Section 23-400 STANDARDS: SPECIAL APPROVAL

Section 23-401 All applications for a Special Approval under the provisions of this Article shall be accompanied by proof of insurance coverage as follows:

1. All applicants shall submit with the Special Approval application a policy or policies of standard comprehensive public liability insurance, including contractual liability insurance covering bodily injuries and property damage naming the applicant and the Township as coinsureds, issued by an insurance company authorized to do business within the State; said policy or policies in the aggregate shall provide for the following minimum coverage:

a. bodily injuries, $100,000.00 per person; $300,000.00 per accident.
b. property damage, $200,000.00 per accident.
Said insurance policy or policies shall provide that they may not be canceled without written notice to the Township at least thirty (30) days prior to the effective date of such cancellation. In the event said policy or policies are canceled, the Special Approval shall immediately terminate without any action on the part of the Township and the applicant's right to operate under said Special Approval shall cease until applicant files additional insurance as required herein.

2. The applicant for Special Approval to operate a surface facility, surface facility equipment, pipeline, or flow line located within thirteen hundred twenty feet (1320') of any surface water in the Township shall submit a pollution insurance policy with the application as follows:

a. Applicants shall submit and maintain a pollution insurance policy which reasonably insures corrective actions to address surface and subsurface contamination which may result from the operations of the surface facility, surface facility equipment, pipeline, or flow line in an amount not less than one million dollars.

b. Applicants shall also demonstrate that any insurance policy to be utilized under this Article complies with the following:

i. Said insurance policy shall be a standard pollution liability insurance policy providing for a minimum coverage of $ 1,000,000.00.

ii. Said insurance policy must be issued by a reliable insurance broker licensed to do business in the state, with the applicant and the Township named as coinsureds.

iii. Said insurance policy shall be maintained in full force and effect from commencement of construction or erection to removal of the surface facility, surface facility equipment, pipeline, or flow line in accordance with this Article, including the entire period during which production activities are conducted. The legal description of the surface facility, surface facility equipment, pipeline, or flow line location shall be specified in the insurance policy, or any endorsement thereto, with respect to each surface facility, surface facility equipment, pipeline, or flow line covered by such insurance.

c. Any insurance policy or policies required under this Article shall provide that they may not be canceled without written notice to the Township at least thirty (30) days prior to the effective date of such cancellation. In the event said policy or policies are canceled, the Special Approval granted shall immediately terminate without any action on the part of the Township, and the applicants rights to operate under said Special Approval shall cease until the applicant files additional insurance as required herein.

d. The deductible for any pollution insurance policy shall not exceed $25,000.00.

3. The insurance policies required by this Section shall be submitted and maintained in full force and effect at all times by all persons operating a surface facility, surface facility equipment, pipeline, or flow line located within the limits of the Township.

Section 23-402 Blanket Bond or Blanket Irrevocable Letter of Credit Required

1. Any person who operates any surface facility, surface facility equipment, pipeline, or flow line for the development, production or treatment of oil or gas within this Township within thirteen hundred twenty feet (1320') of surface water shall furnish on forms approved by the Township and maintain at all times a blanket bond or blanket irrevocable letter of credit in the principal sum of at least $25,000.00 as insurance to cover the $25,000.00 deductible allowed in this Article. Said bond or letter of credit must be executed by a reliable insurance company or bank authorized to do business in the state, as surety or creditor, and with the applicant as principal or debtor, running to the Township for the benefit of the Township, conditioned that the applicant shall comply with the terms and conditions of this Article in the operation of surface facilities, surface facility equipment, pipelines. or flow lines operated within the Township. Said bond or letter of credit must become effective on or before the date the same is filed with the Township and remain in full force and for at least twelve (12) months subsequent to the removal of the surface facility, surface facility equipment, pipeline, or flow line. Each bond or letter of credit submitted shall cover all surface facilities, surface facility equipment, pipelines, or flow lines operated by said applicant within the Township.

2. The blanket bond or letter of credit required by this Section shall be submitted and maintained in full force and effect at all times.

Section 23-403 Density Restrictions for Processing and Sweetening Facilities

1. No processing or sweetening facility may be within twenty six hundred fifty feet (2650') of another processing or sweetening facility.

2. All processing and sweetening facilities shall be designed to have the capacity to, serve all wells within a two (2) mile radius of the facility over the life expectancy of the facility, unless applicant can show one of following extenuating circumstances:

a. The existing facility is operating at capacity and cannot be expanded feasibly; or

b:. The existing facility cannot be expanded or modified to accept oil or gas from the applicants wells.

3. Density Restrictions may be waived by the Planning Commission if one of the following conditions are met:

a. There is a more suitable site closer to the wells.

b. Existing processing or sweetening facility has exceeded capacity,
c. Needed to avoid areas of greater population density.

d. Hazard or inconvenience to neighboring properties.

