Source: American Mannex Corp., International Bldg., Suite 3007, 630 Fifth Ave., New York, N.Y. Test plug eases pressure readings Pressure readings can be made without the need to leave a pressure gauge permanently on location through use of a new t e s t plug, gauge adaptor, and needle, offering a way to keep down costs. The gauge is connected to the line only when a reading is taken. The needle attaches to the gauge through an adaptor. It is inserted into the permanently affixed valve core. When the needle is removed from the valve core, the core closes off tightly. The maker's standard Type 45P pressure test plug is made of yellow brass rod with a 1/4-in. male pipe THE OIL AND GAS JOURNAL - APRIL 26, 1965 137 thread at the bottom. It also comes in Type 304 stainless steel. The pressure -test unit is rated for a maximum working pressure of 2,000 psi and a working tempera- ture range of —40' to 2000F. Source: Universal Controls Corp., PO Box 20276, Dallas, Tex. 75220. Connection joins gas tubing to pipe Copper or steel -tubing gas -service connections can be made to steel gas mains with a new connector. Trademarked the Autoperf/Clamp, it is claimed to combine the ease of a service clamp with the advantages of the maker's Autoperf tee. The connector has a forged -steel body and strap. The strap is flat- tened to give a large contact area on the pipe for the needed strength and support. The maker says the body and strap are accurately con- toured to match the pipe curvature. A single -bolt design is used for fast installation, An O-ring, cemented in the clamp body, makes a positive pressure seal between the clamp and the gas main. The connection comes in sizes for steel gas -main diameters from 1 to 4 in, with either 112. or 5/164n. perforators. Source: Muel- ler Co., 500 W. Eldorado, Decatur, Ill. Nitrogen made by unattended plant A LOW-COST supply of high - purity nitrogen may be obtained for process and petrochemical plants through installation of a new unat- tended nitrogen plant now available. The plant is the result of the de - MORE KOOMEY blowout preventer control systems are aboard mobile and floating offshore rigs than all other makes combinedl To find out why, ask any Stewart& Stevenson —Koomey representative. STEWART & STEVENSON DISTRIBUTING CO. 1820 COMMERCE • HOUSTON, TEXAS 77001 • CA 5.5341 Cable Address: "Stewsteve" velopment of a new air -separation - plant cycle. Designed to deliver as little as 10,000 or as much as 100,000 cfh the new units yield a continuous supply of high -purity product (99.999% nitrogen plus inerts, with less than 10 ppm of oxygen), the maker reports. The plants are designed to serve the needs of operators who do not have access to pipeline sources or coproduct nitrogen. They comprise three basic components: a "cold - box" package that houses heat ex- changers and fractionation equip- ment, factory assembled and piped; a compressor package comprising a skid -mounted air compressor, suc- tion filter, snubber, surge tank, after -coolers, and electric -motor control center; and a liquid -nitrogen storage t a n k t h a t delivers liquid nitrogen d u r i n g plant shutdown. Source: Union Carbide Corp., Linda Div., 270 Park Ave., New York. N.Y. 10017. System analyzer for control system A system analyzer is available for use with International Controls' su- pervisory - control equipment. The analyzer is available built-in as an integral part of the system or as a portable module. The maker says its small size does away with the need for oscilloscopes and other bulky test equipment. 138 THE OIL AND GAS JOURNAL • APRIL 26, 1965 THINK COPPER ... for high-performance alloys I A, C The corrosion resistance of coppermetals ... endurance to fight the elements Modern copper alloys developed at Anaconda's Research and Technical Center have unsurpassed resistance to such corrosive attacks as stress corrosion cracking and exfoliation corrosion. Newest, vastly capable Cupro-Nickel alloys, for example, can be considered for higher ranges of pressures and tempera- tures than ever before — a boon to designers of heat exchangers. When you think corrosion resistance, think copper. And take a fresh look at ANACONDA the high-performance alloys and experienced technical assistance Anaconda offers today. U.Ms AMERICAN BRASS COMPANY Think Copper. And when you do . , . . 0 * THINK ANACONDA for the broadest range of copper alloys and sizes and for experienced technical services large plate capability I Anaconda's capacity for producing large -size sheet and plate for process industry use is unsurpassed. The following table outlines briefly the alloys available, along with size, ! f — ��—'\� gauge and weight information. new Alloy 7152 for high process temperatures and pressures The result of intensive R&D efforts, new Cupro-Nickel, 30%-7162 was developed by Anaconda to satisfy heat exchanger and process vessel needs in applications where increasing temperatures and pressures prevail. It is an economical, high -strength material nominally composed of 64.15% copper, 30.00% nickel, 6,25% iron and 0.06%manganese. Supplied with a stabilizing anneal, Alloy 7162 easily takes tight U-bends and retains strength at elevated temperatures — ASME code allowable working stresses to 15,200 psi at 600 F. Here is an alloy with high resistance to stress -corrosion cracking and excellent resistance to exfoliation corrosion. Its chloride corrosion resistance is superior to that of many stainless steels. It also has excellent sulfide resistance. This combination of properties makes it ideal for applications where sea water and a number of other corrosive media are present. Alloys Max. Width Inches Gauges Inches Max. Max. Weights Brass 60 3 3,000lbs. Red Brass 156 21h 3,0001bs. Com. Bronze 156 _ 1li 2% 3,0001bs. Copper (Hot Rolled) _ 4 4,200lbs, Copper (Cold Rolled) 156 4 2,0001bs. Phosphor Bronze-361 156 Consult Mill over 60" 3,500 lbs. Muntz & Naval Brass (Hot Rolled) 150 3 16,0001bs. Muntz & Naval Brass (Cold Rolled) 150 3 15,0001bs. Everdur (Hot Rolled) _ I60 _ 3 6,0001bs. Cupro-Nickel 70/30, 00/10 160 3 Ambraloy-930only 60 Consultllfill _5,0001bs. Electrolytic Copper and Phosphorized Copper also available. alloy tube for every requirement In order to provide the most efficient, economical alloy for any operating condi- tion, Anaconda produces "standard" tubes in thirteen different alloys, including the new, high -strength Cupro-Nickel Alloy 7152. In addition, variations, special alloys, and a wide vareity of duplex tubes can be produced to meet special process industry requirements, along with small diameter tube for instrumentation and steam trace applications. For greater design latitude, Anaconda can draw tube with thickened'ends or thickened center sections. Walls can also be thickened in preselected areas to compensate for the "thinning" that takes place in short -radius bonds. U-bend bundles can be supplied with legs as long as fifty feet, straight lengths up to one hundred feet. Everdur Electrical Conduit Anaconda also produces electrical conduit of tough, long-lasting Everdurefor highly corrosive atmospheres. It reduces main- tenance to zero in most cases. It also pro- tects against short circuits caused when moisture finds its way into wiring through corroded steel or aluminum conduit. U. n A(0" H ©A AMERICAN BRASS COMPANY THE HOUSE YOUR NEEDS BUILT Since its establishment in 1961, Anaconda's impressive Research and Technical Center has been dedicated to finding new ways for coppermetals to serve you better. The results? New alloys. New mill forms. A new world of facts about coppermetals and their unique capacity for meeting industry's fast -changing needs. Here is the taproot of Anaconda technical assistance in the field. If there is a coppermetal answer to your problem, the man from Anaconda has it or can get it for you quickly through the Research and Technical Center. Anaconda field metallurgists are ready to serve you in offices from Coast to coast. Write today for handy, helpful technical information on any of the following alloys and products: Cupro-Nickel30 %-7152 Large plate Alloy tube Anaconda American Brass Company, Waterbury, Connecticut 06720. In Canada: Anaconda American Brass Ltd., New Toronto, Ontario. .wu The built-in equipment is de- signed to operate from locations at the master or at the slave station, while the portable unit may also be used at either the master or slave stations. These units weigh less than 40 lb and take up less than 11/2 cu ft of space. The analyzer is claimed to locate any fault occurring within the logic circuitry and to resolve the fault within one or two circuit cards. Source: International Controls Corp., PO Box 4209, Houston, Tex. Insert bit in larger size The Gault three-way Type C in- sert bit can now be obtained in larger standard sizes from 6 through 81/4 in. These bits are manufac- tured with heavy-duty inserts and with 31/2 and 4�/2-in. API threads. The bits are equipped with 3/16- in: thick carbide for high strength and have a large, full -flow water or air course to help maintain free chip removal with a fast penetra- tion rate. Source: Gault Tool Co., Inc., PO Box 1233, Ada, Okla. 74820. Operator for small ball valves Pneumatic cylinder operators are now available to permit remote ac- tuation of Flo -Mite miniaturized ball valves. They are designed for air-to-open/air-to-close service us- ing supply air at a pressure as low as 40 psig. The maker says they will actuate ball valves handling process fluids at pressures to 5,000 psig. The operator comprises a brass cylinder tube, aluminum head, and Type 18-8 stainless steel rod. Two /a -in. NPT female ports connect the actuating air line. Two three- way solenoid valves may be ob- tained for one -switch control. Source: Hoke, Inc., 1 Tenkill Park, Cresskill, N.J. 07626. Flange seal also insulates An insulating gasket -seal is avail- able for ASA flanges that uses a plastic laminate retainer and a nitrile synthetic rubber sealing member. Trademarked a Gask-O- Seal, it can be used on raised -face, flat -face, and lap -joint pipe flanges up to the ASA 900-lb rating to seal air, water, oil, LP -gas, gasoline, and other media at temperatures from —650 to 1800 F. The seal comes in standard -size pipe flanges ranging from 2 to 24 in. Insulating sleeves and washers for both single and double -insulating applications are furnished with the seals as needed. Source: Parker Seal Co., 10567 Jefferson Blvd., Culver City, Calif. 90232. Split pipe ell hastens leak repair Leaks in 45 °, 90°, and 180' pipe. fittings may be quickly fixed with a new split ell, available on ., special order. Suitable for water, oil, steam, gas, gasoline, and chemical lines, the split ell has been designed for use on process lines, heat ex- changers, and other applications. It comes with neoprene, silicone, THE OIL AND GAS JOURNAL . APRIL 26, 1965 141 Viton, or asbestos packing for tem- peratures from —100' to 9001F., for high or low pressure, and for pipe sizes from I to 36 in. The ell is so designed that the packing cannot be displaced during installation by leaking fluid. Source: Pipe Line Development Co., 5350 W. 130th, Cleveland, Ohio 44142. Fitting simplifies port connection A tubing port connector is avail- able that can simplify multiport con- nections by doing away with the need for short pieces of tubing. It ��_ lt:il _I�I V I d CI also permits fast assembly and dis- assembly. It Is suited particularly for close coupling and manifolding. Addition- IT TIME,�MONEYG�D LABOR oLPJryTMG�]T14 ML°3p4o0ag 9 Use the TERPRTH S-14 BASE STATION You can cut costs, reduce personnel and save time with the Telepath 5-14 Communications Systeml This unique system, developed by Soiscor, provides 100Vo plant coverage — no dead spots. For use by operations personnel of petrochemical, refining and processing plants, the 5-14 meets oil requirements of Underwriters Laboratories for "Haz• ardous Locations, Class 1, Group D." PERSONAL UNIT IFor descriptive brochure write,, laEISCOF� A bIVISION 0F 5ehmograph Servia Corporation INTERNATIONAL HEADQUARTERS / 6200 E. 412t $1. /P. 0. BOX $SO / TULSA, OXIAHOMA / PH. (911) Ip1 M al valves, fittings, or other compo- nents can be rapidly hooked up to give leakproof connections The Swagelok port connector comes in most any-macbineable metal or plas- tic in diameters for 1/16 through 1-in. tube -fitting connections. Source: Crawford Fitting Co., 884 E. 140th Street, Cleveland, Ohio 44110. New downhole television service A new downhole television ser- vice has been announced by Baylor Co., Inc., and is to be available through its subsidiary, Telewell Corp. The service uses a downhole instrument that is operated over a special 9/164n: diameter cable and wluch transmits detailed images of casing, formation, or other down - hole features to a surface television screen where they may be viewed or recorded by still or motion photog- raphy. Source: Telewelt Corp., 5310 Gletmtont Drive, Houston, Tex. 77036. Thirty-six in. -diameter ball valves Ball valves are now available from a manufacturer in diameters from 2 through 36 in., in ASA ratings of 150, 300, 600, and 900 lb, in both full -port and venturi patterns. They are also available in API 2,000 and 3,000-1b ratings. Valve sizes of 2 through 4 in. have a floating -ball and floating - seat design with their metal seats encased in Teflon. Valve sizes of 6 through 36 in. have a trunnion - mounted ball and O-ring seat seals. This seat design is claimed to offer dead -tight independent upstream and downstream sealing by a pri- mary metal -to -metal seal backed up by secondary protected O-rings. The ball valves use bolted con- struction to permit easy disassembly on the job site. Source: Grove Valve & Regulator Co., 6529 Hollis, Oak- land, Calif. 94608. 142 THE OIL AND GAS JOURNAL • APRIL 26, 1965 TRADE LITERATURE Water -treating equipment A new bulletin titled, "Fifty Years of Treating Fluids," is now yours on request. The bulletin describes Calfilco filters, pretreating equipment, chemical feeders, degasifiers, aerators, deaerators, softeners, deminerai- izers, and special ion exchangers. In addition, the bulletin includes information about automatic controls and instrumentation. Source: California Filter Co., Inc., 1300 Rollins Rd., Burlingame, Calif. LP -gas handbook You can now receive free of cost a new 24-page handbook on LP -gas handling. The handbook answers questions about design and maintenance of LP -gas and ammonia transfer systems in bulk plants, transports, and bob tails. Maintenance personnel will find useful a section on "do's and don'ts" of pump operation. Also included in the handbook, an appendix lists properties of LP -gas, plus charts that show friction loss in pipe, hose, valves, and fittings. Source: Blackmer Pump Co., Div. Dover Corp., 1809 Century Ave., S.W., Grand Rapids, Mich. 49509. Technical ceramic compositions Engineers who may become involved with the design, production, or purchase of technical ceramics may find a new bulletin, No. 651, useful that describes mechanical and electrical characteristics of the ceramic compositions. Source: American Lava Corp., Manufac- turers Rd., Chattanooga, Tenn. 37405. Cyclone filters drilling mud A new free bulletin now available describes two models of drilling mud cyclones that desilt as they desand drilling fluid. The Model DSC-400C 4-in. cyclone can remove sand and silts down to a 15 1A cut and can process more than 42 gpm at 40 psi. This model also comes in units up to 16 manifolded cones that can handle 670 gpm. The Model DSC-600B 6-in. cyclone removes sand and larger silts and rejects more than 98% of API 200 mesh solids, plus a silt cut to 25 µ, the maker says. This model is available in single cones that can handle 110 gpm at 40 psi and up to eight manifolded cones that can handle 880 gpm. Source: Pioneer Cen- trifuging Co., 424 Hogan St., Houston, Tex. 77009. Well servicing units Truck -mounted and self -powered well servicing units are described in a new free bulletin now available. The bulletin describes five well -servicing unit models that can work on wells from 4,000 to 12,000 ft that have 21/a-in. tubing. It also describes spudders that can clean out wells from 3,000 to 8,000 ft. Source: Fred E. Cooper, Inc., PO Box 1890, Tulsa, Okla. Pump, motor performance data Two new free bulletins now available present pump and motor performance data for three pump -motor SIZES STRATEGICALLY LOCATED... u.Mwn -,-,...... and a reliable source for high test line pipe Next time you need pipe from a close midwestern source, ask for a Valley quotation. Valley makes 6, 8 and 10•inch high frequency resist- ance welded line pipe to the highest steel pipe standards. Wall thick- nesses to .219. Quality control in- cludes Tocco annealing to normalize welds and Sperry ultrasonic inspec- tion. Frequent cycling of production assures early delivery. Coating and wrapping facilities available. 12, 14 and 16•inch also available using electric fusion process. WRITE'OR CALL DEPT. OG MANUFACTURING COMPANY VALLEY.NEBRASKA THE OIL AND GAS JOURNAL • APRIL 26, 1965 143 THERMAL RECOVERY, DATA FILE Why Portable Units? West Coast operators have had a great deal of experience with parlabla steam units and found they are profitable for testing and for soaking operations. If you have a lease where you feel steam may be the economic answer to increase production, Texsteam portable units can be leased from a service com- pany for a pilot operation or you can package" your own pporinbie unit. Costs arc rensonablc, and tlto results can serve as a guide for further production opera- tions. There is another economic "plus" for portable units: if the proposed steam flood operation contains several wells. It is possible to move the unit from well to well on a planned soaking progrnm. Bc- causc each unit is completely "packaged; a set-up con be made wuh the minimum of lima and expense. And you get full value from a portable set-up. Lines and connections are short, so there is little heat loss in transmission. If you would like complete informa- tion on the Texsteam units mailable for portable —and stationary —steam flood operations, write to Texsteam Corpora- tion or contact your nearest Texsteam representative. Texsteam Portable Steam Units Come in 6 Sizes To pilot test or actually steam soak a lease, Texsteam Corporation makes six different sizes of portable steam genera- tors ranging from 2 million to 12 million btu/hr output. There is a unit which can be truck or trailer mounted for your spe- cific field requirements. Texsteam, a pio- neer in the development of steam genera- tors for thermal recovery operations, is the only manufacturer that offers opera- tors and service companies an equipment selection for portable units. If you're planning a pilot test or looking for steam generation equipment for lease operations, ask for Tcxslonm's Thermo] Data File. It contains 50 pages of infor- mation on equipment and usage which can answer many questions you might have on thermal recovery. When you de- cide on a project be sure to specify Tax. steam equipment ... the line where you can select and sizethermal generators to fit your budget and operations. TEXSTEAM Model 380 Portable Steam Generator • THERMAL OUTPUT. 10,000,000 btu/ hr • EQUIVALENT EVAPORATION: 10,300 Ibs/hr @ 1500 prig • One of six sizes aVail- able for portable operations DROP -FRAME trailer mounted Texsteam thermal unit. + OVERALL LENGTH- 30 it x 8 fit trailer with water treatments 38 it x 8 ft. • WEIGHT: 24,000 Ihs. Ratio of weight to eapochys 2lbs total weight to 1 lb'steom/hr. T rrT TEXSTEAM AMM 320 HUGHES ST, • P. 0. BOX 9368 • HOUSTON, TEXAS 77011 1 WA 8.5361 CABLE ADDRESSi TEXSTEAM REPRESENTATIVES THROUGHOUT THE WORLD Boa 144 THE OIL AND OAS JOURNAL • APRIL 26, 1965 models. Model PM-215 pump -motor has a pump rated at 30 gpm and a motor rated at 24 hp; Model PM-220 pump motor has a pump rated at 40 gpm and a motor at 34 hp, and Model PM-230 pump -motor has a pump rated at 60 gpm and a motor rated at 50 hp. All three models are rated at 2,000 rpm speeds and 1,500 psi. Source: Be•Ge Mfg. Co., Gilroy, Calif. 95020. Tank services bulletin A new free bulletin now available describes a firm's services for tanks, including cleaning, installation of reinforced -concrete bottoms, protective coatings, replacement and repair of wooden -roof tanks, installa- tion of roof manways, nozzles, gauge hatches, vents, the repair and replacement of fabric seals on floating roofs, and static grounding and insulating "for fire pro- tection. The bulletin includes drawings of special fabri- cation and assemblies for sumps, suction line and water -drawing off assemblies, and cone -roof scaffold cable supports. Source: Tank Service of Okla. Inc., PO Box 3245, Tulsa, Okla. 74150. Pumping unit control A new bulletin now available free of cost describes the Spartan pumping unit control, trademarked Pump Master, that activates pumping units only when there was sufficient fluid in the hole. The pumping system samples fluid in the hole, and, if it is at a sufficient level, the pumping writ automatically activates and will run until the fluid has been lowered to pump level. The system has three main parts: (1) a fluid -sensing cham- ber; (2) a back -pressure valve, and (3) an electrical control system. Source: Spartan Controls, PO Box 4066, Midland, Tex. Fin tubing for heat transfer Bulletin T-100, now available free, 38 pages, de- scribes Recold fin tubing for heat -transfer applications. The useful bulletin describes the tubing and presents detailed engineering specifications, including a fin ef- ficiency chart, heat -transfer coefficients, a pressure - drop chart, and surface tables for tubing and pipe. The tubing comes in diameters from 3/8 to 103/4 in. Source: Recold Corp., 7250 E. Slauson Ave., Los Angeles, Calif. 90022. Fireproofing, insulating material A new fireproofing and insulating plaster for build- ings is described in a new bulletin now available free of cost. The maker says the material can provide re- sistance to fire at 2,0751 F. for about 3 hours on con- crete ceilings and for about 5 hours on a raw steel beam at the same temperature. Average thickness of the material was 0.57 in. Source: Eustice Equipment Co., 1120 E. Latimer Pl., Tulsa, Okla. Anchor tool bulletin A new free bulletin now available describes Chance anchor tools, including a soil -test probe, an expanding anchor tool, a plate anchor tool, and a screw anchor wrench. Source: A. B. Chance Co., Centralia, Mo. 65240. GULF STATES ships you macaroni tubing fast from this big Houston stock Whether the tubing you need is GST Streamline, upset, non -upset, or API integral joint, we can ship it fast from stock, in sizes from 3/4 through 23/8 inches, 155 or N80. Call your pipe distributor or Gulf States Tube. GSTGULF STATES TUBE C O R P O R A T 1 O N BOX 952 • ROSENBERG, TEXAS 77471 Phone; HOUSTON­ CA 8.9656 • TWX 713-662-7481 THE OIL AND GAS JOURNAL • APRIL 26, 1965 1 145 n HUGE 20-ft diameter tunnel -boring machine can drill three hole sizes. Hughes builds tunnelling machine HUGHES TOOL CO. has just completed manufacture of a huge 20-ft diameter tunnelling machine for use in boring part of the $135 million water -diversion program at the Navajo Indian irrigation proj- ect near Aztec, N.M. The project, being carried out by the Bureau of Reclamation for the Bureau of Indian Affairs, will re- quire 15 years of work to complete 152 miles of tunnels and canals drat will eventually supply the Navajo Indian reservation with 508,000 acre-ft of water per year. The huge boring machine, called "The Betti One," is reported to be one of the largest, most powerful hard -rock tunnelling machines. It was designed' and manufactured by Hughes Tool Co. under contract be- tween Fenix andScisson, Inc., Tulsa, tunnel contractor, and Hughes in- dustrial products division. The giant machine was built at Hugh B, Wil- liams Mfg, Co., Dallas, a wholly owned Hughes subsidiary. The machine has a cutting head that can drill three hole sizes.. De- sign of the 19 ft, 10-in. diameter cutting head permits it to be ex- panded to 20 ft, 10-in. and to 21 ft, 24n. diameters to provide for the placing of ring beam supports, if needed. Otherwise, thenominalbore will be 19 ft, 10 in. The cutting head is equipped with Hughes sealed -bearing replaceable cutters specially designed and manu- factured for requirements of this job. The head has a rotating speed of 5 rpm. Weighing 280 tons and having a length of 64 ft, the tunnel -boring machine exerts 1,400,000 lbs of thrust against the face. Thrust is reacted by eight hydraulically actu- ated jack pads positioned against the tunnel bore. The machine moves forward in 5-ft increments. Two jacks are located on each side and two on the top and bottom. Power is fed through 2,300-v, 3- phase cables from the tunnel inlet to the machine's five, 200-hp elec- tric motors. Later, as the machine penetrates deeper into the forma- tion, the power cables will be snaked downward into the tunnel through a series of vertical holes drilled from the surface. An air-conditioned operator's cabin is mounted mid -way on the machine's right side, while, on the opposite side, an electrical -control cabinet is located. Hughes Tool research has pro- vided a laser system for directional guidance of the tunnel driver. The firm's laboratory has designed and built a special laser and electronic - control system. It is one of the first practical applications of a laser beam for use as a guidance system for a tunnelling machine drilling through solid rock to a remote tar- get, M. E. Montrose, president, oil tool division, Hughes Tool, said. Muck removal is accomplished by a system of buckets mounted on the rotating cutter head which feeds an overhead conveyor belt from the front to the back of the machine. EQUIPMENT MEN Byron Jackson, Inc., LongBeach, Calif., has established a white hard hat program for qualified service engineers to increase their prestige and to recognize their service, ac- cording to William T. Box, vice- president. Under the program, only one man will wear a white hard bat of leadership on any cementing, aeidiz- ing, or fracturing job. If more than one qualified service engineer is on a job. a BJ district superintendent will designate the man to wear the white hat. Halliburton Co., Duncan, Okla., has announced three major admin- istrative and field engineering changes. Two of Halliburton's do- mestic divisions have new assistant division managers, Gayle M. Pruett for the Midland division and W. W. Ball for the Oklahoma City division. Also, Joe L. Tyson has been named division engineer for the Oklahoma City division. Foxboro Co., Foxboro, Mass., has announced the election of Ralph Hayden, Jr., as executive vice- president, and Earle W. Pitt and Henry L. Milo, Y Jr., as vice-presi- dents. Hayden willas- sume many of the responsibilities Hayden formerly held by W. W. Frymoyer, who continues as a vice-president, a member of the Pitt Milo firm's executive committee, and a director. Pitt will continue as U.S. general sales manager, and Milo will continue as general manager, U.S. operations. Maver-Kelly Co., Houston, has announced A. C. Flory and H, K. 146 THE OIL AND GAS JOURNAL - APRIL 26, 1965 ��OC7L1C��� �OC"7C��f��GU�'� p0�✓c�2� ,702o(Damp no omr zvzt?(Duim There's one good reason why nitric acid and other process plants use systems like the one above to compress process air: most of the power comes from energy generated by the process. A multi -stage, high-energy I-R turbo -expander converts hot gas efficiently into driving power for the compressor; an auxiliary tur- bine employs excess steam. The power cost is minimal, and some- times zero! There are many reasons why Ingersoll Rand leads by far in supplying this equipment. I-R designs and builds the expanders and the compressors, and factory -tests them at rated speed, tempera- ture and pressure. The wide variety of I-R compressors assures the best match=for example, the system above employs a 7-stage axial -flow compressor and a 3-stage centrifugal compressor in series. For specifics on how I-R power recovery and compression equipment can solve problems and cut costs for you, call your I-R representative or write direct to Ingersoll-Rand Co., 11 Broadway, New York, N.Y. 10004. 630-A-12 9 POWER RECOVERY BY co Ingersoll-Rand THE OIL AND GAS JOURNAL • APRIL 26, 1965 147 Hynes have been elected vice-pres- idents of the corrosion prevention supply specialty firm. At the same time, James E. Mavor, founder, was made chairman of the board and Thomas F. P. Kelly, vice-president and partner, was elected president. Brewster Co., Shreveport, La., has named Vann M. Campbell as sales representative, headquartering in Houston. Campbell has had 16 years experience as rotary equip- ment salesman and 5 years in ser- vicing. His primary sales territory will be the Houston area and Texas Gulf Coast. Guiberson Division of Dresser Industries, Inc., Dallas, has an- nounced the promotions of Garland Diggs as manager of the firm's West Coast division and Quentin Marsh as manager of the Odessa, Tex., district, succeeding Diggs. Diggs will headquarter in Ven- tura, Calif., and will supervise Gui- Diggs Marsh berson stoekpoints in Ventura, Bak- ersfield, Long Beach, and Anchor- age, Alaska. Marsh will be responsi- ble for sales and service in the Odessa district, which also includes stockpoints in Abilene, Hobbs, and Farmington, N.M. Frank Wheatley Corp., Tulsa, is the new corporate name for the firm resulting from the merger of Frank Wheatley Pump & Valve Mfr. with Frank Wheatley Corp. Before this merger, Frank Wheatley Corp. was a separate firm engaged in the marketing of Frank Wheatley products in the U.S. Ted C. Bodley, chairman of the board, said, that except for the pos- sible addition of new employees, there would be no personnel changes made in the foreseeable future as a result of the merger. Dearborn Chemical Co., Chicago. is now a division of W. R. Grace & INTERNATIONAL GUESTS at a recent meeting of the Los Angeles Chapter of Nomads include Lester F. Rojas, Comdrill, formerly in Libya; John Star - bird, Refining Associates, Indonesia; Jaime Acost, and Javier Cortes F., C.E.P.S.A., Mexico; Mohammad Mostoufi, N.I. Oil Co., Iran, and Euan Noble, Johnston Testers, Canada. Co. The transaction involved an ex- change of the firm's assets for W. R. Grace common stock. Dearborn will now be known as Dearborn Chemical division of W. R. Grace & Co. Robert A. Carr, who has been chairman, becomes presi- dent, and Robert F. Carr, who has been president, becomes senior vice- president of Dearborn Chemical di- vision. Johnston Testers, Inc,, has an- nounced Argie J. Schcxnaider has been named a sales engineer in the New Orleans office of the firm. Schexnaider was previously a ser- vice engineer for Baker Oil Tools. Milwhite Mud, division of Mil- chem Inc., Houston, has named W. T. Kelly co- ordinator of sales supervising all of the firm's sales in the U.S. and Can- ada. Hewas for- merly Gulf Coast area sales man - alter. 09% Oil Center Research, Lafayette, La., has announced the construction of a nety laboratory and manu- facturing plant in Lafayette, La. The new plant will provide increased efficiency, and will accelerate exist- ing and projected research pro- grams. Delta Desco Companies, Inc., Houston, manufacturers of valve lubricants and other specialty lubri- cants, has appointed Hector J. Cantu as director of research. Cantu has been with Baroid Division of National Lead Co. for the past 11 years. Crutcher•Rolfs-Cummings, Inc., Houston, has announced two new appointments. J. E. Stepchinski has been promoted to sales administra- tive assistant, headquartering in Stepchinski Steadman Houston. M. W. Steadman has joined the firm as a sales engineer, specializing in sales of heavy con- struction equipment, including Kel- ley rippers. Texsteam Corp., Houston, through its parent organization, Vapor Corp., has formed a new firm which will manufacture Walker well heads and Tex -seal nonlubricated valves in Ed- monton, Alta. The newly formed firm will be known as Texsteam Ltd. It will use the manufacturing facilities previ- ously owned by Robinson Oilfield Specialties Ltd., Edmonton. The firm will be operated as a subsidiary of Vapor Corp., Chicago. 148 THE OIL AND GAS JOURNAL , APRIL 26, 1965 New GROWTH and DIVERSIFICATION reported ,by El Paso Natural Gas Company EARNINGS SUMMARY 1964 1963 Earned per common share (a) $ 1.41 $ 1.21 Operating revenues 512,848,271 512,251,974 Net Income from operations (b) 38,797,031 34,526,959 (a) After preferred dividend requirements and based on net Income before non -recurring Items. (b) Before non -recurring Items Involving a loss In 1954 of $5,115,343 principally from write -down of book value of I certain oil and gas properties of El Paso Naturpl Gas Products Company: and a gain in 1963 of $10,353,415 from sale or other disposition of certain non -utility properties and securities. REVENUES AT NEW PEAK ,512,848.2711 $510.000.000 $450,000,00 I $390,000,000 ' $330,000,000 j $270o0o.000 ; $210,0D0,000 (j( spooe000 $ 9o,00o,00o $ 30,M.M ,wo loss ras ios, 8{ RECORD GAS DELIVERIES taso,000.000 1.120,000,000 eeo,00000o MODUDD 40D.000,e0o Y160,0001000 PASO NATURAL, The substantial financial progress indicated in accom- panying charts tells only part of El Paso Natural Gas Company's 1964 growth story. El Paso Natural marketed a record 1.36 trillion cubic feet of gas last year. But we added 1.7 trillion cubic feet to reserves, bringing the total reserve to 35.6 trillion cubic feet by the end of 1964—a 26 year supply at the present rate of sales. And demands for gas continue to rise. We are pres- ently seeking Federal Power Commission authorization to supply substantial additional quantities of gas to Southern California, a major market. Rapid diversification continued in 1964, through subsidiary companies, in such growth fields as petro- chemicals, fertilizers and oil and gas production. Highlights: ■ Construction began on plants to produce raw mate- rials for 40 million pounds per year of Nylon 66 yarn, in a joint venture with Beaunit Corporation. Through a subsidiary, we acquired more than 30 per cent of Beaunit stock. ■ A plant owned jointly with Rexall Drug and Chemical Company went on stream at rated capacity of 27.5 million pounds per year of polypropylene. ■ Production capacity of polyethylene in a plant owned jointly with Rexall was upped to 165 million pounds per year and is being further increased 45 per cent. ■ Construction began on a new plant to process 100,000 tons per year of phosphate fertilizers. ■ Other important diversification projects have been undertaken. For the story of El Paso Natural's growth and operations in 1964, writo for the 1964 Annual Report. El Paso Natural Gas Company, El Paso, Texas, 79999. O' OM PANY 964 e- THE OIL AND GAS JOURNAL • APRIL 26, 1965 - 149 We have said yes to the oil industry on more than $2 billion in loans Yes, and that covers lots of pipeline. Not just trunk lines, but gathering lines and product lines for gas and crude and ethylene and gasoline. Loans from First National Bank in Dallas helped build them. Now, many of our pipeliner friends are ready to modernize and expand. Some are building robot stations. Some are putting in new pumps and compressors. Some are looping lines. And, again, they're doing it with the help of the Oil Division of the First In Dallas. Can we help you? GIVE US Ati oF'roiat/Nlrr ro SAY tESr Member Federal beposit Insurance corporation IN DAILAS FIRST NATIONAL BANK IN DALLAS LSO 7H5 OIL AND OAS JOURNAL • APRIL 26, 1965 4 Corners hit by 3-cornered Paradox drilling basin Colorado Colorado prize spree AnothV A Stnd. of Texas � I G w -' B Texaco Be BNO G Amerada E D Skelly E Superior F G Pon Am Zollor& 9 I s H F� Dannoberg B Tenneco Unnamed Tocito Dome -center Buck Mesa , of deep wells basin D C = s � i Hopi drilling begins o San Juan m i basin B u a D Exploration/Drilling John C. McCaslin Geological Editor THREE of the Four Corners are in the midst of a brisk drilling campaign that will go a long way in deciding future exploratory agenda in the southwest- ern Rockies. Arizonans are anxiously awaiting the outcome of the Hopi Indian Reservation drilling program that has three rigs busy and another expected. Southwest Colo- rado is developing its best new oil field yet at Cache. Pre -Cretaceous drilling in the San Juan basin in north- western New Mexico has some new, spirit as a result of the successful growth of Tocito Dome field. Ripe wildcat country. This could be the year for the Black Mesa basin, one of the nation's largest un- explored hopefuls. There are three wells in the running to bring this nearly dry basin into the oil fold. Newest location in the play is Amerada Petroleum Corp. 1 Indian in SE NE 8-29n-19e, Navajo County. This test will go to 9,400 ft. Skelly Oil Co. has an 8,000-ft Cambrian prospect in 35-30n-17e, Navajo County, 23 miles northeast of Texaco Inc. 1 Hopi Tribe -A in NW NW 15-26n-16e. Finally. Southwest Colorado at long last got its "big one," Cache. Years of little success in Paradox basin exploration forced many to believe the old tale about oil stopping at a state line. But last year, Pan American Petroleum Corp. found Cache field in Montezuma County, opening a prolific Pennsylvanian reservoir. Cactus Drilling Co. drilled the discovery well and Pan Am took it over at casing point, completing for 1,400 b/d. The new field was immediately confirmed by a 2,000-b/d well. These wells were both record breakers in Colorado production history —and indeed are among the giants of the old Aneth days. Dome drilling. An old surface feature that was -first mapped in 1915, and first drilled in 1943 with no success, is now one of the .most promising new discoveries in years for New Mexico. Tocito Dome was opened to commercial produc- tion in 1963, 20 years after Continental OR Co. found some gas in the Mississippian there. Pan Am discov- ered, the field at 1 Tribe-N in SW SW 17-26n-18w flow- ing 5,077 Mcfd with condensate from Pennsylvanian. This well didn't create too much of a stir, but when Texaco came in in 1964 and found oil at 1 Navajo -AL in SE NE 28-26n-18w, 21/2 miles south- east, things began to bubble. The Texaco well flowed 530 b/d and 1,238 Mcfd from Paradox Pennsylvanian at 6,275-6,302 ft. Texaco's oil well did the trick. More than a dozen have been added since Field output is more than 34,000 bbl/month. Not since Lisbon field was opened in Utah has so much interest been circulating around the South- west. THE OIL AND GAS JOURNAL • APRIL 26, 1965 151 rI Think black and white This is a black and white ad. We designed it this way. That's because we think of cementing as a black and white busi" ness. You either getthe job done right —or you don't. ■The black -and -white record of performance is more important to you than the color of the paint on the cementing equip- ment. In this uncolored world of accomplished performance BJ has logged 36 years of cementing successes. Only one other company can approach that record. ■ And in equip- ment and manpower BJ is second to none. BJ Pacemaker pumps are way out front in the industry. And BJ pneu- matic bulk equipment literally changed offshore cementing procedure. So when you think cementing, think results. Think BJ. ■ Byron Jackson Inc., a O Borg-Warner subsidiary ■ Long Beach/Arlington/Houston. ■ petroleum equipment BORG WARNER® and services Microgravimetric profiles should find more reefs THE imaginative, inquisitive, and curious explorationist is likely to find additional reefs by microgravi- metric profiling in Alberta andother areas. Oil was discovered in the Leduc formation in the Imperial 1 Red - water in LSD 1, 32-57-21w4 in October 1948. The cumulative pro- duction, as of Jan. 1, 1964, is 279,- 028,133 bbl of oil; 849 wells pro- duced 16,415,660 bbl of oil during 1963. The field is a reef bloherm surrounded by impermeable shale. The maximum oil zone thickness is 220 ft. The average oil zone thick- ness is 101 ft. The estimated re- coverable oil is 700,000,000 bbl. A n experimental "microgravi- metric" profile was conducted across the Redwater reef to ascertain if a gravity anomaly was present. The profile extends from the southwest corner of 26-57-22w4 to the south- east corner of 25-57-21w4. Fig. 1 shows the location of the Redwater reef in Alberta, Canada, and shows the location of the gravity -profile and the adjacent and parallel elec- tric -log section. Fig. 2 shows a Bouguer gravity profile which is 19 miles in length. There is only one significant gravity anomaly on the profile. Fig. 3 shows 8 miles of the grav- ity profile shown in Fig. 2 and the electric -log cross-section of 16 wells which are parallel and adjacent to the gravity profile. This figure also shows the Bouguer gravity profile, regional gravity and residual gravity anomaly. The residual gravity anom- aly was obtained by subtracting the regional from the Bouguer gravity values. Fig. 4 shows the formation tops taken from the electric logs shown in Fig. 3. Fig. 5 is a condensed vertical section based on the elcctrlc-log "picks" from the 16 electric logs shown in Fig. 3. A compaction anti- cline may be seen in every forma- tion above the Leduc formation. The electric logs at Redwater begin Craig Farris E. V. McCollum & Co. Tulsa Y:ri- IyyN.,.1'p L 1ki t�iLdiMJ Yu• YY Gravity profile Electric log cross section l • L♦ 1Fr 4Awii•Yhl tl✓ YL "IHL.+Yd Y. bFH Area - - Ti •, 5: I' ' -- T shown A L B E'R T A — � r VL REDWATER reef Is located In Alberta. Fig. I shows location of the gravity - profile and the adjacent and parallel electric -log section. Pig. 1. -68• 69• Gravity,' profile � 705 707 11 80 78 68 63 55- b 39 31. 25 17 9s 1 122r 40140s s3 BOUGUER GRAVITY PROFILE is 19 miles long. There is only one significant gravity anomaly on the profile. Fig. 2. 154 THE OIL AND GAS JOURNAL • APRIL 26, 1965 Type "R" Tubing Head 2000 psi W.P. Type "SR" Tubing Head 2000 psi W.P. 7MRsi a IFAI i slips or mandrel suspension from 500 to 2000 psi Type "MR" TubingHeed 2000 ql W.. From this complete line of basic heads, you can hook up duals, triples, quads, and specials with slips or a mandrel sus- pension in just about any combination of tub- ing sizes. Let this Larkin quality put greater econ- omy in your production. Type "K" Tubing Head 1500, psi W.P. An�'I Type VSK" Tubing Head 1500 psi W.P. Type "MN" Tubing Head 1500 psi W.P. K M 2 �II _ f Type 5 0 psiW p,Heed LARKIN PACKER COMPANY DIVISION OF KOEHRING COMPANY WAXAHACHIE, TEXAS LARKIN LEADERSHIP HAS BEEN EARNED BY YEARS OF DEPENDABLE PERFORMANCE J M N Type "H" Tubing Head 500 psl,W.P. Typo "X" Tubing Head 2000 psi W.P. Fig. 92 Casing Head 2000 psi W.P. rlwlARK'1'N ...Through Your Supply Stare THE OIL AND GAS JOURNAL a APRIL 26, 1965 155 Condensed vertical section based on electric log "picks" Well number I�-N ll•19 lE•19 N•T] lE•70 1141 16d1 1422 16.22 1 Illillllllllll► UPPar 0 Lower 100 so Ireton 60 't 4o 20:= FCV I.0 CIF �CRg2 Tr m pFC'� 0 x r RESIDUAL GRAVITY ANOMALY was obtained by sub. trotting the regional from the Bouguer gravity values. Fig. 3. AAPG, 1929. This m o d e l study fL % Vertical exoD9etotlon I illustrates the compaction anticline which exists in all formations above tat to t the reef at Redwater. Shallow sub - at approximately 700 ft. Structure gravity profile, and the residual grav- A COMPACTION anticline in the Lea Park could probably be ity anomaly. can be seen 1n every for. mapped if the formation had been Fig 6 is an experimental model mation above the Leduc. logged. This figure also shows the of a 11compaction Anticline" taken Fig. 5. Bouguer gravity profile, the regional from Nevin and Sherrill, p. 11, e Well Numbers 16.24 14.19 16.19 1330 4-20 15-20 16-20 10-21 14-21 15-21 16-21 13-22 14-22 IS•22 16.22 1 1 I 1 I 1 1 I SXALE f 1,000 SILT t 500 15 N J D 3 � SN S. W F 0 m 7f u_.e J n0sUAT O -500 t �• OAN NISKU ALN �ETON -1.000 LE s Lai 4 I i 0.6 �, lthCICIC IOps MIMI. eAAYITY _"�-•..�._. 'DUO", OKAY Irr "`�••-8E030NAL OAAYITY See. 25 See. 00 See, 29 St.. 28 S.C. 27 It. 26 See. 25 See. 24 See. 19 Sec. 2D See, 21 See. 22 Sea 23 See. 24 15@ THE OIL AND GAS JOURNAL a APRIL 26, 1965 WELL NUMBER FORMATION 16.24 14.19 15.19 16.19 13.20 14.20 15.20 16.20 13.21 14.27 15-21 1G•21 13.22 14.22 15.22 16-22 +1009 +1022 4-1032 +1035 +1042 +1049 +1051 +1060 +1062 +1061 +lOS7 +1062 +1061 +1063 +1067 +1062 Cretaceous Upper +360 1 +379 1 +392 397 +406 +412 +415 +426 +429 +429 +427 +433 +435 +437 +444 +446 Lower -171 -145 -136 -133 -121 -120 -101 -90 -81 -92 -91 -82 Ireton -1152 -1096 -1070 -1052 -1030 -1010 -986 -970 -960 -977 -996 -1001 -998 -997 -1007 -1010 Devonian Leduc -1235 -1186 -1159 -1140 -1123 -1101 -1084 -1068 -1064 -1087 -1116 -1124 -1130 -113 -1159 -1163 REDWATER REEF. Formation tops from electric log "picks". Fig. 4. surface structure may be seen on the electric logs in the Upper Cre- taceous at Redwater. Similar "grass roots" structures due to compaction anticlines have been found by grav- ity at Boyd, Scipio, Wapella East, and Denmark. Variation in the thickness of the glacial drift is the concern of all geophysical interpreters. Approxi- mately 60 ft of glacial drift is pres- ent at Redwater. Referring to the Bouguer gravity profile, the gravity anomaly at Red - water is approximately 0.56 milligal. The gravity anomaly does not ap- pear to be affected by variations in the thickness of the drift. The probable error computed from the Bouguer gravity values is, according to a formula devised by E. V. McCollum: e = tO.3452 x YI-gt+2g2—gal = =tO.007 mg The gravity anomaly at Redwater is 73 times the probable error. The gravity anomaly is therefore con- sidered to be valid and significant. If we assume a density contrast of 0.2 gr/cc (which is probably too high) and 140 ft of Leduc formation buildup, we can account for a 0.36 milligal anomaly at Redwater. As was the case at Boyd, Scipio, Wa- pella East, and Denmark, the grav- ity anomaly at Redwater cannot be explained solely by the density con- trast between the reef and the sur- rounding impermeable shale. The gravity anomaly at Redwater is be- lieved to be largely due to the inte- grated effect of the several density contrasts in the compaction ami- cline above the Redwater reef. Acknowledgment The author acknowledges the help and assistance of L. J. Richards, T. A. Halbrook, and R. A. Boul- ware in obtaining geologic informa- tion in the area and thanks E. V. McCollum for assistance and care- ful review of the manuscript. Bibliography "Gravity Meters Uncover New Reefs in Michigan": Craig Ferris, OGJ, Aug. 29, 1961. "Gravity Meters Can Find Another Al- bion -Scipio Trend": Craig Ferris, OGJ, Oct. 22, 1962. "Finding One Reef is Like Finding One Ant": Craig Ferris, OGJ, May 25, 1964. "Gravimetrics are Key to Ohio's Train. pealeau": Craig Ferris, OGJ, Feb. 17, 1964. Quality of Geophysical Measurements": E. V. McCollum, Geophysics, Vol. 17, No. 1, Jan. 1952. "Oil Fields of Alberta": Alberta Society of Petroleum Geologists, 1960. "Seismic Exploration for Reefs in West- ern Canada": Chapman, C. J., Sixth World Petroleum Congress, June 1963. "Facies Analysis of the Redwater Reef Complex": Klovan, J. E., Bulletin of the MODEL STUDY after Nevin and Sherrill illustrates the compaction anticline existing in all formations above the reef at Redwater. Fig. 6. Canadian Petroleum Geology, Vol. 12, No. 1, p. 1, Mar. 1964. ' Stratigraphy and Facies Analysis of Up- per Devonian Reef in Leduc, Stetaer, and the Redwater Field, Alberta, Canada": Andrichuk, J. M., AAPG, Bull. 41, p. 1, 1958. "Gravity Survey of Redwater Area": Bible, John L., unpublished, Midwestern SEG, 1949. Spring rigs whirl in Oklahoma WINTER drilling in western Oklahoma's Anadarko basin was brisk, but spring operations seem to be even stronger. Sun Oil Co. has confirmed the Southeast Fay field discovery well in Blaine County at 1 Cowan in C SE NW 35-15n-13w. The well flowed 962 Mcfd from perforations in the Morrow Pennsylvanian sand at 10,832-46 and 10,862-68 ft. Flow later improved to 2,179 Mcfd on 14/64-in. choke. For 14 hours of testing, the well made 2,382 Mcfd with 7 bbl condensate on choke. Discovery well of the field flowed 8 MMcfd and 62 bbl condensate per million. It was Sun's 1 Godwin in C SE NW 27-15n-13w. Morrow pay was found at 10,705-45 ft. More Morrow wells. Another new Morrow producer is Sunray DX Oil Co.'s 1 Renfrew in Dolly Springs field, C SE NW 18-27n-4w. Flow was 1,730 Mcfd from perfor- ations at 6,538-49 ft on 15/64-in. choke,bbli e9ndensate per million:. Chester Mississippian flow was 1,450 Mcfd at 6,620-6,738 ft. Panhandle. A dual completion is planned by Mobil Oil Co. at 11 Julian in C NW SE 4-5n-13eCM, Postle field, Texas County. This Morrow "A" and "G" well flowed 180 bbl in 15 hours at 6,136-46 ft in the "A." Morrow "G" will be pumped at 6,469-73 ft. At South Guymon field, Texas County, Cities Service Oil Co. 1 Olson-B in C NE SE 11-2n-14eCM, flowed 13,500 Mcfd from Morrow S-3 sand at 6,684-92 ft. A Mocane field well in Beaver County flowed 7,100 Mcfd from Morrow at 6,766-6,804 ft, It is Amax Petroleum Co. 1 Carrier in C NE SW 1-4n-27eCM. Big Ringwood well. A prolific Mississippian oil well is reported on the Alfalfa County side of North Ringwood field in northwestern Oklahoma. Gulf Oil Corp. 1 Cronin in C NW SW 14-23n-10w flowed 653 bo/d from Meramec at 6,650-6,995 ft and Osage at 7,150-65 ft. Ellis County. Roger Mills County, a sparse western Oklahoma pro - THE OIL AND GAS JOURNAL . APRIL 26, 1965 157 METERS a 6 . HELP KEEP HALLIBURTON SLURRIES UNIFORM The better the slurry, the better the cementing job. Here's why you get the best from Halliburton: Halliburton Densometers and Densitrollers belp measure and control slurry density instantaneously, to maintain the prescribed slurry weight. The new Halliburton LP and HI-V Jet Mixers mix slurry uniformly at either very low or very high mixing rates, and all rates in between. But the most important factor of all is the Halliburton Cementer a skilled specialist trained to get maximum results from the most sophisticated cementing equipment in the world today. For over 40 years, the combination of HallIburton men and macl-dnes has been legend in the oil fields. That's also the outlook for the next 40 years. 