(A) Content of permit. The city staff, within 30 days after the filing of application for a permit to drill and operate a well, shall determine whether said application complies in all respects with the provisions of this chapter. If it does, the city staff shall then make recommendations on any item which may be varied or waived and shall immediately schedule the application for permit for public hearing, including a recommendation to the city council that the permit be issued. If the council grants the permit, the city shall issue such permit in writing within one week of council approval action or the posting of the required bond (whichever occurs later). Each permit issued under this chapter shall:
(1) By reference, have incorporated therein all the provisions of this chapter with the same force and effect as if this chapter were copied verbatim therein.
(2) By reference, have incorporated therein all the provisions of applicable federal law, state law, all rules, regulations, and standards adopted in accordance therewith relating to the protection of human beings, animals and natural resources.
(3) Specify the well location with clarity as to available correct legal description according to the U. S. Government Survey (USGS).
(4) Specify that the term of such permit shall be for a period of one year from the date of the permit, for as long thereafter as the permittee is engaged in drilling operations with no ceasing of such drilling operations for more than 30 days, oil or gas is produced in commercial quantities from the well drilled pursuant to such permit; provided, that if at any time after discovery of oil or gas and the production thereof in commercial quantities, such production shall cease, the term shall not terminate if the permittee commences additional reworking operations within 90 days thereafter; if the reworking operations result in the production of oil or gas, the permit shall continue so long thereafter as oil or gas is produced in commercial quantities from said well. Continuation beyond one year from the date of issuance is contingent on annual renewal of the permit as set forth hereafter.
(5) Specify such conditions imposed by the city as are authorized by this chapter.
(6) Specify that no actual operations shall be commenced until the permittee shall file and have approved the required bonds and certificate of insurance in the appropriate amounts as provided herein, and that operators shall immediately cease should coverage of the bonds or the insurance be suspended or reduced below the required levels.
(7) Specify the total depth to which the well may be drilled, not exceeding the proposed depth.
(B) Signed copies. The permit, in duplicate originals, shall be signed by the city manager or his designate, and shall be signed by the permittee prior to delivery. One original shall be retained by the city and one original shall be retained by the permittee. When so signed, the permit shall constitute the permittee's drilling and operation license and contractual obligation of the permittee to comply with the terms of such permit, the bonds required by the ordinances, and this chapter. The copy of the permit retained by the permittee shall be kept immediately available for inspection by any city or state law enforcement official or inspector who demands to see the same. Grant of the permit by the city is not a guarantee of the permittee, nor is it an expression of the feasibility of the operations.
(Ord. 1974, passed 8-6-19)