4. All processing and sweetening facilities must be located on parcels not less than 5 acres.

Section 23-404 Surface Facility, Surface Facility Equipment, Pipeline, or Flow Line Location

1. No surface facility, surface facility equipment, pipeline, or flow line shall be located less than two hundred sixty feet (260') from any occupied or unoccupied dwelling or any other building used or designed and intended to be used for human occupancy. This distance shall be calculated from the closest boundary of the surface facility, surface facility equipment, pipeline, or flow line to the closest boundary of the dwelling or structure.

2. No surface facility, surface facility equipment, pipeline, or flow line shall be located less than two hundred sixty feet (260') from any public building or religious building. This distance shall be calculated from the closest boundary of the surface facility, surface facility equipment, pipeline, or flow line to the closest boundary of the public building or religious building.

3. No surface facility, surface facility equipment, pipeline, or flow line shall be located less than thirteen hundred twenty feet (1320') from any subdivision, residential development, nursing home, school building or residential care facility. This distance shall be calculated from the closest boundary of the surface facility, surface facility equipment, pipeline, or flow line to the closest boundary of the subdivision, residential development, nursing home, school building or residential care facility.

4. No surface facility, surface facility equipment, pipeline, or flow line shall be located less than thirteen hundred twenty feet (1320') from surface waters and other environmentally sensitive areas. This distance shall be calculated from the closest boundary of the surface facility, surface facility equipment, pipeline, or flow line to the closest boundary of the surface waters and other environmentally sensitive areas

5. No surface facility, surface facility equipment, pipeline, or flow line shall be located less than three hundred feet (300') from any fresh water well. This distance shall be from the closest boundary of the surface facility, surface facility equipment, pipeline, or flow line to the closest boundary of the fresh water well.

The provisions of this Section shall also apply to any dwellings, public buildings, religious buildings, school buildings, or other subject buildings under construction or to any fresh water wells being drilled on the date the application for Special Approval is filed with the Township.

Section 23-405 Location of Surface Facilities in Streets and Alleys, Blocking or Closing - No surface facility or surface facility equipment shall be located within any of the streets or alleys of the Township; and no street or alley shall be blocked or encumbered or closed in any drilling or production operation except upon the written approval of the Township, and then only temporarily.

Section 23-406 Fencing, Screening and Landscaping for Surface Facilities and Surface Facility Equipment

I . Any surface facility or surface facility equipment operating under a Special Approval shall be enclosed by a sight occluding fence sufficiently high and properly built to keep unauthorized persons and animals out of the enclosure. All gates thereto shall be kept locked when authorized persons are not within the enclosure. Provided, however, that the Planning Commission, upon written application by an applicant, may designate a different type of fence to be erected if the Planning Commission determines in a particular case that a sight proof fence is not necessary to protect the public health, safety and welfare and that a different type of fence would meet those objectives.

2. Any surface facility or surface facility equipment located within six hundred feet (600') of any occupied or unoccupied dwelling shall meet the following sight occluding landscaping requirements:

a. Evergreen vegetation or landscaped earth berms shall surround the surface facility site and all fences or lease equipment and facilities;

b. The vegetation or berms shall be a minimum of four feet (4') in height;

c. The vegetation or berths shall be sufficient to screen from view the structures sought to be screened; and

d. The vegetation or berms shall be kept in an attractive state and in good condition at all times by the applicant.

Section 23-407 Pipelines and Flow Lines

1. All pipelines, flow lines, connections and fixtures installed or used for the purpose of the transportation of oil, gas, or both, or any other hydrocarbon substances, owned by and transported to facilities of a person acting under the authority of the Special Approval shall be equivalent to the specifications of the Pipeline Safety Code, 49 CFR Part 186 - 199, adopted and approved by the United States Department of Transportation or the specifications of the Michigan Public Service Commission, as to thickness, weight, size, strength and general character of material, workmanship and manner of installation. All such lines
shall be operated and maintained in a safe manner at all times so as to prevent all leakage or escape of their contents. In no event shall any pipeline, flow line,

connection or fixture regulated by the Michigan Public Service Commission be regulated by this Section.

2. Pressure in any line regulated under paragraph 1. above shall not exceed those permitted by the rules, regulations or orders of the Supervisor of Wells or the Department of Environmental Quality and/or the Michigan Public Services Commission rules and regulations now in force or as amended.

3. All new or replacement pipeline or flow lines regulated under paragraph 1. above shall be covered and must be not less than forty-eight inches (48") below the existing ground level as verified and approved by the Township. Prior to and subsequent to installation of each segment of new or replacement pipeline or flow line, the pipeline and flow line must receive and pass an on-site inspection of the compliance with design criteria and the process of installation. The forty-eight inch (48") depth requirement shall not apply to piping constructed or installed within the diked tank battery, which piping may be placed at ground level.

4. All new or replacement pipeline or flow lines regulated under paragraph 1. above which cross public rights-of-way shall be inspected and approved by the Zoning Administrator or the Road Commission.

