All applicants for a conditional use certificate for gas or oil well drilling shall comply with the following procedures and requirements:
(a) Public Hearing and Notice. After the first reading, but before the third reading of the legislation granting a conditional use certificate, Council shall require the applicant to schedule a public hearing, the date and time of which shall be approved by Council, and the applicant shall cause all property owners whose properties abut the drill unit and residents within the City or neighboring municipalities, including the chief executive officer or elected officials of neighboring municipalities, within 1,200 feet of the well head to be notified of such hearing, in writing, all by regular mail. The public meeting must occur not less than three weeks prior to the commencement of drilling. The applicant shall file a list of addresses with the City for all residents notified and shall thereon note the time and place of hearing. In addition thereto, the applicant shall cause a final notice to be sent by regular mail, one week prior to the actual drilling, notifying the residents indicated of the day drilling operations will commence. Compliance with the hearing provision of this section shall be a mandatory condition precedent to the commencement of drilling under the conditional use certificate.
(b) Certificate Issuance: Liability Insurance. Upon the approval by a majority of Council that a conditional use certificate be granted, the Planning Director shall issue the certificate, including all conditions and terms specified by the Council.
(1) However, prior to such issuance, the City shall be provided with a policy or certificate of insurance covering the applicant's liability for property damage in an amount of not less than $500,000 and for personal injury in an amount not less than $1,000,000 which insurance policy or policies must be maintained for such period of time as drilling is in progress, the well is in operation or is producing oil or gas, or until such well is pulled and plugged as hereinafter provided. The insurance policies and the coverages thereunder must be in the complete satisfaction of the City and such policies may be rejected by the City for any valid reason. Such rejection of the insurance policies by the City shall serve to stay the granting of a conditional use certificate theretofore approved by it until such time as an insurance policy providing coverage entirely satisfactory to the City has been provided by the applicant.
(2) All applicants shall be required to prove that insurance policies required by this section provide coverage for all the items set forth in this section, including conditions where there is a blowout in the drilling of an oil or gas well and other conditions creating a need for liability coverage.
(3) The applicant shall be required to pay to the owners of any realty, crops, buildings, improvements, goods or chattels located in the area, any extra cost of insurance on the property imposed by reason of the granting of the conditional use certificate or the operations carried on thereunder, and any and all damages suffered by any person, persons, or corporation as to property within the City or adjacent communities from fire over and above the insurance collected thereon, or from oil, gas, or water caused by or originating from the operation connected with the well, and will hold the City free and harmless from any and all liability growing out of the granting of the conditional use certificate.
(c) Inspections; Certificate Revocation. The Zoning Compliance Officer, or duly authorized representative, shall have the authority, at any time other than a well operator indicated period of high hazard, to enter upon property where a well is in the process of being drilled, or upon a producing well site, for the purpose of inspecting the site, equipment and all other things necessary to assure compliance with the objectives and requirements of these regulations.
(1) The City landscape arborist, or duly authorized representative, shall have the authority, at any time other than a well operator indicated period of high hazard, to enter upon a property where a drilling site is contemplated, or upon a producing well site, for the purpose of inspecting the site for all landscaping necessary to assure compliance with the objectives and requirements of this subchapter.
(2) Failure to comply with any provisions of this section shall be grounds to refuse to issue a certificate to drill or shall be grounds to revoke a certificate already issued by the City. Revocation of a certificate shall remove all rights of the certificate holder to drill for oil or gas, to fracture the well, or to continue production until such time as the permittee takes steps to come into compliance with this section. Operations carried on by the certificate holder after revocation of the certificate shall constitute a violation of this section and shall be a misdemeanor punishable under the provisions of Section 1137.09.
(Ord. 2007-222. Passed 1-10-08.)