PERMIT

Houston Code of Ordinances ch. 31, art. II

in effect

Houston Code of Ordinances § 31-23 Required.

Sec. 31-23. - Required. (a) It shall be unlawful and an offense for any person, acting either for himself or as agent, employee, independent contractor, or servant of any other person, to commence to drill, or to operate any oil or gas well within the regulated area of the city, or to work upon or assist in any way in the prosecution or operation of any such well, without a permit for the drilling and operation of such well having first been issued in accordance with the provisions of this article. (b) In the event a well is completed in one or more oil zones and one or more gas zones through the one-well bore, a permit must be secured from the city for both an oil well and a gas well. (c) In the event a well is drilled under an oil well drilling permit and the permittee for any reason wishes to complete the well as a gas well, he must first secure a gas well drilling permit. (d) In the event a well is drilled under a gas well drilling permit and the permittee for any reason wishes to complete the well as an oil well, he must first secure an oil well drilling permit. (Code 1968, § 30-23)

Houston Code of Ordinances § 31-24 Application generally; filing fee.

Sec. 31-24. - Application generally; filing fee. (a) Any person desiring to drill, complete and operate a well for oil or gas within the regulated area of the city shall present an application in duplicate therefor to the building official which application shall be in writing, addressed to the mayor, be signed by the applicant or some person duly authorized to sign the same for the applicant, and shall state: (1) The date of the application. (2) The name and address of the applicant and, if the applicant is a corporation, the state of incorporation, and if applicant is a partnership, the names and addresses of the general partners. (3) The number of the drilling unit, the particular lot and block number or tract in the drilling unit on which the proposed well is to be located and the exact location of the proposed well by Lambert Coordinates. (4) The type of the well, whether oil or gas, and the proposed depth of the well. (5) The proposed complete casing program of the well. (6) The exact and correct number of square feet in the drilling unit over which the applicant has control of oil rights or gas rights. (b) Attached to the application for such permit shall be: (1) A plat prepared by a duly licensed surveyor showing the exact location of the proposed well with respect to the drilling unit boundaries and with respect to the boundaries of the lot or block on which the applicant has secured the rights from the owner to drill; designation of lots, blocks, or tracts owned or controlled by the applicant within the drilling unit, and the distances from the well location to all parks, streets, alleys or other public property, residences, commercial buildings and structures situated within 400 feet of the well location. (2) A copy of Railroad Commission Form 1. (c) Each application shall be accompanied by the filing fee stated for this provision in the city fee schedule, paid in the form of a cashier's check made payable to the city. (d) Each application shall be filed by the building official and kept as a part of the public records of the city. (Code 1968, § 30-24; Ord. No. 90-635, § 67, 5-23-90; Ord. No. 2011-1168, § 13, 12-14-2011)

Houston Code of Ordinances § 31-25 Notice of application.

Sec. 31-25. - Notice of application. Notice of the filing of each application for a permit under this article shall be given by the applicant to each owner and lessee of lots, blocks and tracts within the drilling unit described in the application not owned by or under lease to the applicant as such ownership is disclosed by the deed records of the county in which the property is located. Such notice shall be in words and figures, as follows: "Notice is hereby given that ___________, acting under and pursuant to the terms and provisions of Chapter 31 of the Code of Ordinances, City of Houston, Texas, and any and all ordinances amendatory thereof, did on the ___ day of _______, 20___, file with the Director of Houston Public Works an application to drill, complete and operate a well for oil (or gas) upon Lot No. ___, Block No. ___ (or other appropriate description), City of Houston, Texas, as per map of record in Volume ___, Page ___, Plat Records of _______ County, Texas, in Drilling Unit No. ___ and located by Lambert Coordinates for the South Central Zone of Texas at the intersection of X = ___ and Y = ___." At least ten days prior to the granting or refusal of an application, a copy of such notice shall be mailed by registered mail, at the expense of the applicant, addressed to the last known address of each owner and lessee of lots, blocks and tracts in the drilling unit not owned by or under lease to the applicant; and a copy of such notice shall be published, at the expense of the applicant, in every issue of a daily newspaper of the city for ten days prior to the date of the granting or refusal of such application. Proof of such publication shall be made by the printer or publisher of the newspaper by affidavit filed with the building official and shall be prima facie evidence of such publication. The applicant shall file with the building official an affidavit showing the name and last known address of each owner and lessee of lots, blocks and tracts to whom notice is required to be given and the names of each owner and lessee of lots, blocks and tracts to whom notice is required to be given and whose addresses are unknown to the applicant. (Code 1968, § 30-25; Ord. No. 90-635, § 68, 5-23-90; Ord. No. 93-514, § 46, 5-5-93; Ord. No. 98-613, § 56, 8-5-98; Ord. No. 04-1015, § 18, 9-27-04; Ord. No. 2018-11, § 49, 1-10-2018)