275 Service Centers —World-Wide... just Minutes Away Front Your Weill CEMENTING SERVICES Hallwbulr *on COMPANY . DUNCAN, YHLAHOMA 158 THE OIL AND OAS JOANAL • APRIL 26, 1965 ducer, gained production at a new site by virtue of an Ellis County extension success. Texas Oil & Gas Corp. 1 Robert- son in NW NE SW 17-17n-25w, a 1-mile extension 'of Bishop field, moved Tonkawa Pennsylvanian gas into Roger Mills. The well flowed 6,308 Mcfd and an estimated 35 bbl condensate per million. Lafayette Co., Ark. An execellent well reopened Field Bayou in Lafayette County, south- western Arkansas. Discovery is Ashland Oil & Re- fining Co. 1 Henry Moore, Jr., Es- tate, in C SE SE SE 25-17s-25w. The well flowed 300 b/d, 431 grav- ity, and 300 Mcfd on 1/4-in. choke with 8% bs&w. Production is from Smackover Jurassic porosity at 9,424-36 ft. This new pool is 8 miles south- west of Lewisville and not far north- east of the abandoned discovery well of Field Bayou. The first well, Janlyn Oil Co. 1 Pan American in C NW SE NE 36-17s-25w, a 1959 pumper from Smackover at 9,386- 9,423 ft, was left in 1961 after making 16,411 bbl oil total. Field Bayou is located about 15/s miles west of McKamie-Patton field. San Patricio Co., Tex. Rich gas production is reported at a wildcat 13/4 miles southeast of Taft in San Patricio County, South- west Texas. New producer is BDK Production Co. et al. 1 Ben E. Ivey. Flow was 19,200 Mcfd plus 10 bbl condensate per million from perforations at 6,134-36 ft. Another test is being made at 6,608-12 ft. Location is in the SA&MG Survey 6, A-253. Nearest production lies about 11/4 miles southeast at Midway. Southern Kansas enjoys revival SEVERAL southern and south- western Kansas areas report good discoveries. Anadarko Production Co. com- pleted 1 Gilmore "B" in C SW NE 2-34s-33w, Seward County, extend- ing Evalyn field. Gauge was 6,600 Mcfd from Chester Mississippian at 6,169-91 ft. There is some conden- sate with the natural gas flow. Pro - This week's exploration/drilling �v Div . Western Oklahoma counties gear for busy sum" mer...South Arkansas field reopened... Good discoveries. renew drilling interest in var— ious Kansas counties... Rich gas found at South Texas wildcat... They"re looking for gas again at Foothills region wildcats... West Virginia gas field earns its way but fast... Prolific Ohio wells return to the scene...A new East Texas play gains momentum... Is oil hunting in Australia too slow? duction in the field now extends to within �h mile of Evalyn field. Chester production was found at Condit field last year at 1 Worth- ington "A" in C NE SW 12-34s-33w. Well flowed 11,600 Mcfd and 70 bbl oil daily from Chester at 6,255- 69 ft. The 1 Worthington "A' well is li/z miles southeast of the Gil- more "B" well at Condit. Another new producer is 1 Sally "A' in C SE NW 35-33s-33w. Flow was 3,800 Mcfd from Chester and 5,900 Mcfd from Morrow Pennsylvanian. Mown. Mull Drilling Co. com- pleted 1 Bissed in C NW NW 28-27s-20w to extend West Fralich field south in Kiowa County. The well pumped 104 b/d from 4,872-93 ft in Mississippian. Barber. A field in southern Kansas flowed 200 b/d to confirm North Deerhead field in Barber County. New producer is Ferguson Oil Co. et al. 1 Swayden in C NE SW 14-32s-15w. Production is from Viola Ordovician at 4,965-68 ft. Well is also a Maquoketa and Mar- maton prospect. Discovery well is in C SE NW 14 with Maquoketa pro- duction. California maps The 1965 edition of California - Alaska Oil and Gas Field Map Book is off the presses and now available. The map book, published by Munger Oilogram, contains 300 pages, 12 by 181h in., showing all oil and gas fields in California, plus field and wildcat maps for Alaska. New this year are pages for the new Northeast McKittrick develop- ment in the San Joaquin Valley, the offshore California coastal areas, and the wildcat maps of Alaska. All maps have been updated with drilling wells, producers and dry holes to Mar. 1, 1965. The map book includes one or more pages for each oil and gas field in Cali- fornia and Alaska, plus 80 pages of wildcat activity. Map books may be ordered from Munger Oilogram, 5865 West Boulevard, Los Angeles 43. Price is $26, including tax. THE OIL AND GAS JOURNAL . APRIL 26, 1965 159 1 Smoky River rea Gas discoveries a 200-# gas switch Kaybob pay found Alberta exploratory interest to foothills again \ eaSQa iLBGRT% Dual Miss. oil, t� s gas discovery cry F< Braz:W y T Rivet rG 0 V. 7j 0 Z 02 BRITISR COLCNIBI>, !.tiles More Foothills gas found at two Alberta strikes TWO far -apart gas discoveries in Alberta have put the Foothills belt and the far -western plains back into the exploratory arena of Canada. More than 200 ft of gas pay is reported at Pan American Petro- leum Corp. -Scurry Rainbow C-1 Gold Creek on LSD 10, 32-67-4w6, 5 miles north of two Iarge gassers completed last year. Area under concern is the Wapiti, Smoky, and Cutbank River region in northwest- ern Alberta. The Pan American A-1 Gold Creek of 1964 flowed 5 MMcfd from 250 ft of Wabamun pay plus 1,000 be/d. No other details are available on the new well. Brazeau River. The other gas dis- covery in Alberta is Iocated in the Brazeau River area. New gas production is reported plus oil at Hudson's Bay OR & Gas Co. Ltd. 10 2 Brazeau River, lo- cated on LSD 10, 2-46-14w5. Operator found gas and oil in the Elkton and Shunda members of the Mississippian. Drill -stem test in the Shunda at 10,377-10,445 ft got 1,250 Mcfd and recovered 1,670 ft of 40a-gravity oil. Elkton gas flow was 4,700 Mcfd and 150 ft condensate at 10,356-78 ft. Elkton pay was 20-ft net; Shunda 15 ft. Braxton Co., W.Va. A gas field in Braxton County's Salt Lick District in West Virginia is earning its way but fast. An Allegan, Mich., operator, MacDonald Spidel, eports a flow of 10 MMcfd at 1he 1-A Nathan Goff. This extenpon well flowed from Injun Mississippian at 2,073- 2,091 ft and Squaw Mississip- pian at 2,108- 4 ft. Delivery per day is 1,500 cfd. This is the Ixth well for the op- erator in the /Burnsville area. It is also the highest flowing one yet. The 1 Bro ms was the discovery well of the field, completed in 1963 for 8 MMcfd from Injun at 1,888 ft. Flow rates of the field's six wells are 3,100-10,000 Mcfd. Ohio drilling hits A DISCOVERY and a prolific confirmation were the drilling high- lights in Ohio's Cambrian play. Publishers Petroleum of OkIa- homa City pumped 16 b/d from Trempealeau through perforations at 4,072-76 ft to open a new field in Knox County. The 1 Baumberger is in Lot 24, Fourth Quarter, Wayne Township. Location is 81/2 miles east of West Chesterville field, a Cambrian producer. The big confirmation discovery is Hammerstone Oil Co.'s 1 Hocker in NW Section 12 South, Washing- ton Township, Morrow County. This well flowed 60 bbl oil per hour from Gull River and Trempealeau formations. Drill -stem test was made at 3,272-95 ft. Another is planned. This well will confirm the Joe Young et al. Gull River field dis- covery at I Mattis which flowed 487 b/d on 21/64-in. choke. Texas publication The Bureau of Economic Geol- ogy announces completion of the Tyler Sheet of the Texas Geologic Atlas Project. This map shows topography and roads as well as cities, towns, railroads, etc. This is fa the st part of the Atlas project. New publications The Quarterly of the Colorado School of Mines, January 1965, presents "Electrical Prospecting With the Telluric Current Method," by M. N. Berdicbevsldy and trans- lated -edited by Dr. George V. Keller. Price is $6.00. Volume 60, No. I may be ordered four Colorado School of Mines, Golden, Colo. 760 THE OIL AND GAS JOURNAL • APRIL 26, 1965 _ gas well pumping units, another Cabot innovation The Cabot gas well pumping unit is the simple answer to the problem of removing accumulated water from producing gas wells. The Cabot unit utilizes a high, 3-leg samson post which eliminates the need for special steel substruc- tures or built-up earthen mounds that are now required to clear the higher gas wellheads. The Cabot unit is designed to clear well heads up to 6 feet high. The new unit also features an integral portable foundation base, which greatly simplifies handling and installation. Levelling the ground with a shovel before setting the unit is all the site preparation required. The entire unit can be readily skidded or moved as required. The new gas well unit is only one of. the pumping unit innovations to be introduced by Cabot in the coming months. Check with your Cabot representative or any of the authorized distributors for full details on all Cabot pumping equipment. C_T CABOT CORPORATION MACHINERY DIVISION P-165 PAMPA, TEXAS f r Bradford maintains field laboratories at Bradford, Evans- yses, deposit identification and Lolo;lcal studies to pro- vd!e, Tulsa, Abilene, Midland, Denver, Edmonton and Los videthedataforsoundw,gIneermgrecommendatmns.Showm Angeles. Each lab is equipped to make complete water anal- abme are sry.tmns of the Tulsa and Abilene laboratories. Bradford Laboratories water engineering solves flood problems Total Water Treatment; starts with Bradford Laboratories water engi- neering —for the reason that a prob- lem cannot be solved until it is defined. The Bradford approach to any prob- lem is divided into three stages: L Diagnosis —to determine whether a problem actually exists —to determine the exact nature of the problem, if there is one —to deter- mine the most economical method of dealing with the problem. 2. Recommendations —these will include mechanical changes in the system as well as chemical treatment. In many cases, the problem can be solved by me- chanical changes alone. 3. Monitoring Results —to determine the effectiveness of the recommen- dations, and to check changes in water that might require treat- ment change. Here are a few instances of how Brad- ford Laboratories solves problems: PLUGGED FILTERS —A water supply well was discharging heavy solids which plugged injection well- head filters. Analysis showed that the well was being contaminated with high solids water migrating into the well bore from behind the casing. Solution—recompletion of the supply well so that only the good water will be produced. BARIUM SCALE —A new water flood had severe barium sulfate scale problems, despite the fact that a local water lab had predicted that pro- duced and supply well waters would be compatible. When Bradford was called in, investigation revealed that the supply well had been used for years as a disposal well. So, the water first pumped from the supply well was essentially the same as the produced water. When the actual supply well water was used, the two waters were notcompatible,resulting in scale prob- lems. Proper chemical treatment solved this one. OXYGEN CORROSION —Well- head filter plugging with precipitated iron and declining injection rates were problems here. Supply well water was clear and was handled in a closed sys- tem. The Bradford man found that the raw water tank had an open man- hole at the top. He recommended that this opening be closed to exclude wind currents. Results —oxygen corro- sion ceased —filters stay clear and injection rates have been stabilized. Total water treatment is possible only when a single source is equipped to accept complete responsibility. Calgon Corporation is unique in being able to supply the complete package: Bradford Laboratories water engi- neeringservzce, Calgon chemicaL%and Calgon feeding equipment. This three-way approach leads to the optimum solution of any oilfield water problem. For proof, contact Oilfield Div., Calgon Corporation, Calgon Center Pittsburgh, Pennsylvania. Ama msrs a! Ca�sav Gry"raton. CALGON coweowwi.ow formerly Hagan Chemicals & Controls, Inc. 162 THE OIL AND GAS JOURNAL APRIL 26, 1965 Pettet play follows Sabine uplift` GREEN FOX FIELD of south- ern Marion County is putting new zing in East Texas exploration efforts. Last fall, the discovery seemed to be only another Pettet porosity strike. But recent development in the field indicates it's much more. While the field is primarily in the Pettet zone, some of the 11 active wells in the field have as much as 35 ft of net pay with up to 23 ft in the Pettet. Usual thickness of Pettet pay is closer to 6 ft. And at least seven smaller zones have been picked up in the Travis Peak, some of these yielding a rich gas -condensate flow, others provid- ing oil. This has set off a drilling play that is rapidly spreading along the northwest flank of the Sabine uplift. The new field points up once again that exploration efforts aimed for the thin but prolific porosity belts of the Pettet and Travis Peak for- mations are worth an explorer's efforts. Field development. The center of focus for Green Fox field is moving to the north and northeast of the discovery well, Fair Oil Co. 1 Clarence C. Braden. Four rigs are drilling in the area, and the activity is expected to stay hot for some time to come. So far, the field hasn't produced a great deal of oil, but two wells are producing and one was ready to start output last week. All of the other wells in the field are either shut in, waiting on potential tests, or drilling. The 1 Braden, which was drilled by Bruce Fox and Bill Green, found oil in the Pettet at 6,244-48 and 6,261-65 ft. Completed by Fair OR Co., Tyler, the well also tested gas in the Travis Peak at 6,378 ft at the rate of 1,500 Mcfd. The Fair 1 S. Cowlin defined the field further by disclosing that there are two separate pays in the Pettet in Green Fox. The A zone has a gas cap that covers about one-fourth of the productive area with porosity ranging up to 22%. The B zone — the best pay in the field —is up to 16 ft thick with porosities up to s. Pettet proves its worth at Green Fox • Brooks �o1 / Montgomery0 / o h o, • 1-A Sexton h` • Sexton / h' h 1 s M Satterwhite 'r : rtxns � 1 Cowlin ,,, I I 1" =2,000 ft. �jt Discovery (Braden) Cl =25 ft. Anthony / oc� 24%. Both zones are coquinoidal limestone. The Cowlin well is the only one in the field that didn't find produc- tive pay in the Travis Peak. "In those wells with both A and B present in the Pettet," says Bruce Fox, "the operator can expect 20 to 23 ft of net pay." Field limits. All of the targets in Green Fox are stratigraphic updip pinchouts of thin porosity zones. The field is on the west flank of the Sabine uplift, only 5 miles northeast of similar production in Woodlawn field. Productive limits of Green Fox are estimated to be about 2,500 acres. The field is being developed on 160-acre spacing for oil and 640-acre spacing for gas. None of the gas is being pro- duced. It's possible that a gas -in- jection program may be started which would call for building a plant to strip the liquids and rein- jecting gas from Travis Peak in the Pettet for more oil. DrMing we&. Only three oper- ators are presently active in Green Fox development. They are Fair Oil Co., Franks Petroleum Co., Shreveport, and Continental Oil Co. The Fair Oil group has six wells in the field. Latest completion is the 1A Sexton which tested at the rate of 340 bo/d on a 1/2-in. choke from the B zone of the Pettet. Gravity of the oil is 41.4°. The 1 Montgomery and the 1 Satterwhite are both test- ing in the Travis Peak. Continental's 1 James Anthony is testing at 6,800 ft, and the com- pany is reported to be planning to drill on another location in the field. Franks Petroleum Co. has com- pleted one "B" zone well, plugged a dry hole on the northeast end of the field, is drilling another, and has location staked for a fourth. SEG convention "Geophysics -Challenge and Change" will be the theme for the thirty-fifth annual international SEG meeting Nov. 14-18 at the Statler- Hilton Hotel in Dallas. Keynote speaker will be Dr. Lloyd V. Berkner of the Graduate Research Center of the Southwest. J. Frank Rollins, Dallas consultant, is general chairman of the meeting. World map An updated map of the oil and gas fields of the world is available from E. C. Jacobson Maps, Tulsa. Scale is 1 in. = 300 miles. Oil fields are shown in green, gas fields in red, with official names. Large-scale insets of many countries are included. Map is 60 by 82 in. THE OIL AND GAS JOURNAL • APRIL 26, 1965 163 s f Mai K � 1 His job: SEISIIIIC PRODUCTION Today's Program: 380 SHOTS FOR 3-FOLD CDP COVERAGE This GSI shooter is rigging his 125th shot of today's program. Before the day ends and the crew reels in the streamer he will rig and drop overboard 355 more. At the close of today's produc- tion there will be 50 nautical miles of common depth point coverage on mag- netic tape. Tomorrow, he and the record- ing crew will be shooting for another 50 miles of marine seismic data with 3-fold CDP coverage. What Helps This Shooter Produce? /,' First, he knows his job. He's f trained for it and has years of at -sea and on-Iand seismic production experience. // Second, he works with a highly skilled digital seismic recording crew. From party chief to position plotter, he has their confidence. /0' Third, he's backed in depth by CSI's most experienced digital seismic production men —area geophysicists, operations managers, seismologists, and researchers. /' Finally, he knows you're depend- ing on him. It's your survey and you're in a hung to see this week's production report. Fight now it's his job to help provide it. This survey could cover thousands of line miles and before it's over he will play a major role in recording dependable seis- mic data. Other GSI men like him — men skilled in marine digital seismic work — are gathering and delivering seismic data every working day. Even while shooting progresses, mag- netic tapes from prior production are being processed at one of GSI's digital seismic data processing centers in Dallas, Calgary, Midland, New Orleans, or tort- dom-Soonafterivard,-processed sections = will be in your hands. GSI means geophysical production — digital or analog seismic, magnetics, gravity, field data collection, processing, or interpretation. We're committed to it. It's our job. UNITED STATES • CANADA - EUROPE GE10PHYStCAL SERV9CE 11 SCIENCE SERVICES ONISION TEXAS INSTRUMENTS •NCOq TO1IA T60 bLlq"E ON AVCN�C . OAU4S TC% 7` = -_ ZCDUi CAST A LATsi AMERtCA: AUSTRAUA t "CREATIVITY ... one of the most importar of all factors related t EXPLORATION is approaching the era of the "black box" —a time when computers can take raw seis- mograms and convert them into structure maps and sections. Yet, says Standard Oil Co. of California's Stan W. Totteu, his- torical geology —the reconstruction of an area's geological past —was never more important than it is today. In the hands of a creative geolo- gist who will use the new techniques as supplements, rather than substi- tutes, it will find much of tomor- row's oil. With large, undrilled anti- clines no longer obviously available in the United States, says Totten, the new oil found will be developed largely through creative thinking in the highly explored areas of the continent. Totten, vice-president of Standard Oil Co. of California, Western Op- erations, Inc., and general manager of the exploration department, be- lieves such creativity is now "truly the backbone of successful explora- tion." As an example of the creative approach, Totten cited Asphalto field, "found in what seemed to be a synclinal position in between several dry holes in a highly ex- plored area." "The author of this prospect, Hy Seiden, had no expensive tools or exotic equipment —all he had was an idea. He created a prospect from two simple elements: first, the well- known southeasterly plunging Cym- ric anticline and, second, the need for a source for the Stevens sands productive in nearby Elk Hills." Other examples attest to creative geology in old explored areas, Totten told a recent joint regional meeting of the AAPG, SEG, and SEPM in Bakersfield, Calif. These include the Meganos Gorge entrap- ments in the Sacramento Valley, the oil finding." Stevens sand stratistructural traps on the Bakersfield Arch, and the townlot exploration play which has turned up more than 100,000,000 bbl of new reserves in downtown Los Angeles. "This is not an exclusive list by any means," Totten said. "However, in every instance the prime vehicle of successful exploration is easily identified —namely, a good, sound idea. I prefer to call this creativity." The creativity demanded by to- day's search in highly explored areas may be defined as "trained imagination, perspective, foresight, the constructive application of in- telligence." But, by whatever words, says Totten, it results in something new. "Adherence to scientific principles is fundamental; however, successful oil exploration lies in the hands of creative geologists, not of routine data -gatherers." Reviewing the old. •Charting the detailed geological history of an area "can become at once most tedious and most rewarding." Nearly all of the oil being found in the old areas is being discovered through correct interpretations of large, complex structures —in un- conformities, reef buildups, sand channels, sand bars, buried folds, and buried faults. "Mapping these subtle variations within the earth's crust calls for ex- treme patience, detailed efforts, much data, and a great deal of faith in your science. "You will arrive at anomalous interpretations both difficult to ex- plain gad difficult to defend. They will not 'fit 'the well-known and occasionally well -published geolog- ical concepts of the area under study. The easiest thing to do is to be `one of the boys' and run with the ideas of the pack. But doing this Stan W. Totten usually insures failure or, at the best, mediocrity in the long run." Faith essential. A new geological idea, says Totten, is usually opposed to the `accepted picture," and a reasonable course is to reject it. Rejection is reasonable, he says, because "we measure what we see by our own experiences, forgetting there are infinite varieties of geolog- ical situations ... or because we cannot quite grasp the total detail or the intricacy of the offered sal- able. Most sadly, rejection occurs because the idea is not salable." The essential ingredient of faith, says Totten, is "reliance and confi- dence without doubt. More, though, it is optimism ... an aspect of petro- leum geology almost beyond defi- nition." "In the normal basis of wildcat drilling, and excluding errors of measurement and recording, I be- lieve the total distinction between a dry hole and a producer lies in the degree of optimism incorporated in the prospect interpretation." The hazards. Totten points out that explorationists are continuing to create new technological ad- vances, techniques, and applications. These include such things as the sonic log, nuclear -magnetism log, digital recording and digital proc- essing, pot -testing, spectrochemical correlations, refined age dating, "and hundfeds more." But the dangers on the trail to- ward creative geology, he says, "occur when you use these physical technological advances as replace - THE OIL AND GAS JOURNAL • APRIL 26, 1965 165 What if your next formation test could be the most informative you've ever run? It can be —if you ask your IIalliburton "—► MULTIPLE specific gravity of recovered water, resis- Tester to include our new Multiple CIP P CIP SAMPLER i tivIty of recovered water and mud filtrate, Sampler in the testing string. Here's why: SAMPLE TRAPPED chloride content, and gas/oil ratio. With the Multiple CIP Sampler, be can AT FINAL FLOW !Vlore yet. open the formation for a flow period, then PRESSURE Data recorded in the testing string dur- close it for a pressure build-up period, LOCKED OPEN - BY-PASS ing the two (or mono) closed -in -pressure then open it again, close it, open it, close —� ' tests can be coupled with Test Interpreta- it—as many times as you need. (Two I Hon and Calculation. That's specific ad. properly conducted closed -in -pressure vice to help you decide whether to — and periods usually give maximmn reliable EXTENSION JOINT how best to — complete your well. What data.) There's more. should the well make? How long before At the end of the final flow period, a production will decline? Would fracturing sample of the uncontaminated produced or acidizing help? Pretty important gaes- fluid is trapped under flowing pressure in UPPER tions to answer before investing in a cas- the Sampler and retrieved for surface B.T. GAUGE ing program, analyses in its original condition. (This is VR SAFETY What if year vest formation test could in addition to the larger quantity of fluid JOINT be the most informative ou've ever run? Y produced into the string during the flow It can —provided you settle for nothing periods.) PACKER Iess than a Halliburton Drill Stem Test On the surface, the Halliburton man ASSEMBLY conducted by an experienced Halliburton analyzes the fluid sample, recording the PERFORATED Tester using the Multiple CIP Sampler, sample chamber pressure and volume (up ANCHOR followed up with Test Interpretation and to 2,650 cc), API gravity of recovered oil, Calculation Service. LOWER B.T. GAUGE n Hallihurton's Multiple CIP Sampler In Conventional Drill Stem Testing String coming out of hole. TESTING SERVICES Nalliburf®n COMPANY. DUNCAN OKLAHOMA 166 THE OIL AND OAS JOURNAL • APRIL 26, 1965 ments instead of supplements to the brains and abilities of your people and yourself." Vital ingredient. For geologists working within an organization, says Totten, another essential to success is d favorable environment created by management. One of the "powerful and fright- ening forces" of management, says Totten, is its influence over the creative ability of employes. Management has the total re- sponsibility for the environment, he adds, "I am deeply convinced that, all else being equal, this one factor is one of the most important of all factors related to oil finding, and I believe this to be especially true when searching for oil in highly explored areas." Offshore Louisiana A dual producer was completed off the coast of Plaquemines Parish, South Louisiana. New well is Continental OR Co. A-7 OCS-9138 (State Lease 970) in West Delta Block 30x field. Flow from the lower zone at 7,559-64 was 408 b/d, 28.6e gravity, on 8/64-in. choke. Upper zone in the GG sand through perforations at 6,473-77 ft was 144 b/d on 8/64- in, choke. Fremont Co., Wyo. A dual Tertiary -Cretaceous gas discovery was completed in Wyom- ing's Wind River basin as explor- atory work shows a marked increase. Mobil Oil Co. completed F33-6-I Government -Tribal in NW SE 6-In-6e, Fremont County. Flow was 10,600 Mcfd; 5,700 Mcfd from Fort Union Tertiary through per- forations at 6,420-26 ft and 3,100 Mcfd from Mesaverde at 8,424-35 ft. There was a condensate flow with the Mesaverde. This new discovery lies 11 miles northeast of Riverton field and 6 miles north of the recent Continental Oil Co, discovery at Tribal which flowed 22,900 Mcfd from three Cretaceous zones to stir Wyoming exploration and put new interest into the Wind River basin where things have been running slow of late. The Continental discovery has sired other work in the area. Humble will drill at 1 SA Tribal m Tract 36, NW SW 7-1s-6e, to 14,500 ft, t/a mile southwest of the new pool. Madison Mississippian is the objective. Humble also staked an east offset to the Continental find at 1 SA Tribal in SW SW 6-Is-6e. It also will hit Madison at 14,500 ft. Continental will drill to Morrison Jurassic 1 mile south of the dis- covery at 12-2 Tribal in SE SE 12-is-5e. About 5 miles southeast, Pan American Petroleum Corp. is in on the drilling spree at 2 SA Tribal-M in SW NE 32-is-6e, 7 miles east of Riverton. Pan Am set casing. Gas flow from Muddy Cretaceous was 7,500 Mcfd at 5,311-5,415 ft. Banner Co., Neb. The Nebraska portion of the Denver basin has a new "J" sand Cretaceous Dakota discovery. New producer is Stuarco Oil Co. et al. 2 Warner in SW NE 34-20n-57w. Pump completion was 140 b/d and 5 bbl water from un- treated perforations at 6,149-55 ft. Nearest production is 5 miles south- east at Willow Springs field. This is the fifth well to be drilled in Sec- tion 34 and the only success. In Wyoming. First drilling news from the Wyoming corner of the A RECORD 1964 FOR SOUTHERN NATURAL GAS IS GOOD NEWS FOR EXPANSION -MINDED COMPANIES Here are the revenues and earnings of southern Natural Gas, Including the contract drilling operations of Its subsidiary, The Offshore Company' Operating Net Net Income Revenues Income per share 1964 $186,554,000 $20,019,000 $4.02 1963 172,283.000 16.112.000 3.23 For manufacturers considering expansion plans, one of the best barometers of the economic climate of an area is the growth of the use -of natural gas ... a basic energy fuel. For twenty years Southern Natural Gas has shown a steady yearly increase in its volume growth in the dynamic Southeastern area that it serves. As your company expands, you'd be wise to weigh the merits of this fast-growing region. Productive manpower is of high caliber and in good supply. Plenty of excellent plant sites are available; there is an abundant amount of in. dustrlal water, and dependable natural gas is delivered through Southern Natural's expanding network of pipelines. Let us assist you In your Company's plans for future expansion. For the full story of how Southern Natural Gas has grown to keep pace with the Industrial South• east, write for a copy of our 1964 Annual Report. Please address Dept. OG. Southern Natural Gas Company WATTSeUILDING uinMINOHAM ALABAMA THE OIL AND OAS JOURNAL - APRIL 26, 1965 167 Reports Sales Up, Costs Further Reduced in 1964 Statement to stockholders by the Chairman, the 110N. SIR MAL111= lilnncEMAN, K. B. E. During 1964, world consumption of oil rose by more than seven per cent overall, but the incidence of this increase varied considerably. In Europe and Japan sales increased by 12 per cent and 20 per cent respectively, while in the United States the rate of growth was much slower. In the United Kingdom consumption increased by nine per cent. The majority of our markets are in the more rapidly developing areas and our own group's sales increased by 13 per cent to a total of 787 million barrels, of which 481 million barrels were sold as products and 306 million barrels as crude oil. It is perhaps of interest to note that towards the end of the year our monthly rate of sales was about equal to our total sales in 1938. Profits, however, have not kept pace with the expansion in demand. This is due partly to increased payments to the Governments of the producing countries as a result of the revision of existing agree- ments, and partly to lower market realisations, though these have nearly been counterbalanced by the increased tonnage handled and by a further reduction in costs. As far as costs are concerned, the quest for more modern methods and improved techniques con. tinues and new ways of exploiting computers are under development. In particular, the large Atlas computer which has been installed at London Uni- versity is now operating reliably as far as our share of its utilisation is concerned. Our holding in C-E.I.R (Corporation for Economic and Industrial 'Research) has been increased to 80 per cent, and this company which is a leader in the field of com- puter programming is, we believe, capable of mak. ing a significant contribution to British industry in general as well as of helping in the solution of our own problems. In refining, appreciable improvements in costs at our major wholly -owned refineries have been largely offset by the greater cost per ton of new refineries of less economic capacity in which we have been obliged to participate in several of the smaller con- suming countries in order to protect our markets. The lower market realisation, in terms of net pro- ceeds per ton, which was particularly noticeable in the second half of 1964, was chiefly due to the im- pact on the world market of some of the newer sources of production and to the advent of new com- petitors in several of our principal markets. It is difficult to foretell how long this trend is likely to continue. The ratio of net income to the average capital employed, which in 1963 improved to 10.6 per cent, has been reduced to 9.7 per cent. At the same time, capital expenditure increased from $360,360,000 to $473,480,000. In a company such as ours, the amount to be dis- tributed as dividend must be related not only to the profit for the preceding year, but also to the magni- tude of our future capital commitments and to our ability to raise finance in the form of loan capital on reasonable terms. The rapid and continuing in- crease in consumption and sales calls for an equiva- lent increase in new transport facilities such as pipelines, more refining capacity and additional in- vestment in storage installations and other market- ing facilities. Although we have increased our borrowing in many parts of the world, the amounts available overseas are limited, especially as a result of the borrowing restrictions recently imposed in the United States. In the United Kingdom too, not only are there limitations on remittances for foreign in- vestment owing to the balance of payments prob- lems, but the borrowing rates are at a very high level. A large part of our capital requirements must therefore continue to be provided from retained earnings augmented where possible by borrowing overseas. It is evident that the proposed changes in taxation which, it is expected, will be incorporated in the 1965 Finance Act may have a considerable bearing on the future of your company. There seems to be some reason to fear that one result of the introduc- tion of a Corporation Tax might be to affect adversely the shareholders of those companies the THE BRITISH PETROLEUM COMP 168 THE OIL AND OAS JOURNAL - APRIL 26, 1965 larger part of whose business is carried on abroad. In the case of the British Petroleum group nearly 100 per cent of its producing activities are located overseas, and nearly 90 per cent of its sales are made outside the United Kingdom. For us, therefore, the effect of a change in the present system is likely to be correspondingly great. To be ready for circulation in time for the Annual General Meeting, it is necessary for this report to be sent to the printers before the terms of the Budget are announced. It is not therefore possible for me to comment further on its probable effects on the com- pany at this stage, though I shall try to keep stock- holders informed as soon as the position is clarified. When considering our contribution to the United Kingdom balance of payments, I think it is best to distinguish between two quite different aspects of our operations. The first part is our overseas trading in oil which does not enter the United Kingdom. From the results of this overseas trade the contribu- tion amounted to $117,600,000 in 1964 after allow- ing for new investment abroad. This figure would have been higher but for the abnormally large Middle East tax settlements which arose. The sec- ond contribution consists of the saving on our oil imports into the United Kingdom to meet the energy requirements of the home market. The cost of these imports in balance of payment terms was $100,800,000, but if this oil had -had to be purchased from a foreign -based oil company the overseas pay- ments might well have been at least $70,000,000 more. It appears true to say, therefore, that your com- pany's contribution to the United Kingdom balance of payments totalled at least $187,600,000, being the overseas earning of $117,600,000 plus the $70,000,000 saving on imported oil, and these figures are arrived at after deducting in full all remittances for new investment overseas. Nor should we forget that considerable exports from this country such as plant, machinery and general stores are generated by our operations abroad. z1k1 'IV i € It should perhaps be pointed out in this context that "overseas earning" and "profit" are not synon- ymous, since payments made in the United King- dom for such services as shipping, insurance, research and general administration must be de- ducted before arriving at the figure for profit. Our net assets outside of the United Kingdom at the end of last year were about $1,260,000,000, so that in terms of a contribution to the U.K.'s balance of payments the return on this investment was about 15 per cent. To the extent that our future in- vestment abroad is for any reason inhibited, so at the end of the day will our ability to contribute to the country's balance of payments be correspond- ingly reduced. Lengthy negotiations with the Governments of the Middle East producing countries reached a satisfactory conclusion at the end of last year, ex- cept in the case of Kuwait where the agreement has been signed but not yet ratified, and Iraq where negotiations have been long and difficult and have not yet been concluded. This year will see the intensification of drilling operations in the North Sea. We expect to spend about $19,600,000 and hope to complete two or possibly three wells in the course of the year. This project is by no means the "near certainty" that has been suggested in some quarters; and even if reserves of gas, or, less probably, oil are located be- neath the bed of the North Sea, the cost will -be such that only a very substantial discovery can result in an economically profitable operation. However, your company's record in exploration is second to none, and we look forward to playing our part in an undertaking which could prove to be of major im- portance to the British economy. In co-operation with other oil companies, BP has put into operation a new system to counter pollu- tion of the seas and beaches caused by cleaning oil tanks at sea. All vessels chartered by us, as well as our own fleet, are being encouraged to adopt this system, but complete success cannot be achieved until all concerned with the handling of oil bunkers, as well as cargoes, make a similar endeavour. COMPARATIVE STATISTICS 1964 1963 1962 1961 Group sales in barrels a day 2,098,000 1,852,000 1,720,000 1,566,000 Gross Income $3,601,640,000 $3,312,680,000 $3,053,960,000 $2,901,360,000 Not Income $ 231,000,000 $ 231,840,000 $ 197,400,000 $ 168,280,000 Net Income per gallon sold .0085 .0096 .0088 .0082 Return on Average Capital Employed 9.7% 10.6% 9.8% 9.257, Payments to Middle East Countries $ 499,240,000 $ 415,240,000 $ 372,960,000 $ 354,480,000 Capital Expenditures $ 473,480,000 $ 360,360,000 $ 349,160,000 $ 346,920,000 BRITANNIC HOUSE FINSBURY CIRCUS LONDON F. C. 2 1960 1,458,000 $2,680440000 $ 174:160:000 ,0092 10.4% $ 305,480,000 ' THE OIL AND GAS JOURNAL • APRIL 26, 1965 169 Those notes are not being oJ/ered to the public. $150, 0000 000 Shell Oil Company 4112% Notes due April 15,1990 The Company has soid the above Notes to certain institutions through the undersigned. MORGAN STANLEY & CO. Rprtl A0, 1686. Struthers T11h annrMOWnrenl Hneiller an offtr to Yell nor a mNdsation of as offer iHEhMO•E1000 In buy any of !best a.urifia. TFe oQn is made only by for praspnnu. New issue April 15, 1960 200,000 Shares Struthers Thermo -Flood Corporation Common Stock (Par Value 10t per Share) Price $5.625 per Share Copies o/ Ile Praperins may be shamed from Ike ruderrirnrd .only h, oxei ahere the nodenlgned may legally offer 164 a sernrides in rornpbaure a nb dm serarid. t lat: t d enot. C. E. Unterberg, Towbin Co. Carl M. Loeb, Rhoades & Co. Clark, Dodge a Co. Inrorporetea Denver basin in some time is reported, Union Texas Petroleum Corp, is swabbing oil at an extension try to Golden Prairie field in Laramie County. The well made 59 bbl oil in 3 hours from "J" sand perfora- tions at 7,700-2 ft. Location is about 1 mile northeast of field pro- duction. Same operator recently completed 2 Rchweder in SE NE 20-16n-61w, 1!a mile northwest of production at Golden Prairie, pump- ing 127 b/d from "J" sand. New York A large drilling program for New York State was announced by Ham- merstone Oil Co. Ibis Ohio firm plans to drill 43 wells in western New York with the first one start- ing up June 1. The program will be ended by the end of the year. This program will see about 150,000 £t of drilling. Acreage is on farmout from Pure Oil Co. Acreage is bounded on the north by Lake On- tario, Rochester and Buffalo on the east and west, and the southern boundary is 30 miles south of Lake Ontario. South Australia Development of the Merrimelia area in the far north corner of South Australia is continuing, but results so far have been sketchy. Location for its fourth test has been picked by Delhi Australian Pe- troleum Ltd., and the new wildcat will be spudded soon. The 4 Merrimelia will be drilled as a Permian test 1 mile east of 1 Merrimelia. This will be updip from the earlier well, and it should encounter at a higher structural po- sition the Permian sands which carried gas and water in 1 Meni- melia, Delhi says. Other tests. Meanwhile, the com- pany says it has abandoned the 3 Merrimelia at total depth of 8,981 ft. Delhi reports no commercial hy- drocarbons were encountered in the Permian sands in this well. The test is 30 miles northeast of the Gidgealpa area. The 2 Merrimelia, located 9 miles southwest of 3 Merrimelia, is drill- ing in a red -bed section at 12,757 ft. This test is projected to 13,000 ft, and unless there is a change in sec- tion the well will be abandoned at this depth, Delhi says. 170 THE OIL AND OAS JOURNAL . APRIL 26, 1965 THERMOID GOLD STRIPE ROTARY HOSE IN 75' CONTINUOUS LENGTHS GUARANTEED TO oo In 15 years of operation, Thermoid Gold Stripe Rotary Hose has never had a coupling failure. - For offshore or onshore use —no wonder it's the biggest -selling rotary hose made. Delivery? Immediate. Thermoid Gold Stripe Rotary Hose is stocked in oil country warehouses coast to coast. Lengths run from 30' to Win 5' increments, to fit your specific needs. Each length is tested and guaranteed to 7500 psi or to 10,000 psi, depending on your drilling requirements. Diameters of 2y2", 3", 31/2" are available in each length and pressure. You get a rotary hose tailormade to meet the demands of your job. Eliminate downtime caused by rotary hose failures. Switch to Thermoid Gold Stripe Rotary Hose. For full information on Thermoid's full line of oil country hose, V-belts and friction materials, call your local Thermoid distributor or write Thermoid Division, H. K. Porter Com- pany, Inc., Porter Bldg., Pittsburgh, Pa. KEEP JOBS Y.OtiING hiTP1 THERMOID HOSE A%D SELTiNG THERMOID DIVISION H. K. PORTER COMPANY, INC. THE OIL AND GAS JOURNAL • APRIL 26, 1965 171 Investment Opportunity It R611 take more than wishing to make his dreams come true. Many birthdays will pass and with them years of learning will be required to give body and substance to these dreams. It is our task to nurture and guide, to plan and provide. There are schools to be built, teachers to be trained, the lessons of democ- racy to be instilled You have an investment in his future, in America's future. You can protect this investment by joining with other leading American businessmen to promote the Treasury Department's Payroll Savings Plan for U. S. Savings Bonds. The Treasury's plan works to pro- vide this strong, stable foundation of economic security and individual freedom to guarantee all of its citizens the realization of their ambitions. When you bring the Payroll Savings Plan into your plant —when you encourage your employees to enroll you are investing in the fulfillment of today's dreams. In the free society that will always foster them. In America. In freedom itself. Don't pass this investment opportunity by. Call your State Savings Bonds Director. Or write today directly to the Treasury Department, United States Savings Bonds Division, Washington, D. C., 20-726. M1 eg to your plant ... promote the PAYROLL SAYINGS PLAN for U.S. SAVINGS BONDS \�? • V/ Ms Government daernotpyfarthuadimuement.frGeoaperalian withthe TreyDepartmentundtlre Ademk=3Co=dL 172 THE OIL AND GAS JOURNAL • APRIL 26, 1965 Clifford Garvin, Jr.... He wants to be a catalyst in generating ideas. To listen is important, but... Enjay Chemical Co: s new president prefers taking an active part in creating new management ideas. A GOOD manager should have big ears as well as a big mouth. In other words, he should be as able to listen to ideas coming up from the ranks as well as good at sending orders down. This is not exactly the way Clif- ford C. Garvin, Jr., new president of Enjay Chemical Co., expressed his philosophy of management for a technical organization, but that's what he means. "Idea generators are the key to success of a technical organization," Garvin says. "But idea men must have a sounding board —someone who will listen sympathetically, give constructive counsel, and then see that the worthwhile ideas become actuality. And I think this is one of management's big roles." Garvin explains further that he thinks "it's very important to create an environment which will motivate technical people to generate ideas as well as provide encouragement to put them into practice." Strange role. Garvin says there are two schools of thought in the role management should play. One is to sit and wait for the flow of ideas to come from the or- ganization and then pass judgment on them. The second is to take ac- tive part in generating ideas, be- come part of the flow as well as being judge. Garvin personally leans to the second philosophy, but for the mo- ment in his new job at Enjay he is forced to follow the first. He cur- rently is listening to his experts, get- ting a grasp of the score of Enjay's operations, and filling in his back- ground after being away from activ- ity in chemicals for 10 years. His big aim is to switch as soon PROFILE as possible and become a catalyst in generating new ideas and ap- proaches. Chemical background. Garvin is a chemical engineer by training who in the last 10 years has been ex- posed to a variety of different man- agement jobs in the Jersey Standard Oil organization of which Enjay is a member. Born in Portsmouth, Va., in 1921, Garvin attended Virginia Polytechnic Institute where he re- cieved a bachelor's degree in chem- ical engineering. After wartime ser- vice with the U.S. Army Corp of Engineers in the South Pacific be- tween 1943-46, he returned to VPI for a master's degree. Garvin joined Humble Oil & Re- fining Co. at its Baton Rouge re- finery in 1947 right from VPI. He served in a variety of jobs. One was to help work on a study which de- termined Jersey Standard's decision to bid on wartime rubber plants. He finally was promoted to operat- ing superintendent of the B a t o n Rouge plant. The company sent him in 1957 to Harvard University's School of Business Administration for a year's study under the advanced manage- ment program. New jobs. Since then Garvin has touched a lot of bases. In 1959, he moved to New York as assistant manager of the supply department for the f o r m e r Esso Standard Oil Co. He moved to Houston in 1961 as manager of Humble's product supply and dis- tribution. He spent 1962 in Midland, Tex., as area manager of Humble's ex- ploration, production, and market- ing operations and in 1963 served as vice-president of Humble's Cen- tral Region in Tulsa. During much of 1963, however, he served with the Humble group in Los Angeles which arranged for the takeover of Tidewater Oil Co.'s West Coast properties. The acquisition was never completed because of govem- ment antitrust objections. Garvin was transferred to New York in 1964 as executive assistant to Jersey Standard President M. L. Haider, who since has become (Continued on page 177) THE OIL AND GAS JOURNAL • APRIL 26, 1965 173 p -* �* 4. 