Permits for drilling, maintaining and operating oil and gas wells in the city of Eufaula shall be granted only to responsible persons who have met, to the satisfaction of the mayor, all of the following requirements:
A. Payment Of Fee: Payment of seven thousand dollars ($7,000.00) to the city of Eufaula clerk for: 1) the issuance of such permit; and 2) the annual fee for the first year of police, safety and sanitary inspection.
B. Agreement Required: Depositing with the city of Eufaula clerk, to become and remain a part of the permanent records of the city of Eufaula, a valid and legal agreement, in writing, fully executed and acknowledged by the owner of the lot where the oil or gas well is to be drilled, agreeing that all rents and royalties accruing from oil, gas or casinghead gas produced from such well shall be prorated among all the owners of the oil, gas and other mineral rights in and under said block, in the proportion that each owner's interest in the block bears to the whole of the block.
C. Written Consent Required: Depositing with the city of Eufaula clerk, to become and remain a part of the permanent records of the city of Eufaula, a valid and legal consent, in writing, fully executed and acknowledged by the owner or owners of not less than fifty one percent (51%) of the oil, gas and other mineral rights of the block in which the oil well is to be drilled, consenting to the drilling of such oil well upon the lot or lots indicated in such application.
D. Bond Required: Depositing with the city of Eufaula clerk, to become and remain a part of the permanent records of the city of Eufaula, good and sufficient bond(s) covering each separate oil well for which permits are requested, executed by one or more responsible bonding, insurance or indemnity companies authorized to do business within the state of Oklahoma. Such bond(s) shall run in the name of the city of Eufaula, and be conditioned that the applicant will pay and discharge any and all liability imposed by law for damages, either for injury to the person or damages to real or personal property, including death, received by any person, firm or corporation, resulting from the drilling, operation, or maintenance under such permit of any oil well, structure, equipment, machinery, tanks, pipeline or appurtenances thereto, and that such applicant will also abide by, and comply with, all the provisions of this chapter and other ordinances of the city of Eufaula.
1. Such bond or bonds shall further provide that insolvency or bankruptcy of the insured shall not release the insurance company from any payment due under such bond or bonds. If by reason of such insolvency or bankruptcy, an execution on the judgment against the insured is returned unsatisfied, the judgment creditor shall have the right of action against the insurance company to recover the amount of said judgment to the same extent that the insured would have had to recover against the company, had the insured party paid the judgment.
2. Such bond or bonds shall further provide against the cancellation, until thirty (30) days' notice in writing of such intended cancellation, shall have been given the city of Eufaula, by the delivery of written notice to the city of Eufaula clerk. Upon such notice being given, the person to whom such permit has been issued shall be immediately notified thereof, and if such person shall fail, within thirty (30) days after having received notice of such intended cancellation, to provide other sufficient bond or bonds in compliance with the terms and provisions of this chapter, then the permit issued to such person shall be automatically suspended for all purposes, and all operations being carried on under such permit shall cease until such other sufficient bond or bonds have been posted with the city of Eufaula clerk and approved, by motion of the city of Eufaula council, at a regular or special meeting.
3. Such bond or bonds, among other things, shall cover and indemnify such city of Eufaula and the inhabitants thereof against loss or damage to private or public water supply.
4. The total liability under such bond or bonds, in the case of each oil or gas well, shall not be less than twenty five thousand dollars ($25,000.00) and shall be made for a period of not less than one year. No oil or gas well shall be drilled, maintained or operated at any time for any period of time, without currently valid and legal bond or bonds in such amount being on deposit with the city of Eufaula clerk. Provided, however, that, at the time of the renewal of such bond or bonds for any one well, if such bond in the amount of thirty five thousand dollars ($35,000.00) has been in force and effect for one year and all drilling operations have been completed, the liability on such bond or bonds in the case of each well completed, may be reduced to ten thousand dollars ($10,000.00). (Ord. 08-01-1, 1-7-2008)