Houston Code of Ordinances § 31-26 Applicant's bond.

Sec. 31-26. - Applicant's bond. (a) If the issuance of a permit under this article is authorized, the same shall not be issued until the applicant files with the building official a bond, executed by the permittee as principal and by a good and sufficient corporate surety company licensed to do business in state as surety, and whose name appears on the current list published by the United States Treasury Department of accepted sureties on federal bonds, conditioned that the principal obligor will drill and operate the well in strict accordance with the terms of this chapter, and that the principal will remedy any and all damages to streets, curbs, gutters, water lines, fire hydrants and other public property, occasioned in any manner by his drilling of the well. Such bond shall inure to the benefit of the city, shall be in a form to comply herewith, and shall be in the amount of $50,000.00, and shall be approved by the city attorney. A permittee shall not be required to post additional bond if he has approved bonds on file with the city as required by this section totaling $100,000.00. (b) If the issuance of a permit to operate a well currently producing oil or gas after all drilling operations have ceased is authorized, the same shall not be issued until the applicant files with the building official a bond in the amount of $15,000.00 in accordance with and for the purposes set out in subsection (a) above, except that said security may be in the form of a bond, letter of credit, or other acceptable security approved by the building official and the city attorney. A permittee shall not be required to post additional bond if he has approved bonds or other security on file with the city as required by this section totaling $30,000.00. Any permittee who initially posted a $50,000.00 bond, and whose well is in the producing stage and all drilling operations have ceased, may submit an application to the building official in accordance with section 31-24 to reduce the existing $50,000.00 bond to comply with the lower security provisions of this subsection. (c) Failure to keep the bond or alternative security in full force and effect, in accordance with the terms hereof, shall cause a revocation of the permit and shall be unlawful. (Code 1968, § 30-26; Ord. No. 88-1506, § 1, 9-14-88; Ord. No. 90-635, § 67, 5-23-90)

Houston Code of Ordinances § 31-27 Release from bond.

Sec. 31-27. - Release from bond. (a) The Director of Houston Public Works or any assistant director of Houston Public Works is hereby authorized upon request of the surety to release the surety on the bond required herein from future liability on such bond upon the conditions hereinafter provided and as further limited by subsection (b) hereof: (1) If the permit has terminated and become inoperative as herein provided. (2) If the permittee has filed with the Director of Houston Public Works notice of his intention to surrender his permit and abandon the premises covered thereby. (3) After receipt of written notice from the surety advising of cancellation no sooner than 15 days after being mailed or delivered to the city. (b) Such release of future liability shall in no manner impair any liability which may have accrued prior to the release of future liability herein authorized. Such release shall not be issued until the permittee shall have first complied with all requirements of this chapter relating to the abandoning and plugging of a well. The bond shall be retained by the city in its custody and will not be returned to the surety. (Code 1968, § 30-26.1; Ord. No. 68-731, § 1, 5-7-68; Ord. No. 90-635, § 69, 5-23-90; Ord. No. 93-514, § 47, 5-5-93; Ord. No. 98-613, § 57, 8-5-98; Ord. No. 04-1015, § 19, 9-27-04; Ord. No. 2018-11, §§ 22, 49, 1-10-2018)

Houston Code of Ordinances § 31-28 Applicant's liability insurance.

