751.06 ADMINISTRATION.
(a) Permits for On-Site Connections. Any use or activity on the well site of a gas or oil well which proposes to connect gas or oil lines directly from the wellhead shall first obtain a plumbing and heating permit from the City. Applications shall be made to the Building Department.
(b) Change of Ownership. A permit issued pursuant to this chapter is not transferable. A permit for a new owner of a proposed well, or well in operation, shall only be issued when the new owner complies with all application procedures of this chapter and the City, according to the procedures of this chapter, determines that such new owner complies with all the regulations, standards, insurance and bonding requirements set forth herein.
(c) Inspections.
(1) Each well, related equipment, and well site shall be inspected by the City every six months to assure continued compliance with this chapter. Any areas of noncompliance with this chapter which are identified during these inspections shall be transmitted, in writing, to the owner of the well.
(2) After a reasonable period of time has elapsed, to enable the owner to correct the identified deficiency, the City shall make an additional inspection (or inspections, as necessary) to assure that any areas of noncompliance have been satisfactorily corrected and that the well, related equipment, and the well site are in full compliance with this chapter. Fees for all such additional inspections shall accrue at the rate of fifty dollars ($50.00) per hour with a minimum of fifty dollars ($50.00) per inspection and the owner shall reimburse the City for all accrued costs for such additional inspections.
(d) Insurance. An applicant, before being issued a permit hereunder, shall post and maintain with the Mayor satisfactory evidence of liability insurance and yearly renewal coverage to compensate parties other than the applicant for damages arising from the activities permitted hereunder in an amount not less than five hundred thousand dollars ($500,000) coverage for property loss for each occurrence and five hundred thousand dollars ($500, 000) coverage for bodily injury for each occurrence. The applicant shall establish such coverage to be for the benefit of the City as well as himself/itself, and does agree by application of the permit herein to indemnify and save the City harmless from any liability or loss arising from the activities permitted hereunder. Such insurance policy shall remain in effect one year after the Mayor has received written confirmation from the State Division of Oil and Gas that the well has been satisfactorily plugged in accordance with the regulations of the Division.
(e) Bonding and Bond Forfeitures.
(1) An applicant, before being issued a permit hereunder, shall execute and file with the Mayor a surety bond, conditional on compliance with the foregoing regulations, in the amount of twenty thousand dollars ($20,000) per well up to a maximum of one hundred thousand dollars ($100, 000) per operator, The applicant may deposit with the Mayor, in lieu of a surety bond, cash, or the equivalent of cash, in the amount of the surety bond prescribed above. The surety bond provided for in this section shall be executed by a surety company authorized to do business in Ohio. The Mayor shall not approve any bond until it is personally signed and acknowledged by both principal and surety, or as to either by his attorney in fact, with a certified copy of the power of attorney attached thereto. The Mayor shall not approve such bond unless there is attached a certificate of the Superintendent of Insurance that the company is authorized to transact a fidelity and surety business in Ohio. All bonds shall be given in a form to be prescribed by the Mayor and shall run to the City as obligee.
(2) When the Mayor finds that an applicant has failed to comply with regulations hereunder he shall make a finding of such fact and declare any surety bond, or cash, filed to ensure compliance, forfeited in an amount sufficient to correct any condition which adversely affects the public health and safety, or is a condition prescribed in Section 751.04(b)(3); whereupon the Mayor shall certify the forfeiture to the Director of Law who shall proceed to collect the amount thereof. In lieu of forfeiture, the surety, at its option, may cause the condition resulting in forfeiture to be corrected or pay to the City Finance Director the costs thereof. All funds collected under this section may be expended by the Mayor to correct the condition necessitating forfeiture. The owner may be released from the surety bond one year after the Mayor has received written confirmation from the State Division of Oil and Gas that the well has been satisfactorily plugged in accordance with the regulations of the Division. Until the surety bond is released by the Mayor in writing, such bond shall remain in full force and effect for the benefit of the City.
(Ord. 2-1983. Passed 3-24-83.)