In the event a permit be issued by the City Council under the terms of this chapter for the drilling and operation of a well, no actual drilling operations shall be commenced until the permittee shall file with the City Secretary of the city a bond and a certificate of insurance, as follows:
(a) (1) A bond in the principal sum of such number of dollars as has been so determined by the City Council, but not to be less than $50,000.00. The bond shall be executed by a reliable indemnity company authorized to do business in the state, as surety, and with the applicant as principal, running to the city for the benefit of the city and all persons concerned, conditioned that the permittee will comply with the terms and conditions of this chapter in the drilling and operation of the well. The bond shall become effective on or before the date the same is filed with the City Secretary and remain in force and effect for at least a period of six (6) months subsequent to the expiration of the term of the permit issued, and in addition the bond shall be conditioned that the permittee will promptly pay all fines, penalties and other assessments imposed upon the permittee by reason of his breach of any of the terms, provisions and conditions of this chapter, and that the permittee will promptly restore the streets and sidewalks and other public property of the city, which may be disturbed or damaged in the operations, to their former condition; and that the permittee will promptly clear all premises of all litter, trash, waste and other substances used, allowed, or occurring in the drilling or producing operations, and will, after abandonment, grade, level, and restore the property to the same surface condition, as nearly as possible, as existed when operations for the drilling of the well or wells were first commenced, to the satisfaction of the City Council; and that the permittee will indemnify and hold the city harmless from any and all liability growing out of or attributable to the granting of such permit. If at any time the City Council shall deem any permittee's bond to be insufficient for any reason, it may require the permittee to file a new bond.
(2) If, after completion of a well, the permittee has complied with all of the provisions of this chapter, such as to removing the derrick, clearing premises, and the like, he may apply for the City Council to have the bond reduced to a sum of not less than $25,000.00 for the remainder of the time the well produces without reworking. During reworking operations the amount of the bond shall be increased to the original amount.
(b) (1) In addition to the bond required in division (a) of this section, the permittee shall carry a policy or policies of standard comprehensive public liability insurance, including contractual liability covering bodily injuries and property damage, naming the permittee and the city in an insurance company authorized to do business within the state. The policy or policies in the aggregate shall provide for the following minimum coverages:
(i) Bodily injuries; $100,000.00 one person.
$200,000.00 one accident.
(ii) Property damage; $500,000.00
(2) The permittee shall file with the City Secretary certificates of the insurance as above stated, and shall obtain the written approval thereof by the Mayor of the city, who shall act thereon within ten (10) days from the date of such filing. The insurance policy or policies shall not be cancelled without written notice to the City Secretary at least ten (10) days prior to the effective date of such cancellation. In the event that the insurance policy or policies are cancelled, the permit granted shall terminate, and the permittee's rights to operate under the permit shall cease until the permittee files additional insurance as provided herein.
(3) If after completion of a well, the permittee has complied with all of the provisions of this chapter such as removing the derrick, clearing premises, and the like, he may apply to the City Council to have the insurance policies reduced as follows:
(i) Bodily injuries; $50,000.00 per person;
(ii) Property damage; $250,000.00 one accident; for the remainder of the time the well produces without reworking. During reworking operations, the amount of the insurance policy or policies shall be increased to the original amount.
(Ord. 39817, passed 10-2-79) Penalty, see § 170.99