5. The location of all new or replacement pipeline and flow lines regulated under paragraph 1. above shall be marked by the owner(s) thereof or by the person installing or operating such pipelines or flow lines as follows

a. Marker signs shall be placed at all locations where pipelines or flow lines cross property boundary lines and at each side of a public street or road rightof-way which the pipelines or flow line crosses ;

b. The top of all marker signs shall be a minimum of four feet (4') above ground level, and the support post must be sufficient to support the marker sign and shall be painted yellow or such other color as may be approved by the Zoning Administrator or his or her designee ;
c. All marker signs shall be a minimum of twelve inches (12") square and shall be marked as a Gas Pipe Line, Oil Pipe Line, or S. W. Pipe Line or as may be applicable; and

d. All marker signs shall contain the name of the owner and operator of the pipeline or flow line.
It is the joint and several responsibility of the owner and the operator of any and all pipelines or flow lines to maintain the markers in accordance with this Article.

Section 23-408 Noise and Other Nuisances - Any surface facility, surface facility equipment, pipeline, or flow line shall be equipped with the best available technology so as to

eliminate, as far as possible, nuisance dust, nuisance noise, nuisance vibration or nuisance odors. This Section shall not abridge or abate any other provision of law, rule or Article restricting nuisances generally.

Section 23-409 Fire Prevention

1. All surface facilities shall be equipped with adequate firefighting apparatus and supplies at the surface facility site at all times during operations. "Adequate firefighting apparatus and supplies" shall include, but shall not be limited to, all of the following: A minimum of four portable fire extinguishers; the size, rating, distribution and maintenance of which shall be in accordance with National Fire Protection Association (NFPA) Standard #10, entitled "Portable Fire Extinguishers," and NFPA Standard #30, entitled "Flammable Liquids Code."

2. Sources of ignition. In locations where flammable vapors may be present, precautions shall be taken to prevent ignition by eliminating or controlling sources of ignition. Sources of ignition may include open flames, lightning, smoking, cutting and welding, hot surfaces, frictional heat, sparks (static, electrical and mechanical) spontaneous ignition, chemical and physical-chemical reactions and radiant heat. NFPA #77, "Recommended Practice on Static Electricity," and NFPA #78, "Lightning Protection Code." provide information on such protection. and shall be used as guidance when evaluating compliance with this Section.
3. The applicant shall ensure protection of all hazardous materials and/or special hazards at the surface facility site in accordance with applicable NFPA standards.

4. All surface facilities shall comply with all other fire prevention requirements prescribed by the Planning Commission for the particular surface facility.

5. Lightning protection equipment as specified by the Planning Commission shall be installed at every site containing oil, gas, other hydrocarbon substances or water storage tanks, in accordance with the recommendations of the National Fire Protection Association.

Section 23-410 Fresh Water Supply Wells

1. In the event afresh water supply well is to be drilled to provide water for drilling operations, a permit shall first be obtained from the Department of Public Health or other appropriate authority.

2. The drilling of any fresh water supply well shall be performed only by a water well drilling contractor who has a current license from the state.

3. All such water wells shall be drilled and maintained in accordance with state law and regulations and in accordance with regulations promulgated by the

Department of Public Health or other appropriate authority.

4. At the time such water well becomes no longer necessary, or upon completion of the oil and gas well, whichever occurs earlier, such water well shall be plugged pursuant to the standards and requirements of the Department of Public Health or other appropriate authority, and the Zoning Administrator shall be notified in writing of such plugging within five (5) days thereof.

Section 23-411 Disposal of Muds - Each applicant shall provide information regarding the disposal of muds. The disposal of drilling mud shall be by transporting the mud to a statelicensed disposal site. The mud may not be buried in a lined or unlined earthen pit, pumped down the well bore or down the annulus of a well, nor spread on the surface of the ground, unless authorized by the Supervisor of Wells.

Section 23-412 Storage Tanks - Storage tanks for liquid materials, including brine, shall consist of no more than two steel tanks for storage, not exceeding five hundred (500) barrels capacity each and constructed and maintained in accordance with the recommendations of the American Petroleum Institute. Provided, however, that additional storage tanks may be approved in writing by the Planning Commission in accordance with the standards set by the American Petroleum Institute.

Section 23-413 Disposal of Saltwater or Other Deleterious Substances - Every applicant under this Article shall make sufficient provisions for the safe disposal of saltwater or other deleterious substances which may be brought to the surface of the earth. The disposal shall not result in pollution of the waters of the Township and shall not result in any other environmental hazard. Such disposal shall incorporate the best available techniques and equipment and shall comply with the Department of Environmental Quality and United States Environmental Protection Agency rules and regulations.

Section 23-414 Lease and Access Roads - If the well associated with the surface facility, surface facility equipment, pipeline or flow line is capable of producing oil, gas, or other hydrocarbon substances, then the applicant shall install a Class B road to the surface facility, surface facility equipment, pipeline or flow line, pursuant to the specifications of the County Road Commission. The access points to the lease and access roads shall be gated and secured, the adequacy of which shall be determined by the Planning Commission.