No person shall drill, or cause to be drilled, deepened or reopened, a well for gas or oil in the City, without first obtaining a permit therefor from the Building and Zoning Director, as provided in this chapter, for each well to be drilled. The fee for each such permit shall be three thousand dollars ($3,000). The applicant shall post with the City, prior to the issuance of a conditional use permit, the following funds and documents:
(a) A five thousand dollar ($5,000) cash deposit to cover costs incurred by the City in reviewing the application by the Planning Commission, City Engineer, hydrologist, geologist, petroleum engineer, Law Director and such other professionals as the Planning Commission deems necessary to review in order to determine the effect on the health, safety and welfare of the residents of the City. Additional sums of money shall be advanced to the City by the applicant in increments of one thousand dollars ($1,000) if the fees of the City Engineer, hydrologist, geologist, petroleum engineer, Law Director or other such professional, as the Commission deems necessary, exceed the initial cash deposit.
(b) A ten thousand dollar ($10,000) cash deposit to guarantee proper maintenance and/or restoration of the property on which the well shall be located after completion of drilling and proper abandonment of the well. The Commission should be able to require a higher cash deposit based on site conditions if the deposit must be used to restore the site.
(c) A cash deposit of three thousand dollars ($3,000) to defray the City's cost of inspection of the oil and gas well and the drilling site. Commencing with the third year after a permit is issued, the permit holder shall pay to the City an annual inspection fee of one thousand dollars ($1,000) for each well, so long as the well continues in production. Additional sums of money shall be advanced to the City by the applicant in the increments of one thousand dollars ($1,000) if the fees of the City Engineer, hydrologist, geologist, petroleum engineer, Law Director or other such professional, as the Commission deems necessary, exceed the initial cash deposit.
(d) A certificate of liability insurance naming the City as an additional insured on the applicants policy in an amount of not less than one million dollars ($1,000,000), for injury or death to persons and three hundred thousand dollars ($300,000) for damages or liability arising out of drilling and/or operation of gas or oil wells. (Ord. 1986-6. Passed 4-28-87.)