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.010 Existing Wells. A bond in the form required by this section shall be filed for each existing well within thirty days following the effective date of this chapter.
.020 New Wells. A bond in the form required by this section shall accompany every application for the drilling or redrilling of any oil well for which a bond is not on file.
.030 Bond Forms. Bonds shall be on a form approved by the City Manager and City Attorney and shall be filed with the City Clerk.
.0301 Single Bonds. Corporate surety bonds in the penal sum of five thousand dollars. The bond shall be executed by the operator as principal and by the authorized surety company as surety and conditioned that the principal named in the bond shall faithfully comply with all the provisions of this chapter in drilling or redrilling and maintaining all production facilities as required by this chapter until properly abandoned in conformity with the provisions hereof. The bond shall secure the City of Anaheim against all costs, charges and expenses incurred by it by reason of the failure of the principal to fully comply with the provisions of this chapter. The bond shall include the correct name or number of the well and such other information as may be necessary to readily identify the oil well.
.0302 Blanket Bonds. Any operator may, in lieu of filing a single bond for each well as required by the foregoing subsections .010 and .020 of this section, file a bond in the amount of twenty-five thousand dollars to cover all of his said operations conducted within the City of Anaheim. A rider to the bond shall be filed with the City Clerk showing the correct name or number of the well and such other information as may be necessary to readily identify the oil well for each well covered by the bond.
.040 Default in Performance of Conditions — Notice to be Given.
.0401 Whenever the City Manager finds that a default has occurred in the performance of any requirement or condition of these regulations, written notice thereof shall be given to the principal and to the surety on the bond.
.0402 Such notice shall specify the work to be done, the estimated cost thereof and the period of time deemed by the City Manager to be reasonably necessary for the completion of such work.
.0403 After receipt of such notice, the surety shall within the time therein specified either cause or require work to be performed, or failing therein, shall pay over to the City of Anaheim the estimated cost of doing the work as set forth in the notice, plus an additional sum equal to twenty-five percent of the estimated cost. Upon receipt of such moneys, the City Manager shall proceed by such mode as he deems convenient to cause the required work to be performed and completed, but no liability shall be incurred therein other than for the expenditure of said sum in hand. In the event that the well has not been properly abandoned under the regulations of the Division of Oil and Gas, such additional moneys may be demanded from the surety as is necessary to restore the drill site in conformity with the regulations of this chapter.
.050 Exoneration. Any bond issued in compliance with these regulations shall be terminated and canceled and the surety be relieved of all obligations thereunder when the well has been properly abandoned in conformity with all regulations of this chapter and in conformity with all regulations of the Division of Oil and Gas and notice to that effect has been received by the City Manager.
.060 Substitution. A substitute bond may be filed in lieu of any bond on file hereunder and the City Manager shall accept and file the same if it is qualified and in proper form and substance and the bond for which it is substituted shall be exonerated but only If the City Manager finds that all of the conditions of last mentioned bond have been satisfied and that no default exists as to the performance upon which the bond is conditioned. (Ord. 2196 § 1 (part); October 19, 1965.)