17,000-foot string of @S-135 Drill Pipe completes seventh mile of hard rock drilling The string started to work in December, 1961, more than 40,000 hard rock feet ago. It's now on its fourth well, Pure Oil's Tyrrell Unit #3, Well #1 in Pecos County, West Texas —and going strong. The hole is presently at 14,500 feet under a rig owned and operated by Falcon Seaboard Drilling Company. With nothing but more hard rock and an extremely corrosive environment ahead, Pure Oil plans to go to 22,000 feet using that same USS S-135 string (4'/z O.D. Seamless 16.60 lb.). USS S-135—a completelyheat-treated, quenched and tempered alloy steel drill pipe —was developed and introduced by United States Steel. It has revolution- ized deep -well drilling. Not only does it make new depths accessible, but it can withstand stresses that would pull or- dinary strings apart. By the time Tyrrell Unit # 3, Well #1 reaches target depth-22,000 feet —the USS S-135 string will be carrying close to 425,000 pounds of drill pipe and drill collars. And it can take even more ... up to 595,000 pounds, compared to the 330,000-pound limit of Grade E drill pipe. Hydrostatic pressure is expected to reach as much as 12,000 pounds. Yet the chances are excellent that Pure Oil will reach the payoff depth without major drill pipe problems. USS S-135 gives drillers one of the best in- surances there is against failure in any deep -well operation. USS S-135 is only one of many oil country firsts by United States Steel. United States Steel was the first com- pany to introduce: seamless drill pipe, the only acceptable kind; the first with Grade D drill pipe, then Grade E drill pipe, and most recently, USS S-135. United States Steel has introduced an average of two new or improved prod- ucts every month to one industry or another. And, innovations in the use of steel products are being suggested all the time. If you're open to suggestion, or want to know more about USS S-135 Drill Pipe, call the United States Steel District Office nearest you, or write United States Steel, Room 8149, 525 William Penn Place, Pittsburgh, Penn- sylvania 15230. USS United States Steel: where the big idea is innovation PIPELINE GATHERING 4 pumping jobs... STATIONS } LOADING AND STORAGE j UNLOADING TRANSFER and the best pump to do them ! IMO�SERIES 323=F CAPACITIES TO 3400 GPM/PRESSURES TO 300 PSIG The IMO 323 F is uniquely suited to handling crude oils, Tube oils, all grades of fuel oils including Bunker "C", and all grades of asphalts up to 550°F. It's economical, effi- cient and compact. Simple rugged construction assures long life. Only three moving parts— no ball or roller bearings, no timing gears — and one stuffing box practically eliminate maintenance. Pulsation -free flour — Without churning, pocketing of pumped liquid, destructive hydraulic compression forces or liquid shock between rotor threads— guarantees highly efficient pumping action. If you're in the market for a superior petroleum pump that costs less to buy and to operate, it will pay to get full details on our IMO 323-F. Write for Bulletin 3240. DE LAVAL TURBINE INC. TRENToN,NEW,ERSEYorAz DIESEL & GAS ENGINES • CONDENSERS & EJECTORS -PUMPS. COMPRESSORS • TURBINES • HYDRAULICS • MARINE PROPULSION ♦TURBOCHARGERS • GEARS • FILTER SYSTEMS 176 THE OIL AND GAS JOURNAL • APRIL 26, 1965 F=- (Continued from page 173) board chairman. Garvin was elected president of Enjay last month. Good business. The petrochemi- cal business has been a good di- versification for oil companies in the past due to the prospects of a growing demand and increased earnings. But Garvin says so many are coming into the field now that to maintain growth and earnings a company has to learn to be more efficient than competitors. Marketing of petrochemicals, he notes, also has become just as tough and perhaps tougher than for pe- troleum products. Donald J. Leonard has joined Shell Development Co.'s Emery- ville, Calif., research center as an engineer in the applied physics de- partment. Other additions to the Emeryville staff include Dr. David W. McClure, chemist in the chem- ical physics department, and Dr. Donald B. Clemons and Dr. James L. McCormick, engineers in the chemical engineering department. William T. Smith has been ap- pointed manager of exploration for Pan American Petroleum Corp., effective June 1. ; Smith, who joined Pan American in 1948 as a junior geologist at Wich- ita Falls, Tex., is currently expiora- t i o n manager of the company's North Texas -New Mexico division with headquarters in Fort Worth, Tex. In his new post, he will move to the Tulsa head- quarters. Robert H. Gerdes, chairman and chief executive of Pacific Gas & Electric Co., has been elected chair- man of the board of Alberta & Southern Gas Co. Ltd. and Alberta Natural Gas Co. Gerdes replaces the late James B. Black. S. L. Sib- ley, president and chief operating officer of Pacific Gas & Electric Co., succeeds Gerdes as president of the two Canadian gas -purchasing and pipeline companies. New di- rectors of Alberta Natural Gas are R. A. MacKimmie, Carl O. Nickle, S. Robert Blair, and Robert L. Win- ton, all of Calgary, and Richard H. Peterson and Charles Pennypacker Smith, both of San Francisco. Sam D. Lackland, formerly a reservoir engineer with Gulf Oil Corp. in Houston, has joined Rus- sell Maguire of Dallas as a petro- leum engineer. W. F. Mitchell, executive vice- president of Shell Canada Ltd., has retired to pursue his own business interests. Mitchell joined the Shell organization in 1936. R. A. Herrington has been pro- moted to senior engineer in the design engineering department of Humble Oil & Refining Co.'s tech- nical division at the Baytown, Tex., refinery. Austin C. Brightman has been named to direct the establishment of Mobiloil N.V.'s new Amsterdam refinery. G. A. Engelland will suc- ceed him as manufacturing manager of Mobil Latin America, Inc. C. D. Strickland has been pro- moted to engineering supervisor of Humble Oil & Refining Co.'s spe- cialties economics and planning sec- tion of the technical division at the Baytown, Tex., refinery. Henry Goodrich, formerly devel- opment geologist for Union Pro- ducing Co. at Shreveport, La., has been appointed chief geologist for McCord Oil Co., Shreveport. John L. Solomon, general man- ager of domestic marketing for Murphy Oil Corp.; K. E. Dunklin, manager of market development; and Jack Brewer, manager of oper- ations and wholesale accounts, are transferring their offices from New Orleans to Eldorado, Ark. Sales ac- tivities of the company's seven re- gions will continue to be directed from New Orleans by E. J. Redlin, manager of regional sales. Texaco Inc, is closing its Dallas division exploration and production offices. S. E. White, Jr., division manager, will be transferred to Trin- idad. E. M. Rowser, an assistant division manager, will move to the Midland, Tex., division, and R. E. Griswold, also an assistant division manager, will transfer to the New Orleans division. PERSONALS P. D. Hinrichs has been appoint- ed senior production geologist for Shell Oil Co.'s Midland, Tex., dis- trict, with headquarters at Midland. Hinrichs previously had been a geologist at the company's Roswell, N.M., office. Thomas D. Barrow has been elected a director of Humble Oil & Barrow Faggioli Refining Co. effective June 1. Barrow, formerly director and ex- ecutive vice-president of Esso Ex- ploration, Inc., an affiliate company with headquarters in New York City, joined Humble in 1951 as a geologist and served in various geo- logical posts before being elected executive vice-president of Esso Exploration a year ago. Richard E. Faggioli, manager of HumbWs Corpus Christi, Tex., area, will succeed Barrow in New York. David M. Thornton, formerly legal counsel for Union Petroleum Co., has been named chairman of the board. J. W. Roark, previously executive vice-president, has been named president, replacing Walter W. Nixon, who resigned as chair- man of the board and was given a leave of absence from the presi- dency. Both appointments are pro tempore. J. B. Saunders III was named executive vice-president suc- ceeding Roark. Dr. Samuel P. Ellison, Jr., Uni- versity of Texas geology professor, and Dr. Maurice Lys of the Institut Francais du Petrole, Paris, have been named codirectors of the American Geological Institute's 1965 summer international field in- stitute in Europe. Robert Dyk has been appointed manager of Hamilton Bros., Inc.'s North Sea operations. He will be headquartered in London. THE OIL AND GAS JOURNAL • APRIL 26, 1965 177 F. A. Me moon, general man- ager of Triad Oil Co., has been elected chairman of the board of Canadian Petroleum Associations British Columbia division. R. N. Gadbois of Shell Canada Ltd., and J. S. Poyen of Imperial Oil Ltd. have been elected first and second vice-chairmen respectively. New di- rectors are Floyd Brett of Sinclair Canada Oil Co., W E. Glenn of Hudson s Bay Oil & Gas Co. Ltd., L. M. Rasmussen of Pacific Petro- leums Ltd., and E. C. Hard of Trans Mountain Oil Pipe Line Co. W. D. C. Mackenzie of Imperial Oil Ltd., has been elected chairman of the Canadian Petroleum Associa- tion's Alberta division. He replaces S. Stewart of Richfield OR Corp. who has been elected a director. Other new directors are A. F. Beck, Canadian Export Gas & Oil Ltd; R. W. Campbell, Home Oil Co. Ltd.; W. E. Farrar, Union OR Co. of Canada Ltd.; A. E. Feldmeyer, Canadian Superior Oil Ltd.; E. A. Galvin, Canadian Industrial Gas & Oil Ltd.; J. F. Hardy, Central -Del Rio Oils Ltd.; V. L. Horte, Trans- Canada Pipe Lines Ltd; W. C. Howells, Texaco Canada Ltd.; C. S. Lee, Western Decalta Petroleum Ltd.; P. C. McDonald, Murphy Oil Co. Ltd.; J. C. Meeker, Pan Amer- ican Petroleum Corp.; and E. Traf- ford, Great Plains Development Co. of Canada Ltd. Millard K. Neptune, formerly senior vice-president of Texas Fast - era Transmission Corp., Houston, has been elected president of APCO Oil Corp. He succeeds Roland V. Rod- man who has been elected chairman of the Neptune board. New vice- presidents elected are William J. Sutton, formerly manager of motor fuels sales, to vice-president of motor fuels sales, and William H. Davis, formerly manager of prop- erty acquisition department, to vice-president of that department. S. R. Petersen, engineering super- visor in Tidewater Oil Co.'s south- ern pipeline district, has been ap- pointed administrative assistant to H. F. Tomfohrde, Jr., general man- ager of Tidewater's international division Newly elected officers of the Southern Gas Association include E. Clyde McGraw, president of Transcontinental Gas Pipe Line Corp., president; W. L. Lee, pres- ident of Atlanta Gas Light Co., lust vice-president; C. C. Ingram, executive vice-president of Okla- homa Natural Gas Co., second vice- president; W. G. Armstrong, sec- retary of Piedmont Natural Gas Co., secretary; M. R. Kays, Jr., as- sistant to the president of Atlanta Gas Light Co., assistant secretary; and Howard J. Yonkers, comptrol- ler of Lone Star Gas Co., treasurer. New board members of the Na- tional Industrial Conference Board include Fred H. Moore, president of Socony Mobil Oil Co.; J. R. Fluor, president of Fluor Corp.; and W. O. Twaits, president of Imperial Oil Ltd. Eric O. Walsh has been appoint- ed manager of Union Gas Co. of Canada Ltd.'s western region. Walsh formerly was Brantford, Ont., district manager. Karl F. Martin has been elected president of Seneca Oil Co. Martin, formerly executive vice - president, succeeds Jack F. Abernathy who has resigned but will remain as a director. DEATHS John B. O'Connor, 68, retired president of Dresser Industries, Inc., died Apr. 16 in Dallas. O'Connor, who continued as a director of Dresser, had directed work on per- fecting methods for bulk shipment of liquefied natural gas and bad pioneered the development of high- speed compressor units to push nat- ural gas through pipelines. Herbert D. StabI, 81, retired sales manager for American Oil Co.. died Apr. 7 in a Pittsburgh hospital. Joe C. Delaney, chemical analyst for Humble Oil & Refining Co., died Apr. 12 in Houston. He was 50. Edgar C. Morrison, vice - presi - dent of Pontiac Refining Corp. in Corpus Christi, Tex., has been elected to the executive committee of the National Petroleum Refiners Association. G. L. Spackman has been ap- pointed operations manager of Pro- Spackman Ekvall ducers Pipelines Ltd. Spackman, who has been with the company since 1955, formerly was chief en- gineer. H. V. Ekvall, general su- perintendent for the company since 1958, has been named assistant to the general manager. Peter G. Burnett, formerly vice- president of Ball Associates Ltd., has opened offices in Chicago as a consulting petroleum engineer. He will specialize in reservoir analysis, property evaluation, and under- ground gas storage. Roy B. Ralston, formerly Ama- rillo, Tex., district manager of ex- ploration for Phillips Petroleum Co., has been transferred to Okla- homa City in the same capacity. William B. Moore, 58, manager of Atlantic Refining Co.'s North American exploration and land di- vision, died Apr. 19 in Dallas. Moore joined the company at Hous- ton in 1936 as a research geologist. C. M. Baughman, 56, a super- visor at Humble OR & Refining Co.'s Baytown, Tex., refinery, died Apr. 11 in Houston. Harry Conner, a retired foreman for Atlantic Refining Co., died Apr. 13 in Houston. He was 96. Ben Frank Smith, retired general superintendent for National Drill- ing Co., died Apr. 13 in Pasadena, Tex. He was 64. trs THE OIL AND GAS JOURNAL • APRIL 26, 1965 Statistics Apr.16,'65 1 Apr. 9,'65 Apr.17,'64 Total demand ........... ... 120.4 119.3 116.2 Crude production ... . . 111.5 111.5 108.3 Refinery runs ..... . _ .. ... 110.5 110.2 109.2 Total imports ....... ..... 139.2 137.0 127.2 Total completions ........ ... 76.5 65.0 74.8 Wildcat completions .......... 75.6 63.2 79.1 Rotary rigs ....... .... ... 61.5 60.1 66.9 Crude stocks ...... . . .... 91.5 90.4 94.9 Gasoline stocks .. .... . 128.5 128.4 118.3 Mid -distillate stocks ....... .. 73.4 73.8 81.2 Residual stocks .......... .. 60.4 62.9 68.2 Four -product stocks .. .. 97.2 97.7 96.6 STOCKS Million.bbl 290 Crude 250 210 Gasoline 170 130 Middle distillate 90 50 Residual lOJ F M A M J J AS 0 N D J F M A M J J A S 0 N DJ FM A M J 1963 1964 1965 Four major stocks show decline INVENTORIES of the four major products were down 1,914,000 bbl last week, from 378,057,000 bbl the previous week to 376,- 143,000 bbl for the week ended Apr. 16. Four -prod- uct stocks are now only 2,235,000 bb1 above the same week last year. Finished gasoline in stor- age continued a little on the high side at 231,589,000 bbl last week, up 71,000 bbl. Middle -distillate inventor- ies declined to 111,061,000 bbl, down 587,000 bbl from the week ended Apr. 9. Crude stocks finished the week at 243,062,000 bbl, up 2,910,000 bbl from the pre- vious week. However, crude inventories are still 8,804,- 000 bbl below the corres- ponding week '64. Month -end stocks of crude and products (Thousands of barrels) GASOLINE KEROSINE DISTILLATE RESIDUAL CRUDE March 1965* .. ...... 231,500 29,500 85,400 33,300 237,200 February 1965* .. . . .... 226,900 30,400 105,900 35,100 229,100 January 1965 .. ...... 213,925 24,029 130,619 38,285 230,165 April 1964 ........... 214,677 29,063 97,758 38,477 253,912 March 1964 ... . ..... . ...... 220,357 28,454 99,195 39,100 246,863 *Preliminary. THE OIL AND GAS JOURNAL - APRIL 26, 1965 179 STATISTICS Hundreds DRILLING STATISTICS 1 16 15 14 Rotary rigs 13 It 121 "MONO 10 9 I 8 IA 7 Total completions 6 3 2 i Wildcat completions 6 JFMA MJJASONDJFMAMJJASONDJFMAMJ 1963 1964 1965 Million b/d SUPPLY -DEMAND 14 1 12 Total demand I 10 Refinery runs B Crude production 6 4 2 Total imports to J FMAMJ J AS ON DJ FIAAMJ J A S ON DJFMAMJ 1963 1964 1965 Crude oil stocks by origin* (Thousands of barrels) 4-16-65 4-9-65 4-17-64 PenastU•ania .. Z129 2,173 2,162 Other Appalacltian .. 1,544 I_365 1,474 Illinois, Indiana, Michigan 7,726 7,553 8,801 Nebraska and North Dakota 3,432 3,631 3,456 Kansas _ 7,673 7,661 7,648 Oklahoma 18,620 13.349 20.945 Arkansas .. 1,028 985 1,123 Louisiana 23,920 22,659 23,439 North ... ... ... 3,195 3,1711 3,113 South .. .. 20,725 19,489 20,326 Mississippi, Alabama, Florida 3,106 2,891 2,978 New Me.. 9,363 8,173 10,183 Texas .. 93214 97.686 301,884 East Texas 6,447 6,867 6,758 Nest Texas 52245 51,393 51976 Texas Gulf 13,465 17,679 15,782 Other Texas 26,057 26.747 27.368 Wyoming .. 16,992 16.695 18,407 Other Rocky Mountain 8,927 8,768 8990 California and Alaska ... 24,195 24,003 22,003 Foreign 17.193 17,561 18.473 TOTAL 743,062 240,152 251,866 -American Petroleum Institute CRUDE -OIL STOCKS gained 2.910.0410 bbl in the week ended April 16. Almost half of the increase was accounted for by a moderate buildup of crudes from South Louisiana. Other gains were reported for West Texas and Texas Gulf Coast, but these were partially offset by reductions in crudes from East and Other Texas. Current crude inventories are running almost 9,000,000 bbl lower than at this time last year, but part of the decrease is showing up as additions to gtsolme stocks. ISO THE OIL AND GAS JOURNAL - APRIL 26, 1965 STATISTICS Weekly well completions ... Week ended April 17, 1965 Total wells ,---Cum. -Total wildcats- r--Cnm.� Total Crude Gas Dry Service Footage 1965 1964 Total Crude Gas Dry 1965 1964 Arkansas ...... ..... 7 4 1 1 1 44,539 80 91 1 0 0 1 16 15 California ........... 46 34 1 9 2 181,639 641 686 5 0 0 5 81 87 Colorado ......... 8 1 0 7 0 31,481 168 152 5 0 0 5 74 71 Illinois ............. 49 30 0 19 0 97,084 284 382 2 0 0 2 51 72 Indiana ...... .... . 3 1 0 2 0 3,289 124 150 1 0 0 1 18 23 Kansas .. ........ .. 73 34 4 25 10 209,618 886 1,023 11 2 3 6 149 196 Kentucky . ... . .. 14 2 6 6 0 28,405 247 435 3 1 0 2 37 59 Louisiana ......... .. 92 49 7 34 2 672,705 1,281 1,407 12 0 1 11 166 223 North .... . . . 32 22 1 9 0 104,270 536 662 2 0 0 2 44 81 South ..... ...... 38 18 5 15 0 371,582 477 519 5 0 1 4 83 92 Offshore ... ...... 22 9 1 LO 2 196,853 268 226 5 0 0 5 39 50 Michigan .. .. 2 0 0 2 0 5,749 95 167 1 0 0 1 29 58 Mississippi ... . .... 9 3 0 6 0 85,184 208 183 6 1 0 5 80 79 Montana . ......... 4 1 0 3 0 15,635 123 103 3 0 0 3 52 42 Nebraska ....... 11 3 0 8 0 62,292 144 98 4 1 0 3 63 49 New Mexico ... . 31 14 9 8 0 189,572 355 359 6 1 0 5 57 65 West .............. 10 0 8 2 0 55,322 102 ill 2 0 0 2 12 17 East ........ ... . 21 14 1 6 0 134,250 253 248 4 1 0 3 45 48 New York ..... .. 0 0 0 0 0 0 180 76 0 0 0 0 15 17 No. Dakota .......... 3 3 0 0 0 25,987 79 55 1 0 0 1 37 27 Ohio . .. ..... .. . 44 14 6 24 0 127,054 561 560 19 3 0 16 141 125 Oklahoma ........... 61 30 8 23 0 351,432 1,346 1,334 12 1 0 11 131 159 Pennsylvania 10 6 2 2 0 18,220 462 347 1 0 0 1 11 17 Texas .. .. .. 257 110 30 110 7 1,187,145 3,833 3,812 47 8 1 38 940 883 Dist. 1 .. ... 17 2 0 15 0 43,358 306 254 8 0 0 8 83 74 Dist 2 ...... . .. 15 3 3 9 0 101,601 225 182 5 0 0 5 78 60 Dist. 3 . .. ..... 36 12 3 21 0 247,792 355 411 12 0 0 12 89 94 Dist. 4 ..... ... 15 2 8 4 1 91,999 363 467 1 0 0 1 112 141 East . ... ... ... it 4 1 6 0 73,129 206 236 3 1 0 2 56 70 Dist. 7B ......... 34 16 1 17 0 76,244 463 390 6 2 1 3 156 123 West ... ......... 51 32 4 11 4 291,383 951 996 8 5 0 3 236 221 Dist. 9 ........... 57 28 6 21 2 157,211 688 666 2 0 0 2 103 86 Dist. 10 ..... ..... 21 11 4 6 0 114,428 276 210 2 0 0 2 27 14 Utah .......... ..... 2 0 0 2 0 6,880 50 53 2 0 0 2 22 33 West Virginia . . . . 27 8 19 0 0 62,852 307 351 1 0 1 0 15 15 Wyoming .......... 14 5 1 8 0 71,994 254 291 8 1 0 7 71 106 Miscellaneous* .. 2 1 0 1 0 14,707 77 46 1 0 0 1 48 36 Total U.S. 769 353 94 300 22 3,493,463 11,785 12,161 152 19 6 127 2,304 2,457 Total prev. week 653 297 56 269 31 3,575.517 .... 127 6 7 114 ... .... Cumulative 1965 11,785 5,288 1,458 4,399 640 48,533,535 .... .. 2,304 236 129 1,939 .... .... Cumulative 1964 . 12,161 5,589 1,430 4,521 621 53,301,091 .. 2,457 250 142 2,065 .... .... Western Canada 57 17 2 37 1 309,931 1,036 985 31 2 0 29 408 335 Cumulative 1965.. 1,036 480 85 466 5 857,376 _ .. .... 408 64 30 314 .... 'Includes Alabama. API refinery report -April 16, 1965 (Thousands of barrels) r-Bureau of Mines, April 1964 Daily r-Dailyaverageproductioa-s , Stock#$ Daily r-DaOy average production• District- avg. runs Gasp.* Kero. Dist. Resid. Gaso.t Kew. Dist. Resid. avg. cans Gaso.+ Kew. Dist. Resid. East Coast ....... 975 540.3 33.4 275.4 IIIA 52,635 9,842 25,409 8,635 1,056 526.3 31.7 308.6 96.5 Appalachian: District 1 101 46.4 2.7 23.6 12.0 6,025 645 1,786 199 109 46.2 3.0 25.9 13.1 District 2 .... 95 41.7 4.3 16.6 9.3 3,386 332 1,022 123 104 51.1 5.8 18.8 10.2 Ind., Ill., Ky. .. 1,543 796.6 83.6 311.3 137.9 41,816 5,416 10,502 3,789 1,513 805.5 81.0 291.7 129.9 Minn., Wis., Dak.. 144 73.4 7.6 34.6 14.7 8,483 609 3,298 417 150 76A 5.0 35.6 15.0 Okla., Kan., Mo... 772 442.7 38.7 179.1 11.0 22,456 1,363 7,136 519 721 390.2 19.1 158.2 9.0 Inland Texas .. 322 202.2 19.9 49.7 8.1 9,449 872 1,630 2,252 320 205.6 13.5 54.2 10.2 Texas Gulf Coast.. 2,091 1,040.6 151.2 467.8 78.0 28,783 4,019 9,699 3,474 2,131 1,047.8 130A 533.3 99.1 La. Gulf Coast .. 873 475.4 72.4 161.1 45.0 14,241 1,825 4,234 1,054 832 434.0 60.3 193.0 44.9 N. La. and Ark... 123 72.7 7.1 28.0 7.6 8,704 944 2,472 116 123 62.8 6.9 25.5 5.1 Rocky Mountain: New Mexico .. 31 19.7 0.9 6.9 1.0 867 47 156 15 26 15.4 0.5 3.9 1.2 Other Rky. Mt.. 300 154.4 6.4 800 45.4 8,116 402 2,381 798 273 131.9 6.2 62.6 28.9 West Coast .. 1,309 650.0 102.1 210.3 259.9 26,628 3,304 11,716 12,102 1,254 602.2 49.8 206.2 244.6 Apr. 16. 1965 8,679 4,556.1 5303 1,844A 741.3 231,589 29,620 81,441 33.493 8,612 4,395.4 41.32 1,917.5 707.7 Apr. 9, 1965 8,654 4,525.0 5589 1,8953 775.9 231,518 29980 81,668 34,891 ... Apr. 17, 1964 9,579 4,344.4 431.9 1,918.6 685.9 213,212 28,185 94,69I 37,820 .... *At refineries including natural blended. iFinished. $At refineries, bulk terminals, in transit, and in pipelines. THE OIL AND GAS JOURNAL • APRIL 26, 1965 181 STATISTICS Daily average production for week Apr. 17� Lease Apr. 10 Crude on condensate Total total Alabama . . ... 22,800 ...... 22,800 22,800 Alaska ... 30,400 ... . 30,400 30,500 Arkansas ....... ... 70,000 3,000 73,000 73,000 California ... ... 836,ODO ., . $36.000 834.000 Colorado ,,......... 93,800 ...... 93,800 94,700 Florida . ......... . 2.700 ... , . 2,700 2,700 Illinois ...... .. . 176,800 .... . 176,800 177,500 Indiana .. 29,000 ...... 29,000 29,000 Kansas ............ t290,600 .... t290,600 12B3,400 Kentucky . .... 54,900 .. .. 54,900 55,000 Louisiana . . ....... 1,426,OD0 193,100 1,619,100 1,619,100 North .. .. .. 148,000 9,5D0 157,500 157,500 South . _ . 1,278,000 183,600 1,461,600 1,461,600 Michigan ..... ... 42,200 ... 42,200 42,000 Mississippi .. ....... 153,000 4,000 157,000 157,000 Montana , ., .. . 84,100 .. ... 84,100 83500 Nebraska . ... ... 50,300 .., .. 50,300 51,200 Nevada . .. ....... S00 .. 8D0 800 New Mexico 321,WO 14,300 335,300 335.000 North Dakota ... 75,200 , . , . 75,200 74,800 N.Y.-pa.-W.Va. , ... 27,800 ...... 27,800 27,600 Ohio (Penn Gmde) ., 4,500 ..... 4,500 4,400 Ohio (other) .. 30,400 ...... 30,400 30,700 Oklahoma ... 1580,600 ...... 1580,600 t593,300 Texas ... ,_. 2.557,000 106,600 2,663,600 2,663.600 Dist. 1 ...... 43,000 1,300 44,300 44,300 Dist. 2 ..... 12-7,000 11,200 133,200 133,200 Dist 3 ....... 33D,000 37,500 367.500 367,500 Dist. 4 207,000 18.000 225,000 225.000 Dist 5 ......... 29,000 IS00 3D,500 30.500 DLSL 6 .. 117,0W 6,300 123,300 123,300 East Texas field ... 111,000 .... I17,D00 111,000 Dist. 7-B ....... 113,000 600 113,600 113.600 Dist. 7-C ..... 114,000 6,400 120,400 120,400 Dist. 8 . .. ... 1,082,000 18500 1,100,500 1,100,500 Dist 9 . ...... 189,000 2.600 191.600 191,600 Dist. 10 . , ... 100,000 2,700 102,700 102,700 Utah . ...... . 72,800 . . . 72,800 72.000 Wyoming ........ 425,800 ... 425,800 424.100 Others . . . . .. 3600 t600 W)o Total U.S. .. 7,459,100 321,000 7,780,10D 7.782,300 Change from prev. week-, roan 2,2D0 Canada .. .. .. .. ... §t725,000 §t734,1Do Total U.S. prod. -Jan. 1-Apr. 17 .. .. 832.027,5DO bbl Same period last year (cmde plus cond.) , ...... *828,206,700 bbl *Includes 33,359500 bbl condensate. tWeek ended previous Monday. South Dakota, Arizona, Missouri. §Includes condensate. Active rotary rigs 4-1945 4-12.65 4-20-64 Alabama .. ..... , . 1 0 5 Alaska ........ 5 4 6 Arkansas .. 9 9 10 Arizona ...... .. 3 1 4 California ... 85 84 86 Land .... .. 79 78 82 Offshore 6 6 4 Colorado ..... 15 15 17 Florida. .... .... 4 3 1 Illinois .. .. IS 21 22 Indiana .... .. 3 2 6 Iowa ........... 0 0 0 Kansas ......... .. 59 55 97 Kentucky ...... .. 3 7 7 Louisiana .. ,.. 282 276 264 North 33 22 18 S. Inland waters 76 78 88 S. ]and .. .. 77 80 75 Offshore _.. .. 96 96 83 Maryland ... 1 1 2 9 Michigan ... 4 4 Mississippi .. ..... 40 36 31 Missouri 0 0 0 Montana .......... .... 15 16 18 Nebraska 12 7 12 Nevada .. ... .. 1 I 1 New Mexico 58 65 74 New York 0 n 0 North Dakota . 14 D 9 Ohio .... .. ... . ... 15 16 40 Oklahoma ..... 160 145 143 Pennsylvania ... 6 6 11 South Dakota 0 0 2 Texas 440 437 485 S. Inland waters 11 bl 6 S. Land .. 116 105 137 Offshore 4 2 3 North ....... 41 39 45 panhandle ..... 32 29 33 East 38 40 45 West Ceatral ... 94 103 110 West , . 104 109 106 Utah .. 5 5 15 Virginia .. , . 7 1 1 Washington .. .. 0 0 0 West Virginia - 19 17 It Wyoming ..... . 38 39 44 Total U.S. 1,316 1,286 1,433 Cum avg. to date 1,299 1,298 1,424 Western Canada 74 137 83 Eastem Canada 0 1 1 Grand Total 1,390 1,424 1517 Hughes Tool Co. report. Imports of crude and (Barrels daily) products* DISTRICT I4 DISTRICT 5 TOTAL U.S. Apr.16 Apr.9 Apr. 17 Apr. 16 Apr.9 Apr. 17 Apr. 16 Apr.9 Apr. 17 1965 3965 L%4 196E 1965 19" 1%5 1965 19" Gasoline .... .. 39,OW 42,OW 10,000 1,000 11000 ... , _ . 40,000 43,0W 10,000 Kerosine ... .. 22,000 19,001) 15,000 6,00D 8,000 7g000 28,000 27,000 25,000 Distillate .. ... 62.000 26,000 29,000 6Z000 26,000 29,000 Residual ..... .. 1,053,000 1,1I5,000 817,000 7,000 19.000 17,600 1,060,000 1,134.000 834,000 Asphalt . ..... ... 15,000 ... 610W . , 15,0W 6,000 LP -gas 11.000 12,000 7.ODO 1,000 1.06 5,000 12,000 13,OW 12,000 Unfinished 15,0% 57,000 59,0W 37.000 4,000 19,000 52,000 61,Ot10 78,000 Total products ., I,117.000 1,271000 943,1003 52,000 33,000 51,000 1264,000 1,304.1301 494,000 Crude .. 775.000 603.000 640,000 301,000 407,000 510,000 1,076,000 1.005,011+7 1,150,000 Total crude & prod. 1,992,000 IA74,000 1,433,000 3-93,000 43-9,000 561,000 2,345,000 2,309,D00 2,144,000 *American Petroleum Institute, 182 THE OIL AND GAS JOURNAL * APRIL 26, 1965 STATISTICS Refined -products prices Following quotations are realistic spot prices for refined products moving interstate on Wednesday each week. They may differ from refiners' posted prices for branded products. They should not be considered as postings. Light products are in cents per gallon. Residual prices are in dollars per barrel. Gasoline Gulf Coast (cargoes): Distillate No. 2 ........... 8.25-850 Mid -Continent (Group 3): Kerosine 41-43 ........... 8.75.9.00 *Regular (92 octane) ... 10.50-11.00 New York Harbor (barges): *Premium (99 octane) ... 1250-13.00 Kerosine 42-44 ..... ...... 9.75 Gulf Coast (cargos for coastwise or Distillate No. 2 ....... 895 Diesel fuel, 48-52 d.i.. .... . 9.25 export movements): Regular (90 octane) .... 9.25 Regular (92 octane) .... 9.5040.00 Premium (98 octane) ... 10.00-10.50 Premium (100 octane) .. 11.50-12.00 California (rack) Los Angeles: Regular (90 octane) ... ..... 11.30 Premium (94 octane) ..... 12.30 Premium (100 octane) ... 13.30 Chicago: Regular (94 octane) .. . ... 11.75 Premium (99 octane) ....... 13.50 Premium (100 octane) ...... 13.75 Caribbean area (cargoes): Regular (87 octane) .... ... 7.80 Premium (97 octane) ........ 10.10 Kerosine -distillate Mid -Continent (Group 3) *Kerosine (42-44) . . . .. 9.50-9.75 Diesel oil (58 d.i. and above).. 9.25 Distillate No. 1 ............ 9.00 Distillate No. 2 ... . .. ... 8.25 PRICES paid for petroleum products on the spot market are at least a partial measure of the balance between supply and demand for petroleum products. However, evaluation of this balance must include consideration of normal season- al changes in product inventories. The very slight shift in gasolme prices on the Group 3 market last week seems to be related more to the scramble for gallonage than to severe oversupply. Gasoline inventories in the Mid -Conti- nent, North Central, and Upper Missis- sippi River areas are only about 5%a *Denotes change from previous week. Degree-days (For week ended April 15) 1965 1964 Normal Albany ....... 148 123 141 Baltimore .... 88 81 85 Boston ....... 149 112 128 New York .. . 85 95 105 Chicago ..... 118 80 121 Detroit ... . 127 87 134 Indianapolis 97 88 112 Minneapolis 152 123 153 St. Louis .. 65 55 79 Seattle ..... 123 127 115 U.S. average 110 96 112 Chicago: Distillate No. 1 ............ 9.75 Distillate No. 2 . ......... 9.00 Caribbean area (cargoes): Distillate No. 2 ....... .... 7.00 Residual fuel Mid -Continent (Group 3): Residual Fuel (max. 1% S) ........ $1.90-$2.10 (regular) ..... .. $1.70-$1.85 Gulf Coast (cargoes): Bunker C fuel .... ... $2.00-$2.20 New York Harbor (barges): Bunker C fuel ......... $2.2542.30 Caribbean area (cargoes): Bunker C fuel ........ $2.00-$2.10 California (rack): Bunker C, Los Angeles ...... $2,20 higher than they were at this time last year. These totals include stocks in the Great Lakes area as well as the states along the Great Lakes Pipeline. For the past several weeks, Group 3 regular gasoline has been selling within the narrow range of 10.75-11.00 cents/ gal. However, there have been reports of slight shading of these prices in the past week. Some regular gasoline (92- octane) moved at 10.50 cents. Spot markets in other areas were un- changed for the week. Tanker rates (Long ton) (Latest reported spot fixtures) Gulf -NY, clean (ATRS-22.5%) ....... $2.21 * Gulf -NY, dirty (ATRS -5.05f.) ..... .. 2.71 Carib: NY, dirty (ATRS-61.01.) .... 1.07 *PG-UKC, dirty (rota -65.0%) .. 3.23 * PG -Japan, dirty ' (USMC-78.0%) 224 * Denotes change from previous week. Gasoline prices (Major -brand regular on Apr. 20) Price Pump ex. tax price Boston ............. 19.4 28.9 New York .......... 23.9 33.9 Newark ............. 19.9 29.9 Albany ............ 19.9 29.9 Buffalo ............. 20.9 30.9 Philadelphia ......... 18.9 29.9 Pittsburgh . ..... 19.9 309 Norfolk ...... .... 19.9 30.9 Baltimore ..... .... 18.9 29.9 Charlotte .. .... .. 20.9 31.9 Atlanta ....... .... 22.4 32.9 Jacksonville . ..... 21.9 32.9 Tampa .... ..... . 21.9 32.9 Miami ... ..... . .. 21.9 329 Birmingham ......... 21.9 33.9 New Orleans ........ 18.9 29.9 Memphis ... .. .... 169 27.9 Little Rock . ... 20.4 30.9 -St. Louis ... 15.9 24.9 Louisville ... ...... 21.9 32.9 Cleveland ... ..... . 20.9 31.9 Indianapolis ... . 22.9 32.9 Springfield, Ill. ...... 17.9 27.9 Chicago ..... . .. 23.9 33.9 }Detroit .. ....... . 21.9 33.9 Milwaukee ... ...... 22.9 32.9 Minn. -St. Paul ....... 19.9 29.9 Des Moines .. .. 21.9 31.9 Omaha . ..... .. 21.9 32.9 Kansas City ... ..... 21.9 30.9 Wichita .. . . .. 21.9 30.9 Tulsa ............. . 21.4 31.9 +Oklahoma City ..... 21.4 31.9 Dallas ............ 19.9 28.9 Fort Worth ......... 19.9 28.9 Houston .. .... .... 19.9 28.9 San Antonio ..... 19.9 28.9 Corpus Christi ...... 19.9 28.9 Amarillo ........... 19.9 28.9 -Wichita Falls ..... 18.9 27.9 Texarkana .. . .... 19.9 28.9 Denver ..... ....... 21.9 31.9 -Albuquerque . . .... 21.4 31.9 Salt Lake City ...... 22.9 32.9 -Cheyenne ..... ..... 22.9 31.9 -Phoenix . ... .. .. 19.9 29.9 San Diego .. ... .. 21.9 33.9 Los Angeles ..... ... 21.9 33.9 San Francisco ....... 21.9 33.9 Portland, Ore. .... 20.9 30.9 -Seattle ....... .... 19.4 30.9 Spokane ....... .... 21.4 32.9 Week's avg. ... .... . 20.80 31.11 Mar. avg. ... 19.79 30.05 Feb. avg. ... 1930 2956 1965 to date 19.87 30.14 1964 same date .. 19.37 29,50 }Increase. -Decrease. THE OIL AND GAS JOURNAL • APRIL 26, 1965 183 STATISTICS Total U.S. completions, wildcat completions, a ToW wells , A -Total wildcats Cum. Cum. Cum. Cum, wells footage wells footag Total Oil Gas Dry Service Footage 1965 1965 Total Oil Gas Dry Footage 1965 1965 Alabama .......... 3 2 0 1 0 25.888 13 103,124 1 0 0 1 10,626 5 42,7 Alaska .. ... ... 2 0 1 1 0 18,460 2 18,460 2 0 1 I 18,460 2 18,4 Arizona . ...- ... 1 0 0 1 0 300 9 27,461 1 0 0 1 30D 9 27,4 Arkansas ..... . .. 31 12 4 15 0 134,783 64 284,681 10 3 0 7 55,360 15 809- California ......... 207 173 5 23 6 743977 564 2,091,434 13 4 0 9 62978 64 354.5� Colorado .......... 57 13 4 40 0 275,790 145 709.057 27 1 1 25 129,029 65 312,� Florida ........... 1 0 0 1 0 11,575 4 32,770 0 0 0 0 0 1 6153 Illinois ...... ... 74 45 1 28 0 147,346 221 455,658 14 2 1 11 22,473 46 80,3_ Indiana ........... 20 6 0 14 0 23,876 116 179,412 5 0 0 5 6,162 16 18,3 Iowa ...... 3 0 0 3 0 5,158 6 7,135 3 0 0 3 51158 6 7,1 Kansas ............ 226 97 20 97 12 711533 740 2,348.553 38 3 0 35 142,447 129 489.2 Kentucky ......... 57 19 13 24 1 105,983 227 404,865 9 2 0 7 16,449 33 63,9t Louisiana ......... 374 178 37 158 1 2,839,383 1,074 8a31,831 49 1 3 45 483,317 138 1,361:7 North .......... 141 73 11 57 0 481,655 438 1,529947 12 1 0 11 59,602 37 I78,7 South ..... ... 159 69 21 68 1 1,569,719 414 4,325,861 23 0 3 20 257,123 72 833;8 Offshore ........ 74 36 5 33 0 787,0I0 222 2,376,023 14 0 0 14 166,392 29 349.1 Maryland ,., ..... 0 0 0 0 0 0 1 8,805 0 0 0 0 0 0 Michigan ......... 28 5 3 18 2 89,386 84 273.144 6 1 0 5 18,700 24 72,4 Mississippi . ..... 66 17 7 42 0 479,800 182 1,338,189 21 2 0 19 137,733 68 452,1 Montana ... ...... 39 20 0 19 0 180,567 113 567,845 12 2 0 10 55.655 43 217,2 Nebraska .. ... 49 19 0 30 0 256,706 122 664.470 21 0 0 21 308,039 56 298,1 Nevada ........ 1 1 0 0 0 6900 2 12,795 0 0 0 0 0 I 5.8 New Mexico ... .. 112 47 33 32 0 706,194 296 1,792,334 24 3 3 18 180,095 47 294,03 West ........... 37 5 24 8 0 201,779 89 517,451 7 1 0 6 24,003 30 35,6 East ........ 75 42 9 24 0 504,615 207 1-174,883 17 2 3 12 156,092 37 258,35 New York . ....... 44 21 2 3 18 64596 139 223,841 3 0 0 3 7,160 13 4599 North Dakota ...... 23 13 0 10 0 137954 73 410981 8 1 0 7 32,949, 33 173,77 Ohio ........ 170 63 18 83 1 493,964 500 1,531.032 42 5 3 34 122,399 I12 346,80 Oklahoma ....... 405 211 57 94 43 1929943 1,177 5,397,858 33 6 4 23 394,438 Ill 685,71 Pennsyhania ...... 74 20 30 24 0 131,905 437 741,718 5 0 1 4 33,697 10 63,45 South Dakota ...... 5 0 0 5 0 20.792 8 31,153 5 0 0 5 20,792 8 31,15 Tennessee ... - ... 2 0 0 2 0 2,595 30 12,854 2 0 0 2 2.595 7 72-5 Texas .. ....... 1,047 4S6 137 375 49 5,034,541 3,252 15,618.669 250 31 15 204 1,485-107 806 4,687,761 District I ... .... 74 34 2 33 5 163,806 269 686998 16 2 0 14 47,004 69 214,811 District 2 ........ 64 5 23 36 0 456.262 190 1,208.627 24 1 1 21 190945 64 47593'. District 3 ........ 80 38 13 27 2 524,729 280 1924,031 20 1 1 18 144a50 72 637,681 District .,.. 78 30 23 25 0 481,897 310 1,896,132 17 3 3 11 119,641 98 603,29' East (5 & 6) ..... 47 21 5 21 0 355,619 179 1,167,415 11 0 2 9 155,030 48 429.721 District 7-B 133 51 13 62 7 360,866 384 1,033,093 40 6 2 32 133,681 132 454,217 West (7-C & 8)... 301 169 2$ 84 20 1,730,011 834 4,903,758 69 10 4 55 420,497 207 1,314,03' District 9 .. .... 199 99 17 71 11 63806 574 1,626,155 43 7 1 40 233,059 94 422,81 District 10 ...... 72 39 13 16 4 322,665 232 1,122,460 5 1 1 3 33;100 22 135,19: Utah ......... 21 10 3 8 0 155,037 46 283,286 11 2 2 7 69,411 19 132,20i Vermont ...... 0 0 0 0 0 0 1 5,120 0 0 0 0 0 1 5,12( Virginia .. ...... 2 1 0 1 0 10,020 2 10,020 2 1 0 1 10,020 2 10,0 West Virginia ...... 122 21 81 15 5 339,750 278 790,573 4 0 4 0 12.985 13 44,67! Wyoming .... .... 66 22 5 39 0 326,180 221 996,056 25 1 1 23 13I,060 61 377,73.. Total Mar. 1965 3,332 I= "1 1,211 139 15,461,037 10,129 45,595,189 646 71 39 536 3,595,894 1964 10,845,39 Total Feb. 1965 .. 3,477 1,554 410 1,291 222 15.296,184 .. .. ...... .. 620 61 31 528 3,500,655 ... .....! Cum. 1965 .. ... 10,129 4,531 I,287 3,746 565 45.595,189 .. ....... 1,964 198 1141,65210,845,395 .. ...... Cum. 1964 ...... 10,673 4935 1,264 3.863 611 44,825,000 .. .. ......... 2,033 203 122 1,708 11,391,000 .... Western Canada completions total, wildcat wel �-Total compk' �WBdnls 1965 - 2965 15%5 cum. 1965 cum. cum. footage cum. footage Total Oil Gas Dry Service Footage wells (1,000 ft) Total 03 Gas Dry Footage wells (1,000 ff, Alberta ...... .. 199 85 15 98 1 1,089,566 526 2901 93 14 1 78 470,073 236 I,m Saskatchewan .. .. 89 55 0 34 0 330990 184 689 13 1 0 12 41A63 35 131 Manitoba 9 5 0 4 0 20,879 23 59 4 1 0 3 8.297 12 3: British Columbia 31 13 5 13 0 136,614 69 317 14 2 2 10 68,093 34 W N.W.T. ... ., 6 1 1 4 0 36,446 8 43 5 0 1 4 31,265 7 3{ Total .. 334 159 21 153 1 1,614495 $to 4,009 129 18 4 107 619,196 324 1,581 Ontario ... 1D 1 3 5 1 23.669 36 73 .. .... .. .....i 184 THE OIL AND GAS JOURNAL - APRIL 26, 1965 '.. field -well completions -March 1965 Total field wells Cum. Cum, wells footage Total Oil Gas Dry Service Footage 1965 1965 2 2 0 0 0 - 15,262 8 60,338 .... Alabama 0 0 0 0 0 0 0 0 ......... Alaska 0 0 0 0 0 0 0 0 .. ... Arizona 21 9 4 8 0 79,423 49 203,723 .. ... Arkansas 194 169 5 14 6 680,999 500 1,736,928 ....... California 30 12 3 15 0 146,761 80 396,773 ....... Colorado 1 0 0 1 0 11,575 3 26,231 ... .. .. Florida 60 43 0 17 0 124,873 175 375,309 .... ... Illinois 15 6 0 9 0 17,714 100 161,110 ...... .. Indiana 0 0 0 0 0 0 0 0 ........ . Iowa 188 94 20 62 12 569,091 611 1,859,290 .. ..... Kansas 48 17 13 17 1 89,534 194 340,887 ....... Kentucky 325 177 34 113 1 2,356,066 936 6,870,045 ....... Louisiana 129 72 11 46 0 422,853 401 1,351,195 North 136 69 18 48 1 1,312,595 342 3,492,007 ........ South 60 36 5 19 0 620,613 193 2,026,843 ..... Offshore 0 0 0 0 0 0 1 8,805 ... ... Maryland 22 4 3 13 2 70,686 60 200,692 ........ Michigan 45 15 7 23 0 342,017 114 856,043 . . Mississippi 27 18 0 9 0 124,912 70 350,642 .. Montana 28 19 0 9 0 148,617 66 366,27.7 ...... Nebraska 1 1 0 0 0 6,900 1 6,900 ... . .. Nevada 88 44 30 14 0 526,299 249 1,498,300 .... New Mexico 30 4 24 2 0 177,776 79 481,771 ........ . West 58 40 6 12 0 348,523 170 1,016,529 . ... . East 41 21 2 0 18 57,436 126 177,847 .. New York 15 12 0 3 0 105,005 40 237,211 ... North Dakota 128 58 15 54 1 371,565 388 1,184,231 Ohio 372 205 53 71 43 1,735,505 1,066 4,702,144 . Oklahoma 69 20 29 20 0 148,108 427 678,267 . .. Pennsylvania 0 0 0 0 0 0 0 0 ... South Dakota 0 0 0 0 0 0 3 5,600 ....... Tennessee 797 455 122 171 49 3,549,234 2,446 10,930,903 .. Texas 58 32 2 19 5 116,802 200 472,188 .... District 1 40 4 22 14 0 265,317 126 732,693 ..... District 2 60 37 12 9 2 380,479 208 1,286,345 .... District 3 61 27 20 14 0 362,256 212 1,292,834 .... District 4 36 21 3 12 0 197,589 131 737,695 ...East (5 & 6) 93 45 11 30 7 227,185 252 628,874 . . District 7-11 232 159 24 29 20 1,309,514 627 3,589,725 West (7-C & 8) 150 92 16 31 11 405,627 480 1,203,282 1 District 9 67 38 12 13 4 284,465 210 987,267 .... District 10 10 8 1 1 0 65,676 27 151,081 ...... .... Utah 0 0 0 0 0 0 0 0 .. Vermont 0 0 0 0 0 0 0 0 .. .. Virginia 118 21 77 15 5 326,765 265 745,897 .... West Virginia 41 21 4 16 0 195,120 160 618,321 ... Wyoming 2,686 1,451 422 675 138 11,865,143 8,165 34,749,794 . Total Mar. 1965 2,857 1,493 379 763 222 11,795,529 ..... .......... .. Total Feb. 1965 8,165 4,333 1,173 2,094 565 34,749,794 ..... .. ... .. . Cumulative 1965 8,640 4,732 1,142 2,155 611 33,434,000 .... Cumulative 1964 d field wells -March 1965 Field wells 1965 cum. 1965 footage Total Oil Gas Dry Service Footage cum. wells (1,000 ft) 106 71 14 20 1 619,493 290 1,686 .. Alberta 76 54 0 22 0 289,527 149 558 .. Saskatchewan 5 4 0 1 0 12,582 11 26 Manitoba 17 11 3 3 0 68,516 35 154 British Columbia 1 1 0 0 0 5,181 1 5 N.N.T. 205 141 17 46 1 995,299 496 2,429 ..,.. Total ... .... ...... . ... .... . .. ..... Ontario Multiple Completions r-Oit� r--Gas-� Zones Holes Zones Holes Arkansas .. 2 1 California . 2 1 ... ... Kansas ... 2 1 ... ... Louisiana 136 68 24 12 North .. 2 1 2 1 South 80 40 12 6 Offshore. 54 27 10 5 New Mexico 10 5 6 3 East 10 5 2 1 West .. 4 2 Oklahoma 32 16 14 7 Texas . 80 40 54 27 Dist.2 .. 2 1 30 5 Dist. 3 .. 10 5 18 9 Dist. 4 .. 16 8 14 7 East .. 8 4 Dist 7-13 4 2 West 44 22 4 2 Dist. 9 4 2 ... ... Total U.S. 262 131 100 5o TRIPLE roil�r Gas - Zones Holes Zones Holes Louisiana .. ... ... 9 3 North .. ... 3 1 South ... ... 6 2 Oklahoma 3 1 Texas . 15 5 6 2 Dist. 3 3 1 6 2 Dist. 4 9 3 West .... 3 1 Wyoming .. 3 1 Total U.S. IS 5 21 7 IN MARCH there were four com- bination dual oil -gas wells completed in North Louisiana, one in offshore waters, one in East New Mexico, nine in Oklahoma, three in Texas District 3, seven in Texas District 4, two in Texas District 9, and one in Texas District 10. Oklahoma reported one triple com- bination -zone completion (two oil zones, one gas), Texas District 2 one combination completion (one oil, two gas), and Texas District 3 two com- pletions (two oil zones; four gas). Quadruple completions were re- ported only in Texas Districts 2 and 3. There were two four -zone wells in District 2 (three oil zones, five gas), and one quadruple oil well completed in District 3. Completions for all wells for the first quarter of 1965 showed a marked decline from the previous years first 3 months. The industry completed 10,129 wells, down 544 from 1964's comparable period. Wild- cat completions fared a bit better, down only 69 from the previous year's figure of 2,033. Total footage for the first quarter in the U.S. stands at 4.5,595,189 ft. This compares with 44.825.000 ft for the first quarter of 1964. There is still a marked tendency toward deeper drilling. The current trend should finish the year with average well depth a bit deeper than in 1964. THE 01 AND GAS JOURNAL • APRIL 26, 1965 1[:M CLASSIFIED ADVERTISING ... your market place for the oil and gas industry BATES' • DEADLINE: Coppy to reach The OR and Gas Journal not later • UNDISPLAYED CLASSIFIED: 33c a word per issue. 10% than 9 a.m. on Tvednesday preceding date of publication. Send discount for three or more consecutive Issues. y5.00 minimum advertisements to: ChmiM Advertising Manager. TBE OIL charge. Blind box In care count nine extra words. Not Subject AND GAS JOURNAL, PO Box I=, Tulsa, Oklahoma 74101. agency commission. EXCEPT... • DISPLAYED CLASSIFIED: $22 a column inch one issue, 101. WESTERN STATES: (California. Was an. Oregon, Idaho, discount three or more consecutive issues. Minimum size one Nevada. Utah. and Arizona). Write: Classified Department. Inc. Inch. Subjiect to agency commission. The Oil and Gas Journal, 4041 Martian Ave. Los Angeles, Calif. • All clasmed payable Inadvance. SMS. Phone AX..,inieter 2-0287. Copy deakllme Monday Doan. FOR SALE EQUIPMENT GAS PLANT EQUIPMENT Tanks, Air tt Exchang- tors. Diesel and prints of most it available. Will consider furnishing our egLRp- ment for interest in gasoline or gas booster plant. MID -STATES PIPE AND SUPPLY CO. P.O. Box 2534—Tulsa, Oklahoma LU 2-9122 AUCTION APRIL 27 act Camay—Corbeti—Hall— Phoenix Drilling Companies CAMAY DRILLING YARD ODESSA, TEXAS e EMSCO J-750-w/136' LCAL o EMSCO J-1100 w/136' L.C.M. o BETH. 950 w/136' EMSCO • U40 w/133' LC.M. o U-15 w/133' )DECO e T40A W/96' LC.AL Or. mid. • H35S w/96' LCJ& tlr. mtd. • U34 w/94' I.C.M. tlr. mtd. o LROU, LRZ, NKR engines • Climax, V-125 Cummins NHS engs. o FQ-FXQ, D-70D, FXK, D-300 pumps 0 50,000' 4" & 41V' pipe o T13 6" to 75" collars o SHFFR, CMRN, HYDRIL BOP • Cars-Pidcups•Haux Trailers INSTANT FINANCING 11 EVERYTHINGrSELLS — NO MINIMUMSfor brachurs, I) NELSON AUCTION SERVICE Executive Offices — 4484 Caeyess Dr. AC 006 Ft 6.3476 — Amarillo, Texas FOR SALE EQUIPMENT FOR SALE Two wirellne perforating - logging trucks Complete with Gamma Ray, Neutron & Acoustical Cement Bond & Call - Per logging. etc. Also, Pickup and Mast Truck. Equipment now in operation- Box P-571, The Oil Dad Gas Journal, Tulsa, Okla- homa. p13.D00 FT NEW 6% grade D 2520 lb. drill KuehsDfail o11�.elm dRodesDrlg. Co., ,OW Joints. 10 P.O. Box 5617, Abilene, Texas. FOR SALE 87 ft. Trailer Mounted Derrick with 4 ft. Structure. T-20 National Drawworks with 271 Twin GMC Diesel Engine. 17h" Rotary Table. T—National Type L Swivel. 4!:' Kelly. 4,000' of 4" OD Drill Pipe w/Hughes 51,i Flash Weld Tool Joints. 18-214 Bore, V411 to 6" OD. 10rw" Shaffer Double Gale Blow Out Pre- ventor. 1-18 ft. Tool House w/180 bbl. Water Tank Mounted on Trailer. 40 ft. Walkway Mounted on Tandem Low Boy Trailer. 2 Sets —Triangle Pipe Rocks. 1-18P Oil Well Mud Pump Powered w/L3000 V12 LeRoi. 1-1949 GMC Tandem Truck New 671 GMC DieselEngine(n Truck. ALL EQUIPMENT IN A-1 CONDITION CONTACT RHODES DRILLING COMPANY BOX 5617, ABILENE, TEXAS Area Code 915—Olden 22010 LIQUIDATION TOWERS & VESSELS APi-A7ME 1-4' 6" x 115'. 50 trays 425 pit 1-4. 6" x 6' x 90', 34 trays 500 psi 1-4' x 6' x 76', 29 hays 500 psi 1—& 6" x 751,29 troy, 230 pit 1-4' 6" x 38', 20 trays 200 pit 1­7 x 30'. 27 trays 100 psi 1--W' x 38', 20 trays, 100 Pit I5-3,000 to 10,000 Sol. vessels 150/450 pc HEAT EXCHANGERS 9—ADM 25M, 7540 sq. ft. 300 psi 2—ADM 2.155 sq. ft. 73 psi 6--STL 1,549, 973 sq. ft. 300 psi 3— 11. 1,010 sq. ft. 600 psi 8—STL-KeHle type, 1.016. 986,741 sq. ft. 600 Pilr 1,M, 920 aq. ft. 450 psi 30—STL It ADM 100­ to 500 sq. ft. to 600 pit FURNACES 4—P.t. Otan Heelers 6, 3, T MM STU/Hr. 5—Clark RA 6, RA4, HMA 6 3—IR XVG 8 1—Carrier 400 ton Rebig. 1—Gark Cant. 10,000 CTM 240 Psi B R I L L EQUIPMENT COMPANY 4701 Sen J;Arr 71e Stse * it aew 4, Texas 3 JA 0.1351 35-65 Jobs Shear, Newark S, NJ. Area 201 MA 3.7420 FOR SALE EQUIPMENT compressors for Rent or Sale We have the Industry's largest fleet of rental compressors, 40 to 550 hp, single or multi -stage. Used compressors Ior sale, many sizes. with new compressor warranty for six months. Knight Manufacturing Co. Box S428 Tutu GE 7-3304 NEW —SLIM HOLE — HYDRILL DRILL PIPE t& DRILL COLLARS 7,530 ft. 2ii' OD .217 Wall Tubing 6.85# -4" Type "F' tool joints, 21V ID—N-80, 30 ft. 15 Hydril Drill Collars 4" Type F tool joints Ti" ID. 30 fL 4 Subs. from Hydril joints to AN joints Prim well below mill price. New Link -Belt Shale shaker 250 gal. cap. with Elec. Motor. 5 New Hannifin Hydraulic cylinders 8" bon, 108" shake 2000 PSI 25 Assorted sizes of smaller new Hyd. Cyl. 2000 PSI. 3 New Gardner -Denver Model FC 5" x 12" Cast Steel and Alloy Iron Mud pumps Ends only. Bargain. Patrick J. O'Neill LU 2-8831 7234 W1111cr son, Dearborn, Michigan FOR SALE INTEGRAL COMPRESSORS 2-1-R Model 12" 2HHE 600 BHP 400 RPM 4—Worth LTC-6 800 BHP 300 RPM 2—Worth ITC-5 625 BHP 300 RPM 1—CB GMXA-4 250 BHP 350 RPM Skid Mid. 1—CB Model 14" JM 1000 BHP 300 RPM 5-1-R 4XVG 150 BHP 350 RPM PACKAGED COMPRESSORS 1—Worth A34" x 9" Hit 65 BHP with 145 GKU Waukesha 1—G-D 441" x 11" RXD 100 BHP with 145 GZBU Waukesha 1-1-R 4!V x 9" ESH-1 100 BHP with 145 GZU Waukesha COMPRESSOR CYLINDERS 14D—Clark RA/8A from 4" to 28" 165-1.R JVG/SVG/KVG from 3" to 33" 38—Worth LTC/HBGG from 4" to-26" 29—Cooper GMX/GMV from 3" to 26" ENGINE GENERATORS 1-200 KW G.E.2400 Volt 3 Phase 60 Cycle with LeRoi L3000. Compressors, Inc. Engineering -Sales -Service 34TO Marquarl�, Houston, Texas 77027 713 NA 2-1700 136 THE OIL AND GAS JOURNAL . APRIL 26, 1965 FOR SALE EQUIPMENT EQUIPMENT WANTED HELP WANTED 3600 feet of 94e" P-110 casing WANTED late model compact double ings. C & Y Casing Pulling Co., 6^ series 1500 hydraulic preventer in operat- Duncan, Okla. Phone AL 5.4453. jpg condition. Write Box 6006, Corpus adios —new and reconditioned all Christi, Texas. A mnAnlc_Rnrnm l�n,r,nmv Rn_. or COMPRESSORS 2—Clark RA-32, 300 HP Integral angle compression complete with accessories. All in excellent operating condition when re- cently shut -down near Tulsa. Detailed Specs. available. Mid -States Pipe and Supply Co. Box 2534—LUther 2-9128 Tulsa, Oklahoma YOUR KEY TO SAVINGS COMPRESSORS: Clark CA1B2 3,000 din @ 625 psi, 250 HP—Ing-Rand XRE2, 1,855 din @ 110 psi. 300 HP FILTERS: 5'3"x10'-3 x6' Steel-3'xl' Monel Oliver Rotary Vacuum Precool 340 & 160 sq. ft. Bird Pressure Leaf PUMPS: Union Not Oil 2,410 gpm @ 575'- 1,160 gpm @ 515'— 400 gpm @ 340' Pacific 603 gpm @ 6,540' Ing-Rand 12,650 gpm @ 58' Hundreds more all ratings & metals. COLUMNS: I I'x84' 18 Trays 100 psig 60"x6g'S" Packed/Troy 75 psig 54"AO' 12Trays 200psig 48"x69' 22Trays 2,250psig 48"A9' 24 Trays 350 psig 30"x50'4" Packed 515 psig 20"x58' Packed/Tray 670 psig HEAT EXCHANGERS, REACIORS, PRESSURE & STORAGE TANKS, FURNACES, FURNACE TUBES SEND FOR COMPLETE CATALOG H&PEQUIPMENT CO., INC. 60 L 42 St., N.Y. 17, MU 7.5280 310 Thompson Bldg., Tulin 3, LU 3-4890 formerly HEAT & POWER CO., INC. WANTED TO PURCHASE One (1) Clark Compressor Cylinder Type VBA or Type WL for a RA-6 Compressor. Can use any of following sizes: 16"x1r' 17%" x 17" 18" x 17" 19" x 17" Providence Gas Company, 100 Weybosset Street, Providence, R. 1. 02901 Attention: L. R. Hampton HELP WANTED EXPLORATION GEOLOGIST 7 to 10 years solid explorational experienm, including carbonates. Geology degree required. Must be aggressive and possess ability to generate prospects, minimum red tape. Loca- tion Dallas. Age to 38. Send complete rdsumd, in confidence, to Xunf Oil Company, 1401 Elm, Dallas, Texas 75202, Attention: Personnel De- partment. An equal opportunity employer ESTIMATING ENGINEER The Engineering Department of Ethyl Corporation has immediate need at Baton Rouge, Louisiana, for a well qualified estimating specialist with a minimum of 8 to 10 years experience in the chemical or petroleum process industry. He must have an engineering degree and experience in estimating foreign installations as well as do- mestic. Will prepare speculative and appropriation estimates for a wide range of processing facilities. Occasional travel of short duration will be required. This is an attractive specialty po- sition for a well qualified man. Submit complete resum6 in confi- dence to: R. S. Asbury ETHYL CORPORATION P. O. Box 341 Baton Rouge, Louisiana An Equal Opportunity Employer CAREER OPPORTUNITY PROJECT ENGINEER Required by the Canadian subsidiary of a major international integrated oil company. The successful applicant will assume complete responsibility for the re- search, technical studies and develop- ment of heavy oil properties. This posttion requires a university graduate m science or engineering with broad experience in the petro- leum industry and preferably with di- rect experience is modern secondary and tertiary recovery methods in- cluding steam and combustloa. Location: Alberta, Canada Salary open to negotiation. Written applications, containing a brief r&sume, sbould be addressed to the Personnel Manager, at P.O. Box 393. Calgary, Canada. Our employees have been advised of this requirement. AII replies treated wilts strictest con- ffdance. BE�Hf� s s 1 CONSTRUCTION MANAGERS BUSINESS DEVELOPMENT INTERNATIONAL OPPORTUNITIES Outstanding opportunities for supervisory and management oriented men in our worldwide rapidly expanding oversee engineering and constructmn operations. * You may miss this opportunity unless you act now! * We design and construct —Refineries —Chemical Plants —Steam Power Plants —Nuclear Power Plants —Major Pipelines —Pump Stations —Plant Facilities * We will employ qualified ENGINEERS Graduate chemical, electrical, civil, structural, mechanical engineers with at least tan to twelve years experience in one or more of the fields hated above. Experience for the last five years should show progressively increased re- spons,bdity, at the management and top supa- vaory keel in home office administration, de- sign and field construction. Superintendents —project managers, construction managers with broad experience in the field on both domestic and foreign projects in the ad. ministration and supervision of the ripe of work we have listed abote. BUSINESS DEVELOPMENT Mature engineering graduates whose back- ground and experience have been at the man. agement level engaged in major client can. tracts. Dtust have experience in client pressam- tion and bidding as related to the engineering and construction fields we It... listed above. You will mare in the many employee benefits of a worldwide leader. Our oversee projects provide liberal allowance for housing =it movement of household effects. Assignments provide vacation allowance, top salaries, plus many coo¢ advantages. Send detailed r6sum6 of your am- ployment and personal history, salary history and requirements. (All replies held confidential). Manager of International Employment, PO Box 3965 San Francisco, Calif. 