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Within ten days after the contract is awarded to the successful bidder, said bidder shall execute the lease or agreement and post the faithful performance bond. If the property involved is located in a zone in which drilling for Petroleum is not then permitted under the provisions of the Comprehensive Zoning Plan of the City of Los Angeles, the successful bidder, within 20 days after such award, shall make application for an “O” Oil Drilling Districts and comply with the requirements of Section 13.01 of the Los Angeles Municipal Code; provided, however, that in the event that said application is made within the 20-day period provided therefor and is denied, said lease or agreement shall be of no force or effect and any consideration paid to the City therefor shall be returned.
SECTION HISTORY
Based on Ord. No. 114,262.
Amended by: In Entirety, Ord. No. 185,205, Eff. 11-22-17.
The bid bond or faithful performance bond, when a certified check payable to the City is not furnished in lieu thereof, shall be executed by the bidder and by a responsible corporate surety company; or two or more individual sureties if and when approved by the bidding authority.
In the discretion of the Governing Body, deposit of cash by way of bond may be authorized to be deposited with the City Treasurer under such procedure as may be approved by the City Treasurer and the City Controller.
SECTION HISTORY
Based on Ord. No. 114,262.
Amended by: In Entirety, Ord. No. 185,205, Eff. 11-22-17.
If the successful bidder fails to enter into the contract awarded it or to supply the necessary faithful performance bond within ten days after the award, then the sum deposited in cash or by certified check or guaranteed by the bid bond is forfeited to the City. Such forfeiture shall not preclude recovery of any sum over and above the amount posted or guaranteed to which the City sustains damage by reason of such default or failure to contract.
In the event of the bidder’s default, any cash deposit shall be paid to the City; or the certified check shall be presented for payment and collected; or the surety bondspersons shall be required to pay the amount of their bond, and the City Attorney may take appropriate action to collect the same if such bondspersons fail to pay the obligation of their bond within fifteen days after demand. Upon payment or collection, the amount shall be paid into the general fund or to the bond fund from which the contract is to be met or, in the case of contracts made by departments having control of their own funds, into the appropriate fund of such department as designated by such department.
SECTION HISTORY
Based on Ord. No. 114,262.
Amended by: In Entirety, Ord. No. 185,205, Eff. 11-22-17.
In addition to such other rights to be determined by the Governing Body, the City shall, subject to the approval of the State Lands Commission of the State of California as to leases and agreements involving tide or submerged lands granted in trust to the City by the State, reserve the following rights:
(a) To prohibit or require approval of any transfer or assignment of such lease or agreement, or of any interest therein;
(b) To approve any pooling arrangement;
(c) To permit subsurface encroachment required to drill to the subsurface of adjoining lands;
(d) To reasonably limit production;
(e) To restrict, prohibit, require or regulate oil, gas or water injection into subsurface formations;
(f) To reserve such surface use as will not unreasonably interfere with operations under the lease or agreement;
(g) To designate drill sites;
(h) To regulate the installation of all surface equipment and facilities;
(i) To require the operator to furnish copies of all records, including, but not limited to, electric logs, core analyses, reservoir data and directional surveys of all wells; said records shall be confidential and shall not be open to inspection by the public without the consent of the lessee or operator or as required by law; and
(j) That if the property involved is located in a zone in which drilling for Petroleum is not then permitted under the provisions of the Comprehensive Zoning Plan of the City of Los Angeles, to require the successful bidder to make application for an “O” Oil Drilling District and comply with the requirements of Section 13.01 of the Los Angeles Municipal Code; provided, however, that in the event that said application is made within the time provided and is denied, said lease or agreement shall be of no force or effect and any consideration paid to the City therefor shall be returned.
SECTION HISTORY
Based on Ord. No. 114,262.
Amended by: In Entirety, Ord. No. 185,205, Eff. 11-22-17.
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