(A) The City Council, within 30 days after the filing of the application for a permit to drill and operate a well, shall determine whether or not the application complies in all respects with the provisions of this chapter, and, if it does, the City Council shall issue a permit for the drilling and operation of the well applied for conditioned upon the applicant filing, before commencement of drilling operations thereunder, the surety bond or surety instrument prescribed in § 113.11.
(B) The City Council shall have the power, and reserves the authority, to refuse any application for a permit when by reason of location of the proposed well and the character and value of the permanent improvements already erected on the drilling unit in question or adjacent thereto, and the use to which the land and surroundings ,are adapted for civic purposes, or for sanitary reasons, the drilling of an oil or gas well will be a serious disadvantage to either the health, safety, morals, or welfare of the city and its inhabitants.
(C) Each permit issued under this chapter shall:
(1) By reference, have incorporated therein all the provisions of this chapter with the same force and effect as if this chapter were copied verbatim in the permit;
(2) Specify the well location with particularity to lot number, block number, name of addition or subdivision, or other available correct legal description;
(3) Contain and specify that the terms of the permit shall be for a period of six months from the date of permit, and as long thereafter as the permittee is engaged in continuous drilling or reworking operations or oil or gas is produced in commercial quantities from the well drilled pursuant to the permit; provided, that if at any time after discovery of oil or gas the production thereof in commercial quantities shall cease, the term shall not terminate if the permittee commences additional reworking operations within six months thereafter, and if they result in the production of oil or gas, so long thereafter as oil or gas is produced in commercial quantities from the well;
(4) Contain and specify the conditions as are by this chapter authorized;
(5) Specify the total depth to which the well may be drilled; and
(6) Contain and specify that no actual drilling operations shall be commenced until the permittee shall file and have approved an indemnity bond in the designated principal amount and conditioned as specified in § 113.11.
(D) The permit, in duplicate originals, shall be signed by the City Secretary and, prior to delivery to the permittee, shall be signed by the permittee (with one original to be retained by the city and one by the permittee); and when so signed shall constitute the permittee's drilling and operating license and the contractual obligation of the permittee to comply with the terms of the permit, and the bond, and this chapter.
(E) If the permit for the well is refused, or if the applicant notified the City Council, in writing, that he or she does not elect to accept the permit as tendered and wishes to withdraw his or her application, or if the bond or surety instrument of the applicant be not approved and the applicant notifies the City Council, in writing, that he or she wishes to withdraw his or her application, then upon the happening of any of the events the cash deposit provided for to be filed with the application shall be returned to the applicant, except there shall be retained therefrom by the city $100 as a processing fee.
(F) Except in an emergency in which event an operator may proceed without notice, any operator desiring to rework a well shall give the City Council written notice of his or her intent prior to the commencement of operations.
(Ord. 59-311, passed 3-11-1959)