In the event a permit shall be issued by the city, no actual operations shall be commenced until the permittee shall file with the city the required bond and insurance as follows:
A. Bond:
1. A bond in the principal sum of at least twenty five thousand dollars ($25,000.00). The bond shall be executed by a reliable insurance company authorized to do business in the state, as surety, and with the applicant as principal, running to the city for the benefit of the city and all persons concerned, conditioned that the permittee will comply with the terms and conditions of this chapter in the operation of the well for either natural or artificial production, injection or disposal. The bond shall become effective on or before the date the same is filed with the city and remain in full force and effect for at least twelve (12) months subsequent to the expiration of the permit term, 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 chapter, and that the permittee will promptly restore all public streets, sidewalks, and other public property of the city which may be disturbed or damaged in permittee 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 the property to the same surface condition, as practicable as is possible, as existed prior to commencing operations; and further that the permittee shall indemnify and hold harmless the city from any and all liability attributable to granting the permit.
2. If, after the completion of a producing well, permittee has complied with all of the provisions of this chapter, such as removing derrick and clearing the premises, he may apply to the oil and gas inspector to have the bond reduced to a sum of not less than ten thousand dollars ($10,000.00) for the remainder of the time the well produces without reworking. During reworking operations, the amount of the bond shall be increased to the original amount.
B. Liability Insurance:
1. In addition to the bond required in this section, the permittee shall carry a policy or policies of standard comprehensive public liability insurance, including contractual liability covering bodily injuries and property damage, naming permittee and the city, issued by an insurer authorized to do business within the state. The policy or policies in the aggregate shall provide for the following minimum coverage:
a. Bodily injuries, one hundred thousand dollars ($100,000.00) per person; three hundred thousand dollars ($300,000.00) per accident.
b. Property damage, two hundred thousand dollars ($200,000.00).
2. Permittee shall file with the city certificates of the insurance as above stated, and shall obtain the written approval thereof, and such permittee who shall act thereon promptly after the date of such filing. The insurance policy or policies shall not be cancelled without written notice to the city at least ten (10) days prior to the effective date of such cancellation. In the event the policy or policies are cancelled, the permit granted shall immediately thereupon terminate without any action on the part of the city, and permittee's rights to operation under the permit shall cease until permittee files additional insurance as provided herein. If, after completion of a producing well, the permittee has complied with all of the provisions of this chapter, such as removing derricks, clearing premises, and the like, he may apply to the city to have the insurance policy or policies reduced as follows: bodily injuries, fifty thousand dollars ($50,000.00) per person, one hundred thousand dollars ($100,000.00) per accident; and property damage fifty thousand dollars ($50,000.00).
C. State Requirements: Any other bond or insurance required by the Oklahoma corporation commission. (Ord. 369, 2-26-2002)