94119 BECHTEL Corporation Engineers and Builders for Industry THE OIL AND GAS JOURNAL • APRIL 26, 1965 187 HELP WANTED Material Man Ex7lcrime 117aterlal Mart to do field inventory, set uD and maintain inven- tors records of oil field equipment and material. iSlugst be able to price riai Sendui�sduleneuof exx�perience aced salary requirements to: Personnel Manager Texas Pacific Oil Company P.O. Box 747, Dallas, Texas 75221 An equal opportunity employer. CHEMICAL ENGINEER Box P-546 The OR and Gas Journal Tulsa, Oklahoma PETROLEUM ENGINEERS A growing, diversified natural gas transmission company is looking for: PRODUCTION EVALUATION ENGI- NEERS: to perform analyses and projections of results of well tests; computer ap- plications of test data and compression studies. UNDERGROUND STORAGE ENGI- NEERS: for studies of po- tential storage reservoirs; related facilities design; development of storage testing programs. RESERVES ENWN:ERS: duties in- clude estimations of gas reserves: studies of well and field producing capac- ities; gas availability studies. All three positions require a B.S. or AT.S. in Petroleum Engineering or in some other phase of Engineer- ing with Petroleum option. Some directIy related experience is preferred, although recent college graduates nAIl be considered. Those interested trill find: SALARIES .. Goad BENEFITS Excelleat OPPORTUNITIES Unimiled Send letter or resume to: Box P-586, The OR and Gas Journal Tulsa, Oklahoma An Equal Opportunity Employer HELP WANTED DIRECTORY Integrated oil com panies. drllllng' coatraMors, ageacles, showing where appls domestlq f£orelRn jobs $5.00 O1ML Co.. Box 260.7. Tulsa. O DALLA5 BASED independent needs land man with 3 to 5 years experience. Must be whin to travel. Send resumd and salary desire to, Box P-577, The OR and Gas 1­1 T..l IILinA.....n HELP WANTED EXPERIENCED TREATING Engineer for Oil well stimulation work should be stilled in Cementing. Fracturing and Acidic- ing Opperadons. salary commensurate with Experience and Ability. sales or Equipment Mamtenance ability required. student On and G bJouumnal. Tulsa,d. Oklahoma. Oklah made SENIOR INTERNAL AUDITOR Major international oil company with rapidly expanding over- seas operations has immediate opening in New York head- quarters for experienced auditor to perform advanced audits of subsidiary companies, contractors, and jointly owned opera- tions at locations throughout the world. Position requires fifty per cent of time on extended temporary assignments at foreign locations and may ultimately lead to permanent assignment abroad as resident auditor. Extensive responsible experience as internal auditor in petro- leum industry is essential. Salary commensurate with qualifi- cations. Send resume in strictest confidence to: Box P-572 The OR and Gas Journal Tulsa, Oklahoma F�knowledge GN DRAFTSMAN -PIPING g natural gas pipeline corporation has opening alified design draftsman with experience in s piping design, preferably related to natural gas essor stations and treating plants. working edge of related industry equipment, codes, and rd practices necessary. Must be capable of pre - original layout and detailed drawings according ifications. Age to 40 years with minimum 12 to 15 engineering drawing experience required. Send te resume including salary requirements to: Employment Manager P. O. Box 1160 Owensboro, Kentucky 42301 rsteel DRAFTSMAN-STRUCTURAL ng natural gas pipeline corporation has opening alified design draftsman with experience in heavy trial structural design required for natural gas essor stations. working knowledge of structural and reinforced concrete including codes and stand- esign practices necessary. Must be capable of ming structural calculations as well as design- d detailed drawing. Age to 40 gears with mini- 8 to 10 years' technical training and practical en- ing drawing required. Submit complete resume ing salary requirements to: Employment Manager P. O. Box 1160 Owensboro, Kentucky 42301 lag THE OIL AND GAS JOURNAL • APRIL 26, 1965 HELP WANTED HELP WANTED HELP WANTED GEOPHYSICISTS Attractive opportunity wrath major company. Recent B.S. or M.S. degree. Send rdsum6 including description of college record to: Box P-569 The Oil and Gas Journal Tulsa, Oklahoma PARTY CHIEFS GEOPHYSICISTS SEISMOLOGISTS Geophysical Service Inc., is seeking party chiefs, geophysicists, and seis- mologists with high level academic training and experience to work in new Digital Seismic Service Tech- nology programs. These positions provide wide latitude for application of technical information and experi. ence to this exciting field —allow development of original ideas and ap- plication to methods and procedures now in use. Positions are open at Dallas, Midland, and Houston, Texas; New Orleans, La., and Cal- gary, Canada. Frequent relocation is not required. International opportun- ities are available. Requirements: Two or more years seismic interpretation experience. Degree in geophysics, physics, elec- trical engineering, mathematics, or geology (with mathematics through calculus). Send r6sum6 in confidence to: Don Makinson GEopNYsiteAL SERVICE INC. P.O. Box 5621 Dallas. Texas 75222 3n Equal Opportunity ,Employer Engineers: Are you five years or less out of college and looking for new opportunities? Then you may be interested in what is happening at Humble. We are ex- panding virtually every area of our operations throughout the country. The engineer is the keystone. Humble, one of the country's leading petroleum and petrochemical com- panies, has a proven personnel de- velopment program to help you advance in: —operations management —technical management —or as a specialist in your field This program and our broad range of operations open to each man oppor- tunities for individual growth and advancement. We are interested in men with de- grees in chemical, civil, electrical, mechanical and petroleum engineer- ing and other engineering disciplines —all degree levels from Bachelor to Ph. D. Humble now has openings in: — Exploration and Exploration Research Oil/Gas Production and Production Research Petroleum and Petrochemical Manufacturing Technical/Industrial/Chemical Marketing Interested? Please send full details of your training, experience, and am- bitions to: Harry G. Taylor, Dept. 105 Humble Oil & Refining Company P. 0. Box 2180 Houston, Texas 77001 HUMBLE OIL & REFINING COMPANY An equal opportunity employer PRODUCT MARKETING MANAGER Major instrumentation manufac- turer needs a talented, knowled- geable and aggressive individual to direct the marketing and sales efforts in systems and products for the product pipe line, refinery and petrochemical fields. The position requires a person of tech. nice[ competence in the field, background and experience for market research, analysis, tales contact, application engi- neering, new product analysis and program development. The candidate we seek will savor responsihility, desire individual challenges, and work at to efficiency with wide latitude in creditor decision mak- ing areas. The personal and financial rewards will be most suitable. Growth and career expansion opportunities excellent. To learn more about this unusual oppor- tunily, please direct a brief resume with salary requirements to: T. C. SMITH, VICE PRESIDENT INCORPORATED 229 Manchester Rd. Poughkeepsie, N.Y. 12603 An equal opportunity employer SITUATIONS WANTED DELAWARE CORPORATION formed and serviced American Guaranty Trust Com- pany P. O. Box 487, Wilmington, Delaware. MAPS FOR SALE: New Mason County, W.Va. Farm maps showing newly completed Berea and Oriskany wells. 507 Main Street, Point PI 675-easant,3136. W.Va. Ralph Hunter, Phone 304- BUSINESS OPPORTUNITIES INTERESTED IN oil or gas plays in Western New York vicinity? Native geologi- cal consultant available. Box P-582, The Oil and Gas Journal, Tulsa, Oklahoma THE OIL AND GAS JOURNAL • APRIL 26, 1965 189 BUSINESS OPPORTUNITIES LEASES AND DRILLING BLOCKS Still available ... ELECTRIFIED OIL PRODUCTION ... an engineering text by J. K. Howell & E.E. Hogwood Westinghouse Electric Corporation The first book to cover the design and application of electricity to oil -field systems. This comprehensive text shows how to electrify all oil - production operations, from beam pumping to automatic custody transfer. Also included are chapters on electrified water -flood opera- tion and cathodic protection of production equipment and gathering systems. Get your copy nowl Use the coupon below to order your personal copy or one for your company library. 51/2 x 8%2 in., hard cover, 344 pages. r C age l: Teen p o O A N o ^ w .Y y ..N•. @) JG r- C � C4 ed � pp • e o yy i Zk G• m C H O .,. c � ROYALTIES PRODUCING ROYALTY and Non-Produc. tng Minerals Bought in all US. areas. De- taua to Wilco Properties, Inc., Alico BWid- InR. Were. Texas. DESIRE to purchase producing royalties. Submit to Texas Royalty Company, 908-San Jacinto Building: Houston. - ALASKA WEST FORELAND —COOK INLET BASIN 1/4 of l % O.R.R. 2,460-A 1,656-A of this Iease Is committed to the pending West Foreland Unit Op- erator is Pan American. Parti anttss Marathon. Now � drUBngg�2nd test, West Foreland Unit #1 31' miles from the shut In discovery Q1, West Foreland .#l. The Alaska Oil Smut 4005 Barbara Drive Spenaxd, Alaska Fairfax 2-1798. LEASES AND DRILLING BLOCKS OIL AND GAS LEASES and large drilling blocks and/or checkerboards of leases for sale iD Northwestern Pennsylvania and Southwestern New York by respon- sible successful Eastern operating company that is willing to partici- pate in drilling and manage opera- tions if desired by purchaser. Box P-556, The Oil and Gas Journal, Tulsa, Oklahoma. FOR SAL£: 6,163 acres Ottawa County. Ohio. $1.50 per acre. Weiser -Brown Oil C%- yyanF. Box 457, Magnolia, Arkansas, Phone CEntral 4-SO50. LEASES FOR SALE: 640 acres in San Juan County Utah, write Les Decker, 1119 Beach Ave. SXE Eluran. South Dakota. MISCELLANEOUS Donald J. Podesta Consultant Geologist International Petroleum and Mining Exploration and Evaluation Wishes to announce a change of address, office at 4123 Leleune Road Coconut Grove, Miami, Florida Telephone 661-1183 Fop. Tornado Proofing, Hurricane Steering Ruhfure in. aerie Wind and Half reduction. Confidential. Inquiry toned Weather Engineering Inc 963 togas St, Omer, Cola 303-2554271 before MOD mm. LEGAL LEGAL LEGAL 190 THE OIL AND GAS JOURNAL APRIL 26, 1965 How healthy is your business? You take the pulse of your busi- ness... constantly... expertly. Are you just as careful about your- self? About your employees? Do you know that cancer strikes one in four Americans today? That over half can be saved if the warnings are heeded in time and treatment begun promptly? To- day's executive knows that sound health is smart business. He never misses his annual health checkup, and reminds his em- ployees to have theirs. To keep them alerted to life-saving facts about cancer, he has an Ameri- can Cancer Society public edu- cation program in his plant. Do you? For information about this free program, call your local Unit of the Amer- ican Cancer Society. Fight cancer with a checkup —and a check. Send it to CANCER, c/o Postmaster- AMERICAN CANCER SOCIETY ADVERTISERS IN THIS ISSUE A ACF Industries, Incorporated, W-K.M Division ... ........ .. . ... ... 127 Aluminum Company of America 15 American Air Filter Co., Inc.. ... .. 133 American Air Liquide, Inc. ... 95 Anaconda American Brass Company .... 139, 140, 141 Armco Steel Corporation ... ... 122, 123 National Supply Division ..... .... 97 Steel Division ....... ............ 130 Automatic Electric, Subsidiary of General Telephone & Electronics ... 128 B Baash-Ross Division of Joy Manufac- turing Company ......... ..... . 14 Baker Oil Tools, Inc . .......... .... 40 Baroid Division, National Lead Co. 34, 35 Barton Instruments, A Member of the Controls, Instrumentation, and Auto- mation Group ITT ........ .. ... 29 Bethlehem Steel Corporation Supply Division ...... .... .... 7 Bovaird Supply Company, The ....... 1 Bristol Company,A Subsidiary of Amer- ican Chain & Cable Company, Ine... 131 British Petroleum Company, Ltd. 168, 169 Brown Oil Tools, Inc. ........... .. 53 Buell Engineering Company, Ina 92 Byron Jackson Ina, A Borg-Warner Subsidiary ............ . .. 152, 153 C Cabot Corporation, Machinery Division .. . ..... .. ......... 161 Colgan Corporation . .. .......... 162 California Filter Company, Inc....... 125 Cameron Iron Works, Inc. .......... 11 Chicago Float Works . ...... ... 130 Chiksan Division FMC Corporation .. 16 Christensen Diamond Products .. . 26 Classified Advertising .186,187,188, 189, 190 Crose-Perrault Equipment Company, A Division of Crose-United Corp..... 10 D Davison Chemical Company Division of W. R. Grace & Co.. . . . 42 De Laval Turbine Inc. ... ,., 176 Diveon . .. . . ...... ...... ... 130 Dowell ....4, 28, 70,136, Inside Back Cover Drilling Equipment Manufacturing Co. 32 Du Pont ............. ............ 13 E ENT SNAM, Division Progetti ...... 18 El Paso Natural Gas Company .... 149 Ethyl Corporation . ............. . 57 F First City National Bank of Houston . 91 First National Bank in Dallas .... 150 G Geophysical Service, Inc. ........ ... 164 Goodrich Industrial Products Co., B. F. 3 Grace & Company, W. R. Davison Chemical Division ........ 42 Gulf States Tube Corporation .... . 145 H Halliburton Company . ...... .... Inside Front Cover, 9, 30, 38, 158, 166 Harbison -Fischer Mfg. Co. , . .... 24 Huey & Co., S. E.. ....... 126 Hughes Tool Company ... . Back Cover Ingersoll-Rand Company .. .. 147 International Harvester Company . 103, 104, 105, 106 Johnston Testers .... ... .... .... 17 Jones & Laughlin Supply Division 88, 89 K Kemp Manufacturing Co., The C. M. 120 L Larkin Packer Company, Division of Koehring Company .. ...... .... 155 M Magcobar, One of the Dresser Industries ... .... 60 Manning, Maxwell & Moore, A Division of Dresser Industries . .......... Marley Company, The .... . . ..... Martin Manufacturer, John N . . .... McDonough Marine Service . ..... Mission Manufacturing Company .... N National Supply, Division of Armco Steel Corporation .............. National Tank Company . . ... . ., Q Oil Center Tool, Division of FMC Corporation ...... . ..... OH.WELL Division, United States Steel Corporation .. .. .. Otis Engineering Corporation ...... P Petroleum Electric Power Asm... . Philadelphia Gear Corporation, Philadelphia Mixer Division ....... Pipe Inspectors, Division of Plastic Applicators, Inc . ................ Pittsburgh Steel Company .......... Porter Company, Inc., H. K., Thermoid Division ... ..... ......... Powell Valves ............. ....... 61 118 135 126 126 124 97 192 19 12 6 115 132 37 25 171 23 R Reda Pump Company ... ........ . 31 Reynolds Metals Company ...... 300, 101 Rockwell Manufacturing Company ... 116 Schlumberger Well Surveying Corp. .. 69 Seiscor, A Division of Seismograph Service Corporation ... ..... .... 142 Smith Corporation, A. O., Meter and Service Station Equipment Division . 5 Tubular Products Division ..... 20, 21 Southern Natural Gas Company ... 167 Square D Company ................ 2 Standard Oil Company (New Jersey) .. 33 Stanley & Co., Morgan ............. 170 Steel Division, Armco Steel Corp. ... 130 Stewart & Stevenson Distributing Co... 138 T Texsteam Corporation, A Subsidiary of Vapor Corporation . ....... .... 144 Thermold Division, H. K. Porter Company, Ina .............. ... 171 Thomhill-Cmver Company .......... 8 3M Company Electrical Products Division .... ... 129 A U.S. Stoneware, Chemical Equipment Division .. ...... ............... 22 United States Steel Corporation ....1749175 OTLIVELL Division ........ .... 12 Unterberg, Towbin Co., C. E. .. 170 V Valley Itlanutacturing Company 143 1'AII Wilson Mfg. Co., Ina ...... .. 28 W-K-M Division of ACF Industries, Incorporated ........... ..... ... 127 Worthington Corporation . ... ...36, 37 THE OIL AND GAS JOURNAL • APRIL 26, 1965 191 NATIONAUSO HRU Hydrocarbon Recovery Units Packaged Held gas processing plants offer. ... Good pay out capabilities. Highest recovery commensurate with economic investment standards. A proven method of increasing profits. ... Unattended — trouble -free operation. This closed cycle unit employs lean gas cooling and rich gas purging to process up to 150,000,000 cu. ft. gas per day. Near Bay City, Texas recovery has run as high as 500 barrels of stable stock tank liquid per day. A complete, unitized, economical packaged plant ... designed, manufactured, installed, serviced, and placed on stream ... National all the way. They pay for themselves: give us the problem and we will evaluate the payout We invite your inquiries ... You can buy with confidence from National. PATENTED AND PATENTS PENDING. #09 MOO&°Jlr aNATrONALfTAt co�pr • Wtaoi Txt U.W. xP°. A'Mtb, Gu4 .Iqt rat Sfes C%glK, is A.(t'M SY'Y.->t . crtrsus Cn,=e's • Awl —xa: aa: SwcY. Vzs:.., iws t M ki - 0 0 • I_- -- - - 1 ...viiw� F;, -� Is Dowell big enough to take care of your oil well cementing? From the beginning Dowell has had two aims for its cement- ing service to become big enough to take care of your oil well cementing work and good enough to deserve it. Today, Dowell offers you service from new, modern plant facilities throughout the oil fields. These plants are designed to serve you quickly and efficiently. Dowell cementing equipment is designed with the latest ideas to help you get a better cementing job. The Dowell people who engineer your job and man the equipment at your well are hustling, eager, experienced. In every way, Dowell is working to give you good service —the kind of service you want. But that's not enough. Dowell is continuing to look for better ways to lower your well costs and to get you an even higher ratio of successful jobs. We want to keep giving you every reason to call Dowell to cement your wells. Dowell services and products for the oil and gas industry are offered world-wide. Dowell Division of The Dow Chemical Com- pany, Tulsa, Oklahoma 74114. CALL DOWELL FOR "RED THREAD" GLASS FIBER PIPE AND TUBING AND "DELRIN" PLASTIC PIPE another Hughes _4 customer -dividend f New features resist gage mending —lengthen bit life. Now you can choose an X-LINE bit designed for your particular rig and location. New X-LINE MA, X3 and XIG Sealed Bearing Bits give best performance in all soft to medium forma- tions. X-LINE hard formation bits also give superior performance. Bit records from every major drilling region prove X-LINE far superior. Get your dividend —go all the way with Hughes! HUGHES TOOL COMPANY/Oil Tool Division Houston, Texas - - - - - - •- -- -- -- - - - - - -- - --- - - - - - - O1p05% Hughes Tool Campnny, Hughes' Is a rapbtand tntlemnrk of Hughes Tool Company. i' F, COUNTY OF ORANGE 178.024 LAND USE AND BUILDING REGULATIONS fi 70,024. shall any land, building, structure or premises be used, designed or in- tended to be used for any purpose or in any manner other than a use listed in this Article or amendments thereto as permitted in the district.- in which such land, building, structure or premises is located. (2) No building or structure shall be erected nor shall any existing building or structure be moved, reconstructed or structurally altered to exceed the height limit established by this Article or amend. ments thereto for the district in which such building or structure is. located. (3) No building or structure shall be erected, nor shall any': existing building or structure be moved, altered, enlarged or rebuilt,' nor shall any open spaces surrounding any building or structure be ' encroached upon or reduced in any manner, except in comformity with the building site requirements and the area and yard regulations estab• lished by this Article or amendments thereto for the district in which t; ' such building or structure is located. (4) No yard or other open space provided about any build- ing or structure for the purpose of complying with the regulations of - this Article or amendments thereto shall be considered as providing• a yard or open space for any other building or structure. (Ord. 351, Sec. 3; amended by Ord. No. 417, Sec. 1; amended by Ord.:' No. 561, Sec. 1; amended by Ord. No. 616, Sec. 1; amended by Ord, No. 643, Sec. 1; amended by Ord. No. 663, Sec. I; amended by Ord.; No. 666, Sec. 1; amended by Ord. No. 1279.) ✓sec. 78.024, Oil production. (a) Permitted. ; In any district where the district symbol is followed by, as a „ part of such symbol, parenthetically enclosed letter 0 , thus: (0), oil drilling and production of oil, gas and other hydrocarbon substances- 'ie'permitted. (b) Prohibited. The following areas are hereby declared scenic and recreational 'areas: (1) The area within 1/4 mile of the boundary of O'Neill Park ,and of Irvine Park, (2) The area within one mile landward of the line of Upper Newport Bay as established and adjudicated by Superior Court -Case No. 20436; (3) The area within one mile landward of the coast line measured from mean lower low water datum as established by the U.S. Coast and Geodetic Survey, from the easterly jetty of the harbor entrance �1y!'x_ ,(- a `jt''�ny-�• - _ Ordinance No. 111,016 are other aOF LoS AN- districts rlct o pursuantoto oilwell previsions AS FOLLOWS: of the i4a Angeles Municipal Coda. on to all other b. Tile issuance of any permit �dfnance and the respecting the drilling or producing dnistrative Offi- of all wells; and following duties a The lensing of any city -owned management of lands for exploration for or produc- :cting the City: tion of petroleum. render a report Provided, however that if said re - concerning mat- port and recommene�ation are not re - or indirectly to turned and filed with the Council or or or e. '1'O needures to bo Yot owed with respect agency to perform any act concern - the lensing YOr oft and g¢s Prod- ing petroleum within a specified alopurposes on nny city -owned time, said time is, hereby extended n for the period of time the City Ad - op is d. To rt administer and determine the ministrative Officer May keep the ..._ a....,.,, .oltu on omvininno of oil' matter under consideration pursuant the Jurisdiction and -control Ito the expressly nassiggnned atoroany some ,¢ndonment and otner procecuvn a., +� C ownedt land fora exDlorn.tfona sm f W es' C. PF7City Clerk, determine the terms on which bide Approved Fe umy M. Morris.99.I1aputy. g to be reeuested. NOgglg pOIILSON, f. To investigate subsidence inch ms and explore possible protective File No. f(A41063)a13/163z it Mayor. ensures; g. To recommend Proper measures M A • Y „�,, • it3 I ; , I I; 176.024 PLANNING 178,021 , at Newport Beach to the San Diego County Line, �? (c) Permitted. Subject to conditions. (1) Within any district not designated with (0) and not'„'1 ' above described as a scenic and recreational area, the use of land for the drilling and production of oil, gas and other hydrocarbon substances,' is permitted upon the hereinafter described "primary conditions", if ' at the time of the application for a permit to drill there exist either: a. 25 or more dwellings within 1320 feet of the. pro- posed location of the well or b. Six or more dwellings within 660 feet of the pro. ' E posed location of the well or c. Any legally established structure used for housing of ' mentally or physically ill or aged persons having five or more beds, ; is within 660 feet of the proposed location of the well. d. In the determination of conditions applicable outside of the "0" Districts, improvements and oil wells located within `40" Districts shall not be considered. (2) Within any district not designated with (0) and not above described as a scenic and recreational area the use of land for•.• , the drilling and production of oil, gas, and other hydrocarbon substances is permitted upon the hereinafter described "secondary conditions", ' if at the time of'the application for a permit to drill neither a. nor b. nor c. as described in Sub -subsection (1) above exist. In the determination of conditions applicable outside of the "0" Districts; improvements and, i' Oil Wells located within "0" Districts shall not be considered. ' (3) The word "Dwelling" as used in this Section means ' any building or structure which has for its primary purpose human,:; ;•• -residence. (4) Primary conditions. a. For site selection and preparation. 1. Drill site location. No drill shall be located' closer than 1320 feet from any drill site other than a drill site located,' i in an "0" District. For the purpose of this Article the drill site for an oil well existing on May 28, 1958, shall be deemed to be all of the area within 100 feet from the center of the oil well. 2. Drill site area. No drill site shall contain more than two and one-half acres or be of such size or shape that it cannot • ; be contained within a square three hundred and thirty feet by tlxreor :1 't; hundred and thirty feet. 3. Number of wells. The number of wells whichrb' may be drilled shall not exceed one well to'each five •(5) acres in the ,' ,i. 4 I. II• I �',�,�• :1�.. r-*..fr ♦ 1( , 1.,. i,4., 4 r t 1 ' , � 1 i $ 78.0?A LAND USE AND BUILDING REGULATIONS $ 78.024 leased area. 4. Distance from dwelling. No oil well shall be drilled within 175 feet of any dwelling. 5. Hours of operation. All work in preparation of the site for drilling shall be conducted only between the hours of 7:0V. - 7: A.M. and 7:00 P.M. ' 6. Roads and excavations. Roads and other exca- vations shall be planned, constructed and maintained so as to provide stability of fill, minimize disfigurement of the landscape, maintain natural drainage and minimize erosion. 7. Cut and fill slopes. No slope of cut or fill shall. ' have a gradient steeper than 1 foot rise in 1 foot horizontal measure- ment. Where by reason of the soil condition, the condition of the terrain or size or length of the cut required it is impractical to provide such gradient, the Superintendent of Building and Safety may grant an - exception to such requirement provided he first finds that compliance with said requirement is impractical and that the integrity of the neigh- borhood will be maintained if such exception is granted. ' 8. Slope planting. All excavation slopes, both cut •'', i and fill; shall be planted and maintained with grasses, plants, or shrubs during drilling and production operations, but only to an extent reason- ably comparable with the general status of undisturbed surfaces in the vicinity. 9. Fencing. Prior to the commencement of drilling _ operations the drill site shall be enclosed by a solid redwood fence or a solid masonry wall 8 feet high on all sides, except those sides on which exists a natural or artificial barrier of equal or greater solidity and height. Solid redwood board gates shall be installed and be I# equipped with keyed locks and shall be kept locked at all times when unattended. Any and all supporting members of the fence shall be on 'the interior of,said fence. Such fence or wall shall be in lieu of any other fencing requirements. ' 10. Pipelines. All off -site pipelines serving the drill A ,, site shall be buried underground. ' 11. Off-street parking. An off-street parking area containing not less. than 5 parking spaces, each of which shall be at least 10 feet by 20 feet, shall be provided for each well being drilled and shall be surfaced and maintained in accordance with the requirements of The Orange County Oil Code. l " 12, 'Sanitary facilities. Sanitary facilities'- shall be j Provided at the drill site and shall be in accordance with Standards of the Orange County Health Department. 11 b. For drilling. 7P-14 , 78.024 PLANNING 4 78.024 1. Soundproofing. The derrick and all drilling ma- chinery which produces noise shall be enclosed with sound proof• fag material, which shall be maintained in a clean and serviceable•''. 1 { condition. 2. Lights, All lights shall be directed or shielded'so-i, as to confine direct rays to the drill site. 3. Delivery of equipment. The delivery or removal:' of equipment or material from the drill site shall be limited to .the'',' hours between 7:00 A.M. and 7:00 P.M., except in case of emergency, -' ;. , • ., 4. Drill pipe storage. No drill pipe shall be racked .: and made up except between the hours of 7:00 A.M. and 7:00 P.M. ! except within the derrick. " `" °•; o}P •', 5. Power sources. All power sources shall be trio motors or muffled internal combustion engines. a I'or production operation. ' 1. Underground installation. All well head equip-, ` ment shall be installed in cellars and no portion of such equipment '. shall be or project above the surface of the surrounding ground. 2. Motive power soundproofing. Mauve power . for production operations shall be completely enclosed in a building i or buildings insulated with sound deadening materials. Such buildings ' shall be of residential appearance and no portion thereof shall ex= ceed 16 feet in height. 3, Motive power location. Motive power for pro• , duction operations shall be located on a drill site. 4. Height of installation. Except as otherwise herein specifically permitted, no permanent installations at the drill site shall be or project more than 8 feet above the surface of the,,; . I' surrounding ground. 5. Storage of equipment. There shall be no storage,'-.1 ' ;7 of material, equipment, machinery or vehicle which is not for, mediate use or servicing of an installation on the drill site. n ' 1 •"i 6. Maintenance. The drill site and all permanent_ installations shall be maintained in a neat, clean and orderly Cori= dition. 7. Storage tank location. Storage tanks shall„be lic-'','' I located on a drill site. °, • 8. Storage tank capacity. Storage tank capacity at the drill site 'shall not exceed a total aggregate of 2000 barrels4 exclusive of processing equipment. 9. All surfaces of permanent installations within the:,', drill site shall be painted,flat dark green or flat brown. ." 7P-15 J" • r + ¢,-780?A _ LAND USE AND BUILDING REGULATIONS 178.024, 10, Removal of Oil. Oil produced at the drill site ' shall be removed therefrom by an underground pipeline or pipelines at „•+,' all times more than 180 days from and after the date the first well' p,.f '_' P!,:°•;J,'• in the drill site is completed. 11, Refineries. No refinery, dehydrating or absorp- tion plant of any kind shall be constructed, established, or maintained , ;, on the drill site or within the outer boundary line. 12. Gas burning. Natural gas shall not be vented to the atmosphere nor burned by open flare. ' 13. Well Servicing. No well servicing shall be done except between the hours of 7t00 A.M. to 7:00 P.M. except in case ' of emergency. 14. Signs. No sign which is visible from outside -of the -drill site shall be caused, permitted or allowed to be or remain any place on the drill site except: (a) Such signs as are required by ,' .-!', law, (b) Warning signs, (c) No trespassing signs. 15. Landscaping. Shrubs shall be planted and main. tained along the exterior of the fence or wall enclosing the drill site to relieve its monotonous appearance. This requirement shall not , be construed to limit or prohibit additional site beautification by ' 1'imdscaping or other planting. i,' • ' 16. Off -site piplines. Within 30 days from and after completion of the drilling of the first well on a drill site, the Work of burying all off -site pipelines shall be commenced and com- pleted within a reasonable time thereafter. (5) Secondary conditions. a. For site selection and preparation. „ - 1. Drill site Location. No drill site shall be lo- cated closer than 1320 feet from any other drill site. For the purpose of- this Article the drill site for an oil well existing on the effective 'date of Ordinance Number 1096 shall be deemed to be all of the area within 100 feet from the center of the oil well. 2. Drill site area. No drill site shall contain more than two and one-half acres or be of such size or shape that it cannot hundred thirty feet by three hum• be contained within a square three and dred and thirty feet. 3. Roads and' excavations. Roads and other ex• constructed and maintained so as to cavations shall be planned, cons provide stability of fill, minimize disfigurement of the landscape, maintain natural drainage and minimize erosion. 4. Cut and fill slopes. No slope of cut or fill shall _ have a' gradient steeper than 1 foot rise in 1 foot horizontal measure. merit. Where by.renaon of the soil condition of the terrain or size -,of .; . 7.P—W it all " »• 1, 78,02Y PLANNING $ 78.078 - • :., length of the cut required it is impractical to provide such gradient; =- the Superintendent of Building and Safety may grant an exception r, to such requirement provided he first finds that compliance with• :+ said requirement is impractical and that the integrity of .the neigh-,", borhood will be maintained if such exception is granted. 5. Slope planting. All excavation slopes, both out , and fill, shall be planted and maintained with grasses, plants„ or, " shrubs during drilling and production operations, but only to an ex- tent reasonably comparable with the general status of undisturbed surfaces in the vicinity. 6. Off-street parking. An off-street parking area',, i containing not less than 5 parking spaces, each of which shall be at least 10 feet by 20 feet, shall be provided for each well being drilled and shall be surfaced and maintained in accordance with the re- quirements of The Orange County Oil Code. 'a 7. Sanitary facilities. Sanitary facilities shall "be -,,- provided at the drill site and shall be in accordance with standards, of the Orange County Health Department. b. For drilling. 1. Lights. All lights shall be directed or shielded so::.t' `.. as to confine, direct rays to the drill site. 2. Power sources. All power sources shall be electric; ;. motors or muffled internal combustion engines. i c. For production operations. ., 1. Motive power location. Motive power far,pro.'',•' duction operations shall be located on a drill site. 1 Height of pumping equipment. No walking b'eem,, '? i .2. type pumping equipment shall project more than ten feet at its high- est poiht of rise above the surrounding ground level. 3. Height of storage tanks. No oil storage tank',, shall exceed 18 feet in height above the ground level. 4. Height of wash tanks. No wash tank shall, ez_- I' teed 24 feet in height nor exceed 8 feet in diameter. ;..: 5. Fencing. Within 30 days from completion of ' h' the first well on a drill site, such site shall be enclosed by a solid 1 fence masonry wall 8 feet high on all sides, except. 1< redwood or solid those sides on which exists a natural or artificial barrier of equal or greater solidity and height. Solid redwood board gates shall be-,:,,; j installed and be equipped with keyed locks and shall be kept locked'''.;;' ' ! ' at all times when unattended. Such fence er wall shall be in lieu of any other fencing requirements. ,r,.. 7P-17 Rev.a•68 !'^ i,:. 1 dy. ..-'; r„1•r,rt.,p ltt+. ::�.r�r'':•,i'. IL;G :, (��a �r�.i:.i`?,r ,,'f,::'-1yL' ''L�i,."1. s 1. i . I •;s i i, 1 78.025 LAND USE AND BUILDING REGULATIONS 4 78.026 (d) Basic safety regulations. All drilling and production of oil, gas and other hydrocarbon" - substances, whether permitted pursuant to this Section, or Section 78.0228 are subject to the regulations of The Orange County Oil Code., - (Ord. No. 351; added by Ord. No. 1096, Sec. 3; amended by Ord. "•': ;,:.? y;'';,''• , No.1133, Secs. 2, 3, 4, 5, 6, 7, 8.) Sec. 78.025. Adoption of Sectional District Maps, Precise Plan Maps and Oil Field Maps. Each Sectional District Map, Precise Plan Map and Oil Field Map of Orange County in effect,upon adoption of this Code or hereafter - adopted is made a part of this Section. All regulations governing -the use ofland, buildings and structures, the site of buildings and struc- tures, the sizes of yards about buildings and structures and other mat--,., ters as set forth in this Article are hereby declared to be in effect'; ' within• the several districts shown upon each and every sheet of said. - maps of Orange County. (NOTE: The individual Sectional Districts Maps, Precise Plan - ' Maps and Oil Field Maps are not reprinted here but are on file witlir the Clerk of the Board of Supervisors, County Court House, Santa - Ana and with the Orange County Planning Department, Engineering. Building, Santa Ana.) (Ord. No, 351, Sec. 5; Ord, No. 1096, Sec. 2; amended by Ord. No. 1404, Sec. 1.) Sec. 78.026. Al "General Agricultural" District regulations. -(a) Use permitted: Unless otherwise provided in Sections 78.0227 and 78.0228; (1) Farming, including all types of agriculture and horti- culture, grazing, kennels and small animal farms, poultry and squab farms and similar types of farming. EXCEPT: a. Commercial dairies having herds of more than five ' . (5) 'head. b. Hog and commercial livestock feeding ranches. c. Farms operated publicly or privately for the dis- posal of garbage, sewage, rubbish or offal. (2) Golf, polo, swimming, tennis, yacht and country clubs, but not including any other sport, recreation or amusement enterprises operated as a business, or for commercial purposes. (3) Public parks, playgrounds and athl6tic fields., { 7P-18 , 1.n r(,Y�,.J{,',AJ.'..ti,. '. •( P•,/i1a„ •)�s` .{I•�„�., 'S11 ! �+AIAl��l�r�''P .I .1}��i ti__ 0 SEC. 13.01. "0" OIL DRILLDTG DISTRICTS: A. JAmended by Ord. No. 119,399, Eff. 8/3/61) - APPLICATION - The provisions of this section shall apply to the districts wherein the drilling of oil vie11s or the production therefrom of oil, gas or other hydrocarbon substances is permitted. The provisions of this section shall not apply to property in the M3 Zone, except as specifically provided herein to the contrary. The provisions of this section shall also not apply to the location of subterranean gas holding areas which are operated as a public utility and which are regulated by the provisions of Section 12.24 of this Code. B. DEFINITIONS - For the purpose of this section, the following words and phrases are defined: "OIL WELL" shall mean any well or hole already drilled, being drilled or to bedrill- ed into the surface of the earth which is used or intended to be used in connection with coring, or the drilling for, prospecting for, or producing petroleum, natural gas, or other hydrocarbon substances; or is used or intended to be used for the subsurface injection into the earth of oil field waste, gases, water or liquid sub- stances; including any such e: isting hole, well or casing which has not been abandoned in accordance with the requirements of Article 7 of Chapter 5 of this Code, except that "Oil Well" shall not include "Temporary Geological Exploratory Core Hole" as defined by Section 12.03 of this Code. (Amended by Ord. No. 123,618, Eff. 3/1163.) "OIL WELL CLASS All shall mean any oil well drilled, conditioned, arranged, used or intended to be used for the production of petroleum, "OIL WELL CLASS B" shall mean any oil well drilled, conditioned, arranged, used or intended to be ased only for the subsurface injection into the earth of oil field waste, gases, water or liquid substances. "CONTROLLED DRILLING SITE" shall mean that particular location within an oil drilling district in an "Urbanized Area" upon which surface operations for the drilling, deepening or operation of an oil well or any operation incident thereto, are permitted under the terms of this section, subject to the conditions prescribed by veritten determination by the Administrator. "URBANIZED AREA" shall mean an land in the City, except land in the M3 Zone and land which has been determined to be "Nonurbanized Area" by the Commission or Council. (Amended by Ord. No. 113,138, Eff. 5l2/5`9. ) "NONURBANIZED AREA" shall mean all those portions of the City which the Commission or Council has determined will not be detrimentally affected by the drilling, maintenance, or operation of oil wells. In making its determination, the Commission or Council on appeal shall. give due consideration to the amount of land subdivided, the physical improvements, the density of population and the zoning of the district. QAmended by Ord. No. 113,138, Eff. 5/2/59.) C. STATUS OF AREAS - Where uncertainty ezdats as to whether or not a particular area shall be continued as an urbanized area, any person contemplating filing a peti- tion for the eotuelishment of an oil drilling district may, prior to the filing thereof, z•enucat the Commission to determine the status of the area in which the proposed dict3:ict is to be located. The Commission sban refer the request to the Director of Punta%',, for invectigation and upon receipt of hio report shall determine whether the a ea icl "Urb?..sized" or "Nonurbanized." The determination of the Commission may uc uou _ ?ed to the Council -ohich may, by resolution, affirm or ciaange such deter- mS..�.. D. REQUIREMENTS FOR FILING 1. Nonurbanized Areas - Each application for the establishment of an oil drilling district in a nonurbanized area shall include property having a net area of not less than one acre (eucluding public streets, alleys, walks or ways), except that an appli- cation may be filed on property containing less than one acre which is surrounded on all sides by streets. Such property may consist of one or more parcels of land which must be contiguous, except that said parcels may be separated by a public alley or walk. 2. Urbanized Areas - (Amended by Ord. No. 112,524, E£f. 1/17/59.) (a) (Amended by Ord. No. 124, 937, Ef£. 8/2/63.) Each application for the establishment of an oil drilling district in an urbanized area shall contain a statement that the applicant has the proprietary or contractual authority to drill for and produce oil, gas or other hydrocarbon substances under the surface of at least 75 per cent of the property to be included in said district. Any municipal body or official required by law to consider and make a report or recommendation relative to or to approve or disapprove such application may request the applicant in writing to submit for inspection copies of leases and contracts held by applicant in support of such asserted proprietary or contractual authority. The limitations of time for acting upon such application shall be suspended from the time of mailing such request until the documents requested have been submitted. (b) Where said authority to drill for and produce oil, gas and other hydrocarbons is pursuant to contract, said application shall be accompanied by a copy thereof, and said contract shall have attached thereto and referred to therein by reference the following information for the contracting parties: 1. A summary of the provisions of the Los Angeles Municipal Code as amended, which are applicable thereto, prepared or approved by the Assistant City Admin- istrative Officer in charge of Petroleum Administration for the City of Los Angeles; 2. Any additional information which the said Assistant City Administrative Officer finds from time to time is required to give all contracting parties a reasonably complete knowledge of oil and gas leasing requirements and procedures in urbanized areas within the City of Los Angeles; (c) The district described in said application shall be not less than 40 acres in area, inbluding all streets, ways and alleys within the boundary thereof; shall be substantially compact in area; and the boundaries thereof shall follow public streets, ways or alleys so far as practicable. 3. No application for the establishment of an oil drilling district shall be accepted for filing in the City Planning Department unless it has first been sub- mitted to and reported on by the Assistant City Administrative Officer in charge of Petroleum Administration. Said report shall consider the propriety of the proposed boundaries of the district, the desirability of the drill site location, and whether or not the exploration for oil is geologically justified in the district. Said report shall be made within 30 days of the receipt of said application. A copy of said report shall accompany the application -,*jhen it is filed with the City Planning Department, (Added by Ord. No. 113,781. Eff. 7/13/59.) E. STANDARD CONDITIONS 1. N nurbanized Areas - Each oil drilling district established in a nonurbanized area sh-11 be subject to the following conditions: Each district shall contain a net area of one acre or more which shall be coni a.-,c:d of contiguous parcels of land that may be separated by an alley or walk, Q.*.Cl pt thhat a district may contain an area of less than one P-cre where it is sur- roir,k ad on all sides by streets. M Each drilling site in any district shall contsin a net area of one acre or mote 2. s and shall be composed of contiguous parcels of land which may be separated only by an alley or walk. A drilling site may contain less than one acre of area where it is surrounded on all sides by public or approved private streets. Only one oil well Class A may be established or maintained on each acre of 'land, except that there may be one oil well Class A on any land surrounded on all aides by public or approved private streets. Provided, however, in determining conditions for drilling pursuant to Subsection H hereof, the Administrator may permit surface operations for more than one oil well Class A in a semi -controlled drilling site where the additional wells are to be bottomed under adjacent land in a drilling district in lieu of surface operations thereon. There shalt be not less than -one net acre of land in the combined drill site and production site for each well in a semi -controlled drilling site. The Administrator shall require a site of more than one'acre for each well where a larger area is required in the par- ticular oil drilling district. The Administrator may require larger minimum drilling sites or production areas whets reasonably necessary in the public interest for a particular oil producing section. Whore drilling sites greater than one acre are required and two or more lessees or drilling developers in a block or area have at least one net acre each, but all lessees or developers do not have the greater area required for drilliM hereuilder, the Administrator shall equitably allocate permitted wells among the competing lessees or developers. Where necessary, the lessee or developer having control of the larger proportion of the property shall be given preference. In those situa- tiona outlined above, in addition to the proration required by paragraph (d) of this subdivision, the Administrator shall require that the lessee or developer who is authorized to drill the well shall offer an equitable consolidation agreement to the lessee or developer who has not been permitted to drill. Such consolidation agreement shall contain an offer in writing, open for acceptance for 30 days, giving such other lessees or developers a choice of either: (i) a lease on terms and conditions agreed upon. or on substantially the same terms and conditions contained in leases ovined by the applicant, or (H) a consolidation agreement agreed upon or providing that each such lessee or developer shall contribute to the coat of drilling and operation of the well and share in the production from the well in the proportion that the area of his property bears to the total area in the drilling unit. (Amended by Ord. No. 107, 233, Eff. 5/6/56. ) (c) No public street, alley, walk or way shall be included in determining the net area within any district or drilling site. (d) Where the drilling site is so located as to isolate any parcel of land in the drilling district in such manner that it could not be joined with any other land so as to create another drilling site of the area required in the particular district in which it is located, the Administrator shall require, as a condition to the drilling and production on such drilling site that the owner, lessee or permittee or his successor shall pay in lawful money of the United States to the owners of the oil and gas mineral rights in each isolated parcel, a pro rats share of the landowners' royalty shall be determined in accordance with any existing contracts for such payments to the landowners of the drilling site, but, in no event, as to the owner of such isolated parcel or parcels, shall it be less than a 1/6th part of the oil and gas produced and saved from said drilling site. 2. Urbanized Area_ s - Each oil drilling district established in an -urbanized area shall be subject to the following conditions: (a) Mach district shall be not less than 40 acres in, area, including all streets, rays and alleys within the boundaries thereof. (+a) Not more than one controlled drilled site shall be permitted for each 40. Lr.a , sin any district and such site shall not be large? than two acres when used to der _ -?op a csotsitt approximating the minimum size; }provided, however, that where cmt:h iAtc Li to be used for the development of larger oil drilling districts or where the Administrator requires that more than one oil drilling district be developed from one controlled drilling site, such site may be increased, at the dis- cretion of the Administrator when concurred in by the Board of Fire Commission- ers, by not more than two acres for each 40 acres included in said district or districts. (c) The number of oil wells Class A which may be drilled and operated from any controlled drilling site may not exceed one well to each five acres in the district or districts to be explored from said site. (d) Each applicant, requesting a determination by the Administrator pre- scribing the conditions controlling drilling, and production operations, as pro- vided in Subsection H of this Section, must have proprietary or contractual authority to drill for oil under the surface of at least 75% of the property in the district to be explored. (Amended by Ord. 111,760, Eff. 8/31%58.) (e) Amended by Ord. No. 123, 537, Eff. 2/10163.) Each applicant or his successor in interest shall, within one year from the date the written determina- tion is made by a Zoning Administrator prescribing the conditions controlling drilling and production operations as provided in Subsection H of this section, execute an offer in writing giving to each record owner of property located in said oil drilling district who has not joined in the lease or other authorization to drill the right to share in the proceeds of production from wells bottomed in said district, upon the same basis as those property owners who have by lease or other legal consent, agreed to the drilling for and production of oil, gas or other hydrocarbon substances from the subsurface of the said district. The offer hereby required must remain open for acceptance for a period of five years after the date the said written determination is made by a Zoning Administrator. During the period said offer is in effect, said applicant, or his successor in interest, shall impound all royalties to which said owners or any of them may become 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 district who had not signed the lease at the time such written determination was made by a Zoning Administrator, but who accept such offer in writing within the said five-year period. Any such royalties remaining in any bank or trust company at the time said offer expires which are not due or payable as hereinabove provided shall be paid pro rats, to those owners who, at the time of such expiration, are otherwise entitled to share in the proceeds of such production. (f) The entire controlled drilling site shall be adequately landscaped, except for those portions occupied by any required structure, appurtenance or driveway, and all such landscaping shall be maintained in good condition at all times. Plans showing the type and extent of such landscaping shall be first submitted to and approved by the Administrator. (g) Each applicant. requesting a determination by a Zoning Administrator prescribing the conditions controlling drilling and production operations, as pro- vided in Subsection H of this Section, shall poet in the Office of Zoning Administra- tion a satisfactory corporate surety bond (to be approved by the City Attorney and duplicates to be furnished to him) in the sum of $5, 000 in favor of the City of Los Angeles, conditioned upon the performance by the applicant of each and all of the conditions, provisions, restrictions and requirements of this Section, and all additional conditions, restrictions or requirements determined and prescribed by a Zoning A&ninistrator. No extension of time that may be granted by a Zoning Administrator or any change or specifications or requirements that may be approved or required by him or by any other officer or department of the City or any other alteration, modification of waiver affecting any of the obligations of the grantee made by any City authority or by any other power or authority what- soever shall be deemed to exonerate either the grantee or the surety on any bond posted pursuant to this Section. AAmended by Ord. No. 112,909, Eff. 3/19/59.) F. ADDITIONAL CONDITIONS - In addition to the standard conditions applying to oil drilling districts. the Council, by ordinance, or the Administrator, may impose 4. e such other conditions in each district as it deems necessary and proper. In its report to the Council relative to the establishment of a district, the Commission may suggest conditions for consideration. Some of these additional conditions, which may be imposed in the ordinance establishing the districts or by the Administrator in determining the drilling site requirements, and which may be applied by reference hereto, are as follows: 1. That all pumping units established in said district shall be installed in pits so that no part thereof will be above the surface of the ground. 2. That all oil produced in said district shall be carried away by pipe lines or, if stored in said district. shall be stored in underground tanks so constructed that no portion thereof will be above the surface of the ground. 