(A) Initiation procedures are as follows.
(1) The proceedings for the establishment of an oil drilling zone may be initiated by a verified application of one or more of the owners or lessees of property within the boundaries of the proposed district or by resolution of the Commission or Council. An application for the establishment of a district shall be filed with the Commission upon a form prescribed for that purpose by the Commission and shall be accompanied by a filing fee, as established by City Council resolution and any amendments thereto, which shall not be refundable;
(2) In the application, the applicant shall agree that he shall be bound by the provisions of the city’s oil and gas production regulations and any drilling or redrilling permit granted as a result of said application;
(3) Each application shall contain a statement that the applicant has the proprietary or contractual authority to drill for and produce oil, gas or other hydrocarbon substances under the surface of at least 51% of the property to be included in said district;
(4) Each application shall contain a description of the controlled drilling site from which the applicant has or can secure access to the proposed district and which he or she proposes to use to develop the proposed district;
(5) A map and legal description of each proposed district or districts and the controlled drilling site proposed to be used in developing the district or districts shall accompany the application, such map to be in sufficient copies to be mailed to each property owner within the proposed district and within 300 feet of the exterior boundaries thereof, with six additional copies for city files;
(6) Accompanying the application shall be a written offer, executed by applicant, to each owner of lands within the district, for which the application is made, and who is not then a party to the applicant’s oil lease, by which applicant claims the right to conduct oil development operations, giving to each such owner the right to participate in the proceeds of any such production by becoming within five years from the date the proposed oil district is established a party to the oil lease, operating agreement or other contract, under which applicant claims the right to conduct oil drilling operations within the district. The offer must remain open for acceptance for a period of five years from the date the oil district is established. During the option period, applicant or his or her successor in interest shall impound and keep in a separate trust account all royalties to which the owners or any of them may become entitled. Any such royalties remaining at the time the offer expires and which are not due or payable, as provided in this section, shall be paid pro rata to those owners who, at the time of such expiration, are otherwise entitled to share in the proceeds of such production.
(B) Proceedings before Planning Commission and Council are as follows: after the filing of a proposed application or passage of a resolution, the application or resolution shall be considered and handled in accordance with the procedure provided in §§ 17.104.070 through 17.104.110 and 17.104.130 of this code.
(`78 Code, § 17.60.050.)