(A) Prior to the issuance of any permit, the applicant shall deposit with the City Clerk a cash amount of $2,000 as a security for the compliance with all requirements of this subchapter by the owner, his driller, or her driller, agents, and employees during the drilling operation.
(B) When the drilling operation has been completed in compliance with all requirements of this subchapter, the $2,000 cash amount shall be refunded upon the deposit with the City Clerk of surety bond or cash deposit in the form of a cashier's check or certificate of deposit in the amount of $25,000 conditioned upon plugging of the well and/or the restoration of the land's surface, the plugging and restoration to be performed within 90 days of the abandonment, in accordance with the rules and regulations of the State Corporation Commission.
(C) Upon non-compliance of the above-listed conditions, the cash amount or the surety bond shall be forfeited and shall provide reimbursement for the plugging of the well and restoration of the land's surface.
(D) Prior to issuance of any permit, applicants shall enter into an agreement with the city as follows:
(1) The applicant shall agree to fully defend, protect, indemnify and hold harmless the city, its employees and agents, from and against each and every claim, demand or cause of action, and any liability cost, expense, including but not limited to reasonable attorney's fees and expenses incurred in defense of the city, damage or loss in connection therewith, which may be made or asserted by applicant, applicant's employees or agents, subcontractors or any third party, including but not limited to the city's agents, or employees, on account of personal injury or death or property damage caused by, arising out of or, in any way incidental to, or in connection with the performance of the work hereunder, except such as may result solely from the city's negligence.
(2) The applicant shall agree to fully defend, protect, indemnify and hold harmless the city, its employees and agents, from and against each and every claim, demand or cause of action and any liability, cost, expense, including, but not limited to reasonable attorney's fees and expenses incurred in defense of the city, damage or loss in connection therewith, which may be based upon the infringement of any patent in or in connection with the performance of the work or the use of the materials or equipment furnished for or in connection with the work.
(3) Prior to issuance of a permit, the applicant shall maintain, at his or her sole cost, and will require any subcontractors he or she may engage to maintain, at all times while performing work hereunder the insurance coverage set forth below with companies satisfactory to the city with full policy limits, applying but not less than as stated.
(4) A certificate evidencing the required insurance and specifically quoting the indemnification provisions set forth in this agreement shall be delivered to the city prior to commencement of the work and shall provide that any change restricting or reducing coverage or the cancellation of any policies under which certificates are issued shall not be valid as respects the city's interest therein until the city has received 30 day notice in writing of the change or cancellation:
(a) Worker's compensation insurance, as required by laws and regulations applicable to and covering employees of contractor or his/her subcontractor(s) engaged in the performance of the work under this agreement;
(b) Employer's liability insurance, protecting contractor or his/her subcontractor(s) against common law liability, in the absence of statutory liability, for employee bodily injury arising out of master-servant relationship with a limit of not less than $500,000;
(c) Comprehensive general liability insurance, including products completed operations; (This policy shall cover, among other risks, the
contractual liability assumed under the indemnification provision set forth in this agreement and it shall have limits of liability in amounts not less than the limits provided in the State Political Subdivision Tort Claims Act.)
(d) Automobile liability insurance, including non-owned, or hired vehicles coverage with limits of liability in amounts not less than the limits provided in the State Political Subdivision Tort Claims Act; and
(e) Excess liability insurance, including comprehensive general liability, comprehensive automobile liability and coverages afforded by the policies described above, with minimum limits of $5,000,000 excess of the specified limits.
(5) The insurance policies shall not include any exclusion for collapse, underground resources and equipment exclusion, blowout or cratering, underground property damage exclusion, explosion, contamination, cost of control and exclusion within city limits.
(6) All insurance policies shall be endorsed to show the city as an additional insured, except the worker's compensation.
(7) Each policy shall be endorsed to provide waiver of subrogation rights in favor of the city, its subsidiaries and affiliates, and all other parties owning an interest in the property on which work covered by this agreement is to be performed.
(8) Failure of the applicant to keep the insurance policies as required by this section in full force and effect during the work covered by this agreement and during any extensions, extra or additional work agreed to by the applicant and the city hereunder shall constitute a breach of this agreement, and the city shall have the right, in addition to any other rights, to immediately cancel and terminate the permit without further cost to the city.
(Prior Code, § 5-704) (Am. Ord. 1426, passed 8-16-88; Am. Ord. 1974, passed 8-6-19) Penalty, see § 10.99