3. That the operator of any well or wells in the said district shall post in the Office of Zoning Administration a $5, 000 corporate surety bond conditioned upon the faithful performance of all provisions of this Article and any conditions prescribed by a Zoning Administrator hereunder. No extension of time tbat may be granted by a Zoning Administrator, or change of specifications or requirements that may be approved or required by him or ;.by any other officer or department of the City, or alteration, modification or waiver affecting any of the obligations of the grantee made by any City authority, shall be deemed to exonerate either the grantee or the surety on any bond posted as herein required. (Amended by Ord. No. 112, 909, Eff.3/19159. ) d. That the operators shall remove the derrick from each well within thirty (30) days after the drilling of said well has been completed, and thereafter, when neces- sary, such completed wells shall be serviced by portable derricks.' 5. That the drilling site shall be fenced or landscaped as prescribed by the Administrator. 7. That, except in case of emergency, no materials, equipment, tools or pipe used for either drilling or production operations shall be delivered to or removed from the drilling site, except between the hours of 8:00 A.M. and 8:00 P. M. of any day. B. That adequate fire fighting apparatus and supplies, approved by the Fire De- partment, shall be maintained on the drilling site at all times during drilling and production operations. 9. That no refining process of any process for the extraction of products from natural gas shall be carried on at a drilling site. 13. That no more than one well shall be bottomed in each five (5) acres of the drilling district. 14. That no new oil wells shall be spudded in after the President of the United States, or other proper authority, has declared that a state of war no loxger exists. 17, That any person requesting a determination by the Administrator pre- scribing the conditions under which oil drilling and production operations shall be conducted as provided in Subsection H of this Eection, shall agree in writing on be- half of himself and his successors or assigns, to be bound by All of the terms and conditions of this Article and any conditions prescribed by written determination by the Administrator hereunder; provided, however, that such agreement in writing mhaL not be construed to prevent applicant or his successors or assigns from apply- ing at any time for amendments to this Article or to the conditions prescribed by the Administrator hereunder, or from applying for the creation of a new district or an extension of time for drilling or production operations. 18. That all'production equipment used "shall be so constructed and operated that no noise, vibration, dust, odor or other harmful or annoying substances or effect which can be eliminated or difninished by the use of greater care shall ever be permitted to result from production operations carried on at any drilling site or from anything incident thereto to the injury or annoyance of persons living in the vicinity; nor shall the site or structures thereon be permitted to become dilapidated, unsightly or unsafe. Proven technological improvements in methods of production shall i3,c adopted as they, from time to time, become available if capable of reducing factors of nuisance or annoyance. 9-1-G3 5. 19. Wells which are placed upon the pump shall be pumped by electricity with the most modern and latest type of pumping units of a height of not more than six- teen (16) feet. All permanent equipment shall be painted and kept in neat condition. All production operations sha11 be as free from noise as possible with modern oil operations. 20. All drilling equipment shall be removed from the premises immediately after drilling is completed, sump holes filled, and derricks removed within sixty (60) days after the completion of the well. 21. That, subject to the approval of the Board of Fire Commissioners, the opera- tors shall properly screen from view all equipment used in connection with the flowing or pumping of wells. 22. Upon the completion of the drilling of a well the premises shall be placed in a clean condition and shall be landscaped with planting of shrubbery eo as to screen from public view as far as possible, the tanks and other permanent equipment, such landscaping and shrubbery to be kept in good condition. 23, That not more than two wells may be drilled in each city blocks of the drill- ing district and bottomed under said block. However, at the disci"etion of the Administrator, surface operations for additional wells may be permitted in each of said blocks where each such additional well is to be directionally drilled and bottomed under an adjacent block now or hereafter established in an oil drilling district in lieu of a well drilled on such adjacent block and under a spacing program which win result in not enceeding two wells bottomed under each such block. (Amended by Ord. No. 107,233. Eff. 5/6/56.) 244. That not more than one (1) well shah be drilled in each city block of the drilling district; provided, however, that a second well may be drilled in that block; bounded by "L" Street, Gulf Avenue, Denni Street and Wilmington Boulevard, only in the e+7ent !said second well be directionally drifted or whipstocked so that the bottom of the hole will be bottomed under the Gulf Avenue School property located in the block bounded by "L" Street, Roman Avenue, Denni Street and Gulf Avenue, and in lieu of a woll which might otherwise be permitted to be drilled in said last mentioned block. 25. That not more than one (1) well may be drilled in each city block of the drilling district. 26. That all power operations other than drilling in said district shall at all times be carried on only by means of electrical power, which power shall not be generated on the drilling site. 29. That not more than two (2) wells May be drilled -an each city block of the drilling district; provided, however, that two (2) additional wells may be drilled in each of the following described blocks, (a) the block bounded by "Q" Street, Lakme Avenue, Sandison Street and Broad Avenue and (b) the block: bounded by Sandison Street, izkme Avenue, Broad Avenue and the southerly boundary of Tract No, 1934, but only if such additional wells are directionally drilled or tiwhipstocked so that they will be bottomed under the Hancock -Banning High School property, located in the block bounded by Delores Street, Broad Avenue, Pacific Coast Highway and Avalon Boulevards in lieu of the four (4) sells which might otherwise be permitted to be drilled in the last mentioned block. 31. Not more than four (44) controlled drilling sites shah be permitted in this district, and such sites shall not be larger than two (2) acres. 3Z. The number of wells which may be drilled to any oil sand from the controlled drilling site shall not e:.ceed one (1) well to each five (5) acres in the district, but in no event shall there be more than one (1) well to each h10 and one-half (2-I/Z) acres. 33. That drilling operations shall be commenced within ninety (90) days from the effective date the written determination is made by the Administrator or Board, as provided in Section 13.00 of the Los Angeles Municipal Code, or within such addg- tional p,_riod as the Administrator may, for good cause, allow and thereafter shall be prosecuted diligently to completion or else abandoned strictly as required by law and the premic€:c restored to their original condition as nearly as practicable so as to do. ,_�_Cy 6. i 1£ a producing well is not secured within eight (8) months, the well shall be abandoned and the premises restored to its original condition, as nearly as practicable so to do. The Administrator, for good cause, shall allow additional time for the completion of the well. 34. That an internal combustion engine or electrical equipment may be used in the drilling or pumping operations of the well, and if an internal combustion engine is used, that mufflers be installed on the mud pumps and engine so as to reduce nail se to a minimum, all of said installations to be done in a manner satisfactory to the Fire Department. 36. That not more than two (2) production tanks shall be -installed for each pro- ducing well, neither one of which shall have a rated capacity in excess of one thousand (1, 000) barrels; provided, however, that if in the opinion of the Administrator it is necessary is order to provide for the maximum safety of operations or to decrease the number of individual production tank settings on any property, the Administrator may increase the number of such production tanks to not more than three (3), having a greater capacity not to exceed two thousand (2, 000) barrels each. The Administrator shall permit such wash tanks or beating facilities as may appear necessary to ship or remove production from the premises. The plans for said tank or tanks, including the plot plan showing the location thereof on the property, shall be submitted to and approved in writing by the Administrator before said tank or tanks and appurtenances are located on the premises; and that said tank or tanks and appurtenances shall be kept painted and maintained in good condition. 37. All waste substances such as drilling muds, oil, brine or acids produced or used in connection with oil drilling operations or oil production shall be retained in viater-tight receptors from which they may be piped or hauled for terminal dis- posal in a dumping area specifically approved for such disposal by the Los Angeles Regional Water Pollution Control Board No. 4. 38. Any wells drilled shall be cased tight to bedrock or effective means satis- factory to the Department of Water and Power used to prevent vertical movement of groundwater. 39. The applicant shall provide the Department of Water and Power with a precise plot plan of the drilling plant and roads leading thereto, and to make such safeguards as the Department deems necessary to assure the safety of the existing 50" water main which crosses the district involved. 40. The Department of Water and Power of the City of Los Angeles shall be per- mitted to review and inspect methods used in the drilling and producing operations and in the disposal of waste, and shall have the right to require changes necessary for the full protection of the public water supply. 42. That the number of wells which may be drilled to any oil sand shall not exceed one (1) well to each five (5) acres in the district, but in no event shall there be more than one (1) well to each two and one-half acres, 43, That drilling, pumping and other power operations shall at all times be carried on only by electrical power and that such power shall not be generated on the controlled drilling site or in the district. 44. That an internal combustion engine or steam -driven equipment may be used in the drilling or pumping operations- of the well, and, if an internal combustion engine or steam -driven equipment is used, that mufflers be installed on the mud - pumps and engine; and that the exhaust from the steam -driven machinery be expelled into one of the production tanks, if such tanks are permitted, sous to reduce noise to a minimum, all of said installatione to be found in a manner satisfactory to the Fire Department. 45. That drMing operations shall be carried an or conducted in connection with only one well at a time in any one such district, and such well shall be brought in or abandoned before operations for the drilling of another well are commenced; provided, hoN7ever, that the Administrator may permit the drilling of more than one Ftell at a time after the discovery well has been brought in. 7. A-6. That all oil drilling and production operations shall be conducted in such a manner as to eliminate, as far as practicable, dust, noise, vibration or noxious odors, and shall be in accordance with the best accepted practices incident to drilling for and production of oil, gas and other hydrocarbon substances. Proven technological improvements in drilling and production methods shall be adopted as they may become, from time to time, available, if capable of reducing factors of nuisance and annoyance. 47. That all parts of the derrick above the derrick floor not reasonably necessary for ingress and egress 'including the elevated portion thereof used as a hoist, shall be enclosed with fire resistive sound -proofing material approved by the Fire Depart- ment, and the same shall be painted or stained so as to render the appearance of said derrick as unobtrusive as practicable. 48. That all tools, pipe and other equipment used in connection with any drilling or production operations shall be screened from view, and an drilling operations shall be conducted or carried on behind a solid fence, which shall be maintained in good condition at all times and be painted or stained so as to render such fence as unobtrusive as practicable. 49. That no materials, equipment, tools or pipe used for either drilling or production operations shall be delivered to or removed from the controlled drilling site except between the hours of 8:00 o'clock A.M. and 6:00 o'clock P.M., on any day, except in case of emergency incident to unforeseen drilling or production operations, and then only when permission in writing has been previously obtained from the Administrator. 50. That no earthen sumps shall be used. 51. That within sixty (60) days after the drilling of each well has been completed, and said well placed on production, or abandoned, the derrick, all boilers and all other drilling equipment shall be entirely removed from the premises unless such derrick and appurtenant equipment is to be used within a reasonable time limit determined by the Administrator for the drilling of another well on the same con- trolled drilling site. 52. That no oil, gas or other hydrocarbon substances may be produced from any wolf hereby permitted unless all equipment necessarily incident to such production is completely enclosed within a building. the plans for said building to be approved by the Department of Building and Safety and the Fire Department. This building shall be of a permanent type, of attractive design and constructed in a manner that will eliminate as far as practicable, dust, noise, noxious odors and vibrations or other conditions which are offensive to the senses, and shall be equipped with such devices as are necessary to eliminate the objectionable features mentioned above. The architectural treatment of the exterior of such building shall also be subject to the approval of the Administrator. 53. That no oil, gas or other hydrocarbon substances may be produced from any well hereby permitted where same is located within or immediately adjoining subdivided areas where ten (10) per cent of the lots or subdivided parcels of ground, within one-half (1/2) mile radius thereof. Are Improved with residential structures, unless all equipment necessarily incidental to such production is countersunk below the natural surface of the ground and such installation and equipment shall be made in accordance with Fire Department requirements. 54. That there shall be no tanks or other facilities for the storage of oil erected or maintained on the promises and that all oil, produced shall be transported from the drilling site by means of an underground pipe line connected directly with the producing pump without venting products to the atmospheric pressure at the produc- tion site. 55. That not more than two production tanks shall be installed on said drilling site, Peither one of which shall have a rated capacity in excess of one thousand (1000) barrels; that the plans for said tank or tanks, including the plot plan showing the location thereof on the property, shall be submitted to and approved in writing by the Administrator before said tank or tanks and appurtenances are located on RM the premises; and that said tank or tanks and appurtenances shall be kept painted and maintained in good condition at all times. 56, That any production tanks shall be countersunk below the natural surface of the ground and the installation thereof shall be made in accordance with safety requirements of the Fire Department. 57. That no refinery, dehydrating or absorption plant of any kind shall be con- structed, established or maintained on the premises at any time. 58, That no sign shall be constructed, erected, maintained or placed on the premises or any part thereof. except those re:luired by lave or ordinance to be dis- played in connection with the drilling or maintenance of the well. 59. That suitable and adequate sanitary toilet and washing facilities shall be installed and maintained in a clean and sanitary condition at all times, 60. That any owner, lessee or permittee and their successors and assigns, must at all'.timcs be insured to the extent of one hundred thousand dollars ($100, 000) against liability in tort arising from drilling or production, o: activities or opera- tions incident thereto, conducted or carried on under or by virtue of the conditions prescribed by written determination by the Administrator as provided in Sub- section H of this Section, The policy of insurance issued pursuant hereto shall be subject to the approval of the City Attorney, and duplicates shall be furnished to him. Each such policy shall be conditioned or endorsed to cover such agents, lessees or representatives of the oviner, lessee or permittee as may actually conduct drilling, production or incidental operations permitted by such written determination by .the Administrator. G. DESCRIPTION OF DISTRICTS - The diotricts within which the drilling for and production of oil, gas or other hydrocarbon substances is permitted, and the conditions applying thereto (subject to further conditions imposed by the Adminis- trator in the drilling site requirements), are described as follows: 1, Districts in Nonurbanized Areas. (For boundaries of districts and special conditions applicable thereto, refer to maps and records in City Planning Office), 2. Districts in urbanized Areas. (For boundaries of districts and special con- ditions applicable thereto, refer to maps and records in City Planning Office). H. (Amended by Ord. No. 116, 820, E£f. 9/26/60) - DRILLING SITE REQUIRE- MENTS - Any person desiring to drill, deepen or maintain an oil well in an oil drilling district which ban been established by ordinance or to drill or deepen and suboequontly maintain an oil well in the M3 Zone within 500 feet of a more restric- tive zone shall file an application in the Office of Zoning, Administration requesting a determination of the conditions under which operations shall be conducted. Where the district is in an urbanized area, a Zoning Administrator, after investigation, may deny the application if he finds that there is available and reasonably obtainable in the came district or in an adjacent or nearby district within a reasonable distance, one or more other locations where controlled drilling could be conducted with greater safety and security, with appreciably less harm to other property, or with greater conformity to the Comprehensive Zoning Plan. Where the district is in a nonurbani zed area or in those cases where a Zoning Administrator approves an application in an urbanized area, a Zoning Administrator shall determine and pre- scribe such additional conditions or limitations, not in conflict with those specified in the ordinance establishing the district, which he deems appropriate in order to give affect to the provisions of this section and to other provisions of this Chapter relating to zoning. Where the proposed operation is in the M3 Zone and is within 500 feet of a more restrictive zone, a Zoning Administrator shall prescribe such conditiono and limitations, if any, ao•he deems appropriate to regulate activity which may be materially detrimental to property in the snore restrictive zone. A11 such conditions previously imposed by a Zoning Administrator in accordance with the provisions of this Chapter are continued in full force and effect. 9. n . A Zoning Administrator shall make his written determination within 20 days from the date of filing of an application and shall forthwith transmit a copy thereof to the applicant. The determination shall become final after an elapsed period of ten days from the mailing of the notification to the applicant, unless an appeal therefrom is filed within such period, in which case the provisions of Section 12.28 concerning the filing and consideration of appeals shall apply. I. PERMITS - No person shall drill, deepen or maintain an oil well or convert an oil well from one class to the other and no permits shall be issued therefor, until a determination has been made by the Administrator or Board pursuant to the procedure prescribed in subsection H of this section, J. (Amended by Ord. No. 122,813, Ef£. 10/7/62)- TERMINATION OF DISTRICTS - Any ordinance establishing the districts defined in this section shall become null and void one year after the effective date hereof unless oil drilling operations are com- menced and diligently prosecuted within such one-year period; provided, however, that prior to the expiration thereof a Zoning Administrator upon recommendation of the City Administrative Officer may extend the termination date for an additional period not to exceed one year if written application is filed with the Office of Zoning Administration setting forth the reasons for such extension and a Zoning Adminis- trator determines that good and reasonable cause exists therefor. Similarly, a Zoning Administrator may extend the termination date for two consecutive additional periods not to exceed one year each for those districts which are part of a group undergoing development from one or more common controlled drilling sites, pro- vided that drilling operations have been diligently prosecuted from the common drilling sites during the previous extension period. Additional one-year extensions may be made by a Zoning Administrator subject to the approval of the City Planning Commission. Further, such ordinance shall become null and void one year after all wells in the district have been abandoned as required by law. X. (Added by Ord. No. 119,399, Eff. 8/3/61) - MAINTENANCE OF DRILLING AND PRODUCTION SITES - Effective August 1, 1962, the following regulations shall apply to existing and future oil wells within the City of Los Angeles, including all wells operating pursuant to any zone variance, whether by ordinance or approval of a Zoning Administrator, and all oil wells in an M3 Zone which are within 500 feet of a more restrictive zone: 1. All stationary derricks, including their floors and foundations, shall be removed within 30 days after completion or abandonment of the well (notwithstanding any other provision of this Code to the contrary) Qr by September 1, 1962, which- ever occurs later; and thereafter any work done on any existing well which requires the use of a derrick shall be done by a temporary or portable derrick. Such tem- porary or portable derricks shall be removed within 30 days aftP: the completion of such work. 2. The motors, engines, pumps and tanks of all ouch oil wells shall be sealed so that no offensive or obnoxious odor or fumes can be readily detected from any point on adjacent property. 3. The well pumping equipment for such wells shall be muffled or soundproofed so that the noise emanating therefrom, measured at any point on adjacent property, is no more audible than surrounding street traffic, commercial or industrial noises measured at the same point. 4. The maximum height of the pumping units for such wells shall not exceed 16 feet above existing grade level. S. The site of such wells shall be so landscaped, fenced or concealed that the wen and all of its appurtenant apparatus is reasonably protected against public entry, observation or attraction. 10. 0,-1-63 Second paragraph Subsection K (Amended by Ord. No. 125,877, Fff. 11/28/63) , in addition to any other authority vested in the Zoning Administrator by Charter and the Los Angeles Municipal Code, a Zoning Administrator may waive or modify these regulations if the drilling .site is physically inaccessible to a portable derrick, or is located in a mountainous and substantially uninhabited place, or is located in an M Zone and is surrounded by vacant land or is adjacent to land used as per- mitted in the M Zones and if the enforcement of such regulations would be dlecaim- inatory, unreasonable or would impose an undue hardship upon oil drilling in such locations. A Zoning Administrator may also veaive or modify the 16 foot height limitation %jhere, because of the amount of liquid to be raised or the depths at which such fluids are encountered, a pumping unit in excess of 16 feet in height is shot -in nv r_cnrinsive owineering evidence to be required. .All herew. 11/29 HUNTINGTON BEACH ARTICLE 968 -0- COMBINING OIL DISTRICT S. 9680 The follow - District. Intent. it *s the intent of this article to establish a cat- . egory of Com5 Tnng Oil Districts in which present and future oil develop- ment and operations will be permitted under some limitations for the purpose of making possible compatible recreational, recreational -resident- ial, residential, institutional and commercial development within new subdivisions of areas of eNisttng oil, fields in the City of Huntington Beach and to permit, as a matter of right, the drilling for and production of oil gas, other hydrocarbon substances and water and the maintenance and operation of equipment and structures for such drilling and pro- duction within the various Comoining Oil Districts as hereinafter pro- vided. (1065) S. 9�1 The drilling anal otperating for the discovery or production of gas, hydrpcarbons,and/or other kindred substances in their natural state shall be pgrmittgd in all zoning districts which are com- bined with -0- Combining Oil District, (793.3) S. 9681. Combinin_oil Distr4 tto. There are hereby established Oil o� mg n3.n-g str�ot d�s'l$nated "001, °t01", "02!' and "03", which when shown on the districting map of the City, in combination with a basic district symbol„ such as R1, R2, R3, etc „ the property so desig- nated shall be subject to the provisions of such basic district and the provisions hereinafter set forth. (1065) S. 9682. Combininn Oil District. Definitions. For the purpose of this rETtioZe tFie •-o 'ow ng wor s an p rases are defined: Processii�n����� - Processing shall include the use of facilities for gauging, re�ey"c�ing, compression, repressuring, injection, re -injecting dehydration, stimulation, separation (including liquids from gas), ship- ping and transportation of, and gathering from other sites of oil, gas and other hydrocarbon substances and water and combinations thereof. Rework or Rp�ai_,,r__ - Rework or repair shall mean any work with- in an exist ng ore oT'e Redrill - Redrill shall mean any drilling operation deviating from originaT we bore to recompl.ete said well in the same or different zone. Deepen - Deepen shall mean any extension of existing well bore below its existing depth. (1065) F'R.AS3iyll IG 96.33. Sn 96M �Ccmbini•mg Oil RietrIcti, Ce�rmrst F'raviginvg. Zoe follewing - genera )agoras m nq u w k and 03 Oil DI--'.trist9- 41Q6 ) 3. 9683.1 161hereve,r for nuh d1vtsion oic of prcgcrtj is w,i,th1v any m=bi,.m,L ng ail d1 Strict ,)r iwc,ai,a oil field, such: proposal mhall iserlude; sa *,Ieena of t�u, 113s ,easiticn or trc;strrant of tan ery- i9ti% ar future oil welly cry° the property ,bppro'.'al b-I the trait'.- of aee-q Gulch p b�lrc� 1 .3h"'111a xin.,.Yuda 1 j4an fast ail %eraticn 3.. The lac4 of su;h p 7lana a>kg31 be; gro.*,wand's fc r dtia pprowai of such prspnw_tal- Any plan, f ytr the disjpLnoit ition er tre ;nGmlr., nt r,)f f nrr;; 1ALl operations shall in- clude the wrritt.,on ceancur+rennce of tlkc larl owr ,,t of .teve.l(+ter aar-J . &cgar, v or oil oparritor,, no tsildiag 3ba1i ram-rti e finngy inspection for az«na�3xn^� and no public irapzrovemwanto shall be a,caepted until the, plan for di3- pocaition or treatmacnt of oil oF;e1*° at rrn has beems ccm leted and aagVzoved �1®63) S., 9683.2 No g,p'ot?,arty w7ithisrL s,n,y 4,,vl,.inring (:Al. 413t.rict a}'hsll be Waved for an Bail re°fa.rwnrry evj rA sump Nzit!3 shall be permitted on any site r(10651) S.. 96M3 Reasonable fire fighting c�uLpxent as required ani approved by the City Fire Chief nhall be e8intol,ne,l on the site at all timr,3 during drrilliir�g amid prca:deuc:tic-m4 vperationns n r 1063) ,, 9663, Suitaabin 3aninry f cilksti&.: 4sL-41 ben instanllrJ and -3;.ntainiv4i during drilling, redri0t ing o, ro;Tc.dial spear€ationg. �1065y S„ 9683..5 All drilling ream;, cuttingn and otJ<rer oilfield wu,3tes oball be -- dischn jr ged into a 3tcQi tar * or othrr slowed rmceptaacle.. Upen ecm+pleticcn of drilling, nwLah t_',mip? er zrntaitner a"A all wa3te material therein shall be reaav d frcm the-i 31tt and the surfact of the miter re- stored to a clean M d ± �atrnitary cunnditLa q. t( 00) Sn 9683>6 W1.tRAP thirty �'30'P .doios .tfttor the drliling of each well hair been ce=polete.l and th,'r^ w^11 roes 116epn on proluatien or abardcreda the derrick ancd all drilling oqurt ).rl_aait nlG :all b(m entirely removed fram tine site unless such derrick AH xappurtit arrt i3 6 ben used within such tin..e for the drilling of �3notkinr vna;ril cam the sar t. -Site:. rlo ) .. 96g3o7 Such sites and ail s+209 wlthir,, or uoed far access to sand 'frrktz =eh !sites °AtmaRl bn uuiM=_ysibl�v �-jurfaced amd rsintainned to eliminate dust. (ICFSji S�96831 Any machintry used In the, vtcdyctienn amid/*r preceetsing :1 3ubstannces within tho fis.ttn sflr<sli be (der3.igntd and/or housed and operated so thet,anoise°, odor nand v,,-Lbration shall be 1, ritcd to a tninirr n, noise to be limitst to a 1,mvl wm n ytiblca with the ,�t7biv^vt veighborheasd noise level,. (FW) PLANNING MISCELLANEOUS DISTRICTS S. 9683.9 S. 9683.9 Prior to commencement of any parcel of land in any com- bining oil district., the operator shall comply with the re- quirement6`yof the Division,of Oil and Gv, State of California and the provisions"of Chapter 24 of Ordinance Code of 11untington Beach. (1065) S. 9683.10 All installotions,•structures and facilities on.an operation --- site shall be kept. painted and in good condition and together with the ground area comprising such site shall be maintained in"a clean, neat and sanitary condition, (1065) S. 9684 "0" Combining Oil District The following provisions shall app y to He -0- Comoining Oil District„ (1065) S. 9684.1 The drilling and operating for the discovery or production of oil, gas, hydrocarbons and/or kindred substances in their natural state shall be permitted in all zoning districts which are com- bined with' the "0" Coembining Oil District. (1065) S. 9685 "Ol" Combining Oil District The following provisions shall apply tot e o ning District. (1065) S. 9685.1 Sites designated on the Districting Map as 1101" shall not exceed 5 acres in size and shall constiture Exclusive Controll- ed Oil Drilling, Producing, Processing and Shipping Tank Sites which may be used for the exclusive purpose of drilling wells for, and the •pro- duction of oil, gas, other hydrocarbon substances and water,'including the installation and use of equipment, structures, tools and'other facilities incidental, necessary and accessory to the drilling and production and processing of substances produced by such wells for shipment to pipe line. (1065) S. 9685.2 That portion of site proposed for use shall be enclosed with a wall having a minimum height of si9c (6) feet and equipped with solid gates of ,wall height, which gates shall be securely fastened at all times except when authorized personnel are in attendance at such site. (1065) S. 9685.3 The drilling of any well shall not be conducted in such a manner as to cause excessive noise, odor and vibration and shall be conducted pursuant to one of the following alternates: (a) Where drilling operations are conducted beyond a dis- tance of 3OO feet from occupied residential areas, no soundproofing will be required unless necessary to minimize excessive disturbance to such areas. (b) Where ,such drilling is conducted in areas in which dis- turbance to residential areas could reasonably be anticipated, the operator of such•drillipg operation shall either- PLANNING MISCELLANEOUS DISTRICTS S. 9685.3 (1) Enclosed the derrick and all drilling machinery used in connection with the drilling of any well, with fire resistant soundproofing material, which shall be maintained in a serviceable condition and provided further that no operations outside of said enclosure except for well logging shall be conducted between the hours of 9:00 P.M. of one day and 7:00 A.M. of the following day, or (2) Enclose all drilling machinery used in connection with the drilling of any well with fire resistant soundproofing material and the portable drilling, mast shall be so enclosed, at least on three sides, to a height of twenty (20) feet, and provided further, that no drilling operations or any work in connection with such drilling operation shall be conducted between the hours of 9:00 P.M. of one day and 7:00 A.M. of the following day, except only that circulation of fluids and well logging may be continued during such time and in case of emergency, provided that notice of such emergency shall be given to Chief of Police, or then Acting Chief of Police of such necessity and emergency at the time such emergency arises. (1065) S. 9685.4 All production shall be transported from any site by buried pipe line. (1065) S. 9686 1102" Combinin Oil District The following provisions shall apply to e n ng Oil District. (1065) S. 9686.1 Sites designated on the Districting Map as 1102" shall con- stitute Exclusive Producing and Replacement Well Drilling Sites which may be used for the exclusive purposes of production from existing wells or replacing such wells and no new wells shall be drilled therefrom other than wells to replace or redrill existing wells which may be drilled to the same or to any other production horizon. (1065) S. 9686.2 All production shall be transported from any such site by buried pipe line. (1065) S.S. 9� The drilling of any well shall not be conducted in such a manner as to cause excessive noise, odor and vibration and shali'be conducted pursuant to one of the following alternates: (a) Where drilling operations are conducted beyond a distance of 300 feet from occupied residential areas, no sound- proofing will be required unless necessary to minimize excessive disturbance to such areas. (b) Where such drilling is conducted in areas in which dis- turbance to residential areas could reasonably be an- ticipated, the operator of such drilling operation shall either: PLANNING MlvCELLANEOUS DISTRICTS S. 9686.3 (1) Enclose the derrick and all drilling machinery used in connection with the drilling of any well, with fire resistant soundproofing material, which shall be main- tained in a serviceable condition and provided further that s o operations outside of said enclosure except for well logging shall be conducted between the hours of 9:00 P.M. of one day and 7:00 A.M. of the following day, (2) Enclose all drilling machinery used in connection with the drilling of any well with fire resistant soµndpi:oufia—. material and the portable drilling mast shall be so in- closed, at least on three sides, to a height of twenty (20) feet, and provided further, that no drilling operations or any work in connection with such drilling operation shall be conducted between the hours of 9:00 P.M. of one day and 7:00 A.M..of the following; day, except only that circulation of fluids and yell lo_e".n, may be continued during such time and in case o:` Ohkel:_eney, provided' that notice of such emergency shall. he ­Iven to Chief of Police, or then Acting Chief of Police of such necessity and emergency at the time such emergency arises. (1065) S. 9686.4 No permanent tanks, gauging (other than in -line meter and temporary meter provers or other permanent shipping -facilities shall be permitted on such site. S. 9686.5 Portable equipment shall be used in all remedial, rework or maintenance work and shall be removed from this site upon completion of such work. (1065) S. 9686.6 All work conducted on the existing well or site shall, except in the case of necessity or emergency, be conducted between the hours of 7:00 A.M. and 7:00 P.M. of any day. (1065) S. 9�68_6.7 Site or production equipment having external moving parts hazardous to life or limb shall be enclosed. with adequate type fence or screen sufficient to prevent unauthorized access thereto and shall have a minimum height of six (6) feet. Fence gates shall be placed at nonhazardous locations and shall,be locked at all times whar: unattended. (1065) S. 9687 "0311 CombininA Oil District The following provisions shall apply to t e om ng n Oil District. (1065) S. 9687.1 Areas designated on the Districting Map as."03" shall con- stitute producing areas which may be used for the exclusive purpose of production, operation, stimulation, rework, repair and iwiia- tenance of the existing well or wells located thereon, including use of such wells for injection in connection with any secondary recovery pro'�-ram, and including the installation and use of equipment, structures, tools and other facilities incidental, necessary and accessory to such production, operation, stimulation, rework, repair, maintenance and injection thereof, The uses permitted to such 010311 sites shall be subject to the following conditions and limitations: (1065) S. 9687.2 No new wells shall be drilled thereon or therefrom, nor shall existing wells be redrilled or deepened. (1065) PLANNING _ � _ . MISCELLANEOUS DISTRICTS S. 9687.3 S. 9687.3 No permanent tanks, gauging (other than in -line meters and temporary meter provers) or other permanent shipping facilities shall be permitted on such site. (1065) S. 9687.4 Portable equipment shall be used in all remedial, rework or maintenance work and shall be removed from this site upon completion of such work. (1065) S. 9� 687.5 All work conducted on the existing well or site shall except in the case of necessity or emergency, be conducted between the hours of 7:00 A.M. and 7:00 P.M. of any day. (1065) S. 9687.6 Site or production equipment having external moving parts hazardous to life or limb shall be enclosed with adequate type fence or screen sufficient to prevent unauthorized access thereto and shall have a minimum height of six (6) feet. Fence gates shall be placed at nonhazardous locations and shall be locked at all times when un-attended. (1065) INDEX TITLE ARTICLE NO, ACT OF GOD XXIV ARBITRATION XXXIX BANKRUPTCY XXIX BLOWOUTS AND FIRES XII BONDS, PUBLIC LIABILITY AND INSURANCE XXXIII CASING XI COMMINGLING - XVI COMPENSATION AND PAYMENT XLI COMPLIANCE WITH LAWS XXVII CONSTRUCTION XXXVIII CURTAILMENT XIV DEFAULT CLAUSE XXV DEHYDRATION XXII DELIVERIES, RECORDS OF SHIPMENT, PRODUCTION AND XXI DRILLING OF WELLS VII DRILL SITES V EMPLOYMENT I FIRES, BL%rOUTS AND XII GAUGES AND GAUGING - TANKS XV INSURANCE PUBLIC LIABILITY AND iONDS' XXXIII LITIGATION, NOTICE OF XXXV LOCATION OF PERMANENT STRUCTURES XL LOGS AND RECORDS IX MECHANIC'S LIENS XXXI NON -ASSIGNABILITY XXVI NOTICE OF LITIGATION XXXV NOTICES, SERVICE OF XXXVI -1- PA rF 29 43, 44 34, 35 1, 7 38, 39, �+0 15, 16, 17 21, 22 45, 46, 47, 48 33 42, 43 18, 19, 20 30, 31, 32 26, 27 25, 26 91 10, 11, 12 8, 9 1, 2, 3 17 20, 21 38, 39, 40 4o, 41 44, 45 13 36, 37 32 4o,41 41 G 19 OFFSETS AND REDRILLS VIII 122 13 OWNERSHIP OF OIL XX 25 PARTIES, RELATIONSHIP OF II 1+1 6 PAYMENT, COMPENSATION AND XLI 45" 46t 1+79 48 PAYMENT OF BILLS BY CONTRACTOR XXVIII 34 PRODUCTION XIII 17� 18 PRODUCTION AND DELIVERIES, XXI 25, 2,6 RECORDS OF SHIPMENT PUBLIC LIABILITY INSURANCE, BONDS AND INSURANCE XxxiII 38, 39, 40 PURCHASE CONTRACTS X1X 25 PURCHASERS OF GAS XVIII 23, 242 25 PURCHASERS OF OIL XVII 22, 23 RECORDS OF SHIPMENT, PRODUCTION XXI 25, 26 AND DELIVERIES RECORDS, LOGS AND IX 13 REDRILLS, OFFSETS AND VIII 12, 13 RELATIONSHIP OF PARTIES II �+, 5, 6 REMOVAL OF PROPERTY AND EQUIPMENT AND RESTORATION OF PREMISES XXIII 27, 289 29 SERVICE OF NOTICES XXXVI 41 SEVERABILITY XXXVII 419 42 SHIPMENT PRODUCTION.AND DELIVERIES, OF xxi 25, 26 RECORDS STANDARDS IV 79.8 STRATIGRAPHIC BOTTOM OF WELLS VI 9 SURVEYS, TEST AND X 141 15 TANKS - GAUGES AND GAUGING XV 20, 21 TAXES xxx 359 36 TERM AND TERMINATION III 61 7 TERMINATION, TERM AND III 69 7 -2m I* TESTS AND SURVEYS WARRANTY X i4, l5 XXXIV 40 WORKMEN!•S COMPENSATION INSURANCE XXXII 39 (The foregoing index is for convenience only, and is no part of the attached contract.) -3w CONTRACT KNOW ALL MEN BY THESE PRESENTS® That this contract, made and entered into, in duplicate originals, this 1st day of November, 19431 by and BETWEEN THE CITY OF NEWPORT BEACH, a municipal corporation organized and existing under and by virtue of the laws of the State of California, and situate in the County of Orange, State of California, PARTY OF THE FIRST PART, And hereinafter referred to as THE CITY, AND D. 191. Elliott, a resident of the City of Long Beach, County of Los Angeles, State of California, PARTY OF THE SECOND PART, and hereinafter referred to as CONTRACTOR, ti.ITNES S E TH: ARTICLE I EMPLOYMENT Section 1. Subject to the terms, covenants and conditions hereinafter stated, the City hereby engages and employs the Contractor, as an independent contractor, for and during the term hereof, to furnish, maintain and prepare the necessary drill sites outside of and beyond the city limits of the City, and erect thereon the necessary foundations and derricks for, and to drill and explore for oil, gas and other hydrocarbon substances, by the Rotary method, or such other efficient and suitable method as may be approved by the City, and, in case oil, gas or other hydrocarbon substances are Bound in commercial quantities, to complete, operate, maintain, redrill, repair, -1- 0 • recondition and deepen' as many wells as can economically be bottomed from the drill site obtained, as aforesaid, until there shall have been completed and brought to production one well bottomed in each ten acres in those certain lands situated in the City of Newport Beach, County of Orange, State of California, particularly described in Exhibit A, hereunto attached, hereby referred to, and by this reference made a part hereof, said lands being hereinafter referred to as subject land, and also such wells in addition to one well in each ten acres in said subject lands as may be lawful and necessary in order to obtain all the recoverable oil, gas and other hydro- carbon substances from any oil producing zone in said subject lands, or to minimize or equalize drainage therefrom, and to keep, do and perform, in the manner and at the times herein specified, each and all of the terms, covenants and conditions of this contract to be kept, done and performed by the Con- tractor; and said Contractor covenants and agrees that, at his sole cost and exlpense, and in the manner and at the times herein specified, he will keep, do and perform each and all of the terms, covenants and conditions of this contract to be kept, done and performed by him, and in so doing will, throughout the entire term hereof, erect, install, construct, assemble, fur- nish and maintain all structures, foundations, roads, power lines, fuel lines, derricks, cellars, sumps, tanks, pipelines, fittings, valves, separators, compressors and any and all other appliances, machinery, tools, equipment, facilities, services, utilities, instrumentalities and materials, whether or not embraced within the foregoing classifications, which, according to the best practices at the time prevailing among responsible and established operators in the district in which said subject -2- lands are located, are necessary, proper or judicious for the faithful, efficient, safe and successful performance of the operations embraced in and contemplated by this contract, the obligations for which are imposed upon the Contractor, and will furnish, supply and pay for all services, work and labor, and expert and scientific service and advice required for the opera- tions embraced within and contemplated by this contract, and will perform all the obligations of the Contractot hereunder according to the terms, specifications and standards hereinafter specified. Section 2. The Contractor shall keep and maintain at least one string of tools, fully manned and equipped in accord- ance with the best oil field practices, continuously and un- interruptedly engaged in drilling operations from the commence- ment of the drilling of the. first well hereunder until all the drilling requirements hereof shall have been fully complied with as to all subject lands as to which this contract shall not have been terminated in accordance with the provisions hereof. Provided, however, that for a period of sixty (60) days from and after the completion or abandonment of each well the Contractor may suspend drilling operations. Section 3. The City covenants and agrees that, except as provided in Article III hereof, and so long as, and only so long as, the Contractor is not in default hereunder, the City will not, nor will it engage or employ or authorize any other person, firm or corporation to, bottom any well or locate the producing portion of any well beneath said subject lands. The Contractor shall not, for the purposes hereof, be considered in default unless he shall have been notified of the particulars of such default as provided in Article XXV hereof and shall have failed to cure such default as provided therein. -3- r1 n ARTICLE II RELATIONSHIP OF PARTIES Section 1. In performing the obligations hereunder, the Contractor is engaged solely in the capacity of an independent contractor, it being expressly understood that no relationship between the contracting parties hereto other than that of principal and independent contractor has been or -is intended to be created by this contract. This contract does not constitute, and the parties hereto do not intend it to create, a partnership between the parties hereto, nor a joint venture, nor the rela- tionship of master and servant or principal and agent. The parties hereto have entered into this contract with full knowledge of the provisions of California Statutes of 1919 at page 10117 1927 at page 1259 and 1929 at page 17059 and it is neither the intention of the City to, nor does the City hereby grant, convey, give or alien to or vest in the Contractor, for any purpose whatsoever, any title, interest or estate in or to said subject lands, or any part thereof, or any other lands used by the Contractor hereunder,•or any title, interest or estate in or to the oil, gas or other hydrocarbons or minerals under- lying said subject lands, or any part thereof, or any title, interest or estate in or to said oil, gas, or other hydrocarbon substances or other minerals when removed therefrom, and it is neither the intention of the Contractor that this contract shall, or ever be construed to, grant, convey, give or alien to or vest in the Contractor, for any apurpose whatsoever, any title, interest or estate in or to said subject lands, or any part thereof, or in or to any other lands used by the Contractor hereunder, or any title, interest or estate in or to the oil, gas or other hydrocarbons or other minerals underlying said -4- subject lands, or any part thereof, or any title, interest or estate in or to said oil, gas or other hydrocarbons or other minerals when removed therefrom; and it is the intention of each and all of the parties hereto that insofar as said subject lands, or any part thereof, or any other lands used by the Contractor hereunder, or the oil, gas or other hydrocarbons or other miner- als underlying said subject lands, or when removed therefrom, may be affected, if at all, by California Statutes of 1919, page 1011, California Statutes of 1927, page 125, or California Statutes of 1929, page 1705, or by any trust for commerce, navigation or fishery, such parts of said lands so affected shall at all times be so used, and such oil, gas or other hydrocarbons or other minerals underlying the same shall be so removed and disposed of, as not to violate said Statutes, or any of them, or any part or portion of any of them, or any such trust for commerce, navigation or fishery; and should a court of competent jurisdiction hereafter hold, by final judgment, that this con- tract does grant, convey, give or alien to, or vest in the Contractor, for any purpose whatsoever, any right, title, inter- est or estate in or to said subject lands, or any part thereof, or in or to any other lands used by the Contractor hereunder, or any right, title, interest or estate in or to any oil, gas' or other hydrocarbons or other minerals underlying said subject lands, or any right, title, interest or estate in or to said oil, gas or other hydrocarbons or other minerals when removed there- from, in any manner or to any extent which is by such judgment held to be contrary to or in violation of said Statutes, or any of them, or any provision or provisions of said Statues, or any of thE4 or contrary to or in violation of any such trust for commerce, navigation or fishery, then, and in that event, this -5- contract, to the extant, and only to the extent, that it is so held to violate or be contrary to the aforesaid Statutes, or any of them, or any provision or provisions of said Statutes, or any of them, or such trust for commerce, navigation or fishery, shall, as of the date hereof, be and become, without further act upon the part of either of the parties hereto, null and void and of no force whatsoever. 