(A) Required for permit. No permit for the drilling or putting down of any petroleum or natural gas well shall be issued until the applicant shall have filed with the City Clerk a good and sufficient bond executed by some bonding or indemnity company authorized to do business in the state, or in lieu thereof a policy of public liability insurance providing coverage of $100,000 for injury to any one person, $300,000 for injuries arising from any one accident and $50,000 property damage for the use of any person or municipality interested, and conditioned that the applicant shall pay and discharge any liability imposed by law or damages on account of injury to all property, either private or public, including death, received or suffered by any person resulting from the drilling, operation or maintenance of such well or structure, machinery, equipment or tanks, connected therewith, and that he shall abide by and comply with all the provisions of this chapter.
(B) Amount. The maximum total liability under the bond for loss or damage either to person or property where the permit issued therefor is for drilling for oil and gas within platted blocks shall be $100,000. The maximum total liability under the bond for loss or damage either to person or property where the permit issued therefor is for drilling upon unplatted blocks shall be $50,000. The bonds shall be approved by the City Council and shall be made for a period of not less than one year, or in lieu thereof said policy of insurance previously provided for under division (A) of this section shall be approved by the Council and shall be made for a period of not less than one year and a new bond or policy shall be furnished at the expiration of any existing bond or policy if the drilling of such well covered thereby is continued.
(C) Coverage. The bonds or policies shall extend to and cover the drilling of all oil and gas wells for which permits have been issued to the principal named in the bond or policy and upon the character of blocks for which the bond or policy was given; provided, however, that not more than three wells shall be in the process of being drilled at the same time under such bond; and provided further that an appropriate rider executed by the principal and surety thereof, and stating the location of any additional wells which shall be covered by the bond or policy, shall be attached to and made part of the bond or policy; but failure to so attach such rider shall not be deemed to release or discharge the principal or surety from any liability accruing thereunder for any such wells as may be in the process of being drilled under and during the effective date of the bond or policy.
(D) Maintenance bond or policy. Upon the completion as a completed oil well or gas well of any such well being drilled under the aforesaid bond or policy as the case may be, an operation or maintenance bond or public liability policy in the amount hereinafter stated shall be filed by the owner of the well with some bonding or indemnity company or insurance company authorized to do business in the state, conditioned that the principal or insured shall pay and discharge any and all liability imposed by law or damages on account of injury to all property, either public or private, including streets, alleys and sidewalks, or bodily injury, or death, incurred by any person, resulting from the operation or maintenance thereafter of such well, or mechanical equipment or tanks connected therewith, which bond or policy shall be considered in force and effect as long as the well continues to be operated. The amount of said bond shall be terminated in the following manner:
(1) As to all wells drilled and/or operated within the corporate limits of the city, in unplatted territory and not within 300 feet of any dwelling, storage house, factory or other business institution, $5,000 for each well; or the amount of $15,000 for five wells; or $25,000 for ten wells.
(2) The amount of said liability insurance shall be for the same coverage as provided for in division (A) of this section.
(3) If such well or wells shall be located within a distance of 300 feet of any dwelling house, storage house, factory or business institution, or within any territory laid out into lots and blocks, the bond shall be in the amount of $10,000 for one well; $25,000 for five wells; or $50,000 for ten wells.
(4) The amount of said liability insurance shall be for the same coverage as provided for in division (A) of this section.
(E) Coverage indicated. In the event one bond is filed covering more than one well, as above provided, the bond shall describe or indicate by appropriate riders attached thereto and executed by the principal and surety the particular wells covered thereby. The principal amount of such bond shall be the maximum liability on each well covered by the bond. Failure to attach such rider shall not release or discharge liability for all wells then being operated.
(F) Lapse. In case any bond or policy required herein shall lapse or become void for any reason, the permit or permits issued under the terms of this chapter shall immediately become inoperative and void until a new bond or policy shall be provided and filed with the City Clerk or the existing bond or policy reinstated in full force and effect. The well covered by such lapsed or voided bond or policy shall be shut down and all operation and production thereof shall be suspended and discontinued until the filing of such new bond or policy or reinstatement of such existing bond or policy.
('68 Code, § 27.12) (Ord. 4245, passed - - )