Before any drilling, including temporary geo-logical exploratory core holes, is commenced, each permittee shall file in the office of the City Clerk a corporate surety bond satisfactory to the City Attorney, executed by the applicant as principal and by a surety company authorized to do business in the state as surety, in favor of the city, in an amount to be set by City Council resolution for each well here-after drilled on a controlled drilling site within the city, and a bond in an amount to be set by City Council resolution for each well located on a drill site outside the city for drilling into the subsurface of the city, provided, however, that the applicant, in lieu of filing individual bonds for each individual well, may file a blanket bond in an amount to be set by City Council resolution covering all of its drill sites, wells, core holes and production. Such individual bonds or blanket bonds shall be conditioned on the principal named therein faithfully complying with all of the provisions of the permit and shall secure the city against all losses, charges and expenses incurred by the city to obtain such compliance by the principal named in the bond.
(A) Each such bond shall be kept and maintained in full force and effect at all times, and the obliga-tions thereof and the liabilities thereunder shall be terminated solely and only at the time or times and in the manner as herein provided.
(B) The applicant as principal, and the surety under any bond filed hereunder may have such bond terminated and cancelled by furnishing a new bond therefor, approved by the City Attorney and the City Council. Any bond shall be terminated and cancelled upon the final and permanent cessation or abandon-ment of all operations in connection with any well or wells for which the bond was given.
('86 Code, § 21.08.120) (Ord. 3115, passed - - )