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(b) The drilling bond must then be replaced with a maintenance bond in the amount of twenty-five thousand dollars ($25,000), which will guarantee proper maintenance and eventual plugging and site restoration and which shall remain in full force and effect until such time as the well is plugged and permanently abandoned and the land is restored as required by § 836.06.
(c) If the surety provider cancels the maintenance bond, the city shall receive a 30-day certified notice. The permit holder must replace the bond with another bond or security acceptable to the city within that 30-day period or the city shall have the right to immediately revoke the permit and order the well production to cease and the well to be plugged.
(d) In addition to the above bonds, the applicant shall deposit with the city multi-peril insurance policies or certificates of insurance covering liability for property damage and personal injury. Such policies shall be subject to the approval of the Law Director and shall, at a minimum, be written by companies licensed to do business in the state. Such insurance shall be in an amount of not less than ten million dollars ($10,000,000.00) bodily injury coverage and ten million dollars ($10,000,000.00) property damage coverage to pay damages for injury to persons and/or damage to property caused by the drilling, operation or plugging of such a well. The city shall be named as an additional insured, holding the city free and harmless from any and all liability incurred by the granting of such permit. The above insurance policies shall be kept in full force and effect until such time as the well is plugged and permanently abandoned and the land is restored as required by § 836.06.
(Ord. 89-O-46, passed 12-18-1989)