(A) Any permit granted will be conditioned upon the following covenants and agreements to be made by the applicant.
(1) The permittee shall erect a dike or fire wall around all permanent oil tanks or battery of tanks with a capacity of at least one and one-half times that of the tank or battery of tanks.
(2) Any tanks or battery of tanks erected within the city limits shall be of steel construction (except fiberglass, for water use only), and shall be located at least 300 feet from any residence, commercial or public building or structure or the property line of any public or parochial school, hospital, convalescent home, orphanage or nursing home without the prior written consent of property owner or governing body on form approved by the city and, in so doing, the property owner or governing body agrees to hold the city harmless from any and all liability arising out of granting the written consent.
(3) The permittee shall drill the well at the exact location shown by the permittee in his or her application and plat, and no other location.
(4) The permittee shall not drill any well within any street of the city and will not block, encumber or close up any street, alley or passageway now open and in use in the city limits for any operations hereunder, except by special permission from the City Council, and then only temporarily.
(5) The permittee shall, within 30 days after completion of the well, restore the streets, sidewalks and any other public places of the city to their former condition and clear the drilling unit of all litter, machinery, buildings, oil and other substances erected, used or allowed in the drilling operations, except derrick, and production equipment in actual use, or permanent lease buildings.
(6) The permittee shall, within 90 days after the completion of the well, fill and level off the slushpits, mud pits and any other excavations made on the drilling unit, except fire walls.
(7) All wells, when completed, shall be cleaned into a metal tank and not less than 150 feet from any fire hazard.
(8) Each flowing well shall be equipped with two pressure gauges, one on the tubing and one on the casing head, and shall be equipped with a bull plug on one side and gate valve on the other side of the bradenhead. The gauges shall be open at all times to inspection by any city official.
(B) Any permit granted hereunder shall be conditioned upon the performance by the permittee of the following covenants and conditions.
(1) The permittee shall comply with all municipal, federal and state guidelines as to not contaminate the water supply, present or prospective, or to injure surface vegetation.
(2) All phases of the setting of the casing and of testing the casing must conform to Railroad Commission regulations or as amended. Notice of the setting of casing and of the testing of the casing shall be given to the City Manager by the permittee at least four hours before the operations are begun.
(C) Any and all permits issued hereunder shall be subject to the following covenants and conditions.
(1) Motive power for all operations after completion of drilling operations shall be electricity.
(2) The permittee shall keep all premises in a clean and sanitary condition.
(3) The permittee, its agents or contractors, at all times during the drilling for and production of oil and/or gas within the city limits, shall carry a policy or policies of standard comprehensive public liability insurance including contractual liability coverage for accidental death, bodily injury and property damage naming both the permittee and the city as insureds with an insurance company authorized to do business in the state and appearing on the list of authorized insurance companies prepared by the State Board of Insurance. The policy or policies in the aggregate shall provide for minimum coverage of at least $1,000,000. Permittee shall file a certificate of insurance with the City Manager.
(4) The permittee shall furnish good and sufficient bond, either personal surety or pledge of assets, in the principal sum of $25,000 to be approved by the City Council, for the benefit of the city and all persons, firms and corporations concerned, conditioned that if the permit be granted and if drilling operations be commenced thereunder, the applicant and his or her agents, employees and/or assigns will comply with the terms and conditions of this chapter in the drilling of and operation of the well; will pay to any owners of land in any existing drilling unit on which applicant shall not hold oil and gas leases or contracts, the oil and gas royalties as herein provided; will promptly pay any fines assessed against him, her or it for the breach of any provisions of this chapter and will pay any and all damages suffered by any person or corporation, either to person or property, caused by or originating from the operations connected with the well, and will hold the city harmless from any and all liability growing out of the granting of the permit. Only one bond will be required of any permittee regardless of the number of permits unless additional bond or bonds are expressly ordered by the City Council.
(5) The well site, drill site, tank battery site, pump station site or compressor site, whether located on the well site or at, a separate location within the city, shall be enclosed and kept fenced by a six-foot high chain link fence, with a three-strand barbed wire safety enclosure at its top, with all gates thereto to be kept locked when the permittee or his or her employees are not within the enclosure.
(Ord. passed 6-20-1989; Ord. passed 3-20-1990) Penalty, see § 114.99