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<br />. <br /> <br />. <br /> <br />ORDINANCE NO. 1659 <br /> <br />Page 4 <br /> <br />with the application shall be returned to the applicant, except that <br />there shall be retained therefrom by the City of La Porte, one <br />hundred dollars ($100.00) as a processing fee. <br /> <br />SECTION 16-7: TERMINATION OF PERMIT <br /> <br />The permit shall terminate without any action on the part of the <br />City unless actual drilling of the well shall have commenced within <br />one hundred eighty (180) days from the date of issuance. The <br />cessation for a like period of the drilling operations or the <br />cessation of the production of oil or gas from the well after <br />production shall have commenced, shall cancel" the permit, and the <br />well shall be considered as abandoned for all purposes of this <br />Ordinance. It shall be unlawful thereafter to continue the <br />operation or drilling of such well without the issuance of another <br />permit. <br /> <br />SECTION 16-8: PERMITTEE'S INSURANCE AND BOND <br /> <br />In the event a permit is issued by the City Council under the terms <br />of this chapter for the drilling and operation of a well, no actual <br />drilling operations or site preparation work shall be commenced <br />until the permittee shall file with the City Secretary of the City <br />of La Porte, a bond and a certificate of insurance, as follows: <br /> <br />(1) The bond shall be a cash bond in the principal sum of such <br />number of dollars as has been determined by the City Council of <br />the City of La Porte, but not to be less than five thousand <br />dollars ($5,000.00). Said cash bond shall be for the benefit <br />of the City and all persons concerned, conditioned that the <br />permittee will comply with the terms and conditions of this <br />chapter in the drilling and operation of the well. Said bond <br />shall become effective on or before the date the same is filed <br />with the City Secretary and remain in force and effect and on <br />deposit for at lease a period of six (6) months subsequent to <br />the expiration of the term of the permit issued, and in <br />addition the bond will be conditioned that the permittee will <br />promptly payoff fines, penalties, and other assessments <br />imposed upon permittee by reason of his breach of any of the <br />terms, provisions, and conditions of this chapter, and that the <br />permittee will promptly restore the streets and sidewalks and <br />other public property of the City, which may be disturbed or <br />damaged in the operations, to their former condition~ and that <br />the permittee will promptly clear all premises of all litter, <br />trash, waste, and other substances used, allowed, or occurring <br />in the drilling or producing operations, and will, after <br />abandonment, grade, level, and restore said property to the <br />same surface condition, as nearly as possible, as existed when <br />operations for the drilling of the well or wells were first <br />commenced~ and that the permittee will indemnify and hold the <br />City of La Porte harmless from any and all liability growing <br />out of or attributable to the granting of such permit, <br />including the payment of any expenses incurred by the City for <br />any legal action which may be filed by either party hereto by <br />reason of seeking or recovery of damages to the City as <br />aforesaid. If at any time, the City Council shall deem any <br />permittee's bond to be insufficient for any reason, it may <br />require the permittee to make an additional cash bond. If <br />after completion of a well, permittee has complied with all of <br />the provisions of this chapter, such as to removing derrick, <br />clearing premises, etc., he may apply to the City Council to <br />have said cash bond reduced to a sum of not less than one <br />thousand dollars ($1,000.00) for the remainder of the time said <br />well produces without reworking, and be given a refund of the <br />amount of reduction. During reworking operations, the amount <br />of the bond shall be increased to the original amount. <br />