The application shall also be accompanied by and no permit for the drilling of any well shall be issued without:
(A) A duly executed bond in the penal amount of not less than $10,000 given by the applicant as principal and executed by a bonding or indemnity company authorized to do business in the state as surety, running to the City of Memphis, Michigan, for the benefit of the city and all persons, firms and corporations concerned, conditioned that if the permit be granted the applicant and his or its assignees will comply with all the terms and conditions of this chapter and with all laws of the state and the federal government and with the rules and regulations of the Supervisor of Wells and of the Department of Conservation of the State in the drilling and operation of the proposed well and that the applicant will clear from the area to be drilled all litter, machinery, derricks, trenches, pits, debris, oil and other substances used thereon in the drilling or producing operations whenever the well shall be abandoned or the operation thereof discontinued and that the applicant will promptly clear or pay any legal or other expense necessary to clear the title to any leased property for which said permit may be granted.
(B) An insurance policy issued by an insurance company authorized to do business in the state specifically naming the city as a party insured in amount of not less than $1,000,000 to insure the city against all claims, demands, actions, causes of action, and all other liability whatever for damages on account of injury to property, either public or private, and bodily injury, or death, received or suffered by any person or persons, firm or corporation, and resulting from the drilling, operating, maintaining or abandoning of any well or any structures, equipment, machinery, vehicles, lines or appurtenances thereto used or allowed in the drilling or producing operations of the applicant and his or its assignees.
(C) In case any bond or insurance policy required herein shall lapse or become void for any reason whatever, the permit issued under the terms of this chapter shall immediately become inoperative and void until a new bond or insurance policy shall have been provided and filed with the City Clerk and approved or the existing bond or insurance policy reinstated in full force, and such well and the drilling operations and production thereunder shall be forthwith shut down, suspended and discontinued until the filing of such new bond or insurance policy or reinstatement of such existing bond or insurance policy. Each and every bond and insurance policy, both original and renewal, shall be approved by the City Council and shall be filed with the City Clerk. Said bonds and insurance policies shall be made for a term of not less than one year, and a new bond and insurance policy shall be furnished at the expiration of any existing one if the operation of such well covered thereby is continued.
(Ord. 211, passed 1-5-2021)