1.   At the time of filing such application required in § 14-2, such applicant shall pay to the City Clerk the sum of $650 to defray the expenses of inspecting the specified location and drilling operations and, if completed as a producing well, in payment of the annual fee for the initial year of production and operation of said well.
   2.   Such applicant shall also, at said time, file with the City Clerk a copy of a policy of insurance issued by some corporate insurer licensed to do business within the state, evidencing current insurance of the owner, driller, agents and employees, conditioned for the payment of all damages due to injury to persons or damage to property resulting from the drilling, operation or maintenance of the proposed well or any structure, machinery, equipment, pipelines or appurtenances used in connection therewith, in an amount not less than $250,000.
   3.   Such policy shall contain no exclusion from coverage of contamination of pollution of surface or subterranean streams, watercourses, lakes or public or private water supplies.