In addition to the bond required in § 113.049, the applicant for a permit under this subchapter shall file with the city, subject to the approval of the City Council, the following certificates of insurance, to remain in full force and effect for the life of the well, except as provided in this section:
(A) Composite extra expense coverage.
(1) The applicant shall obtain composite operator’s extra expense coverage providing a minimum of $2,000,000 applicable to:
(a) Control of the well;
(b) Cleanup and containment; and
(c) Seepage, pollution and contamination.
(2) It is further conditioned that this coverage will insure 100% of the interest in the wells required to be covered under this section. The insurance shall remain in force for the life of the well, and until such time as it is plugged and abandoned in accordance with State Corporation Commission rules and regulations governing such matters. The city shall be named as an additional insured on such insurance policy, and the permittee shall indemnify and hold harmless the city from any and all liability, including loss of use, resulting from the pollution of city water.
(B) General liability insurance.
(1) In addition to the bond and insurance otherwise required in this chapter, the applicant shall carry a policy of comprehensive general liability insurance naming the city as an additional insured, issued by an insurer authorized to do business within the state. The policy shall include coverage for independent contractors, contractual liability, broad form property damage, underground resources property damage, and blowout and cratering property damage. No exclusion shall be applicable limiting coverage for operations within the city limits. The policy shall provide the following minimum coverage, including the items set forth in this subchapter:
(a) Bodily injury: $2,000,000 per occurrence; and
(b) Property damage: $1,000,000.
(2) The permittee shall file with the City Clerk certificates of the insurance as stated in this subchapter at the time of application for approval by the City Council.
(3) 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 or she may apply to the City Council to have the insurance policy reduced as follows:
(a) Bodily injury: $1,000,000; and
(b) Property damage: $500,000.
(Ord. 814, passed 6-11-2018)