(a) Prior to the issuance of a city permit, the applicant shall show satisfactory evidence of general liability insurance naming the City of Cortland as an additional insured on its policy in an amount not less than one million dollars. The insurance will also include a one hundred thousand dollar ($100,000) pollution provision. Coverage shall also be provided in the event of a spill of crude oil, salt water brine or other by-products of producing well, storage tank or pipeline for necessary clean up and/or restoration of property owned or controlled by the permit holder in an amount not to be less than twenty-five thousand dollars ($25,000) per occurrence. The applicant shall further show evidence that the insuring company has an AM Best rating not less than A+. The insurance shall be kept in force for such period of time that the drilling is in progress, the well is in operation or is producing gas or oil, and until such well is plugged and the storage tanks and all other equipment is taken out of use and removed from the site. The insuring company shall be required to give the City of Cortland a thirty day notice of any cancellation, non-renewal or substantial change in coverage.
(b) The applicant will further ensure and show evidence that the driller or permit holder possess a minimum of seven hundred fifty thousand dollars ($750,000) of liability insurance that covers underground resources. Said insurance shall be kept in force throughout the drilling process and until the well has been cased and cementing has been completed.
(c) All provisions shall apply to the heirs, executors or assigns of any individual permittee, and the successors and assigns of any firm, partnership, association or corporate permittee, as fully as such provisions apply to the original permittee. Provisions requiring responsibility for or compliance's by the permit holder, including bond conditions, shall also apply to say assignee, or any employee, contractor, subcontractor or other party performing services in connection with the permit.
(d) The permit holder shall pay the owners of any realty, crops, buildings improvements, goods or chattels located in the area, any extra cost of insurance on the property imposed by reason of the granting of the permit or the operations carried on there under, and any and all damages suffered by any person, persons, or corporations as to the property within the City from fire, over and above the insurance collected thereupon, or from gas and oil or water caused by the originating from any operation connected with the well, and shall hold the City free and harmless from any and all liability growing out of granting of such a permit.
(e) The correction of any damages to any road surfaces occurring as the direct or indirect result of the movement of heavy drilling equipment or heavy trucks in any way associated with the drilling shall be the responsibility of the permit holder. The City assumes no liability for damage to the applicant's equipment or load being moved due to the failure of the City streets. The permit holder shall compensate the City for personal injury and or property damages and shall further hold the City harmless of any and all claims, damages or proceedings of any kind from all responsibility for personal injury or property damage, public or private, caused directly or indirectly as a result of transportation of any and all equipment related to the drilling activity.
(Ord. 0-24-98. Passed 4-20-98.)