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CONSIDERATION OF ORDINANCE NO. O-1314-57 UPON SECOND AND FINAL READING: AN ORDINANCE OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, AMENDING SECTION 13-1501(A)(1) AND (2) AND 13-1501(D) OF CHAPTER 13 OF THE CODE OF ORDINANCES OF THE CITY OF NORMAN INCREASING THE PERMIT FEE SCHEDULE RELATED TO OIL, GAS AND MINERAL PRODUCTION; AND PROVIDING FOR THE SEVERABILITY THEREOF.
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BACKGROUND: City Council approved the FYE 2015 Operating and Capital Budget on June 10, 2014. As part of the approved amendments to the budget, Council contemplated revenue through the increase of oil/gas drilling permit fees and inspection fees for Oil, Gas and Mineral Production. Ordinance O-1314-57 is an amendment that reflects the contemplated increase for Oil, Gas and Mineral Production permits and increases the annual inspection fees.
DISCUSSION: The proposed Ordinance amends Sections 13-1501(a)(1) and (2) and 13-1501(d) to increase the current drilling permit fee and annual inspection fees for oil and gas production to reflect the approved amendments and revenue contemplated from these permits and fees as approved by City Council on June 10, 2014. The Ordinance amends Section 13-1501(a)(1) and (2) to increase the drilling permit fee for oil and gas drilling within the City limits from $3,000 to $5,000, and increases the annual inspection fee from $225 to $450. Further, Sec. 13-1501(d) is amended to increase the annual inspection fee from $225 to $450.
The revenue from these fee increases will provide revenue funding as approved in the FYE15 budget. The last increase to these fees was in August, 2003 by Ordinance O-0202-54 as part of a number of revisions to the Oil, Gas and Mineral Production Ordinance. That Ordinance amendment raised the drilling permit fee from $1,000 to $3,000 and the annual inspection fees from $200 to $225.
RECOMMENDATION: The attached proposed Ordinance O-1314-57 increases fees on oil and gas drilling permits and annual inspection fees to reflect the contemplated revenues as amended and approved by the City Council at the June 10, 2014, Agenda Meeting for the FYE15 Operating and Capital Budget. Staff recommends adoption of attached Ordinance O-1314-57.