(a) 
In the event a permit or certificate of compliance be issued by the city council or the oil and gas inspector under the terms of this article for the drilling of a well, or installation terms of this article for the drilling of a well, [sic] or installation of a trunkline, pipeline, or installation of a water flooding project or gas injection project, no actual operations shall be commenced unless the permittee shall file with city secretary as follows:
(1) 
A bond in the principal sum of such amount as may be determined by the city council, but not to be less than $50,000.00; and
(2) 
The bond shall be executed by a state, [sic] as surety, and the applicant as principal, running to the city for the benefit of the city and all persons concerned, under the condition that the permittee shall comply with the terms and conditions of this article in the drilling and operation of the well, water flooding project, or gas injection project.
(b) 
The bond shall become effective on or before the date it is filed with the city secretary and remain in force and effect for at least a period of six months subsequent to the expiration of the term of the permit issued; and in addition, the bond will be conditioned that:
(1) 
The permittee will promptly pay all legally imposed fines, penalties, and other assessments imposed upon the permittee by reason of his or her breach of any of the terms, provisions, and conditions of this article;
(2) 
The permittee will promptly restore the streets and sidewalks and other public property of the city, which may be disturbed or damaged in operations, to their former condition;
(3) 
The permittee will promptly clear all premises of all litter, trash, waste, and other substances used, allowed, or occurring in the operations and will, after abandonment, or completion, grade, level, and restore such property to the same surface conditions, as nearly as possible, as existed when operations were first commenced; and
(4) 
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.
(c) 
If at any time the city council shall, after hearing thereon, deem any permittee’s bond to be insufficient for any reason, it may require the permittee to file a new bond.
(1967 Code, sec. 21-9(a); Ordinance 252 adopted –/–/–; Ordinance 88-510 adopted 10/11/88; 1994 Code, sec. 118.35)
If after the completion of a producing well, gas injection well, water injection well, or any facility for which a bond is required by this article and the permittee has complied with all the provisions of this article, such as removing the derrick, clearing the premises, and erection of fences, he or she may apply to the city council to have the bond reduced to a sum not less than $25,000.00 on each well or facility for the remainder of the time the well produces or facility is operated without reworking. During reworking operations, the amount of the bond shall be increased to the original amount. A trunkline pipeline installation shall not be considered as completed until the lines have been tested and in operation for the period of 30 days.
(1967 Code, sec. 21-9(a); Ordinance 252 adopted –/–/–; Ordinance 88-510 adopted 10/11/88; 1994 Code, sec. 118.36)
(a) 
In addition to the bond required in section 5.07.061, the permittee shall carry a policy of standard, comprehensive public liability insurance, including contractual liability covering bodily injuries and property damage, naming the permittee and the city, in an insurance company authorized to do business in the state.
(b) 
The policy or policies in the aggregate shall provide for the following minimum coverages:
(1) 
Bodily injuries: $1,000,000.00 one person; $3,000,000.00 one accident.
(2) 
Property damage: $2,000,000.00.
(1967 Code, sec. 21-9(b); Ordinance 252 adopted –/–/–; Ordinance 88-510 adopted 10/11/88; 1994 Code, sec. 118.37)
(a) 
Certificates to be filed.
The permittee shall file with the city secretary certificates of such insurance as above stated in section 5.07.063.
(b) 
Effect of cancellation.
The insurance policy shall not be cancelled without written notice to the city secretary at least ten days prior to the effective date of the cancellation. In the event the insurance policy is cancelled, the permit granted shall terminate, and the permittee’s right to operate under the permit shall cease until the permittee files additional insurance as provided herein.
(c) 
Amount after project completion.
If, after the completion of a well, water flooding project, or gas injection project, the permittee has complied with all the provisions of this article, such as removing the derrick, completion of the pipelines, clearing the premises, and any other provision hereof, the insurance will be as follows:
(1) 
Bodily injuries: $1,000,000.00 one person; $3,000,000.00 one accident.
(2) 
Property damage: $2,000,000.00.
(1967 Code, sec. 21-9(b); Ordinance 252 adopted –/–/–; Ordinance 88-510 adopted 10/11/88; 1994 Code, sec. 118.38)
The city council may elect to make an exception to requirements of this division when in its opinion the intent and purpose for the requirements of the bond and insurance can be assured by the following means:
(1) 
Acceptance of the guarantee or indemnity to the city in lieu of bond and a plan of self-insurance in the case of financially responsible operators;
(2) 
Acceptance of a blanket bond and single policy of insurance to cover all operations of the permittee within the corporate limits of the city;
(3) 
Application of bond and insurance requirements acceptable to the city council.
(1967 Code, sec. 21-9(b); Ordinance 252 adopted –/–/–; Ordinance 88-510 adopted 10/11/88; 1994 Code, sec. 118.39)