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(1)The bond shall be a cash bond in the principal sum of such number of dollars as has been
<br />determined by the city council, but not to be less than $5,000.00. Such cash bond shall be for
<br />the benefit of the city and all persons concerned, conditioned that the permittee will comply with
<br />the terms and conditions of this article in the drilling and operation of the well. Such bond shall
<br />become effective on or before the date the same is filed withthe city secretary and remain in
<br />force and effect and on deposit for at least a period of six months subsequent to the expiration
<br />of the term of the permit issued, and in addition the bond will be conditioned that the permittee
<br />will promptly pay off fines, penalties and other assessments imposed upon the permittee by
<br />reason of his breach of any of the terms, provisions and conditions of this article, and that the
<br />permittee will promptly restore the streets and sidewalks and other public property of the city,
<br />which may be disturbed or damaged in the operations, to their former condition. The permittee
<br />will promptly clear all premises of all litter, trash, waste and other substances used, allowed or
<br />occurring in the drilling or producing operations, and will,after abandonment, grade, level and
<br />restore such property to the same surface condition, as nearly as possible, as existed when
<br />operations for the drilling of the wells were first commenced. The permittee will indemnify and
<br />hold the city harmless from anyand all liability growing out of or attributable to the granting of
<br />such permit, including the payment of any expenses incurred by the city for any legal action
<br />which may be filed by either party hereto by reason of seeking or recovery of damages to the
<br />city. If at any time, the city council shall deem any permittee's bond to be insufficient for any
<br />reason, it may require the permittee to make an additional cash bond. If after completion of a
<br />well, the permittee has complied with all of the provisions of this article, such as removing the
<br />derrick, clearing the premises, etc., he may apply to the city council to have the cash bond
<br />reduced to a sum of not less than $1,000.00 for the remainder of the time the well produces
<br />without reworking, and be given a refund of the amount of reduction. During reworking
<br />operations, the amount of the bond shall be increased to the original amount.
<br />(2)In addition to the bond required in subsection (1) of this section, the permittee shall carry a
<br />policy of standard comprehensive public liability insurance, including contractual liability
<br />covering bodily injuries and property damage, naming the permittee and the city, issued by an
<br />insurance company authorized to do business within the state, such policy in the aggregate
<br />shall provide for the following minimum coverages:
<br />a.Bodily injuries: $1,000,000.00, one person and $3,000,000.00, one accident; and
<br />b.Property damage: $1,000,000.00.
<br />(3)The permittee shall file with the city secretary certificates of such insurance coverageas stated
<br />in subsection (2) of this section, and shall obtain the written approval thereof by the city
<br />secretary, who shall act thereon within ten days from the date of such filing. Such insurance
<br />policy shall not be cancelled without written notice to the city secretary at least ten days prior to
<br />the effective date of such cancellation. If the insurance policy is cancelled, the permit granted
<br />shall terminate, and the permittee's rights to operate under the permit shall cease until the
<br />permittee files additional insurance as provided in this section.
<br />(Code 1970, § 16-14; Ord. No. 1659, § 1(16-8), 8-14-89)
<br />
<br />Sec. 102-159. - Issuance or refusal.
<br />(a)The city council, within 30 days after the filing of the application for a permit to drill and operate a
<br />well,shall determine whether or not the application complies in all respects with the provisions of this
<br />article, and if it does, the city council shall then fix the amount of the principal of the bond and
<br />insurance provided for in section 102-158, and after such determination shall issue a permit for the
<br />drilling and operation of the well applied for. Each permit issued under this article shall:
<br />(1)By reference have incorporated therein all the provisions of this article with the same force and
<br />effect as if this article were copied verbatim in the permit.
<br />(2)Specify the well location with particularity to lot number, block number and correct legal
<br />description.
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