8 ARTICLE III TERM AND TERMINATION Section 1. Subject to the terms, covenants and conditions of this contract the term hereof is for a period ending with the 3rd day of February 1962 and an additional period of not to exceed ten (10) years thereafter upon condition that, and as long as, oil, gas, casinghead gas, or other hydrocarbon sub- stances, or either or any of them, is produced from wells bottomed in said subject lands; provided that while the Contrac- tor is not in default in respect of any well drilled or being drilled hereunder, the contractor shall have the option to terminate this contract, in whole or in part, as follows: Upon ten,(10) days written notice to the City, the Contractor may, from time to time, terminate this contract and all his obligations hereunder as to a part or parts of the subject lands, provided that any part of the subject lands so relieved from the terms and provisions hereof shall consist of one or more ten acre parcels, each parcel to be substantially rectangular in shape, with the sides thereof substantially equal in dimensions, and no part of any exterior boundary thereof nearer than three hundred (300) feet from a point in the surface of the subject lands directly above that portion of any well hole located in and producing from an oil bearing formation. -6. It is expressly understood and agreed that any termination hereunder, whether total or partial, shall not affect the Con- tractor's rights or obligations under this contract in relation to any well theretofore drilled and completed hereunder, and as to which this contract has not been terminated, or then in process of drilling hereunder; and that, from and after any termination under this section the City may drill or cause to be drilled such well or wells as it may desire to have bottomed beneath and opened to the production of oil, gas and other hydrocarbons from such part or parts of the subject lands as to which this contract may have been terminated, provided only that said City shall not drill or cause to be drilled any well any producing portion of which is less than three hundred (300) feet from the producing portion, in the same oil producing zone of any well drilled by the Contractor and as to which this contract continues in effect. The Contractor shall not, for the purposes hereof, be considered in default unless he shall have been notified of the particulars of such default as provided in Article XXV hereof and shall have failed to cure such default as provided therein. ARTICLE IV STANDARDS Section 1. Each of and all the obligations to be per- formed by the Contractor shall be done and performed at his sole risk, cost and expense, and each of and all the operations to be conducted by the Contractor shall be conducted, and each of and all the structures to be erected by the Contractor shall be erected in a first class, good workmanlike and efficient manner and in accordance with the best oil field practices at the time prevailing in said district among responsible and established -7- operators, and all the equipment, machinery, facilities, mater- ials and supplies required to be furnished hereunder shall be first .class and of not less than American Petroleum Institute standards then prevailing, and of a type suitable for and adequate to complete the work to be done in a good, workmanlike and efficient manner, and in accordance with said best oil field practices in the district. The Contractor at all times shall maintain all such structures, equipment, machinery and facilities in a good and first class condition. Said Contractor shall not use any open sumps for storage of oil, other than for settling purposes. Any sumps constructed by the Contractor shall be constructed with walls and bottoms of sufficient thickness and strength, computed according to the best engineering practices, to hold and retain, without breakage or leakage, at least the full cubicle capacity thereof. The Contractor shall take all necessary precautions to prevent any oil from getting into adjacent sloughs or the river channel. ARTICLE V DRILL SITES Section 1. The Contractor shall procure and provide drill sites from which each of the wells to be drilled under the terms of this contract shall be spudded in, and each of and all such drill sites shall be outside the city limits of the City of Newport Beach. The terms and conditions under which such drill sites shall be obtained by the Contractor shall be such as to permit him to whipstock or slant drill wells from such drill sites and shall authorize him to produce oil, gas, and other hydrocarbon substances under the terms of this contract; and no title in the oil, gas or other hydrocarbon substances so produced shall pass, by virtue of this contract, either to the Contractor or to the owner of the property upon which such drill sites may be located. Section 2. The Contractor shall neither select nor use any drill site south of the State Highway, or below the bluff easterly of the northeasterly prolongation of 57th Street. ARTICLE VI STRATIGRAPHIC BOTTOM OF WELLS Section 1. In the event that, in the course of the development of the subject lands, oil, gas or other hydrocarbon substances may be discovered in paying quantities in two or more stratigraphic depths, then, in that case, the City, when it notifies the Contractor to drill the next well thereafter hereunder, may designate in writing the oil producing zone or stratigraphic depth from which it desires to have such well brought to production; and in the event the City desires the Contractor to produce from more than one oil zone in the same well, it may likewise notify the Contractor in writing of the location or locations or stratigraphic interval or intervals at which it desires to have such well opened to production in and from any oil producing zone or zones or intervals thereof, provided that the Contractor shall not in any instance, including offsets as provided in Article VIII, Section 19 hereof, be required to so bottom or produce from any well that any producing portion thereof is less than three hundred (300) feet from the producing portion, in the same zone, or intervals thereof, of any well theretofore drilled hereunder, or where it would be imprac- tical from the standpoint of good oil field practice to do so. ARTICLE VII DRILLING OF WELLS Section 1. Within sixty (60) days following the service -9. of written notice on the Contractor by the City requiring the drilling of the first well hereunder, and of any subsequent well after completion or abandonment by the Contractor of any well, the Contractor shall apply for all necessary permits in order to drill, operate and maintain such yell, and shall prosecute all such applications diligently and in good faith until the same shall have been finally granted or denied. Within thirty (30) days after obtaining all permits necessary for the drilling of any such well, the Contractor shall complete all adequate and proper preparations of the drill site contemplated by such permits, and the construction thereon of good and sufficient foundations for the drilling of a well hereunder on and from such drill site, and the erection of the necessary derrick, and the installation of all necessary equipment in order to enable him to commence the drilling of such well, and within said thirty (30) day period the Contractor shall actually spud in such well upon such drill site, and, at all times thereafter, diligently and without cessation, shall continue drilling operations hereunder upon and from such drill site until one well shall have been drilled thereon and therefrom and completed and opened to production at such depth beneath said subject lands as shall have been designated, in writing, by the City as herein provided. Section 2. Nothing herein contained shall require the Contractor to be engaged in the drilling of more than one well at any one time. Section 3. If the Contractor shall fail or be unable to complete any well to the stratigraphic depth designated by the City and in the manner required by this contract within one hundred twenty (120) days from the date when actual drilling -10- was commenced therein, then the Contractor shall abandon said well in the manner authorized by law, unless the City shall have given written authorization for the continuance of operations therein for a designated time, in which event said well shall be so abandoned if it has not been so completed within said designated time. In case of abandonment, as aforesaid, of any well, the Contractor shall forthwith drill and complete, in the manner required hereunder, a substitute well upon the same drill site and to be bottomed and to produce from the same ten (10) acre portion of the subject lands in lieu of the well so abandoned, and if the Contractor is unable to so complete, to the required stratigraphic depth, such substitute well within one hundred twenty (120) days after drilling operations therein were actually commenced, or such additional time as may be allowed in writing by the City, then the Contractor shall likewise abandon said substitute well and shall forthwith, in like manner, continue to drill an additional substitute well, or additional substitute wells, and likewise to abandon each substitute well which is not so completed to said required stratigraphic depth within the aforedescribed interval of time until one well has been completed to such depth in the manner herein required for each ten (10) acres of the subject lands. Section 4. whenever, in any well hole, format•lons are encountered at a depth prior to completion which would indicate to the City that further drilling would be unsuccessful and unproductive at that location, then said well hole may, with the written consent of the City, be abandoned. Section 5. It is distinctly understood and agreed that the Contractor shall be compensated hereunder for only those wells which are drilled and completed to the required strati- -11-- graphic depth in accordance with the provisions of this contract, and that such payments shall be made in the manner hereinafter provided. Section 6. All wells abandoned hereunder shall be excluded in computing the maximum number of wells required to be drilled hereunder. ARTICLE VIII OFFSETS AND REDRILLS Section 1. In the event oil, gas or other hydrocarbon substances are actually produced in commercial quantities from any well, the producing portion or portions of which are within three hundred (300) feet of the exterior boundaries of the sub- ject Lands, then the Contractor, upon the written order of the City, shall drill an additional well to be bottomed so as to offset such exterior well, the bottom thereof to be at such location as may be designated by the City in writing; provided that it is not impracticable or unprofitable to the City, or prohibited by any authority having jurisdiction thereof, or con— trary to the provisions of any curtailment plan or agreement being complied with by the Contractor pursuant to the terms of Article XIV hereof. Section 2. The Contractor shall deepen or plug back or perforate any existing well when and as ordered by the City so to do, so as to open the same to production and to produce from any known producing zone or zones upon the subject lands capable of producing in paying quantities if such operations, when conducted according to the best oil field practices then being followed in the district, will not unreasonably imperil said well as a producing well in the zone from which it is then producing. —12— Section 3. The operations provided for in this Article VIII hereof shall be commenced by the Contractor within thirty (30) days after service of written notice by the City so to do and shall thereafter be continuously and diligently prosecuted until completion of the work so ordered by the City. ARTICLE IX LOGS AND RECORDS Section 1. The Contractor shall keep a daily log, in duplicate, of each well drilled by him pursuant to the terms hereof, and such logs shall show, among other things, the strata penetrated by the drill. Such log shall be kept at the well during the drilling and until the completion of such well, and shall be kept open to inspection by the City and its duly authorized agents, and a daily duplicate thereof shall be wade available at such well for delivery to, and shall be the property of the City. The Contractor shall, whenever and as frequently as requested in writing by the City so to do, use his best efforts to take and recover good and adequate cores of each well designated by the City and by him drilled, or in process of drilling, pursuant to the terms hereof, and in the event any comes are taken or extracted from any well so drilled or drill- ing, such cores shall be retained and preserved for a reasonable time, and shall be available for inspection at the well by the City and its duly authorized agents, anC: the City and its agents may at all times take such samples thereof as may be desired by the City or its agents, Within ten (10) days after each well is completed, the Contractor shall furnish to the City for each well one duplicate copy of each of the following: Core record (if any cores are recovered), electrical log, survey plat, and all data compiled in connection with such survey. -13- ARTICLE X TESTS AND SURVEYS Section 1. The Contractor shall make a complete electri- cal coring survey of the entire bore hole of each well, below shoe of surface casings, drilled by him pursuant to the terms of this contract, and shall obtain the use of the necessary devices for the making of such survey, and shall, upon the completion of such electrical coring'survey, furnish a true and complete copy thereof to the City, and if at any time during the drilling of any well pursuant to the terms hereof, and up to the time of the completion or abandonment thereof, said City desires that a drill stem test shall be made at any point in the bore hole of any such well, and if it shall be practical so to do, the Contractor shall, upon the receipt of written notice from the City requiring him so to do, forthwith and immediately proceed with the making of such drill stem test or tests, not exceeding two in number, in any one well at the points in the well specified in such notice, and, upon the completion of each such test in each such well, shall furnish a true and complete record of the results thereof to the City. Section 2. The Contractor shall cause to be made a complete and accurate survey, by the single -shot method, of each well drilled by him hereunder; such survey shall be made as the work progresses, and shall be made and computed from stations not more than one hundred (100) feet apart. All single-bhot discs obtained in making such survey, when taken by or for the Contractor, shall be immediately platted for the Contractor, and thereupon such single -shot discs shall be delivered to and become the property of the City. If requested by the City the Contractor shall also cause to be made and filed with the City, ..14- • prior to placing each well by him drilled hereunder upon produc- tion, a complete oriented survey to the bottom of the bore hole thereof, and such survey shall be made and computed from succes- sive stations not more than one hundred feet apart. All surveys filed with the City shall include a plat showing the course of the bore hole, all computations, notes, data and other information pertinent thereto. Like surveys shall be so made and filed with the City in connection with any redrilling and deepening operations which may at any time be undertaken or conducted by the Contractor. ARTICLE XI CASING Section 1. The Contractor shall give to the City a notice, in writing, at least forty-eight (48) hours before running any casing into the bore hole of any well, which notice shall state the time when said casing will be run, the speci- fications of the casing proposed to be run, and the complete program of cementing and perforating said casing, and at least forty-eight (48) hours before running any casing into the bore hole, the Contractor shall have available for inspection by the City any and all casing so intended to be run. No casing may be run into the bore hole of any well drilled by the Contractor hereunder if the City or its duly authorized representatives shall serve upon the Contractor, in writing, not less than twenty-four (24) hours prior to the time specified in the foregoing notice of the Contractor's intention to run such casing, disapproval of such specifications or such casing, or any part thereof, upon the ground that the same, or any part thereof, does not comply with the foregoing specifications, and stating the respect in which such casing so fails to comply, nor if the City shall, in writing, served upon the Contractor within said -15- period last above mentioned, disapprove of said cementing and perforating program. Section 2. If the City shall so disapprove of any such specifications or casing or perforating and cementing program, and the parties hereto, within two (2) hours after notice of such disapproval has been delivered to the Contractor, shall be unable to agree upon whether the casing complies with said specifica" tions or upon whether said perforating and cementing program is in accordance with the best oil field practices then prevailing in the district, then the question shall be settled by arbitra- tion in the following manner: The Contractor, within the period of one (1) hour after the expiration of the aforesaid two (2) hour period, shall select one arbiter, and the City, within the same period, shall select one arbiter, and if the two so select- ed cannot agree upon the question within six (6) hours after their selection, then, within -...two (2) hours thereafter, they shall select a third arbiter, and the three so selected shall then decide the subject by a majority vote within six (6) hours after selection of the third arbiter. The decision of the majority shall be final and binding upon the parties hereto and finally conclusive upon the question then in dispute. In case either party shall fail to select and have available an arbiter within the time herein required, then the arbiter selected by the other party may make the decision and such decision, when made, shall likewise be conclusive. In the event it is so finally and conclusively decided that said specifications are sufficient or that said casing complies with said specifications, or that said perforating and cementing program is in accordance with the best oil field practices then prevailing in the district, the entire cost and expense of such arbitration shall be borne -16- and paid by the City; and in the event it is so finally and conclusively decided that such specifications are not sufficient or that said casing does not comely with said specifications, or that such perforating and cementing program is not in accordance with said best oil field practices, the entire cost and expense of such arbitration shall be borne by the Contractor, without right to reimbursement therefor. ARTICLE XII BLOW -OUTS AND FIRES Section 1. The Contractor shall equip, and at all times maintain, any and all wells drilling, or drilled to completion by him under the terms hereof, with such blow-out prevention equipment as is customary and in accordance with the best oil field practices at the time prevailing in the district among responsible and established operators. In the event any well drilled, or in process of drilling, by said Contractor, as authorized hereby, shall blow out, catch fire, or in any manner get out of control, the City, if it so elects, may assume complete control or supervision of the work of bringing any such well so out of control under control or putting out the fire; and for such purpose the City shall have free use of all of the Contractor's equipment and facilities at the well; and the City shall not be liable or responsible for loss of, or damage to, any such well or wells, or loss or destruction of, or damage to, any such equipment, -resulting from anything done by it in attempting to bring said well under control or to extinguish any such fire. ARTICLE XIII PRODUCTION Section 1. From and after the time when each well -17- drilled hereunder is completed and placed on production, the Contractor, at all times during the term hereof except when excused by or pursuant to the provisions of this contract or when remedial operations are in actual progress, diligently and -by the most efficient methods for the production of oil, gas and other hydrocarbon substances at the time prevailimg in said district, shall pump or otherwise produce, and shall save, the maximum quantity of oil obtainable by such methods with a reasonable factor of safety, and consistent with maximum production of oil, gas and other hydrocarbon substances from each well drilled by him pursuant to the terms hereof, and shall maintain, perforate, redrill or deepen each such well and per- form all other operations thereon necessary to maintain and operate such well as aforesaid, and shall construct, erect, furnish, operate and maintain in good and efficient condition all structures, facilities, machinery, appliances, equipment and supplies, and perform all services, work and labor neces- sary efficiently to so produce such maximum quantity of oil, and to handle and make deliveries at the well of all oil, gas and other hydrocarbons produced and saved from such wells. ARTICLE XIV CURTAILMENT Section 1. The Contractor shall not bean down, completely close in or otherwise curtail any producing well hereunder, except as hereinafter provided. Section 2. The Contractor may bean down, completely close in or otherwise curtail the production of any such well whenever (and only so long as) required by any order, rule or regula- tion of any governmental authority or whenever (and only so long as) necessary to prevent or minimize damage to any such -18- well, or to life, or to property, or whenever (and only so long as) necessary for the performance of mechanical work upon such well. Section 3. The City recognizes the necessity of reason- able and proper curtailment from time to time of the production of oil, gas and other hydrocarbon substances in order to properly minimize and equalize drainage, to prevent waste and to promote and obtain the maximum recovery of oil, gas and other hydrocarbon substances, and it is therefore agreed that the Contractor shall comply with any lawful curtailment plan, or proration or license agreement by whatever name designated, regulating the production of oil, gas and other hydrocarbon substances, and agreed to and observed by a majority of the producers from any zone or zones, respectively, any portion of which underlies the subject lands. The Contractor shall not be held in default hereunder on account of compliance with any such curtailment plan or proration or license agreement pending the determination of the legality thereof, although such plan, proration or license agreement is eventually determined to be unlawful. Section 4. The Contractor may suspend the production of oil, gas and other hydrocarbon substances from any well required to be produced by him hereunder, when and so long as the pre- vailing market of oil or the highest "at the well" price of oil posted and paid by either the Standard Oil Company of California, The Texas Company, Shell Oil Company, Union Oil Company of California, General Petroleum Corporation of Cali- fornia, or Tidewater Associated Oil Company, for oil being obtained from the oil producing zone from which the Contractor Is required to produce such well, is Fifty (50(l) Cents per -19- 0 barrel or less; provided that if there is then any producing well, any producing portion of which is situated outside of but within three hundred (300) feet of any of the exterior boundar— ies of the subject lands, and which outside well is then produc— ing oil, gas or other hydrocarbon substances, the Contractor shall not suspend, without consent of the City, production under the provisions of this Section 4 of Article XIV from that cer— tain well operated by the Contractor hereunder, the producing portion of which is nearest to the producing portion, in the same zone, of said exterior well. ARTICLE XV TANKS — GAUGES AND GAUGING Section 1. The Contractor shall furnish all necessary tankage and other facilities in order properly and efficiently, in accordance with the best engineering practices then prevail— ing in the district' among responsible and established operators, to save, collect and handle all oil produced or obtained pursuant to the terms of this contract. All receptacles or tanks used for the collection, saving and handling of oil produced from wells hereunder shall be of standard construction. Section 2. Accurate gauge tables for each such receptacle and tank installed or used by the Contractor hereunder shall be made, in duplicate, before the, delivery of any oil therefrom is made hereunder, and the Contractor shall promptly deliver one copy thereof to the City. The Contractor shall serve upon the City, at least twenty. -four (24) hours in advance, written notice of his intention to measure, or cause to be measured, any receptacle or tank for the purpose of preparing any gauge table therefor, specifying in said notice the location of such receptacle or tank and the time when such proposed measureipent --20— 0 will be commenced. Nothing herein contained shall infringe upon or abridge the right of the City or its duly authorized agents to be present at the making of any such measurements, or to make or have made such measurements at any reasonable time during the terms of this contract. Section 3. The Contractor shall gauge and measure promptly and accurately the quantity of oil produced and saved by him pursuant to the terms hereof, and shipped or otherwise disposed of, from any well operated by him pursuant to the terms hereof, and shall make accurate tests of all such oil for the purpose of determining the gravity, cut and temperature of all oil so saved, shipped or otherwise disposed of. Noth's^.; herein contained shall infringe upon or abridge the right of the City arlu its duly authorized agents to be present at all times when such receptacles and tanks are being gauged, and at all times when tests are being made for the purpose of determining the gravity, out and temperature of any such oil, and to test, at all reasonable times, the accuracy of all gauge tables, gauges, and measurement devices in the presence of the Contractor or of the duly authorized representatives of the Contractor. ARTICLE Xyi COMMINGLING Section 1. The Contractor shall. not oommingle, mix or blend any oil produced by him from any well or zone bottomed under the subject lands with any oil produced by him from any well bottomed on adjacent or other lands than the subject lands, nor shall he commingle, mix or blend any oil produced by him from any zone underlying the subject lands with any oil produced by him from any other zone underlying the subject lands, if the price obtainable hereunder for such oils, when so commingled, -21- would be less than the aggregate price obtainable hereunder for such oils if sold separately and without the commingling thereof. Except as in this paragraph provided, such production from each such separate zone and from the subject lands and from lands adjacent thereto shall be produced, saved and marketed, pursuant to the terms hereof, separately and distinct from the production of all other zones and all other lands. ARTICLE XVII PURCHASERS OF OIL Section 1, The Contractor agrees to use his best endeavor to obtain and have available, at all times during the term of this contract, a financially responsible purchaser, ready, willing and able to purchase and pay for, in cash on delivery, any and all oils produced and saved by the Contractor from the wells drilled by him pursuant to the terms hereof, and to take delivery of such oil within ten (10) days after production thereof, and to pay therefor the average of the "at the well" price posted and paid, including bonus, by the•Standard Oil Company of California the Texas Company, Shell Oil Company, Union Oil Company of California, General Petroleum Corporation of California, and Tidewater Associated Oil Company, in the district in which the subject lands are located, for oil of like grade and gravity on the day such oil is run into the purchasers' tanks or pipelines, or is otherwise delivered to said purchasers and in the event none of said companies posts and pays a price "at the well" in said district on said day for oil of like grade and, gravity, the price to be paid by such purchaser so obtained by the Contractor for such oil shall be the market price generally prevailing and paid on said day in the district for oil of like grade and gravity, together with any bonus or -22- premium paid for oil of similar quality and in substantially similar quantities on said day by said purchaser in said dis- trict. All consideration on account of any delivery made during any calendar month to any purchaser9 under the provisions of this section, shall be paid by such purchaser or purchasers9 respectively, to the City or as authorized by the City, in cash, on or before the 20th day of the next succeeding calendar month. The Contractor shall not, directly or indirectlyg take$ receive$ accept or retain any commission, bonus, profit9 gratuity or benefit of.any kind or character offered, given or obtainable by reason of or incidental to the production9 sale or other disposal of any oi19 gas or other hydrocarbon substances or other minerals produced, saved and disposed of pursuant to the terms of this contract, other than the compensation payable to the Contractor as hereinafter provided, and in the procurement of purchasers for such oi19 gas and other hydrocarbon substances, the Contractor9 at all times during the life of this contract, shall diligently exercise his best endeavors to procure for the City the greatest commission, bonus, profit9 gratuity and benefit of every kind or character obtainable, by reason of or incidental to such production9 sale and other disposition, and any and all such, when and if received by or for the Contractor9 shall at once be delivered to the City who shall receive and disburse the same as additional proceeds derived from the sale or other disposal of such oil, gas and other hydrocarbon substances. ARTICLE XVIII PURCHASERS OF GAS Section 1, The Contractor agrees to use his best bona fide efforts to obtain and have available at all times during -23- 0 the term of this contract a financially responsible purchaser ready, willing and able to purchase and pay for, in cash on delivery, any and all of the natural gas produced and obtained by the Contractor from the wells drilled by him pursuant to the terms of this contract, and to take delivery thereof as the same is'produced and obtained from the subject lands, such purchaser to process said natural gas for the purpose of extracting, manufacturing or otherwise obtaining therefrom the natural gasoline and other products contained therein, and to pay to the City for such natural gas so produced,not less than forty (40%) per centum of the gross proceeds derived by such purchaser from the sale or disposal of all products resulting and saved from such processing, except the resulting dry gas; and not less than sixty (601o) per centum of the gross proceeds derived by such purchaser from the sale or other disposal of the resulting dry gas available for sale] provided, however, that the City shall have the right, from time to time hereafter, to elect to take all or any portion of said resulting dry gas in kind, upon serving a thirty (30) day written notice of such election on such purchaser, and said City may likewise, from time to time, upon serving a thirty (30) day written notice thereof on said purchaser, rescind its said election to take any of said resulting dry gas in kind, and in the event the City shall, at any time or times during the term of this contract, so elect to take any of such resulting dry gas in kind, as aforesaid, the same shall be delivered to the City at the plant of such purchaser. The City reserves the right to use any of the dry gas necessary for municipally owned or operated public utilities. The Contractor shall be entitled to the free use of any dry gas which is _24_ reasonably necessary for and is actually used by him in carrying on his operations under the subject lands under this contract. All money accruing as consideration on account of any deliveries made to any purchaser under the provisions of this Section 1 or Article XVIII during any calendar month shall be paid by such purchaser or purchasers, respectively, to the City, or as authorized by the City, in cash, on or before the 20th day of the following calendar month. ARTICLE XIX PURCHASE CONTRACTS Section 1. Notwithstanding any other provision in this contract, it is understood and agreed that any and all contracts for, or sales of, oil, gas, other hydrocarbon substances, or other gases or other substances produced or obtained from the wells drilled or operated by the Contractor pursuant to the terms of this contract, shall be made by the City, and the Contractor is not authorized to bind the City in the sale, barter, exchange or other disposal thereof, in whole or in part. ARTICLE XX OWNERSHIP OF OIL Section 1. Anytbbpg'herein to the contrary notwith- standing, it is understood and agreed that all right, title and interest in and to any and all oil, gas, other hydrocarbon substances, and other gases and substances underlying the subject lands, or when recovered from or through the wells drilled by the Contractor pursuant to the terms of this contract, are, and shall remaih, wholly vested in the City. ARTICLE XXI RECORDS OF SHIPMENT, PRODUCTION AND DELIVERIES Section 1. The Contractor shall keep complete and -25- accurate records of all production and of all shipments, deliv- eries and other disposition of production from each of the wells drilled by him under the terms hereof, and a true copy of all such records shall be delivered to the City daily. ARTICLE XXII DEHYDRATION Section 1. It is agreed that all oil produced hereunder containing over three 0%) per centum water, emulsion or b. s. shall be corrected to a marketable or dry basis, if possible, by methods customarily used for that purpose; that is, the water emulsion and b. s. shall be reduced to three 0%) per centum or under, and the gravity shall be computed upon the dehydrated and cleaned product. In the event the oil produced from the subject lands requires treatment or dehydration to make the same marketable, as aforesaid, the Contractor, at his sole cost, risk and expense, shall dehydrate or treat, if possible as aforesaid, the same, or cause the oil to be dehydrated or treated so as to render the same marketable. The City shall pay to the Contractor the "actual oost" (as hereinafter defined) of so dehydrating or treating said oil less the proportion that the respective percentages of the proceeds payable to the Contractor hereunder bear, as provided in Article XLI hereof, to the total proceeds derived from the sale of all said oil produced and saved by the Contractor in accordance with the terms hereof. Section 2. In determining the sums to be paid to the Contractor by the City on account of any necessary dehydration or treatment of oil produced under the terms of this contract, such "actual cost" of such dehydration or treatment shall in no event exceed the sum of Five (5O) Cents per barrel of net oil, -26- and the Contractor shall furnish to the City, on or before the 15th day of each calendar month, an itemized statement through- out the term hereof showing the "actual cost" of such dehydra- tion or treatment during the preceding calendar month. All payments accruing to the Contractor for and on account of such dehydration or treatment so done and accomplished by the Con- tractor shall be paid to the Contractor by the City on or before the 25th day of each calendar month, and shall be based upon oil produced, saved and delivered by the Contractor pursuant to the terms of this contract during the preceding calendar month and for which the City has received payment of purchase price. In no event, anything to the contrary herein notwithstanding, shall the Contractor be required to clean, dehydrate or treat any oil hereunder if the cost thereof shall be in excess of five (50) cents per barrel of net oil. ARTICLE XXITI REMOVAL OF PROPERTY AND EQUIPMENT AND RESTORATION OF PREMISES Section 1. All strings of casing and shoes cemented in to any and all wells, and all tubing and other fixtures and appliances permanently attached below the surface and under the subject lands shall become and, except as hereinafter provided, thereafter remain the property of the City; provided, however, that the Contractor may, after the completion of the original drilling or any redrilling or deepening, in accordance with the terms hereof, of any well by him drilled, redrilled or deepened hereunder, and after the same has been placed upon production subject to such original drilling, or such redrilling or deepening, remove all equipment and supplies furnished by the Contractor and not necessary for the operation of such well as -27- • a producing well in accordance with the terms of this contract, and the Contractor shall so remove such property within thirty (30) days following service upon the Contractor of written demand of the City requiring the removal thereof, and the title to such property shall, upon the removal thereof by the Con- tractors be and become, without further act or deed on the part of the City, the property of the Contractor as and for addi- tional compensation to him hereunder for such removal; and provided, further, that from and after the completion of each well as a producing well, the Contractor shall have the'exclu- sive right, subject to the terms of this contract, to use any of said property designated as the property of the City, or any part thereof, in the conduct of the operations of the Contractor hereunder, and in so using such property, the Contractor'shall have the right, and it shall be his duty, to change, exchange, alter, repair, substitute and replace the same, or any part thereof, insofar as it is reasonably necessary to do so in order to keep and maintain said well or wells in first class condi- tion, and for the purpose of obtaining the then maximum allow- able production of oil therefrom, and in so doing, the Con- tractor may remove and retain or dispose of the same for his own account, if the property so removed be forthwith replaced by other equipment capable of obtaining and handling, with equal efficiency, the then maximum allowable production from such well or wells. Section 2. 2n the event any well drilled or in the process of drilling by the Contractor pursuant to the terms hereof shall be permanently and finally abandoned by both of the parties hereto pursuant to the terms of this contract, or with the mutual consent of both the parties hereto, and in -28- strict accordance with the rules and regulations of the Division of Oil and Gas of the State of California, or any other regula- tory authority having jurisdiction thereof, then, and in that event, the Contractor shall remove so much of the casing then in the well as may be obtainable, such casing, when so removed and obtained, shall be retained by the Contractor. Section 3. Upon the expiration of this contract, or upon the sooner termination thereof, in its entirety or as to any well or wells, for any cause whatsoever, the Contractor, solely at the option of the City, shall remove all equipment, materials, supplies, concrete, debris and rubbish as may be designated by the City, in writing, from any and all premises so affected, and restore the surface thereof to as nearly its present condi- tion as is reasonably possible. ARTICLE XXIV ACT OF GOD Section 1. The obligations imposed upon the Contractor hereunder shall be suspended, and the time within which any such obligation shall be performed shall be extended, during the time and so long as the Contractor is prevented from complying therewith, in whole or in part, by the elements, accidents, war, rebellion, insurrection, public calamity, strikes, lockouts, riots, delays in transportation, interference by state or federal action, or other causes, whether similar or dissimilar to those above named, except financial, wholly beyond the con- trol and arising without the fault of the Contractor, or when such compliance is in violation of any governmental order or regulation or of the action of any governmental authority, officer or body. -29- 0 ARTICLE XXV DEFAULT CLAUSE Section 1. Each and every term, covenant and condition hereof is hereby declared to be a continuing term, covenant or condition and the waiver by the City of any violation by the Contractor of, or failure by the Contractor to comply with, any of the terms, covenants and conditions of this contract, or the failure by the City to exercise any option on account of any such violation or failure by the Contractor, shall not be deemed a waiver by the City of any subsequent violation or failure on the part of the Contractor to comply with all or any of the terms, covenants and conditions hereof. In case of default in the performance by the Contractor of .any of the terms, covenants or conditions of this contract to be by him done or performed, the City shall give written notice to the Contractor within ten (10) days after it first received knowledge thereof, which notice shall specify the nature and character of such default. If the City fails to give such notice, it shall thereafter forever be precluded from claiming such default, unless such default be of a continuing or recurring nature, in which event the City may give the notice as herein provided at any time while such default continues. Section 2. In case of default in the performance by the Contractor of any of the terms, covenants or conditions of this contract to be by him done or performed, and the failure by the Contractor to remedy the same within twenty (20) days after service of written notice by the City so to do, specifying the particulars in which it is claimed by the City that the Con- tractor is then in default, then, at the option of the City, all rights and privileges of the Contractor under this contract• _30. forthwith shall cease and terminate and be at an end and sur- rendered unto the City, and the Contractor shall thereafter be without any right or privilege whatsoever in and to the subject lands, or any part of them, or in and to the wells to be operated thereon or therefrom, or in or to the oil, gas or other hydrocarbon substances or other minerals underlying the subject lands, or in or to said oil, gas or other hydrocarbon substances or other minerals when removed therefrom, under or pursuant to this contract, or at all, either in law or in equity, save and except that the Contractor shall have the right to have this contract continued in effect, as to such wells, and only such wells, as have theretofore been completed hereunder or are in the process of drilling hereunder, and as to which the Contrac- tor is not then in default, or if in default, such default is being cured in accordance with the terms hereof, and save and except, further, that the City shall not thereafter drill or cause to be drilled any well, any producing portion of which is less than three hundred (300) feet from the producing portion, in the same zone, of any well drilled hereunder by the Contractor and as to which this contract so continues in effect; provided, however, that in case such default so specified in such notice is of such nature that the same cannot, with due in diligence and/good faith, be cured and remedied within said twenty (20) day period following the service of such notice by the City upon the Contractor, then and if the Contractor shall, within said twenty (20) day period, commence good and adequate operations in good faith to remedy and cure the default speci- fied in such notice, and shall, at all times continuously, diligently and in good faith thereafter continue said operations until such default be cured and remedied, then neither this -31- contract nor any rights or privileges hereunder, as aforesaid, shall cease, terminate or be at an end by reason of such speci- fied default. ARTICLE XXVI NON -ASSIGNABILITY Sectionl. Neither the Contractor, nor his successors or assigns, shall have the right or the power to sublet or subcontract all or any part of the work contemplated by this contract, or to assign, hypothecate, pledge, or in any manner dispose of this contract or any part thereof,,or of the whole or any part of the Contractor's rights, privileges or obligations hereunder, without first obtaining the i>>ritten consent of, and subject to such terms and conditions as may be pre- scribed, by the City, and any attempt to do so in violation hereof shall be void and no rights thereunder shall pass to any person whomsoever, and the City shall not be obligated to accept, nor shall it be deemed bound by, or•to have acquiesced in, or be estopped in any respect by, any performance hereunder by any other person than the Contractor. The giving of consent by the City to any assignment, hypotheca- tion, pledge or other disposition of this contract or any part thereof, or the whole or any part of the Contractor's righta, privileges or obligations hereunder, shall not be deemed to nor shall it confer any right to the Contractor, or his successors or assigns, thereafter to assign, hypothecate, pledge or in any manner dispose of this contract or any part thereof, or of the whole or any part of the rights, privileges or obligations of the Contractor, or his successors or assigns thereunder. -32- ARTICLE XXVII COMPLIANCE WITH LAWS Section.l. The Contractor agrees to be bound by all valid provisions of federal, state, municipal and local laws, ordinances, rules and regulations in any manner affecting the Contractor's operations hereunder, and faithfully to comply therewith. The Contractor, at all times, shall conform to the rules and regulations of the Division of Oil and Gas of the Department of Natural Resources of the State of California, and shall conform to the provisions of the Act of the Legislature of the State of California approved June 10, 1915, establishing and creating a Department of the State Mining Bureau for the protection of the Natural resources of oil and gas from waste and destruction through improper operations in production, and all Acts amendatory of or supplementary thereto, or adopted in lieu thereof, and shall faithfully comply with all rules and regulations governing the drilling of oil wells promulgated by the California State Oil and Gas Supervisor, and will save the subject lands and any and all other lands used hereunder, and hold the City harmless against any and all fines, penalties, charges, assessments or liens levied or imposed under any act, law, statute, rule or regulation, by reason of the Contractor's operations hereunder. This Section 1 of Article XXVII shall be construed as, and be operative after the term of this con- tract shall h=ve ceased and determined, and after this contract shall have been terminated as to any well or wells on any lands, and until such time as the Contractor shall have properly abandoned, pursuant to the terms hereof,. 9.11 wells as to which this contract is so terminated and as to which such abandonment is required hereunder. -33- ARTICLE XXVIII PAYMENT OF BILLS BY CONTRACTOR' Section 1. The Contractor agrees to pay promptly when due, all indebtedness which he may incur in carrying on his operations'hereunder, and upon:demand by the City f3hall exhibit to it"receipts or' releases thergfor,, and the. Coftt'ractox. express- ly , ly agrees that the City, at its"option, may withhold, or.direct the withholding of; a.11,,or any part of any compensation which may be payable to the Contractor hereunder until such time as the City is satisfied that all past due obligations for labor, materials, claims or liens have been paid in full or released. The City shall have the,right., from time to time, but shall not be required,'to pay, in whole or, in part, any indebtedness or liability which the Contractor shall pormIV to remain unpaid after its maturity so as to prevent any JAgn or liens being filed or accruing against any property of the City, or any property of the Contractor, used In'the performance by hilt of the terms qf this contractt and In the event of, any such payment by the City the Contractor shall reimburse the City for the same, together with eight (8%) per centum interest from the date of payment, and the City shall have the right to deduct, or direct'the deduction of, the amount of any such payment or payments, with interest, from arycompensation payable or which may thereafter become payable to the Contractor hereunder. ARTICLE XXIX BANKRUPTCY Section 1, Should the Contractor, at any time during the term hereof, file a voluntary petition in bankruptcy or be ad- judged a bankrupt, either upon his voluntary petition or upon the involuntary petition of any other person, or should the ..3y.- Contractor seek, claim or apply for any right, privilege, remedy, or protection afforded by any statute or §tatutes of the United States relating to bankruptcy, or should he make ard, assignment for the benefit of his creditors, or should a Receiver be appointed over, or should an attachment or execution be levied and permitted to remain for a period of more than fifteen (15) days following the levy of such attachment or execution, upon or against, any right, privilege or asserted interest of the Contractor in, to, under or pursuant to this contract, or upon any of the property used by him in the performance of the terms hereof, then, and upon the happening of any of said events, all interests, rights and privileges of the Contractor, whether then existing or contingent, in, to, under or pursuant to this contract, except such of said interests, rights and privileges as shall have been theretofore validly assigned by the Contractor pursuant to the terms, covenants and conditions of this contract, shall immediately and without further acts on the part of any of the parties hereto, cease, terminate and end; protided, however, that if such Receiver be discharged within ninety (90) days after his appointment, the Contractor may, at any time w'!'Ialn ten (10) days thereafter, resume the performance of this contract, and the same shall thereupon again become in full force and effect. ARTICLE M TAXES Section 1. The Contractor shall also pay and discharge, before delinquency, all valid taxes, fees, rates, charges, levies or contributions of every nature which may be lawfully fixed, levied, imposed or assessed against, or which may be required to be paid by him, upon property, real or personal, -35- owned by or used or permitted to be used by the Contractor, pursuant to the terms of this contract, or on account of the execution of this contract, or on account of any rights created thereby, or on account of any operations, production, sale, storage or disposition of any oil, gas, gasoline, or other hydrocarbons, or other substances produced or obtained from the wells, or any of the wells, operated by the Contractor pursuant to the terms of this contract, or on account of any payments made or to be made to, or money or consideration to be received by, the Contractor hereunder. If taxes are ever lawfully levied and assessed against the mineral rights, or lawfully levied and assessed against the lands and the mineral rights, or in the event any license, severance production or other tax on oil, gas or other hydrocarbons produced hereunder shall be levied by any governmental authority, the Contractor shall pay the same; provided, however, that the Contractor shall not be required to pay any of the same in excess of the proportion that the percentage of the proceeds payable to the Contractor as his compensation hereunder bears to the total proceeds derived from the sale of all said oil, gas and other hydrocar- bons. Any and all payroll taxes, or other contributions which are measured by, or are against or upon, or are based upon, wages, salaries, or other remuneration, shall be paid by the Contractor. ARTICLE XXXI MECHANICS' LIENS Section 1. The Contractor shall not suffer nor permit any mechanic's, laborer's, or materialman's lien, or any other lien, to exist upon or against any of the wells drilled in the suhject lands, or any part thereof, by reason of the Contractorts -36- operations hereunder, and the Contractor shall hold the City harmless from and against any and all such liens. If, howevert any lien shall be filed upon any lands owned by or subject to the control of the City, or any of the wells drilled under the subject lands hereunder, by any mechanic, laborer or materialman because of any dispute or controversy concerning the amount involved between said mechanic, laborer -or materialman and the Contractor, or for any other reason or purpose, the Contractor shall, with due diligence, defend any action brought to fore- close such lien, at the Contractor's sole cost and expense, and in the event of a judgment being rendered in favor of the claimant, in any such action, the Conttactor will promptly pay the same on final judgment, together with all costs of suit, and, if it shall be necessary for the City to defend or prose- cute any action arising out of any such lien for its own protection, the Contractor shall pay and discharge all reason- able expense incurred in so doing. The Contractor shall exercise due care and diligence in protecting from defacement or destruction any notices of non -responsibility for liens which the City may post, or cause to be posted, upon any of the drill sites to be obtained by the Contractor hereunder, or the subject lands. ARTICLE XXXII WORKMEN'S COMPENSATION INSURANCE Section 1. The Contractor shall, at all times, during the term of this contract, carry proper and adequate insurance under the Workmen's Compensation Insurance and Safety Act of the State of California, and save said City harmless from all liability arising or finally held to arise under said Act. -37- ARTICLE XXXIII PUBLIC LIABILITY INSURANCES BONDS AND FIRE INSURANCE Section 1, The Contractor agrees at all times to indemnify and keep indemnified and save the City harmless from and against any and all injury, loss, damages liability, cost and expense which the City may hereafter suffer, sustain, incur, be put to, pay, or lay out, and from any and every and all actions, suits, proceedings, claims and demands which may here- after be brought, made, or filed against the City by reason of, or arising out of, or in any way connected with, any or all of the operations (whether authorized or permitted herein or not) of the Contractor in, upons adjacent to, in the vicinity of, under or above the drill sites, regardless of whether such operations of the Contractor are conducted, made, or performed by the Contractor personally, or by the Contractor's employees, servants or agentss or by some other person, persons, firms or corporations authorized or permitted or suffered so to do by the Contractor.