It being the intention of the City Council to give the owners of oil and gas rights within the exploratory area the right and privilege to participate in royalties derived from the drilling of wells in the exploratory area, it shall be a condition to the granting of any permit by the City Council that each applicant or permittee or his successor in interest, shall, within one year from the issuance of a permit under the provisions of this title, execute an offer in writing giving to each record owner of property located within the exploratory area who has not joined in the lease, or other authorization to drill, the right to share in the proceeds of production from wells bottomed in the district, upon the same basis as those property owners who have, by lease or other legal consent, agreed to the drilling for and produc-tion of oil, gas or other hydrocarbon substances from the subsurface of 51% of the area. The offer hereby required must remain open for acceptance for a period of five years after the date of issuance of the permit. During the period the offer is in effect, the applicant, or his successor in interest, shall impound all royalties to which the owners or any of them may become entitled in a bank or trust company in the state, with proper provisions for payment to the record owners of property in the exploratory area who had not signed the lease at the time such permit was issued, but who accept such offer in writing within the five year period. Any such royalties remaining in any bank or trust company at the time the offer expires and which are not due or payable as hereinabove provided shall be paid pro rata to those owners who, at the time of such expiration, are otherwise entitled to share in the proceeds of such production.
('86 Code, § 21.08.080) (Ord. 3115, passed - - )