Sec. 31-28. - Applicant's liability insurance. (a) No permit shall be issued under this article until the applicant has filed with the building official a memorandum copy or certificate of a policy of public liability and property damage insurance, issued by an insurance company authorized to do business in the state, to be approved by the city attorney, the amount of which policy for liability for bodily injury or death of one person shall not be less than $100,000.00, and for any one accident, not less than $300,000.00, and the amount of such policy for damage to property of others shall not be less than $100,000.00. The terms and conditions of such policy covering such operations are to be such as to insure persons against loss by liability imposed by law by reason of any accidental personal injury or death to any person other than the insured or his employees, or by reason of any such loss or damage to property of any person other than the insured or his employees. Each policy of insurance shall contain a provision obligating the insurer to give the city council written notice of cancellation not less than 15 days prior to the date of cancellation. The applicant shall, upon request of the building official, submit the original or a certified copy of any policy for inspection at any time. (b) Irrespective of the requirements as to insurance to be carried, the insolvency, bankruptcy or failure of any insurance company carrying insurance for any applicant or permittee hereunder, or the failure of any such company to pay claims accruing shall not be held to waive any of the provisions of this chapter. The applicant shall pay promptly all premiums for such insurance in strict accordance with his obligations to his carrier and maintain the above described coverage in full effect so long as the permit is valid and alive. (c) Failure to keep such policy in full force and effect, in accordance with the terms hereof, shall be unlawful. (Code 1968, § 30-27; Ord. No. 90-635, § 67, 5-23-90)

Houston Code of Ordinances § 31-29 Supplemental permit to deepen well.

Sec. 31-29. - Supplemental permit to deepen well. Once any well has either been completed as an oil or gas producer or abandoned as a dry hole, it shall be unlawful for any person to drill such well to a greater depth than that reached in the prior drilling operations without the permittee, as to such well, obtaining a supplemental permit after filing a supplemental application with the building official specifying: (1) The then condition of the well and the casing therein. (2) The depth to which it is proposed such well be deepened. (3) The proposed casing program to be used in connection with proposed deepening operations. In any deeper drilling or any deeper completion, or any deeper production operations, the permittee shall comply with all other provisions contained in this chapter and applicable to the drilling, completion and operation of a well or wells, but no additional filing fee shall be required. Each supplemental application shall be kept as a part of the public records of the city. (Code 1968, § 30-28; Ord. No. 90-635, § 67, 5-23-90)

Houston Code of Ordinances § 31-30 Issuance or denial generally.

Sec. 31-30. - Issuance or denial generally. If, after an application or supplemental application is filed pursuant to this article, it is found by the building official to comply in all respects with the terms of this chapter, and the drilling and operation or deepening and operation of a well is not prohibited by the terms of this chapter, the building official shall issue a permit for the drilling and operation or deepening and operation of the well applied for. The granting and issuance of a permit for a well on a drilling unit shall automatically operate as a rejection and denial of all other pending applications for a well or wells to be completed upon the drilling unit involved, or any portion or portions thereof. In the event the building official should deny the applicant a permit to drill or deepen a well, an appeal to the city council may be made by such applicant by filing written notice of appeal with the city council. Such appeal shall be heard by the city council within thirty (30) days after the filing date. (Code 1968, § 30-29; Ord. No. 90-635, § 67, 5-23-90)

Houston Code of Ordinances § 31-31 Conditions to issuance when applicant does not own or have lease or contract for entire drilling unit.

