In the event a permit is issued by the city council for the drilling and operation of a well, no actual drilling operations shall be commenced until the permittee shall file with the city secretary a bond and a certificate of insurance.
(Ordinance 426, sec. XXXVIII, adopted 9/18/08)
(a) 
A bond shall be required in the principal sum of such number of dollars as has been determined by the city council but not to be less than twenty-five thousand dollars ($25,000.00) nor more than one million dollars ($1,000,000.00). Said bond shall be executed by a reliable surety company authorized to do business in the state as surety and by the permittee as principal, running to the city for the benefit of the city and all persons concerned, conditioned that the permittee will comply with the terms and provisions of this article in the drilling and operation of the well. Said bond shall become effective on or before the date the same is filed with the city administrator and shall remain in full force and effect for at least six (6) months subsequent to the expiration of the term of the permit issued, and in addition the bond shall be conditioned that the permittee will promptly pay off all fines, penalties and other assessments imposed upon the permittee by reason of breach of any of the terms, provisions or conditions of this article, and that the permittee will promptly restore the streets, alleys, sidewalks and other public ways and property of the city which may be disturbed or damaged in the operations to their former condition, and 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, after abandonment, grade, level, and restore said property to the same surface condition, as nearly as possible, as existed when operations for the drilling of the well were first commenced; 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 such permit. If at any time the city council shall deem any permittee’s bond to be insufficient for any reason, it may require the permittee to file a new bond.
(b) 
If, after completion of a well, the permittee has complied with all the provisions of this article such as removing the derrick, cleaning the premises, etc., he may apply to the city council to have said bond reduced to a sum of not less than ten thousand dollars ($10,000.00) for the remainder of the time said well produces without reworking. During reworking operations, the amount of the bond shall be increased to the original amount.
(Ordinance 426, sec. XXXIX, adopted 9/18/08)
(a) 
The permittee shall carry a policy or policies of standard comprehensive public liability insurance, including contractual liability covering bodily injuries and property damage, naming the permittee and the city, with an insurance company authorized to do business in the state; said policy or policies in the aggregate shall provide for an umbrella coverage of at least five million dollars ($5,000,000.00) plus a minimum of one million dollars ($1,000,000.00) coverage for each accident.
(b) 
The permittee shall file with the city administrator certificates of said insurance and shall obtain the written approval thereof by the city council, who shall act thereon within ten (10) days from the date of such filing. Said insurance policy or policies shall not be cancelled without written notice to the city administrator at least ten (10) days prior to the effective date of such cancellation. In the event said insurance policy or policies are cancelled, the permit granted shall terminate and the permittee’s rights to operate under said permit shall cease until the permittee files additional insurance as provided herein.
(c) 
If, after completion of a well, the permittee has complied with all the provisions of this article, such as removing the derrick, clearing premises, etc., he/she may apply to the city council to have said insurance policy or policies reduced as follows:
(1) 
Bodily injury: Five hundred thousand dollars ($500,000.00) one person; one million dollars ($1,000,000.00) one accident; and
(2) 
Property damage: One million dollars ($1,000,000.00);
for the remainder of the time said well produces without reworking operations. During reworking operations, the amount of the insurance policy or policies shall be increased to the original amounts.
(Ordinance 426, sec. XXXX, adopted 9/18/08)