(A) Every permittee shall, either before or at the time of securing his or her permit, deliver to the Agency a bond approved as to form by the City Attorney and as to surety by the Secretary, payable to the city in an amount as provided in this chapter indemnifying and insuring the city against any loss or injury which it or any persons may suffer and against any damage occurring to any public property of the city or to any public street, avenue, alley, way or place within the city or to any private property resulting directly or indirectly from:
(1) The drilling or redrilling of, and/or the existence of the operation, the abandonment of the well referred to in the permit;
(2) The violation of the terms and conditions of the permit;
(3) The failure of the permittee to remove a derrick or its appurtenances; or
(4) Any wrongful conduct or acts or omission to act by the permittee or any of his or her agents, employees or contractors whose activity is related to the well referred to in the permit.
(B) The bond or bonds as provided in this chapter shall be kept in full force and effect at all times by the permittee and shall cover each and every well for which the permittee has been granted a permit, until the activity for which the permit was granted has been completed and a written consent to the permittee’s release from the bond obligation has been granted by the Council. If a permittee does not keep such bond in full force and effect, as provided in this section, the Council may declare any such permit forfeited, and all rights of the permittee therein and named thereunder shall cease and terminate.
(`78 Code, § 14.12.030.)