Sec. 31-31. - Conditions to issuance when applicant does not own or have lease or contract for entire drilling unit. (a) In the event an application for a permit for the drilling, completion and operation of a well, either for oil or gas, shall be made by any person not owning or holding leases of oil or gas rights, or drilling contracts from the owners of all lots, blocks or parcels of land included in or embraced within a drilling unit, a permit shall be issued to such applicant, his heirs, successors and assigns, only upon the following conditions, in addition to such other conditions as may be provided for in other sections of this chapter: The permittee shall be free to enter into such contracts and agreements with the owners of such other lots, blocks or tracts as he may be able to make. If agreements are not reached with all owners of lots, blocks and tracts within the drilling unit, then the owner or owners of any given lot or lots, block or blocks, tract or tracts shall have the right or option, by notice to the permittee given in writing within 30 days after the issuance of a permit for a well on the drilling unit involved, either: (1) To treat his interest as a working interest and contribute toward the actual cost and expense of drilling, completing and operating the well with all necessary appurtenances currently each month in the proportion that the number of square feet in area owned by him in the drilling unit bears to the total number of square feet embraced in the unit, and thereupon receive the same proportion of the oil produced and saved from such well, or its value at the well, at the option of the permittee, and a like proportion of natural gas produced, saved and utilized or sold, or the value of same at the well, at the option of the permittee; or (2) To treat his interest as a royalty interest and receive, delivered free of cost in the pipeline to which the well may be connected, a share of all oil produced and saved from such well equal to one-eighth of the proportion of the whole quantity of oil and casinghead gas so produced and saved that the number of square feet in the area owned by him bears to the total number of square feet in such drilling unit, or at the election of the permittee, to receive such proportion of the value at the well of the oil so produced, and to receive a like proportion of the gas and casinghead gas produced, saved and utilized or sold, or at the election of the permittee, the market value at the well of such proportion of gas or casinghead gas produced and sold or used off the premises, or, for gas sold at the well, such proportion of the amount realized from such sale. If any owner does not exercise the right and option above provided, and give notice to the permittee within the period above provided, the obligation shall then be upon the permittee, his heirs, successors and assigns, to make settlement with such owner on the terms provided in option (2) above, providing for the payment of a one-eighth royalty. If the owner of a lot, block, or tract shall exercise option (1) above and treat his interest as a working interest, as therein provided, the permittee shall be entitled to reimburse himself for such owner's proportionate part of the costs out of such owner's proportionate part of the oil, gas and casinghead gas, or the value thereof, before making deliveries of products or settlement for the value thereof. If option (1) is exercised by the owner of any lot, block or tract, such owner shall, within the time provided for notice of his election above set forth, file with the building official a bond or other obligation executed by such owner as principal and by an authorized surety company as surety, in which such principal and surety agree, bind and obligate themselves to pay to the permittee, his heirs, successors and assigns, currently each month, that proportion of the actual and necessary costs and expenses involved in the drilling, completion and operation of such well that the number of square feet embraced within the lot, block or tract of such owner bears to the total number of square feet in such drilling unit, such bond to be approved by the city attorney and held by the building official for the benefit of the beneficiaries therein. Permits shall be issued in all such cases and shall be subject to the provisions of section 31-35 and upon the condition that the permittee, his heirs, successors and assigns, shall make settlement in accordance with the provisions hereof. (b) The interests of persons other than the permittee who hold oil and gas leases or equivalent contracts, in any drilling unit, shall be treated as part of the total working interest of the drilling unit, and such other persons holding such interests shall each make the following election with the permittee within 30 days from the date of the issuance of a permit with respect to a drilling unit, either: (1) Agree in writing with the permittee to contribute their share of all costs and expenses, properly allocated to the well and drilling unit by the permittee in accordance with accepted accounting practice, currently each month in the proportion that the number of square feet in the area held by them or each of them in the drilling unit bears to the total number of square feet embraced in the unit, and within said thirty-day period, execute and file with the building official a bond with an authorized surety company as surety in an amount representing that portion of the estimated maximum cost of the well that the area of land held in fee simple under lease or other contract by the principal bears to the whole area of the drilling unit, conditioned that the principal in the bond will pay to the permittee and his assigns such proportion of the cost of drilling and operating the well, from time to time, as required in the drilling and operation thereof, such bond to be approved by the city attorney and held by the building official for the benefit of all persons interested; and thereupon such persons so acting shall be entitled to participate in the total working interest under the unit; and such persons so acting shall have the right, upon reasonable notice given to the permittee, upon the furnishing of storage tanks or facilities for handling the same, and upon the payment of or securing the payment of their share of the royalty interests and any overriding royalty or oil payment interests thereon, to receive in kind their proportionate share of oil and gas produced and saved from the well in the drilling unit and allocated to the working interest of the well; or, (2) If such other persons, or any one or more of them, fail to elect under (1) above within such 30-day period, then he or they shall be deemed to have elected to agree that the permittee shall be entitled to reimburse himself currently each month from such other persons' proportionate share of the proceeds of sale or production in kind for twice the amount of such other persons' proportionate part of the costs and expenses as set out in option (1) above. The permittee and such other persons, or any one or more of them, shall be able to alter the obligations as set out in this section by an agreement made by them in writing; provided such agreement is not repugnant to other rules and regulations set out in this chapter. (Code 1968, § 30-30; Ord. No. 90-635, § 67, 5-23-90)

Houston Code of Ordinances § 31-32 Issuance in case of more than one application for same drilling unit.

