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A. No actual operations shall be commenced until the permittee shall file with the City, bonds and a certificate of insurance as follows:
1. A bond executed by a reliable insurance company authorized to do business in the State of Oklahoma, as surety and with the applicant as principal, running to the City of Kingfisher for the benefit of the City of Kingfisher and all persons concerned, conditioned that the permittee will comply with the terms and conditions of this title and the terms, conditions and regulations of the Oklahoma Corporation Commission and the Oklahoma Department of Environmental Quality in the operation of the oil or gas well for either natural or artificial production. Said bond shall become effective on or before the date the same is filed with the City and remain in force and effect for at least twelve (12) months subsequent to the operation of the permitted well as a producing well, and in addition the bond will be conditioned that the permittee will promptly pay fines, penalties and other assessments imposed upon the permittee by reason of his breach of any of the terms, provisions and conditions of this title, and that the permittee will promptly restore the streets, sidewalks and other public property of the City which may be disturbed or damaged in permittee's operations, to their former condition; and that the permittee will promptly clear all premises of all litter, trash, waste and other substances, and will after abandonment, grade, level and restore said property to the same surface condition, as practicable as is possible, as existed prior to commencing operation; and further that the permittee shall indemnify and hold harmless the City for any and all liability attributable to granting the permit.
The amount of the bond shall be twenty five thousand dollars ($25,000.00) per well. If the permittee operates multiple wells within the City of Kingfisher, the permittee shall post a single bond that will cover all operations of the permittee at all wells located in the City of Kingfisher. The amount of the bond posted to cover all operations of the permittee at all wells within the City of Kingfisher, Oklahoma, shall be twenty five thousand dollars ($25,000.00) per well, regardless of the number of wells within the City of Kingfisher.
2. In addition to the bond required in subsection A1 of this section, the permittee shall carry a policy or policies of standard comprehensive public liability insurance written by a reliable insurance company authorized to do business within the State of Oklahoma. Said policy or policies shall provide for the following minimum coverages:
a. Bodily injury, two hundred thousand dollars ($200,000.00) per person; five hundred thousand dollars ($500,000.00) per occurrence.
b. Property damage and pollution damage, one million dollars ($1,000,000.00).
Said policy or policies shall provide full coverage in the event of pollution and shall not include any pollution exclusion whatsoever. The permittee shall file with the City Manager certificates of insurance as above stated, and shall obtain the written approval thereof of the oil and gas inspector who shall act thereon promptly after the date of such filing. Said insurance policy or policies shall not be canceled without written notice to the City Manager at least ten (10) days prior to the effective date of such cancellation. In the event said policy or policies are canceled, the permit granted shall immediately thereupon terminate without any action on the part of the City, and the permittee's rights to operate under said permit shall immediately cease until permittee files with the City Manager an additional certificate of insurance as required above.
If, after completion of a producing well, the permittee has complied with all the provisions of this title such as removing derricks, clearing premises, etc., the permittee shall apply to the oil and gas inspector to have the insurance policy or policies reduced as follows:
a. Bodily injury, one hundred thousand dollars ($100,000.00) per person; two hundred thousand dollars ($200,000.00) per occurrence.
b. Property damage, five hundred thousand dollars ($500,000.00).
c. Pollution damage, one million dollars ($1,000,000.00) (full coverage with no exclusion whatsoever).
3. The bond required in subsection A1 of this section and the insurance policy or policies required in subsection A2 of this section, shall assure that the permittee shall comply with all applicable Federal and State laws, rules, regulations, standards and directives relating to the maintenance of the safe and beneficial physical, chemical and biological properties of any natural waters located within or under the City; that permittee shall obtain the necessary permits from the City and State with regard to any operations which have the potential of rendering such waters harmful or detrimental or injurious to the public health, safety and welfare; that permittee shall bear all the cost necessary and incidental to the correction of any pollution to said waters caused by the permittee or permittee's agents, servants, employees, subcontractors or independent contractors; that permittee shall pay all fines, penalties, assessments or judgments resulting directly or incidentally from the permittee's activities and which result in pollution of any waters located within or under the City; that permittee shall indemnify and hold harmless the City from any and all liability resulting from the pollution of any waters located within or under the City. (Ord. 972, 9-11-2017; amd. Ord. 975, 10-10-2017)