- The Contractor further agrees to procure, prior to the commencement of operations by him hereunder, and to maintain in full force and effect, during the term of this contract, public liability and property damage insurance, naming the City as the party insured thereunder, approved as to form and coverage by the City Attorney for said City, covering injury to, or death of any person other than employees of the Contractor, or damage to or destruction of, any property, in amounts of not less than Fifty Thousand ($509000.00) Dollars for injury to, or death of, one persons and One Hundred Thousand (9$1009000.00) Dollars for injury to, or death ofs more than one person, and Twenty-five Thousand ($25,000.00) Dollars for damagesto, or destruction ofs propertys where such injury -38- • to, or death of, any person, or,damage to, or destruction of, any property shall arise out of or be in any way connected with the operations of the Contractor, whether authorized or per- mitted herein or not. Section 2. Before entering upon the performance of any work herein provided for, the Contractor shall file with the City Council a good and sufficient bond, to be approved by the City Attorney for the City as to form and by the City Engineer and the City Council as to sufficiency in the sum of'Twenty-five Thousand ($$257000.00) Dollars; such bond shall be executed by either two or more good and sufficient sureties or by corporate surety as provided by law, and shall provide that if the Con- tractor, or his subcontractors, fail to pay for any materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, that the surety or sureties will pay for the same, in an amount not exceeding the sum specified in such bond, and also, in case suit is brought upon such bond, a reasonable attorneys fee, to be fixed by the court. Such bond shall, by its terms, inure to the benefit of any and all persons, companies and corporations entitled to file claims under the law so as to give a right of action to them or their assigns, in any suit brought upon such bond. Such bond, anything herein to the contrary notwithstand- ing, shall comply in all respects with the provisions of Sections 1+200-4208 of The Government Code of the State of California. Section 3. The Contractor, at his own cost, risk and expense, shall procure and maintain, for the benefit of and payable to the City, fire insurance covering all property'in his possession belonging to the City situated on or above the surface -39- of the ground, including oil, in an amount equal to the insur- able value thereof and in a company or companies satisfactory to the City; and the policy or policies therefor shall be delivered to and held by the City. ARTICLE XXXIV WARRANTY Section 1. It is agreed that the City makes no covenant or warranty, express or implied, as to the title of the City, or the right of the City to possession of any drill sites, or any portion thereof, or as'to the condition thereof, or as to any easements, licenses, or privileges whatsoever pertaining thereto, and the permits and privileges of use and occupancy of such drill sites hereby created in favor of the Contractor, if any, are so created by the City without covenant of title, or right of possession, or for quiet enjoyment; nor does the City make any covenant or warranty, express or implied, as to the title of the City, or the right of the City to possess the subject lands. ARTICLE XXXV NOTICE OF LITIGATION Section 1. The Contractor shall serve upon the City, and the City shall serve upon the Contractor, written notice of any litigation or the levy of any process of any court or order thereof affecting the subject lands or the drill sites, or affecting any rights or interests of any of the parties hereto under this contract, or any well or wells drilled pursuant hereto, or the production thereof, or any structures, equipment or tools at any time used in connection therewith, or affecting any of the operations of the Contractor hereunder, or any money accruing from the sale or disposal of any oil, gas, or other -40- G hydrocarbons produced from any of said wells, as soon as the Contractor or the City, as the case may be, shall have obtained knowledge thereof, and the Contractor shall give the City notice of the levy, assessment or imposition of any tax, fee, rate, charge, levy, assessment or contribution referred to in Section 1, of Article XXX hereof. ARTICLE XXXVI SERVICE OF NOTICES Section 1. Contractor shall give any notice required or permitted to be given hereunder to the City as followsA By serving such notice upon the City Clerk of the City, person- ally, or upon the City Council, personally, or upon the City Engineer of the City, personally, or upon such officer of the City as the City Council may, from time'to time, in writing, advise the Contractor to so serve. The City of Newport Beach may give any notice or order required or permitted to be given hereunder, and may exercise any option herein reserved to the City, by causing such notice or order or written notice of the exercise of such option to be personally served upon the Contractor, or, by enclosing such notice in a sealed envelope addressed to the Contractor at such address as the Contractor shall, from time to time, designate, in writing, to the City as the place for giving of notices hereunder, and by depositing the same, postage prepaid, in the United States mail, as regis- tered mail, special delivery, at any place in Orange County, California ARTICLE XXXVII SEVERABILITY Section 1. In the event this contract shall be held by final judgment of a court of competent jurisdiction to be -'+1- invalid as to any part of the subject lands or the drill sites, but valid as to the remainder thereof, then this contract shall continue in full force and effect as to such remainder. ARTICLE XXXVIII CONSTRUCTION Section 1. In this contract, whenever the context so requires, the neuter gender herein used shall apply to and include the masculine gender, and the singular number herein used shall apply to and include the plural. Section 2. The titles or sub -titles of sections or articles of this contract, as herein set forth, have been inserted for the sake of convenience only, and are not to be taken, deemed or construed to be any part of the terms, conven- ants, or conditions of this contract, or to control, modify or limit any of the terms, covenants or conditions hereof. Section 3. It is to be observed that the terms "hereof", "herein", "hereby", "hereto", "hereinbefore", "hereinabove'19 "hereinafter'19 and "hereunder", have been used in this contract and it is the intent of the parties hereto that the same shall in all instances, unless otherwise provided expressly or by necessary implication from the context, refer to the whole of this contract, rather than'to be limited to the specific paragraphs in which such terms may have been used. Section 4. The "producing portion" of a well, as that term is used in this contract, is hereby defined to be each and all of those subsurface parts of a well opened to receive, and which is or are then actually receiving, or capable of receiving, oil, gas or other hydrocarbons and thereby permit- ting, or capable of permitting, said oil, gas or other hydrocarbons to enter into said well and to be then produced -42. therefrom. ARTICLE XXXIX ARBITRATION Section 1. The parties hereto hereby agree to settle by arbitration any controversy, legally susceptible to arbitra- tion, arising out of this contract or the refusal of either party to perform the whole or any part thereof, and further agree that a judgment of the Superior Court of the State of California in and for the County of Orange shall be -rendered upon the award, made pursuant to the submission, and such judgment shall be entered in the County of Orange. Section 2. Except in cases or arbitration as provided 0 in Section 2 of Article XI of this contract, the submission to arbitration as herein provided shall be as follows: Either party may notify the other, in writing, of its desire for arbitration as to any pending controversy arising out of this contract or as to any refusal of such other party to perform the whole ar any part thereof. Such notice shall set forth, in ordinary and concise language, the facts constituting the controversy or refusal to perform with only the particularity or preciseness required of a complaint in a civil action, and shall name the arbiter selected by the party giving such notice. Within five (5) days after the service of such notice of submission the party receiving the same shall answer, in writing, the allegations therein contained and shall serve such answer upon the party giving the notice of submission together with the name of the arbiter selected by the party serving such answer. The two arbiters thus chosen shall appoint a third within three (3) days after the appointment of the second and the service of the notice of such appointment as above set forth. -43- The three arbiters so chosen shall decide the controversey set forth in such submission and the answer thereto within ten (10) days after the appointment of such third arbiter. The decision of the majority of the arbiters shall be the decision of all. In every respect not herein specifically provided for, such arbitration shall be in accordance with Title X of Part Three of the Code of Civil Procedure of the State of California. ' ARTICLE XL LOCATION OF PERMANENT STRUCTURES Section 1. All buildings, permanent storage tanks, refineries, dehydrating plants, and similar structures erected, constructed or used by the Contractor in the performance of this contract shall be constructed and erected and maintained at points north of the north line of the City's existing road extending from the Mesa to the Sewage Disposal Plant; and no permanent buildings or structures of the type herein contem- plated shall be erected, constructed or maintained by the Contractor south of the north line of the City's present road extending from Mesa to the Sewage Disposal Plant. Section 2. Within ninety (90) days after the dompletion or abandonment of any well from a drill site located within three hundred (300) feet of any boundary line of the City of Newport Beach, the Contractor shall remove the drilling derrick from the drill site on which it was used, and such derrick shall bexemoved to a distance at least five hundred (500) feet northerly of the State Highway, and five hundred (500) feet from any dwelling within the city limits of the City. When any such well ceases to produce as a flowing well, and pumping is required in order to operate the same as a producing well, the Contractor may erect, on any drill site within said three -44- hundred (300) feet of any boundary line of the City of Newport Beach, any derrick which is necessary in order to operate such well as a producer hereunder, but such pumping derrick shall be no higher and no larger than is actually required for pumping purposes under the best and latest approved oil well pumping methods. Section 3. The Contractor will be permitted to install flow tanks with suitable bar walls, not to exceed five hundred (500) barrels capacity at each derrick. ARTICLE XLI COMPENSATION AND PAYMENT Section 1. As and for the sole, full and complete payment and compensation to the Contractor for the performance by him of each, all and every of the terms, covenants and conditions of this contract herein provided to be kept, done and performed by the Contractor, the City shall pay to the Contractor the sums of money specified in Sections 1 and 2 of Article XKII hereof and the City shall authorize and direct to be paid to the Contractor the sums of money in the amounts and in the manner in Section 2 of this Article XLI set forth, and the Contractor agrees that as and when the City has so author- ized and directed to be paid to him any of the sums of money so specified in said Section 2 of this Article XLI, the liability of the City for any compensation or payments to the Contractor hereunder shall thereupon be satisfied and discharged to the extent of the sums so authorized to be paid pursuant to said Section 2 of this Article XLI hereof, it being understood and agreed that the City shall not be the guarantor of the payment to the Contractor of any sums so authorized or directed by the City to be paid to him by the purchaser or purchasers of any .45- oil, gag or other hydrocarbons produced and saved by the Contractor hereunder, and the Contractor shall look solely to the purchaser or purchasers for the payment of all compensation and payments so authorized and directed by the City to be paid to the Contractor, and it being further understood and agreed that the City shall not be liable to the Contractor for any compensation or payment upon or measured by any oil, gas or other hydrocarbons produced and saved by the Contractor here- under which are lost, stolen or destroyed. The Contractor shall have the use, without charge, of only so much of the gas produced from the subject lands as a result of his operations hereunder as may be required and used in such operations. Section 2. The City shall authorize or direct the purchaser or purchasers, respectively, of the oil and of the gas, produced and saved by the Contractor and sold pursuant to the terms hereof, to pay to the Contractor certain sums of money in the amounts and computed in the manner as follows, to wit: (a) Eighty-seven andone-half (8 %) per centum of the consideration to be paid by the Purchaser or purchasers of the oil for the first eighty (80) barrels, or less, thereof per day produced, saved and sold from each well hereunder; and Eighty-f=ve (85%) per centum of the considera- tion to be paid by the purchaser or purchasers of the oil for the next eighty (80) barrels, or part thereof, per day produced, saved and sold from each well hereunder; and Eighty-two and one-half (82V6) per centum of the consideration to be paid by the purchaser or -46- purchasers of the oil for the third eighty (80) barrels, or part thereof, per day produced, saved and sold from each well hereunder; and As to the consideration to be paid by the purchaser or purchasers of the oil for all thereof in excess of the above mentioned two hundred forty (240) barrels per day produced from each well hereunder, the City shall direct all such consid- eration to be paid to the Contractor less that to be paid for the amount of oil resulting from the application to the production in excess of said two hundred forty (240) barrels per day produced from each well of the following formula: R = P - 16X 1 67_ 2.5 ,� .0166P (In said formula "P" is the average daily oil production from each well, in terms of barrels per day). In computing the barrels of oil per day produced from any well, the total amount of oil produced from such well during a calendar month shall be divided by the number of days in such month. (b) The percentage of the consideration, computed on the total production of each calendar month, to be paid by the purchaser or purchasers of the natural gas produced and obtained by the Contractor from the wells drilled by him pursuant to the terms of this contract that equals the percentage of the total consideration paid by such purchaser or purchasers, as aforesaid, for all the oil produced, -47- saved and sold in the same calendar month; provided, that if any dry gas be taken in kind by the City, as hereinbefore provided, it shall pay to the Contractor the aforesaid percentage of the value thereof at the price obtained by such purchaser or purchasers for similar dry gas during the same calendar month, or at the market price in the event such purchaser or purchasers make no sales, or at a price to be mutually agreed upon between the parties if there be no sales by such purchaser or purchasers and no market price. IN WITNESS WHEREOF, the City of Newport Beach has caused this contract to be executed with all the formalities required by law, and D. W. Elliott has hereunto set his hand the day and year this contract first above written. CITY OF NEWPORT BEACH By: (Signed) C1 an H. Hall_ Its Mayor ATTEST: (Signed) Frank L. Rinehart City Clerk (CORPORATE SEAL) PARTY OF THE FIRST PART Note: Signatures notarized (Signed) D. W. Elliott D. W. Elliott PARTY OF THE SECOND PART -48- 14 TITLE ARTICLE NO, PAGE ACT OF GOD XXIV 29 ARBITRATION XXXIX 43, 44 BANKRUPTCY XXIX 34, 35 BLOWOUTS AND FIRES XII 1, 7 BONDS9 PUBLIC LIABILITY AND INSURANCE XXXIII 389 39, 40 CASING XI 15, 16, 17 COMMINGLING XVI 219 22 COMPENSATION AND PAYMENT XLI 459 46, 47, 48 COMPLIANCE WITH LAWS XXVII 33 CONSTRUCTION XXXVIII 42, 43 CURTAILMENT XIv 18, 19, 20 DEFAULT CLAUSE XXV 30, 319 32 DEHYDRATION XXII 26, 27 DELIVERIES, RECORDS OF SHIPMENT, PRODUCTION AND XXI 25, 26 DRILLING OF WELLS VII •9, 10, 117 v DRILL SITES v 8, 9 EMPLOYMENT I 11 29 3 FIRES, BLOWOUTS AND XII 17 GAUGES AND GAUGING - TANKS Xv 20, 21 INSURANCE, PUBLIC LIABILITY AND BONDS XXXIII 389 39, 40 LITIGATION, NOTICE OF XXXV 40, 41 LOCATI0N OF PERMANENT STRUCTURES XL 441 45 LOGS AND RECORDS IX 13 MECHANIC°S LIENS XXXI 36, 37 NON -ASSIGNABILITY XXVI 32 NOTICE OF LITIGATION XXXV 40,41 NOTICES, SERVICE OF XXVII 41 .1- 0 OFFSETS AND REDRILLS OWNERSHIP OF OIL PARTIES, RELATIOA?SHIP OF PAYMENT, COMPENSATION AND PAYMENT OF BILLS BY CONTRACTOR PRODUCTION PRODUCTION AND DELIVERIES, RECORDS OF SHIPMENT PUBLIC LIABILITY INSURANCE, BONDS AND INSURANCE PURCHASE CONTRACTS PURCHASERS OF GAS PURCHASERS OF OIL RECORDS OF SHIPMENT, PRODUCTION AND DELIVERIES RECORDS, LOGS AND REDRILLS, OFFSETS AND RELATIONSHIP OF PARTIES REMOVAL OF PROPERTY AND EQUIPMP3NT AND RESTORATION OF PREMISES SERVICE OF NOTICES SEVERABILITY SHIPMENT PRODUCTION. -AND DE] RECORDS OF STANDARDS STRATIGRAPHIC BOTTOM OF 6•TEL] SURVEYS, TEST AND TANKS - GAUGES AND GAUGING TAXES TERM AND TERMINATION TERMINATION, TERM AND VIII 12, 13 Xx 25 II 4, 5, 6 XLI 450 46, 47, 48 xxvlll 34 XIII 17, 18 XXI 25, 26 XXXIII 389 39, 40 XIX 25 XVIII 23, 241 25 XVII 22, 23 XXI 25,.26 IX 13 VIII 12, 13 zz 4, 5, 6 XXIII 27, 28, 29 xxXVI 41 xxxvII 41, 42 C • TESTS AND SURVEYS X 1)+$ Z5 WARRANTY XXXIV 4o ArORKMEN!-S COMPENSATION INSURANCE XXXII 37 (The foregoing index is for convenience only, and is no part of the attached contract.) -3- CONTRACT KNOW ALL MEN BY THESE PRESENTS; That this contract, made and entered into, in duplicate originals, this lst day of November, 1943, by and BETWEEN THE CITY OF NEWPORT BEACH, a municipal corporation organized and existing under and by virtue of the laws of the State of California, and situate in the County of Orange, State of California, PARTY OF THE FIRST PART, And hereinafter referred to as THE CITY, AND D. It'. Elliott, a resident of the City of Long Beach, County of Los Angeles, State of California, PARTY OF THE SECOND PART, and hereinafter referred to as CONTRACTOR, ti�I,$NESSETH: ARTICLE I f R-d-A Section 1. Subject to the terms, covenants and conditions hereinafter stated, the City hereby engages and employs the Contractor, as an independent contractor, for and during the term hereof, to furnish, maintain and prepare the necessary drill•sites outside of and beyond the city limits of the City, and erect thereon the necessary foundations and derricks for, and to drill and explore for oil, gas and other hydrocarbon substances, by the Rotary method, or such other efficient and suitable method as may be approved by the City, and, in case oil, gas or other hydrocarbon substances are Bound in commercial quantities, to complete, operate, mbintain, redrill, repair, -1- recondition and deepen' as many wells as can economically be bottomed from the drill site obtained, as aforesaid, until there shall have been completed and brought to production one well bottomed in each ten acres in those certain lands situated in the City of Newport Beach, County of Orange, State of California, particularly described in Exhibit A, hereunto attached, hereby referred to, and by this reference made a part hereof, said lands being hereinafter referred to as subject land, and also such wells in addition to one well in each ten acres in said subject lands as may be lawful and necessary in order to obtain all the recoverable oil, gas and other hydro- carbon substances from any oil producing zone in said subject lands, or to minimize or equalize drainage therefrom, and to keep, do and perform, in the manner and at the times herein' specified, each and all of the terms, covenants and conditions of this contract to be kept, done and performed by the Con- tractor; and said Contractor covenants and agrees that, at his sole cost and expense, and in the manner and at the times herein specified, he will keep, do and perform each and all of the terms, covenants and conditions of this contract to be kept, done and performed by him, and in so doing will, throughout the entire term hereof, erect, install, construct, assemble, fur- nish and maintain all structures, foundations, roads, power lines, fuel lines, derricks, cellars, sumps, tanks, pipelines, fittings, valves, separators, compressors and any and all other appliances, machinery, tools, equipment, facilities, services, utilities, instrumentalities and materials, whether or not embraced within the foregoing classifications, which, according to the best practices at the time prevailing among responsible and established operators in the district in which said subject _2_ lands are located, are necessary, proper or judicious for the faithful, efficient, safe and successful performance of the operations embraced in and contemplated by this contract, the obligations for which are imposed upon the Contractor, and will furnish, supply and pay for all services, work and labor, and expert and scientific service and advice required for the opera- tions embraced within and contemplated by this contract, and will perform all the obligations of the Contractot hereunder according to the terms, specifications and standards hereinafter specified. Section 2. The Contractor shall keep and maintain at least one string of tools, fully manned and equipped in accord- ance with the best oil field practices, continuously and un- interruptedly engaged in drilling operations from the commence- ment of the drilling of the first well hereunder until all the drilling requirements hereof shall have been fully complied with as to all subject lands as to which this contract shall not have been terminated in accordance with the provisions hereof. Provided, however, that for a period of sixty (60) days from and after the completion or abandonment of each well the Contractor may suspend drilling operations. Section 3. The City covenants and agrees that, except as provided in Article III hereof, and so long as, and only so long as, the Contractor is not in default hereunder, the City will not, nor will it engage or employ or authorize any other person, firm or corporation to, bottom any well or locate the producing portion of any well beneath said subject lands. The Contractor shall not, for the purposes hereof, be considered in default unless he shall have been notified of the particulars of such default as provided in Article XXV hereof and shall have failed to cure such default as provided therein. -3- 1 ARTICLE II RELATIONSHIP OF PARTIES Section 1. In performing the obligations hereunder, the Contractor is engaged solely in the capacity of an independent contractor, it being expressly understood that no relationship between the contracting parties hereto other than that of principal and independent contractor has been or is intended to be created by this contract. This contract does not constitute, and the parties hereto do not intend it to create, a partnership between the parties hereto, nor a joint venture, nor the rela- tionship of master and servant or principal and agent. The parties hereto have entered into this contract with full knoirledge of the provisions of California Statutes of 1919 at page 1011, 1927 at page 125, and 1929 at page 17059 and it is neither the intention of the City to, nor does the City hereby grant, convey, give or alien to or vest in the Contractor, for any purpose whatsoever, any title, interest or estate in or to said subject lands, or any part thereof, or any other lands used by the Contractor hereunder, or any title, interest or estate in or to the oil, gas or other hydrocarbons or minerals under- lying said subject lands, or any part thereof, or any title, interest or estate in or to said oil, gas, or other hydrocarbon substances or other minerals when removed therefrom, and it is neither the intention of the Contractor that this contract shall, or ever be construed to, grant, convey, give or alien to or vest in the Contractor, for any purpose whatsoever, any title, interest or estate in or to said subject lands, or any part thereof, or in or to any other lands used by the Contractor hereunder, or any title, interest or estate in or to the oil, gas or other hydrocarbons or other minerals underlying said 0 subject lands, or any part thereof, or any title, interest or estate in or to said oil, gas or other hydrocarbons or other minerals when removed therefrom; and it is the intention of each and all of the parties hereto that insofar as said subject lands, or any part thereof, or any other lands used by the Contractor hereunder, or the oil, gas or other hydrocarbons or other miner- als underlying said subject lands, or when removed therefrom, . may be affected, if at all, by California Statutes of 1919, page 1011, California Statutes of 1927, page 125, or California Statutes of 1929, page 1705, or by any trust for commerce, navigation or fishery, such parts of said lands so affected shall at all times be so used, and such oil, gas or other hydrocarbons or other minerals underlying the same shall be so removed and disposed of, as not to violate said Statutes, or any of them, or any part or portion of any of them, or any such trust for commerce, navigation or fishery; and should a court of competent jurisdiction hereafter hold, by final judgment, that this con- tract does grant, convey, give or alien to, or vest in the Contractor, for any purpose whatsoever, any right, title, inter- est or estate in or to said subject lands, or any part thereof, or in or to any other lands used by the Contractor hereunder, or any right, title, interest or estate in or to any oil, gas or other hydrocarbons or other minerals underlying said subject lands, or any right, title, interest or estate in or to said oil, gas or other hydrocarbons or other minerals when removed there- from, in any manner or to any extent which is by such judgment held to be contrary to or in violation of said Statutes, or any of them, or any provision or provisions of said Statues, or any of then, or contrary to or in violation of any such trust for commerce, navigation or fishery, then, and in that event, this -5- contract, to the extent, and only to the extent, that it is so held to violate or be contrary to the aforesaid Statutes, or any of them, or any provision or provisions of said Statutes, or any of them, or such trust for commerce, navigation or fishery, shall, as of the date hereof, be and become, without further act upon the part of either of the parties hereto, null and void and of no force whatsoever. 8 ARTICLE III TERM AND TERMINATION Section 1, Subject to the terms, covenants and conditions of this contract the term hereof is for a period ending with the 3rd day of February 1962 and an additional period of not to exceed ten (10) years thereafter upon condition that, and as long as, oil, gas, casinghead gas, or other hydrocarbon sub" stances, or either or any of them, is produced from wells bottomed in said subject lands9 provided that while the Contrac- tor is not in default in respect of any well drilled or being drilled hereunder, the contractor shall have the option to terminate this contract, in whole or in part, as follows: Upon ten,(10) days written notice to the City, the Contractor may, from time to time,'terminate this contract and all his obligations hereunder as to a part or parts of the subject lands, provided that any part of the subject lands so relieved from the terms and provisions hereof shall consist of one or more ten acre parcels, each parcel to be substantially rectangular in shape, with the sides thereof substantially equal in dimensions, and no part of any exterior boundary thereof nearer than three hundred (300) feet from a point in the surface of the subject lands directly above that portion of any well hole located in and producing from an oil bearing formation. -6- It is expressly understood and agreed that any termination hereunder, whether total or partial, shall not affect the Con- tractor's rights or obligations under this contract in relation to any well theretofore drilled and completed hereunder, and as to which this contract has not been terminated, or then in process of drilling hereunder and that, from and after any termination under this section the City may drill or cause to be drilled such well or wells as it may desire to have bottomed beneath and opened to the production of oil, gas and other hydrocarbons from such part or parts of the subject lands as to which this contract may have been terminated, provided only that said City shall not drill or cause to be drilled any well any producing portion of which is less than three hundred (300) feet from the producing portion, in the same oil producing zone of any well drilled by the Contractor and as to which this contract continues in effect. The Contractor shall not, for the purposes hereof, be considered in default unless he shall have been notified of the particulars of such default as provided in Article XXV hereof and shall have failed to cure such default as provided therein. ARTICLE IV STANDARDS Section 1. Each of and all the obligations to be per- formed by the Contractor shall be done and performed at his sole risk, cost and expense, and each of and all the operations to be conducted by the Contractor shall be conducted, and each of and all the structures to be erected by the Contractor shall be erected in a first class, good oTorkmanlike and efficient manner and in accordance with the best oil field practices at the time prevailing in said district among responsible and established -7- 1 operators, and all the equipment, machinery, facilities, mater- ials and supplies required to be furnished hereunder shall be first class and of not less than American Petroleum Institute standards then prevailing, and of a type suitable for and adequate to complete the work to be done in a good, workmanlike and efficient manner, and in accordance with said best oil field practices in the district. The Contractor at all times shall maintain all such structures, equipment, machinery and facilities in a good and first class condition. Said Contractor shall not use any open sumps for storage of oil, other than for settling purposes. Any sumps constructed by the Contractor shall be constructed with walls and bottoms of sufficient thickness and strength, computed according to the best engineering practices, to hold and retain, without breakage or leakage, at least the full cubicle capacity thereof, The Contractor shall take all necessary precautions to prevent any oil from getting into adjacent sloughs or the river channel. ARTICLE V DRILL SITES Section 1. The Contractor shall procure and provide drill sites from which each of the wells to be drilled under the terms of this contract shall be spudded in, and each of and all such drill sites shall be outside the city limits of the City of Newport Beach. The terms and conditions under which such drill sites shall be obtained by the Contractor shall be such as to permit him to whipstock or slant drill wells from such drill sites and shall authorize him to produce oil, gas, and other hydrocarbon substances under the terms of this contract; and no title in the oil, gas or other hydrocarbon substances so produced shall pass, by virtue of this contract, either to the Contractor =8- or to the owner of the property upon which such drill sites may be located. Section 2. The Contractor shall neither select nor use any drill site south of the State Highway, or below the bluff easterly of the northeasterly prolongation of 57th Street, ARTICLE VI STRATIGRAPHIC BOTTOM OF WELLS Section 1. In the event that, in the course of the development of the subject lands, oil, gas or other hydrocarbon substances may be discovered in paying quantities in two,or more stratigraphic depths, then, in that case, the City, when it notifies the Contractor to drill the next well thereafter hereunder, may designate in writing the oil producing zone or stratigraphic depth from which it desires to have such well brought to production; and in the event the City desires the Contractor to produce from more than one oil zone in the same well, it may likewise notify the Contractor in writing•pf the location or locations or stratigraphic interval or intervals at which it desires to have such well opened to production in and from any oil producing zone or zones or intervals thereof, provided that the Contractor shall not in any instance, including offsets as provided in Article VIII, Section 1, hereof, be required to so bottom or produce from any well that any producing portion thereof is less than three hundred (300) feet from the producing portion, in the same zone, or intervals thereof, of any well theretofore drilled hereunder, or where it would be imprac- tical from the standpoint of good oil field practice to do so. ARTICLE VII DRILLING OF WELLS Section 1. Within sixty (60) days following the service -9- of written notice on the Contractor by the City requiring the drilling of the first well hereunder, and of any subsequent well after completion or abandonment by the Contractor of any well, the Contractor shall apply for all necessary permits in order to drill, operate and maintain such well, and shall prosecute all such applications diligently and in good faith until the same shall have been finally granted or denied. Within thirty (30) days after obtaining all permits necessary for the drilling of any such well, the Contractor shall complete all adequate and proper preparations of the drill site contemplated by such permits, and the construction thereon of good and sufficient foundations for the drilling of a well hereunder on and from such drill site, and the erection of the necessary derrick, and the installation of all necessary equipment in order to enable him to commence the drilling of such well, and within said thirty (30) day period the Contractor shall actually spud in such well upon such drill site, and, at all times thereafter, diligently and without cessation, shall continue drilling operations hereunder upon and from such drill site until one well shall have been drilled thereon and therefrom and completed and opened to production at such depth beneath said subject lands as shall have been designated, in writing, by the City as herein provided. Section 2. Nothing herein contained shall require the Contractor to be engaged in the drilling of more than one well at any one time. Section 3. If the Contractor shall fail or be unable to complete any well to the stratigraphic depth designated by the City and in the manner required by this contract within one hundred twenty (120) days from the date when actual drilling -10- was commenced therein, then the Contractor shall abandon said well in the manner authorized by law, unless the City shall have given written authorization for the continuance of operations therein for a designated time, in which event said well shall be so abandoned if it has not been so completed within said designated time. In case of abandonment, as aforesaid, of any well, the Contractor shall forthwith drill and complete, in the manner required hereunder, a substitute well upon the same drill site and to be bottomed and to produce from the same ten (10) acre portion of the subject lands in lieu of the well so abandoned, and if the Contractor is unable to so complete, to the required stratigraphic depth, such substitute well within one hundred twenty (120) days after drilling operations therein were actually commenced, or such additional time as may be allowed in writing by the City, then the Contractor shall likewise abandon said substitute well and shall'forthwith, in like manner, continue to drill an additional substitute well, or additional substitute wells, and likewise to abandon each substitute well which is not so completed to said required stratigraphic depth within the aforedescribed interval of time until one well has been completed to such depth in the manner herein required for each ten (10) acres of the subject lands, Section 4. Whenever, in any well hole, formations are encountered at a depth prior to completion which would indicate to the City that further drilling would be unsuccessful and unproductive at that location, then said well hole may, with the written consent of the City, be abandoned. Section $. It is distinctly understood and agreed that the Contractor shall be compensated hereunder for only those wells which are drilled and completed to the required strati- -11-- rI C-] graphic depth in accordance with the provisions of this contract, and that such payments shall be made in the manner hereinafter provided. Section 6. All wells abandoned hereunder shall be excluded in computing the maximum number of wells required to be drilled hereunder. ARTICLE VIII OFFSETS AND REDRILLS Section 1. In the event oil, gas or other hydrocarbon substances are actually produced in commercial quantities from any well, the producing portion or portions of which are within three hundred (300) feet of the exterior boundaries of the sub- ject Lands, then the Contractor, upon the written order of the City, shall drill an additional well to be bottomed so as to offset such exterior well, the bottom thereof to be at such location as may be designated by the City in writing; provided that it is not impracticable or unprofitable to the City, or prohibited by any authority having jurisdiction thereof, or con- trary to the provisions of any curtailment plan or agreement being complied with by the Contractor pursuant to the terms of Article XIV hereof. Section 2. The Contractor shall deepen or plug back or perforate any existing well when and as ordered by the City so to do, so as to open the same to production and to produce from any known producing zone or zones upon the subject lands capable of producing in paying quantities if such operations, when conducted according to the best oil field practices then being followed in the district, will not unreasonably imperil said well as a producing well in the zone from which it is then producing. _12- Ej Section 3. The operations provided for in this Article VIII hereof shall be commenced by the Contractor within thirty (30) days after service of written notice by the City so to do and shall thereafter be continuously and diligently prosecuted until completion of the work so ordered by the City. ARTICLE IX LOGS AND RECORDS Section 1. The Contractor shall keep a daily log, in duplicate, of each well drilled by him pursuant to the terms hereof, and such logs shall show, among other things, the strata penetrated by the drill. Such log shall be kept at the well during the drilling and until the completion of such well, and shall be kept open to inspection by the City and its duly authorized agents, and a. daily duplic=te thereof shall be made available at such well for delivery to, and shall be the property of the City. The Contractor shall, whenever and as frequently as requested in writing by the City so to do, use his best efforts to take and recover good and adequate cores of each well designated by the City and by him drilled, or in process of drilling, pursuant to the terms hereof, and in the event any coves are taken or extracted from any well so drilled or drill- ing, such cores shell be retained and preserved for a reasonable time, and shall be available for inspection at the well by the City and its duly authorized agents, anC. the City and its agents may at all times take such samples thereof as may be desired by the City or its agents, Within ten (10) days after each well is completed, the Contractor shall furnish to the City for each well one duplicate copy of each of the following: Core record (if any cores are recovered), electrical log, survey plat, and all data compiled in connection with such survey. ARTICLE X TESTS AND SURVEYS Section 1. The Contractor shall make a complete electri- cal coring survey of the entire bore hole of each well, below shoe of surface casings, drilled by him pursuant to the terms of this contract, and shall obtain the use of the necessary devices for the making of such survey, and shall, upon the completion of such electrical coring survey, furnish a true and complete copy thereof to the City, and if at any time during the drilling of any well pursuant to the terms hereof, and up to the time of the completion or abandonment thereof, said City desires that a drill stem test shall be made at any point in the bore hole of any such well, and if it shall be practical so to do, the Contractor shall, upon the receipt of written notice from the City requiring him so to do, forthwith and immediately proceed with the making of such drill stem test or tests, not exceeding two in number, in any one well at the points in the well specified in such notice, and, upon the completion of each such test in each such well, shall furnish a true and complete record of the results thereof to the City. Section 2. The Contractor shall cause to be made a complete and accurate survey, by the single -shot method, of each well drilled by him hereunder; such survey shall be made as the work progresses, and shall be made and computed from stations not more than one hundred (100) feet apart. all single -'shot discs obtained in making such survey, when taken by or for the Contractor, shall be immediately platted for the Contractor, and thereupon such single -shot discs shall be delivered to and become the property of the City. If requested by the City the Contractor shall also cause to be made and filed with the City, 0 0 prior to placing each well by him drilled hereunder upon produc- tion, a complete oriented survey to the bottom of the bore hole thereof, and such survey shall be made and computed from succes- sive stations not more than one hundred feet apart. All surveys filed with the City shall include a plat showing the course of the bore hole, all computations, notes, data ann other information pertinent thereto. Like surveys shall be so made and filed with the City in connection with any redrilling and deepening operations which may at any time be undertaken or conducted by the Contractor. ?,RTICLE XI romeffH Section 1. The Contractor shall give to the City a notice, in writing, at least forty-eight (48) hours before running any casing into the bore hole of any well, which notice shall state the time when said casing will be run, the speci- fications of the casing proposed to be run, and the complete program of cementing and perforating said casing, and at least forty-eight (48) hours before running any casing into the bore hole, the Contractor shall have available for inspection by the City any and all casing so intended to be run. No casing may be run into the bore hole of any well drilled by the Contractor hereunder if the City or its duly authorized representatives shall serve upon the Contractor, in writing, not less than twenty-four (24) hours prior to the time specified in the foregoing notice of the Contractor's intention to run such casing, disapproval of such specifications or such casing, or any part thereof, upon the ground that the same, or any part thereof, does not comply with the foregoing specifications, and stating the respect in which such casing so fails to comply, nor if the City shall, in writing, served upon the Contractor within said -15- 0 • period last above mentioned, disapprove of said cementing and perforating program. Section 2. If the City shall so disapprove of any such specifications or casing or perforating and cementing program, and the parties hereto, within two (2) hours after notice of such disapproval has been delivered to the Contractor, shall be unable to agree upon whether the casing complies with said specifica" tions or upon whether said perforating and cementing program is in accordance with the best oil field practices then prevailing in the district, then the question shall be settled by arbitra- tion in the following manner: The Contractor, within the period of one (1) hour after the expiration of the aforesaid two (2) hour period, shall select one arbiter, and the City, within the same period, shall select one arbiter, and if the two so select- ed cannot agree upon the question within six (6) hours after their selection, then, within -...two (2) hours thereafter, they shall select a third arbiter, and the three so selected shall then decide the subject by a majority vote within six (6) hours after selection of the third arbiter. The decision of the majority shall be final and binding upon the parties hereto and finally conclusive upon the question then in dispute. In case either party shall fail to select and have available an arbiter within the time herein required, then the arbiter selected by the other party may make the decision and such decision, when made, shall likewise be conclusive. In the event it is so finally and conclusively decided that said specifications are sufficient or that said casing complies with said specifications, or that said perforating and cementing program is in accordance with the best oil field practices then prevailing in the district, the entire cost and expense of such arbitration shall be borne -16- and paid by the City; and in the event it is so finally and conclusively decided that such specifications are not sufficient or that said casing does not comely with said specifications, or that such perforating and cementing program is not in accordance with said best oil field practices, the entire cost and expense of such arbitration shall be borne by the Contractor, without right to reimbursement therefor. ARTICLE XII BLOW -OUTS AND FIRES Section 1. The Contractor shall equip, and at all times maintain, any and all wells drilling, or drilled to completion by him under the terms hereof, with such blow-out prevention equipment as is customary and in accordance with the best oil field practices at the time prevailing in the district among responsible and established operators. In the event any well drilled, or in process of drilling, by said Contractor, as authorized hereby, shall blow out, catch fire, or in any manner get out of control, the City, if it so elects, may assume complete control or supervision of the work of bringing any such well so out of control under control or putting out the fire; and for such purpose the City shall have free use of all of the Contractor's equipment and facilities at the well; and the City shall not be liable or responsible for loss of, or damage to, any such well or wells, or loss or destruction of, or damage to, any such equipment, resulting from anything done by it in attempting to bring said well under control or to extinguish any such fire. ARTICLE XIII PRODUCTION Section 1. From and after the time when each well -17- drilled hereunder is completed and placed on production, the Contractor, at all times during the term hereof except when excused by or pursuant to the provisions of this contract or when remedial operations are in actual progress, diligently and by the most efficient methods for the production of oil, gas and other hydrocarbon substances at the time prevailing in said district, shall pump or otherwise produce, and shall save, the maximum quantity of oil obtainable by such methods with a reasonable factor of safety, and consistent with maximum production of oil, gas and other hydrocarbon substances from each well drilled by him pursuant to the terms hereof, and shall maintain, perforate, redrill or deepen each such well and per- form all other operations thereon necessary to maintain and operate such well as aforesaid, and shall construct, erect, furnish, operate and maintain in good and efficient condition all structures, facilities, machinery, appliances, equipment and supplies, and perform all services, work and labor neces- sary efficiently to