A. No permit for the erection of any derrick or the drilling for oil or gas shall be issued by the Director of Development Services or be valid or effective for any purpose, unless at the time of issuance there is on file with the City Clerk and in full force and effect, a satisfactory surety corporate bond in favor of the City, in the sum of $2,000 per well, or $10,000 for five or more wells, conditioned upon the compliance by the applicant with all conditions set forth in this chapter.
B. The conditions of the bond shall be as follows:
1. That the City shall be indemnified against any expense or liability resultingfrom the operation or use of land and equipment for which a permit is granted.
2. That upon cessation of operations or abandonment, the property shall be cleaned and made safe and the derrick, other equipment and sumps shall be removed.
3. That the applicant shall comply with all the laws of the City and all other applicable laws.
4. That the applicant shall comply with all the terms and conditions of the permit to the reasonable satisfaction of the Director of Development Services.
5. Such other conditions as the City Attorney shall reasonably require incidental to the foregoing conditions.
C. The bond shall be terminated upon one of the following conditions:
1. Upon the applicant's filing with the City Clerk a substitute bond in the principal sum required by this chapter.
2. Upon the applicant's filing with the City Clerk a release of the bond showing an abandonment of all operations for which the permit was issued, or upon the revocation of such permit, provided that all the conditions of the bond have been complied with to the reasonable satisfaction of the City Council.
(Ord. 2982, 2001)