(A) Insurance required for permit issuances. As a condition to the granting of any permit under this title for the drilling of an oil or gas well, or production of oil or gas, the permittee shall hold the city and its officers and employees harmless from any claims of, or liability to, third parties arising out of or resulting from the permittee's operations.
(B) Amount. The permittee shall carry and keep in force at all times a permit is in force, insurance in an amount to be set by City Council resolution to insure against liability for negligence of permittee or any of its agents or servants or employees, arising from the drilling or production activities or operations incident to the drilling or production of oil or gas wells pursuant to any such permit. Such insurance shall run in favor of the city and also in favor of any third party who may be injured by any such negligence.
(C) Filing policy. Such policy or policies of insurance shall be issued by a good and responsible insurance company and shall be filed in the office of the City Clerk and approved by the City Attorney before any drilling is commenced.
(D) Exception. If the City Council approves the same in advance, the applicant may, in lieu of such insurance, submit to the city evidence and agreements satisfactory to the city of the applicant's financial responsibility to insure itself and to indemnify the city.
('86 Code, § 21.08.110) (Ord. 3115, passed - - )