Sec. 31-32. - Issuance in case of more than one application for same drilling unit. In case there are applications filed with the building official and pending at the same time, for permits to drill a well in any one drilling unit, by more than one applicant, that application shall be granted, if otherwise sufficient, which shall be made by the person holding the greater area of the land within the drilling unit by ownership in fee, or by a lease or other contract with the owner or owners, permitting the drilling thereon for oil or gas, provided, however, that this section shall not apply to the fields exempted from the well spacing provisions of article I of this chapter. (Code 1968, § 30-31; Ord. No. 80-2296, § 2, 7-15-80; Ord. No. 90-635, § 67, 5-23-90)

Houston Code of Ordinances § 31-33 Contents; signing; effect.

Sec. 31-33. - Contents; signing; effect. Each permit issued under this article shall: (1) By reference have incorporated therein all provisions of this chapter with the same force and effect as if this chapter were copied verbatim in the permit. (2) Specify definitely the location of the well and the number of the drilling unit in which the well is to be located. (3) Specify that drilling shall begin within 90 days from the date of the permit or the permit shall be forfeited; provided, however, such forfeiture shall not affect the right of the applicant to apply for another permit. (4) Specify that such permit shall remain in full force and effect until the well is abandoned. Such permit, in duplicate originals, shall be signed by the building official and, prior to delivery to the permittee, shall be signed by the permittee. One original of the permit duly executed, shall be delivered to the permittee and one original of the permit, duly executed, shall be retained and filed by the building official, and, when so filed, shall constitute the permittee's drilling and operating license and the contractual obligations of the permittee to comply with the terms of such permit, of the required bond and of this chapter. (Code 1968, § 30-32; Ord. No. 90-635, § 67, 5-23-90)

Houston Code of Ordinances § 31-34 Permit not required for remedial well work operations.

Sec. 31-34. - Permit not required for remedial well work operations. Any person operating any well for oil or gas within the corporate limits of the city may perform any remedial well work operations, except drilling deeper, without a prior permit, provided the operator complies with all safety rules set forth in this chapter and no additional filing fees will be required for such work. (Code 1968, § 30-33)

Houston Code of Ordinances § 31-35 Article does not authorize trespass or affect owner's right of contract.

Sec. 31-35. - Article does not authorize trespass or affect owner's right of contract. Neither this article nor any permit issued hereunder shall be interpreted to grant any right or license to the permittee to enter upon, use or occupy in any respect for the drilling or operation of any well on any surface land except by the written contract of the surface owner, unless the permittee obtained such right in an oil and gas lease, or other contract; nor shall it limit or prevent the free right of the owner to contract for the amount of damages, rights or privileges with respect to his own land and property. (Code 1968, § 30-34)

Houston Code of Ordinances § 31-36 Exemptions from certain requirements.

Sec. 31-36. - Exemptions from certain requirements. Any applicant for an oil or gas well permit in a field as described in sections 31-7, 31-8, 31-9, 31-10, 31-11 or 31-12 of this Code, or any other producing oil or gas field hereafter exempted from the well spacing provisions of Article I of this chapter, shall hereafter also be exempt from the provisions of sections 31-25 and 31-31 of this Code; provided, however, that any remaining portion of a city-designated drilling block or unit, not included in a producing oil or gas field exempt from said well spacing provisions and from sections 31-25 and 31-31, shall have the same rights as if no portion of said block or unit fell within such exempt field. (Code 1968, § 30-35; Ord. No. 80-2296, § 1, 7-15-80)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH31OIGAWE_ARTIIPEFetched: 10/26/2026