A. Bonds or riders to existing bonds shall be on a form approved by the city attorney and shall be filed with the department of finance. Bonds shall be issued by a corporate surety authorized to do business in the State of California with a Best's minimum policyholder rating of "A" status or better, and a Best's financial category minimum rating of Class 9 status of better, as rated by the most recent edition of Best's Key Rating Guide, or a surety approved by the D.O.G. or as otherwise approved by the city in the event such rating system is modified. The principal amount of any bonds specified may be increased by the city to reflect inflation, increased risk of losses and other factors.
B. Single Bonds. Corporate surety bonds in the penal sum of six thousand dollars shall be executed by the operator as principal and by the authorized surety company as surety and conditioned that the principal named in the bond shall faithfully comply with this title and any other ordinance, law, rule, or regulation of the city which in any manner pertains or applies to any of the principal's drilling or redrilling activities. The bond shall secure the city against all costs, charges, and expenses, including legal costs incurred by it for the failure of the principal to fully comply with the provisions of the Signal Hill Municipal Code. The bond shall include the correct name or number of the well and the surveyed location as recorded by D.O.G.
C. Blanket Bonds. Any operator may, in lieu of filing a single bond for each well, as required by subsection (B) of this section, file a bond in the amount of twenty five thousand dollars to cover all of this operations conducted within the city. A rider to said bond shall be filed with the department of finance showing the correct name or number of the well and the surveyed location as recorded by D.O.G. for each well covered by the bond.
(Ord. 90-08-1074 § 4 (part))