so produce such maximum quantity of oil, and to handle and make deliveries at the well of all oil, gas and other hydrocarbons produced and saved from such wells. JARTICLE XIV CURTAILMENT Section 1. The Contractor shall not bean down, completely close in or otherwise curtail any producing well hereunder, except as hereinafter provided. Section 2. The Contractor may bean down, completely close in or otherwise curtail the production of any such well whenever (and only so long as) required by any order, rule or regula- tion of any governmental authority or whenever (and only so long as) necessary to prevent or minimize damage to any such -18- well, or to life, or to property, or whenever (and only so long as) necessary for the performance of mechanical work upon such well. Section 3. The City recognizes the necessity of reason- able and proper curtailment from time to time of the production of oil, gas and other hydrocarbon substances in order to properly minimize and equalize drainage, to prevent waste and to promote and obtain the maximum recovery of oil, gas and other hydrocarbon substances, and it is therefore agreed that the Contractor shall comely with any lawful curtailment plan, or proration or license agreement by whatever name designated, regulating the production of oil, gas and other hydrocarbon substances, and agreed to and observed by a majority of the producers from any zone or zones, respectively, any portion of which underlies the subject lands. The Contractor shall not be held in default hereunder on account of compliance with any such curtailment plan or proration or license agreement pending the determination of the legality thereof, although such plan, proration or license agreement is eventually determined to be unlawful. Section 4. The Contractor may suspend the production of oil, gas and other hydrocarbon substances from any well required to be produced by him hereunder, when and so long as the pre- vailing market of oil or the highest "at the well" price of oil posted and paid by either the Standard Oil Company of California, The Texas Company, Shell Oil Company, Union 011 Company of California, General Petroleum Corporation of Cali- fornia, or Tidewater Associated Oil Company, for oil being obtained from the oil producing zone from which the Contractor is required to produce such well, is Fifty (50(l) Cents per -19- barrel or less; provided that if there is then any producing well, any producing portion of which is situated outside of but within three hundred (300) feet of any of the exterior boundar- ies of the subject lands, and which outside well is then produc- ing oil, gas or other hydrocarbon substances, the Contractor shall not suspend, without consent of the City, production under the provisions of this Section 4• of Article XIV from that cer- tain well operated by the Contractor hereunder, the producing portion of which is nearest to the producing portion, in the same zone, of said exterior well. ARTICLE XV TANKS - GAUGES AND -GAUGING Section 1. The Contractor shall furnish all necessary tankage and other facilities in order properly and efficiently, in accordance with the best engineering practices then prevail- ing in the district among responsible and established operators, to save, collect and handle all oil produced or obtained pursuant to the terms of this contract. All receptacles or tanks used for the collection, saving and handling of oil produced from wells hereunder shall be of standard construction. Section 2. Accurate gauge tables fop each such receptacle and tank installed or used by the Contractor hereunder shall be made, in duplicate, before the delivery of any oil therefrom is made hereunder, and the Contractor shall promptly deliver one copy thereof to the City. The Contractor shall serve upon the City, at least twenty --four (24) hours in advance, written notice of his intention to measure, or cause to be measured, any receptacle or tank for the purpose of preparing any gauge table therefor, specifying in said notice the location of such receptacle or tank and the time when such proposed measurerpent ..2o- will be commenced. Nothing herein contained shall infringe upon or abridge the right of the City or its duly authorized agents to be ,present at the making of any such measurements, or to make or have made such measurements at any reasonable time during the terms of this contract. Section 3. The Contractor shall gauge and measure promptly and accurately the quantity of oil produced and saved by him pursuant to the terms hereof, and shipped or otherwise disposed of, from any well operated by him pursuant to the terms hereof, and shall make accurate tests of all such oil for the purpose of determining the gravity, cut and temperature of all oil so saved, shipped or otherwise disposed of. Nothing herein contained shall infringe upon or abridge the right of the City and its duly authorized agents to be present at all times when such receptacles and tanks are being gauged, and at all times when tests are being made for the purpose of determining the gravity, cut and temperature of any such oil, and to test, at all reasonable times, the accuracy of all gauge tables, gauges, and measurement devices in the presence of the Contractor or of the duly authorized representatives of the Contractor. ARTICLE XVI COMMINGLING Section 1. The Contractor shall not commingle, mix or blend any oil produced by him from any well or zone bottomed under the subject lands with any oil produced by him from any well bottomed on adjacent or other lands than the subject lands, nor shall he commingle, mix or blend any oil produced by him from any zone underlying the subject lands with any oil produced by him from any other zone underlying the subject lands, if the price obtainable hereunder for such oils, when so commingled, -21- would be less than the aggregate price obtainable hereunder for such oils if sold separately and without the commingling thereof. Except as in this paragraph provided, such production from each such separate zone and from the subject lands and from lands adjacent thereto shall be produced, saved and marketed, pursuant to the terms hereof, separately and distinct from the production of all other zones and all other lands. ARTICLE XVII PURCHASERS OF OIL Section 1. The Contractor agrees to use his best endeavor to obtain and have available, at all times during the term of this contract, a financially responsible purchaser, ready, willing and able to purchase and pay for, in cash on delivery, any and all oils produced and saved by the Contractor from the wells drilled by him pursuant to the terms hereof, and to take delivery of such oil within ten (10) days after production thereof, and to pay therefor the average of the "at the well" price posted and paid, including bonus, by the Standard Oil Company of California the Texas Company, Shell Oil Company, Union Oil Company of Cali?ornia, General Petroleum Corporation of California, and Tidewater Associated Oil Company, in the district in which the subject lands are located, for oil of like grade and gravity on the day such oil is run into the purchasers' tanks or pipelines, or is otherwise delivered to said purchaser; and in the event none of said companies posts and pays a price "at the well" in said district on said day for oil of like grade and gravity, the price to be paid by such purchaser so obtained by the Contractor for such oil shall be the market price generally prevailing and paid on said day in the district for oil of like grade and gravity, together with any bonus or -22- 9 a premium paid for oil of similar quality and in substantially similar quantities on said day by said purchaser in said dis- trict. All consideration on account of any delivery made during any calendar month to any purchaser, under the provisions of this section, shall be paid by such purchaser or purchasers, respectively, to the City or as authorized by the City, in cash, on or before the 20th day of the next succeeding calendar month. The Contractor shall not, directly or indirectly, take, receive, accept or retain any commission, bonus, profit, gratuity or benefit of any kind or character offered, given or obtainable by reason of or incidental to the production, sale or other disposal of any oil, gas or other hydrocarbon substances or other minerals produced, saved and disposed of pursuant to the terms of this contract, other than the compensation payable to the Contractor as hereinafter provided, and in the procurement of purchasers for such oil, gas and other hydrocarbon substances, the Contractor, at all times during the life of this contract, shall diligently exercise his best endeavors to procure for the City the greatest commission, bonus, profit, gratuity and benefit of every kind or character obtainable, by reason of or incidental to such production, sale and other disposition, and any and all such, when and if received by or for the Contractor, shall at once be delivered to the City who shall receive and disburse the same as additional proceeds derived from the sale or other disposal of such oil, gas and other hydrocarbon substances. ARTICLE XVIII PURCHASERS OF GAS Section 1, The Contractor agrees to use his best bona fide efforts to obtain and have available at all times during -23- the term of this contract a financially responsible purchaser ready, willing and able to purchase and pay for, in cash on delivery, any and all of the natural gas produced and obtained by the Contractor from the wells drilled by him pursuant to - the terms of this contract, and to take delivery thereof as the same is produced and obtained from the subject lands, such purchaser to process said natural gas for the purpose of extracting, manufacturing or otherwise obtaining therefrom the natural gasoline and other products contained therein, and to pay to the City for such natural gas so produced not less than forty (40%) per centum of the gross proceeds derived by such purchaser from the sale or disposal of all products resulting and saved from such processing, except the resulting dry gas; and not less than sixty (60%) per centum of the gross proceeds derived by such purchaser from the sale or other disposal of the resulting dry gas available for sales provided, however, that the City shall have the right, from time to time hereafter, to elect to take all or any portion of said resulting dry gas in kind, upon serving a thirty (30) day written notice of such election on such purchaser, and said City may likewise, from time to time, upon serving a thirty (30) day written notice thereof on said purchaser, rescind its said election to take any of said resulting dry gas in kind, and in the event the City shall, at any time or times during the term of this contract, so elect to take any of such resulting dry gas in kind, as aforesaid, the same shall be delivered to the City at the plant of such purchaser. The City reserves the right to use any of the dry gas necessary for municipally owned or operated public utilities. The Contractor shall be entitled to the free use of any dry gas which is -24- reasonably necessary for and is actually used by him in carrying on his operations under the subject lands under this contract. All money accruing as consideration on account of any deliveries made to any purchaser under the provisions of this Section 1 or Article XVIII during any calendar month shall be paid by such purchaser or purchasers, respectively, to the City, or as authorized by the City, in cash, on or before the 20th day of the following calendar month. ARTICLE XIX PURCHASE CONTRACTS Section 1. Notwithstanding any other provision in this contract, it is understood and agreed that any and all contracts for, or sales of, oil, gas, other hydrocarbon substances, or other gases or other substances produced or obtained from the wells drilled or operated by the Contractor pursuant to the terms of this contract, shall be made by the City, and the Contractor is not authorized to bind the City in the sale, barter, exchange or other disposal thereof, in whole or iri part. ARTICLE XX 01"NERSHIP OF OIL Section 1. Anythog'herein to the contrary notwith- standing, it is understood and agreed that all right, title and interest in and to any and all oil, gas, other hydrocarbon substances, and other gases and substances underlying the subject lands, or when recovered from or through the wells drilled by the Contractor pursuant to the terms of this contract, are, and shall remaih, wholly vested in the City. ARTICLE XXI RECORDS OF SHIPMENT, PRODUCTION AND DELIVERIES Section 1. The Contractor shall keep complete and -25- accurate records of all production and of all shipments, deliv- eries and other disposition of production from each of the wells drilled by him under the terms hereof, and a true copy of all such records shall be delivered to the City daily. ARTICLE XXII DEHYDRATION Section 1. It is agreed that all oil produced hereunder containing over three (3%) per centum water, emulsion or b. s. shall be corrected to a marketable or dry basis, if possible, by methods customarily used for that purpose; that is, the water emulsion and b. s. shall be reduced to three (3%) per centum or under, and the gravity shall be computed upon the dehydrated and cleaned product. In the event the oil produced from the subject lands requires treatment or dehydration to make the same marketable, as aforesaid, the Contractor, at his sole cost, risk and expense, shall dehydrate or treat, if possible as aforesaid, the same, or cause the oil to be dehydrated or treated so as to render the same marketable. The City shall pay to the Contractor the "actual costif (as hereinafter defined) of so dehydrating or treating said oil less the proportion that the respective percentages of the proceeds payable to the Contractor hereunder bear, as provided in Article XLI hereof, to the total proceeds derived from the sale of all said oil produced and saved by the Contractor in accordance with the terms hereof. Section 2. In determining the sums to be paid to the Contractor by the City on account of any necessary dehydration or treatment of oil produced under the terms of this contract, such "actual cost" of such dehydration or treatment shall in no event exceed the sum of Five (5O) Cents per barrel of net oil, .26- and the Contractor shall furnish to the City, on or before the 15th day of each calendar month, an itemized statement through- out the term heretf showing the "actual cost" of such dehydra- tion or treatment during the preceding calendar month. All payments accruing to the Contractor for and on account of such dehydration or treatment so done and accomplished by the Con- tractor shall be paid to the Contractor by the City on or before the 25th day of each calendar month, and shall be based upon oil produced, saved and delivered by the Contractor pursuant to the terms of this contract during the preceding calendar month and for which the City has received payment of purchase price. In no event, anything to the contrary herein notwithstanding, shall the Contractor be required to clean, dehydrate or treat any oil hereunder if the cost thereof shall be in excess of five (50) cents per barrel of net oil. ARTICLE XXIII REMOVAL OF PROPERTY AND EQUIPMENT AND RESTORATION OF PREMISES Section 1. All strings of casing and shoes cemented in to any and all wells, and all tubing and other fixtures and appliances permanently attached below the surface and under the subject lands shall become and, except as hereinafter provided, thereafter remain the property of the City; provided, however, that the Contractor may, after the completion of the original drilling or any redrilling or deepening, in accordance with the terms hereof, of any well by him drilled, redrilled or deepened hereunder, and after the same has been placed upon production subject to such original drilling, or such redrilling or deepening, remove all equipment and supplies furnished by the Contractor and not necessary for the operation of such well as -27- a producing well in accordance with the terms of this contract, and the Contractor shall so remove such property within thirty (30) days following service upon the Contractor of written demand of the City requiring the removal thereof, and the title to such property shall, upon the removal thereof by the Con- tractor, be and become, without further act or deed on the part of the City, the property of the Contractor as and for addi- tional compensation to him hereunder for such removal; and provided, further, that from and after the completion of each well as a producing well, the Contractor shall have the exclu- sive right, subject to the terms of this contract, to use any of said property designated as the property of the City, or any part thereof, in the conduct of the operations of the Contractor hereunder, and in so using such property, the Contractor shall have the right, and it shall be his duty, to change, exchange, alter, repair, substitute and replace the same, or any part thereof, insofar as it is reasonably necessary•to do so in order to keep and maintain said well or wells -in first class condi- tion, and for the purpose of obtaining the then maximum allow- able production of oil therefrom, and in so doing, the Con- tractor may remove and retain or dispose of the same for his own account, -if the property so removed be forthwith replaced by other equipment capable of obtaining and handling, with equal efficiency, the then maximum allowable production from such well or wells. Section 2. In the event any well drilled or in the process of drilling by the Contractor pursuant to the terms hereof shall be permanently -and finally abandoned by both of the parties hereto pursuant to the terms of this contract, or with the mutual consent of both the parties hereto, and in -28- 0 strict accordance with the rules and regulations of the Division of Oil and Gas of the State of California, or any other regula- tory authority having jurisdiction thereof, then, and in that event, the Contractor shall remove so much of the casing then in the well as may be obtainable, such casing, when so removed and obtained, shall be retained by the Contractor. Section 3. Upon the expiration of this contract, or upon the sooner termination thereof, in its entirety or as to any well or wells, for any cause whatsoever, the Contractor, solely at the option of the City, shall remove all equipment, materials, supplies, concrete, debris and rubbish as may be designated by the City, in writing, from any and all premises so affected, and restore the surface thereof to as nearly its present condi- tion as is reasonably possible. ARTICLE XXIV ACT OF GOD Section 1. The obligations imposed upon the Contractor hereunder shall be suspended, and the time within which any such obligation shall be performed shall be extended, during the time and so long as the Contractor is prevented from complying therewith, in whole or in part, by the elements, accidents, war, rebellion, insurrection, public calamity, strikes, lockouts, riots, delays in transportation, interference by state or federal action, or other causes, whether similar or dissimilar to those above named, except financial, wholly beyond the con- trol and arising without the fault of the Contractor, or when such compliance is in violation of any governmental order or regulation or of the action of any governmental authority, officer or body. -29- ARTICLE XXV DEFAULT CLAUSE Section 1. Each and every term, covenant and condition hereof is hereby declared to be a continuing term, covenant or condition and the waiver by the City of any violation by the Contractor of, or failure by the Contractor to comply with, any of the terms, covenants and conditions of this contract, or the failure by the City to exercise any option on account of any such violation or failure by the Contractor, shall not be deemed a waiver by the City of any subsequent violation or failure on the part of the Contractor to comply with all or any of the terms, covenants and conditions hereof. In case of default in the performance by the Contractor of any of the terms, covenants or conditions of this contract to be by him done or performed, the City shall give written notice to the Contractor within ten (10) days after it first received knowledge thereof, which notice shall specify the nature and character of such default. If the City fails to give such notice, it shall thereafter forever be precluded from claiming such default, unless such default be of a continuing or recurring nature, in which event the City may give the notice as herein provided at any time while such default continues. Section 2. In case of default in the performance by the Contractor of any of the terms, covenants or conditions of this contract to be by him done or performed, and the failure by the Contractor to remedy the same within twenty (20) days after service of written notice by the City so to do, specifying the particulars in which it is claimed by the City that the Con- tractor is then in default, then, at the option of the City, all rights and privileges of the Contractor under this contract• -30- forthwith shall cease and terminate and be at an end and sur- rendered unto the City, and the Contractor shall thereafter be without any right or privilege whatsoever in and to the subject lands, or any part of them, or in and to the wells to be operated thereon or therefrom, or in or to the oil, gas or other hydrocarbon substances or other minerals underlying the subject lands, or in or to said oil, gas or other hydrocarbon substances or other minerals when removed therefrom, under or pursuant to this contract, or at all, either in law or in equity, sage and except that the Contractor shall have the right to have this contract continued in effect, as to such wells, and only such wells, as have theretofore been completed hereunder'or are in the process of drilling hereunder, and as to which the Contrac- tor is not then in default, or if in default, such default is being cured in accordance with the terms hereof, and save and except, further, that the City shall not thereafter drill or cause to be drilled any well, any producing portion of which is less than three hundred (300) feet from the producing portion, in the same zone, of any well drilled hereunder by the Contractor and as to which this contract so continues in effect; provided, however, that in case such default so specified in such notice is of such nature that the same cannot, with due in diligence and/good faith, be cured and remedied within said twenty (26) day period following the service of such notice by the City upon the Contractor, then and if the Contractor shall, within said twenty (20) day period, commence good and adequate operations in good faith to remedy and cure the default speci- fied in such notice, and shall, at all times continuously, diligently and in good faith thereafter continue said operations until such default be cured and remedied, then neither this -31- contract nor any rights or privileges hereunder, as aforesaid, shall cease, terminate or be at an end by reason of such speci- fied default. ARTICLE XXVI NON -ASSIGNABILITY SectionL Neither the Contractor, nor his successors or assigns, shall have the right or the power to sublet or subcontract all or any part of the work contemplated by this contract, or to assign, hypothecate, pledge, or in any manner dispose of this contract or any part thereof, or of the whole or any part of the Contractor's rights, privileges or obligations hereunder, without first obtaining the written consent of, and subject to such terms and conditions as may be pre- scribed, by the City, and any attempt to do so in violation hereof shall be void and no rights thereunder shall pass to any person whomsoever, and the City shall not be obligated to accept, nor shall it be deemed bound by, or to have acquiesced in, or be estopped in any respect by, any performance hereunder by any other person than the Contractor. The giving of consent by the City to any assignment, hypotheca- tion, pledge or other disposition of this contract or any part thereof, or the whole or any part of the Contractor's rights, privileges or obligations hereunder, shall not be deemed to nor shall it confer any right to the Contractor, or his successors or assigns, thereafter to assign, hypothecate, pledge or in any manner dispose of this contract or any part thereof, or of the whole or any part of the rights, privileges or obligations of the Contractor, or his successors or assigns thereunder. -.32.. • • ARTICLE XXVII COMPLIANCE WITH LAWS Section.l. The Contractor agrees to be bound by all valid provisions of federal, state, municipal and local laws, ordinances, rules and regulations in any manner affecting the Contractor's operations hereunder, and faithfully to comply therewith. The Contractor, at all times, shall conform to the rules and regulations of the Division of Oil and Gas of the Department of Natural Resources of the State of California, and shall conform to the provisions of the Act of the Legislature of the State of California approved June 10, 1915, establishing and creating a Department of the State Mining Bureau for the protection of the Natural resources of oil and gas from waste and destruction through improper operations in production, and all Acts amendatory of or supplementary thereto, or adopted in lieu thereof, and shall faithfully comply with all rules and regulations governing the drilling of oil wells promulgated by the California State Oil and Gas Supervisor, and will save the subject lands and any and all other lands used hereunder, and hold the City harmless against any and all fines, penalties, charges, assessments or liens levied or imposed under any act, law, statute, rule or regula.tion,.by reason of the Contractor's operations hereunder. This Section 1 of Article XXVII shall be construed as, and be operative after the term of this con- tract shall h=ve ceased and determined, and efter this contract shall hove been terminated as to any well or wells on any lands, and until such time as the Contractor shall have properly abandoned, pursuant to the terms hereof,.a.11 wells as to which this contract is so terminated and as to which such abandonment is required hereunder. -33- ARTICLE XXVIII PAYMENT OF BILLS BY CONTRACTOR Section 1. The Contractor agrees to pay promptly when due, all indebtedness which he may incur in carrying on his operations hereunder, and upon demand by the City 'shall exhibit to it receipts or releases therefor, and the Contractor express- ly agrees that the City, at its option, may withhold, or direct the,withholding of, all or any part of any compensation which may be payable to the Contractor hereunder until such time as the City is satisfied that all roast due obligations for labor, materials, claims or liens have been paid in full or released. The City shall have the right, from time to time, but shall not. be required, to pay, in whole or in part, any indebtedness or liability which the Contractor shall permit to remain unpaid after its maturity so as to prevent any lien or liens being filed or accruing against any property of the City, or any property of the Contractor used in the performance by him of the terms of this contract, and in the event of any such payment by the City the Contractor shall reimburse the City for the same, together with eight (8%) per centum interest from the date of payment, and the City shall hove the right to deduct, or direct the deduction of, the amount of any such payment or payments, with interest, from ar3Ycompensation payable or which may thereafter become Payable to the Contractor hereunder. ARTICLE XXIX BANKRUPTCY Section 1, Should the Contractor, at any time during the term hereof, file a voluntary petition in bankruptcy or be ad- judged a bankrupt, either upon his voluntary petition or upon the involuntary petition of any other person, or should the 0 Contractor seek, claim or apply for any right, privilege, remedy, or protection afforded by any statute or btatutes of the United States relating to bankruptcy, or should he make and, assignment for the benefit of his creditors, or should a Receiver be appointed over, or should an attachment or execution be levied and permitted to remain for a period of more than fifteen (15) days following the levy of such attachment or execution, upon or against, any right, privilege or asserted interest of the Contractor in, to, under or pursuant to this contract, or upon any of the property used by him in the performance of the terms hereof, then, and upon the happening of any of said events, all interests, rights and privileges of the Contractor, whether then existing or contingent, in, to, under or pursuant to this contract, except such of said interests, rights and privileges as shall have been theretofore validly assigned by the Contractor pursuant to the terms, covenants and conditions of this contract, shall immediately and without further acts on the part of any of the parties hereto, cease, terminate and end; provided, however, that if such Receiver be discharged within ninety (90) days after his appointment, the Contractor may, at any time within ten (10) days thereafter, resume the performance of this contract, and the same shall thereupon again become in full force and effect. ARTICLE XXX TAM Section 1. The Contractor shall also pay and discharge, before d4inquency, all valid taxes, fees, rates, charges, levies or contributions of every nature which may be lawfully fixed, levied, imposed or assessed against, or which may be required to be paid by him, upon property, real or personal, -35- owned by or used or permitted to be used by the Contractor, pursuant to the terms of this contract, or on account of the execution of this contract, or on account of any rights created thereby, or on account of any operations, production, sale, storage or disposition of any oil, gas, gasoline, or other hydrocarbons, or other substances produced or obtained from the wells, or any of the wells, operated by the Contractor pursuant to the terms of this contract, or on account of any payments made or to be made to, or money or consideration to be received by, the Contractor hereunder. If taxes are ever lawfully levied and assessed against the mineral rights, or lawfully levied and assessed against the lands and the mineral rights, or in the event any license, severance production or other tax on oil, gas or other hydrocarbons produced hereunder shall be levied by any governmental authority, the Contractor shall pay the same; provided, however, that the Contractor shall not be required to pay any of the same in excess of the proportion that the percentage of the proceeds payable to the Contractor as his compensation hereunder bears to the total proceeds derived from the sale of all said oil, gas and other hydrocar- bons. Any and all payroll taxes, or other contributions which are measured by, or are against or upon, or 'are based upon, wages, salaries, or other remuneration, shall be paid by the Contractor. ARTICLE XXXI MECHANICS1 LIENS Section 1. The Contractor shall not suffer nor permit any mechanicls, laborerts, or materialman's lien, or any other lien, to exist upon or against any of the wells drilled in the subject lands, or any part thereof, by reason of the Contractorts _36- operations hereunder, and the Contractor shall hold the City harmless from and against any and all such liens. If, however, any lien shall be filed upon any lands owned by or subject to the control of the City, or any of the wells drilled under the subject lands hereunder, by any mechanic, laborer or materialman because of any dispute or controversy concerning the amount involved between said mechanic, laborer or materialman and the Contractor, or for any other reason or purpose, the Contractor shall, with due diligence, defend any action brought to fore- close such lien, at the Contractor's sole cost and expense, and in the event of a judgment being rendered in favor of the claimant, in any such action, the Conttactor will promptly pay the same on final judgment, together with all costs of suit, and, if it shall be necessary for the City to defend or prose- cute any action arising out of any such lien for its own protection, the Contractor shall pay and discharge all reason- able expense incurred in so doing. The Contractor shall exercise due care and diligence in protecting from defacement or destruction any notices of non -responsibility for liens which the City may post, or cause to be posted, upon any of the drill sites to be obtained by the Contractor hereunder, or the subject lands. ARTICLE XXXII WORKMEN'S COMPENSATION INSURANCE Section 1. The Contractor shall, at all times, during the term of this contract, carry proper and adequate insurance under the Workmen's Compensation Insurance and Safety Act of ` the State of California, and save said City harmless from all liability arising or finally held to arise under said Act. -37- ARTICLE XXXIII PUBLIC LIABILITY INSURANCE, BONDS AND FIRE INSURANCE Section 1. The Contractor agrees at all times to indemnify and keep indemnified and save the City harmless from and against any and all injury, loss, damage, liability, cost and expense which the City may hereafter suffer, sustain, incur, be put to, pay, or lay out, and from any and every and all,, actions, suits, proceedings, claims and demands which may here- after be brought, made, or filed against the City by reason of, or arising out of, or in any way connected with, any or all of the operations (whether authorized or permitted herein or not) of the Contractor in, upon, adjacent to, in the vicinity of, under or above the drill sites, regardless of whether such operations of the Contractor are conducted, made, or performed by the Contractor personally, or by the Contractor's employees, servants or agents, or by some other person, persons, firms or corporations authorized or permitted or suffered so to do by the Contractor.• The Contractor further agrees to procure, prior to the commencement of operations by him hereunder, and to maintain in full force and effect, during the term of this contract, public liability and property damage insurance, naming the City as the party insured thereunder, approved as to form and coverage by the City Attorney for said City, covering injury to, or death of any person other than employees of the Contractor, or damage to or destruction of, any property, in amounts of not less than Fifty Thousand ($509000.00) Dollars for injury to, or death of, one person, and One Hundred Thousand (9,$1009000.00) Dollars for injury to, or death of, more than one person, and Twenty-five Thousand (8$25,000.00) Dollars for damagesto, or destruction of, property, where such injury -38- tog or death of, any person, or damage to, or destruction of, any property shall arise out of or be in any way connected t,rith the operations of the Contractor, whether authorized or per- mitted herein or not. Section 2. Before entering upon the performance of any work herein provided for, the Contractor shall file with the City Council a good and sufficient.bond, to be approved by the City Attorney for the City as to form and by the City Engineer and the City Council as to sufficiency in the sum of Twenty-five Thousand ($257000.00) Dollars; such bond shall be executed by either two or more good and sufficient sureties or by corporate surety as provided by law, and shall provide that if the Con- tractor, or his subcontractors, fail to pay for any materials, provisions, provender, or other supplies, or teams, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, that the surety or sureties will pay for the same in an amount not exceeding the sum specified in such bonds and also, in case 'suit is brought upoh such bond, a reasonable attorney's fee, to be fixed by the court. Such bond shall, by its terms, inure to the benefit of any and all persons, companies and corporations entitled to file claims under the law so as to give a right of action to them or their assigns, in any suit brought upon such bond. Such bond, anything herein to the contrary notwithstand- ing, shall comply in all respects with the provisions of Sections 4200-4208 of The Government Code of the State of California. Section 3. The Contractor, at -his own cost, risk and expense, shall procure and maintain, for the benefit of and payable to,the City, fire insurance covering all property in his possession belonging to the City situated on or above the surface -39- of the ground, including oil, in an amount equal to the insur- able value thereof and in a company or companies satisfactory to the City; and the policy or policies therefor shall be delivered to and held by the City. ARTICLE XY.XIV WARRANTY Section•1. It is agreed that the City makes no covenant or warranty, express or implied, as to the title of the City, or the right of the City to possession of any drill sites, or any portion thereof, or as to the condition thereof, or as to any easements, licenses, or privileges whatsoever pertaining thereto, and the permits and privileges of use and occupancy of such drill sites hereby created in favor of the Contractor, if any, are so created by the City without covenant of title, or right of possession, or for quiet enjoyment; nor does the City make any covenant or warranty, express or implied, as to the title of the City, or the right of the City to possess the subject lands. ARTICLE XXXV NOTICE OF LITIGATION Section 1. The Contractor shall serve upon the City, and the City shall serve upon the Contractor, written notice of any litigation or the levy of any process of any court or order thereof affecting the subject lands or the drill sites, or affecting any rights or interests of any of the parties hereto under this contract, or any well or wells drilled pursuant hereto, or the production thereof, or any structures, equipment or tools at any time used in connection therewith, or affecting any of the operations of the Contractor hereunder, or any money accruing from the sale or disposal of any oil, gas, or other .4C. hydrocarbons produced from any of said wells, as soon as the Contractor or the City, as the case may be, shall have obtained knowledge thereof, and the Contractor shall give the City notice of the levy, assessment or imposition of any tax, fee, rate, charge, levy, assessment or contribution referred to in Section 1, of Article XXX hereof. ARTICLE XXXVI SERVICE OF NOTICES Section 1. Contractor shall give any notice required or permitted to be given hereunder to the City as followsg By serving such notice upon the City Clerk of the City, person- ally, or upon the City Council, personally, or upon the City Engineer of the City, personally, or upon such officer of the City as the City Council may, from time to time, in writing, advise the Contractor to so serve. The City of Newport Beach may give any notice or order required or permitted to be given hereunder, and may exercise any option herein reserved to the City, by causing such notice or order or iT itten notice of the exercise of such option to be personally served upon the Contractor, or, by enclosing such notice in a sealed envelope addressed to the Contractor at such address as the Contractor shall, from time to time, designate, in writing, to the City as the place for giving of notices hereunder, and by depositing the same, postage prepaid, in the United States mail, as regis- tered mail, special delivery, at any place in Orange County, California ARTICLE XXXVII SEVERABILITY Section 1. In the event this contract shall be held by final judgment of a court of competent jurisdiction to be .41- invalid as to any part of the subject lands or the drill sites, but valid as to the remainder thereof, then this contract shall continue in full force and effect as to such remainder. ARTICLE XXXVIII CONSTRUCTION Section 1. In this contract, whenever the context so requires, the neuter gender herein used shall apply to and include the masculine gender, and the singular number herein used shall apply to and include the plural. Section 2. The titles or sub -titles of sections or articles of this contract, as herein set forth, have been inserted for the sake of convenience only, and are not to be taken, deemed or construed to be any part of the terms, conven- ants, or conditions of this contract, or to control, modify or limit any of the terms, covenants or conditions hereof. Section 3. It is to be observed that the terms "hereof", "herein", "hereby", "hereto", "hereinbefore", "hereinabove", "hereinafter", and "hereunder", have been used in this contract and it is the intent of the parties hereto that the same shall in all instances, unless otherwise provided expressly or by necessary implication from the context, refer to the whole of this contract, rather than to be limited to the specific paragraphs in which such terms may have been used. Section 4. The "producing portion" of a well, as that term is used in this contract, is hereby defined to be each and all of those subsurface parts of a well opened to receive, and which is or are then actually receiving, or capable of receiving, oil, gas or other hydrocarbons and thereby permit- ting, or capable of permitting, said oil, gas or other hydrocarbons to enter into said well and to be then produced -42- therefrom. ARTICLE XXXIX ARBITRATION Section 1. The parties hereto hereby agree to settle by arbitration any controversy, legally susceptible to arbitra- tion, arising out of this contract or the refusal of either party to perform the whole or any part thereof, and further agree that a judgment of the Superior Court of the State of California in and for the County of Orange shall be rendered upon the award, made pursuant to the submission, and such judgment shall be entered in the County of Orange. Section 2. Except in cases or arbitration as provided in Section 2 of Article XI of this contract, the submission to arbitration as herein provided shall be as follows: Either party may notify the other, in writing, of its desire for arbitration as to any pending controversy arising out of this contract or as to any refusal of such other party to perform the whole ar any part thereof. Such notice shall set forth, in ordinary and concise language, the facts constituting the controversy or refusal to perform with only the particularity or preciseness required of a complaint in a civil action, and shall name the arbiter selected by the party giving such notice. Within five (5) days after the service of such notice of submission the party receiving the same shall answer, in writing, the allegations therein contained and shall serve such answer upon the party giving the notice of submission together with the name of the arbiter selected by the party serving such answer. The tiro arbiters thus chosen shall appoint a third within three (3) days after the appointment of the second and the service of the notice of such appointment as above set forth. -43- The three arbiters so chosen shall decide the controversey set forth in such submission and the answer thereto within ten (10) days after the appointment of such third arbiter. The decision of the majority of the arbiters shall be the decision of all. In every respect not herein specifically provided for, such arbitration shall be in accordance with Title X of Part Three of the Code of Civil Procedure of the State of California. ARTICLE XL LOCATION OF PERMANENT STRUCTURES Section 1. All buildings, permanent storage tanks, refineries, dehydrating plants, and similar structures erected, constructed or used by the Contractor in the performance of this contract shall be constructed and erected and maintained at points north of the north line of the City's existing road extending from the Mesa to the Sewage Disposal Plant; and no permanent buildings or structures of the type herein contem- plated shall be erected, constructed or maintained by the Contractor south of the north line, of the City's present road extending from Mesa to the Sewage Disposal Plant. Section 2. Within ninety (90) days after the completion or abandonment of any well from a drill site located within three hundred (300) feet of any boundary line of the City of Newport Beach, the Contractor shall remove the drilling derrick from the drill site on which it was used, and such derrick shall bexemoved to a distance at least five hundred (500) feet northerly of the State Highway, and five hundred (500) feet from any dwelling within the city limits of the City. when any such well ceases to produce as a flowing well, and pumping is required in order to operate the same as a producing well, the Contractor may erect, on any drill site within said three -44- 0 hundred (300) feet of any boundary line of the City of Newport Beach, any derrick which is necessary in order to operate such well: as a producer hereunder, but such pumping derrick shall be no higher and no larger than is actually required for pumping purposes under the best and latest approved oil well pumping methods. Section 3. The Contractor will be permitted to install flow tanks with suitable bar walls, not to exceed five hundred (500) barrels capacity at each derrick. ARTICLE XLI COMPENSATION AND PAYMENT Section 1. As and for the sole, full and complete payment and compensation to the Contractor for the performance by him of each, all and every of the terms, covenants and conditions of this contract herein provided to be kept, done and performed by the Contractor, the City shall pay to the Contractor the sums of money specified in Sections 1 and 2 of Article XXII hereof and the City shall authorize and direct to be paid to the Contractor the sums of money in the amounts and in the manner in Section 2 of this Article XLI set forth, and the Contractor agrees that as and when the City has so author- ized and directed to be paid to him any of the sums of money so specified in said Section 2 of this Article XLI, the liability of the City for any compensation or payments to the Contractor hereunder shall thereupon be satisfied and discharged to the extent of the sums so authorized to be paid pursuant to said Section 2 of this Article XLI hereof, it being understood and agreed that the City shall not be the guarantor of the payment to the Contractor of any sums so authorized or directed by the City to be paid to him by the purchaser or .purchasers of any .45_ I I oil, ga$ or other hydrocarbons produced and saved by the Contractor hereunder, and the Contractor shall look solely to the purchaser or purchasers for the payment of all compensation and payments so authorized and directed by the City to be paid to the Contractor, and it being further understood and agreed that the City shall not be liable to the Contractor for any compensation or payment upon or measured by any oil, gas or other hydrocarbons produced and saved by the Contractor here- under which are lost, stolen or destroyed. The Contractor shall have the use, without charge, of only so much of the gas produced from the subject lands as a result of his operations hereunder as may be required and used in such operations. Section 2. The City shall authorize or direct the purchaser or purchasers, respectively, of the oil and of the gas, produced and saved by the Contractor and sold pursuant to the terms hereof, to pay to the Contractor certain sums of money in the amounts and computed in the manner as follows, to wit: (a) Eighty-seven andone-half (8r,�-21fo) per centum of the consideration to be paid by the Purchaser or purchasers of the oil for the first eighty (80) barrels, or less, thereof per day produced, saved and sold from each well hereunder; and Eighty-five (85%) per centum of the considera- tion to be paid by the purchaser or purchasers of the oil for the next eighty (80) barrels, or part thereof, per day produced, saved and sold from each well hereunder; and Eighty -tyro and one-half (82 /a) per centum of the consideration to be paid by the purchaser or —46— • 0 purchasers of the oil for the third eighty (80) barrels, or part thereof, per day produced, saved and sold from each well hereunder; and As to the consideration to be paid by the purchaser or purchasers of the oil for all thereof in excess of the above mentioned two hundred forty (240) barrels per day produced from each well hereunder, the City shall direct all such consid- eration to be paid to the Contractor less that to be paid for the amount of oil resulting from the application to the production in excess of said two hundred forty (240) barrels per day produced from each well of the following formulas R = P -, 36.6 X 1 25� .o16667P (In said formula "P" is the average daily oil production from each well, in terms of barrels per day). In computing the barrels of oil per day produced from any well, the total amount of oil produced from such well during a calendar month shall be divided by the number of days in such month. (b) The percentage of the consideration, computed on the total production of each calendar month, to be paid by the purchaser or purchasers of the natural gas produced and obtained by the Contractor from the wells drilled by him pursuant to the terms of this contract that equals the percentage of the total consideration paid by such purchaser or purchasers, as aforesaid, for all the oil produced, _47- saved and sold in the same calendar month; provided, that if any dry gas be taken in kind by the City, as hereinbefore provided, it shall pay to the Contractor the aforesaid percentage of the value thereof at the price obtained by such "ourchaser or purchasers for similar dry gas during the same calendar month, or at the market orice in the event such purchaser or purchasers make no sales, or at a price to be mutually agreed upon between the parties if there be no sales by such purchaser or purchasers and no market price. IN WITNESS WHEREOF, the City of Newport Beach has caused this contract to be executed with all the formalities required by law, and D. W. Elliott has hereunto set his hand the day and year this contract first above written. CITY OF NEWPORT BEACH By: (Signed) Clyan H. Hall Its Mayor ATTEST: (Signed) Frank L. Rinehart City Clerk (CORPORATE SEAL) PARTY OF THE, FIRST PART (Signed) D. W. Elliott D. W. "Elliott PARTY OF THE SECOND 1-ART Note: Signatures'hotarized —48— 6 0 EXHIBIT A All those certain uple.nds, tidelands, submerged lands and filled lands owned by the City of Newport Beach lying between the southwesterly prolongation of the southeasterly line of 53rd Street, as said 53rd Street is laid out and shown upon a map of Ocean Front Tract, Newport Beach, recorded in Book 4, page 12 of Miscellaneous Maps, records of Orange County, California, and the westerly boundary line of the City of Newport Beach, and southwesterly of the northeasterly line of Ocean Front, formerly Ocean Avenue, as said Ocean Avenue is laid out and shown upon said map of Ocean Front, and man of Seashore Colony Tract, recorded in Book 7, page 25 of Miscellaneous Baps, records of said County.