(A) In the event a permit be issued by the City Council under the terms of this chapter for the drilling and operation of a well, no actual drilling operations shall be commenced until a surety bond, duly executed by permittee, as principal, and by a reliable surety company authorized to do business in the state, as surety, in the amount and upon the conditions prescribed in this section shall be filed with and approved in writing by the City Secretary, or until an instrument executed by the surety as hereinafter prescribed is filed with and approved, in writing, by the City Secretary which makes the drilling and operation of the well subject to the terms and conditions of two surety bonds (totaling $200,000 in the aggregate) previously filed by permittee hereunder. The bond filed by applicant shall be in the sum of not less than $100,000, and shall run to the city, for the benefit of the city and all persons concerned, conditioned that the permittee will comply with the terms and conditions of this chapter in the drilling and operation of the well; that the permittee will promptly restore the streets and sidewalks and other public property of the city which may be disturbed or damaged in the operations to their former conditions, as near as practicable; that the permittee will promptly clear all premises of all litter, trash, waste, and other substances used, allowed, or occurring in the drilling or producing operations, and will grade, level, and restore the property to the same surface condition, as near as practicable, as existed when operations for the drilling of the well were first commenced; and that the permittee will pay to the owners of any buildings, improvements, goods, or chattels located on the property any extra cost of insurance of the property imposed by reason of the granting of the permit, or the operations carried on thereunder, and that the permittee will promptly pay and discharge any liability imposed by law for damages on account of injury to property, either public or private, or bodily injury, including death, received or suffered by any person whomsoever and resulting from the drilling operations, production and maintenance of the well, equipment, facilities, or appurtenances thereto; and that the permittee will indemnify and hold the city harmless from any and all liability growing out of or attributable to the granting of the permit. Any such bond filed by a permittee hereunder shall become effective on or before the date filed with the City Secretary and remain in force and effect until the expiration of the term of the permit issued; subject, however, to the right of the surety company to cancel same after 30-days written notice of the intention has been given to the City Secretary, but the privilege of cancellation shall not affect any liability which may have arisen hereunder up to the time the bond is actually cancelled. Permittee in the event of cancellation of the surety bond above provided for shall automatically suspend his or her right to operate under his or her permit until the time as permittee shall furnish another bond as required by this chapter. Each bond shall accrue to the benefit of any person with reference to the conditions above stated and may be sued upon by him, her, or them.
(B) If in accordance with the provisions of this section a permittee has filed with the city two $100,000 surety bonds to cover the drilling and operation of wells under this chapter, the permittee may drill and operate an additional well or wells hereunder without filing any additional surety bond as specified above, provided the permittee files with the City Secretary an instrument (and obtains written approval thereof by the City Secretary) duly executed by the surety company named as surety, in each of the permittee's bonds on file with the city, agreeing that the bonds are in full force and effect in the aggregate sum of $200,000 and that the terms and conditions of each bond shall thereafter likewise apply to the drilling and operation of the additional well or wells named therein.
(Ord. 59-311, passed 3-11-1959) Penalty, see § 113.99