Bonds shall be in the form generally used by the State of California Oil and Gas Industry and shall be in the amount and contain provisions as provided in this section.
(A) Single bonds. A corporate surety bond shall be in the sum of $5,000 and shall be executed by the operator as principal and by the authorized surety company as surety. It shall provide that the principal named in the bond shall faithfully comply with all the provisions of this title as to drilling or redrilling and maintaining all production facilities until property abandoned in conformity with the provisions of this title. The bond shall secure, indemnify and insure the city against all costs, charges, claims, causes of action, damages and expenses brought against it or incurred by it by reason of the failure of the principal to fully comply with the provisions of this title. The bond shall include the correct name or number of the well and such other information as may be necessary to readily identify the oil well. Any operator may, at the discretion of the Agency, furnish negotiable securities in a form prescribed by the Agency or cash in lieu of a corporate surety bond.
(B) Blanket bonds. The following provisions shall apply to blanket bonds:
(1) Any operator may, in lieu of filing a single bond for each well as required by §§ 14.12.010 and 14.12.020, file a bond covering all his or her oil operations within city in the amount of $10,000 if the oil operator has ten or fewer wells, $20,000 if he or she operates 25 or fewer wells and $25,000 if he or she operates more than 25 wells;
(2) Individual operators may collectively pool their wells for the purpose of obtaining a blanket bond. If they do so, they may provide a bond under the conditions of this subsection.
(`78 Code, § 14.12.040.)