The following regulations shall apply to all regulated pipelines:
(1) 
No regulated pipeline for the transportation of gas, oil, or hydrocarbons shall be constructed or laid except on rights-of-way or easements owned by the owners or operators of wells or third-party pipeline companies, or upon designated drilling tracts and upon rights-of-way or easements necessary to connect future wells to present lines.
(2) 
In order to install, construct, maintain, repair, replace, modify, remove, or operate a regulated pipeline, the pipeline operator must first obtain from the town an easement or license on, over, under, along, or across any affected town streets, sidewalks, alleys, and other town property. Such easement or license shall continue for as long as pipeline operations continue under any regulated pipeline permit.
(3) 
The pipeline operator of any regulated pipeline shall:
(A) 
Not interfere with or damage existing utilities including but not limited to: water, sewer or gas lines, storm drains, electric lines, or the facilities of public utilities located on, under, or across the course of such right-of-way.
(B) 
Construct such pipeline or cause same to be constructed out of new pipe.
(C) 
Grade, level and restore the affected property to the same surface condition, as nearly practicable, as existed before operations were first commenced.
(D) 
Backfill all trenches and compact such trenches to 95 percent standard density proctor in eight-inch lifts and construct the regulated pipeline so as to maintain a minimum depth of eight feet below the finished grade except in public rights-of-way, where minimum cover to the top of the pipe shall be at least eight feet below the bottom of any adjacent roadside ditch. No public roads may be crossed by open cut. During the backfill of any regulated pipeline excavations, the pipeline operator shall bury “buried pipeline” warning tape one foot (1') above any such pipeline to warn future excavators of the presence of a buried pipeline. The town may require that sections of proposed regulated pipeline be constructed at deeper depths based upon future town infrastructure needs. The administrator may also require that a proposed or existing regulated pipeline be relocated should it conflict with the proposed alignment and depth of a gravity dependent utility.
(E) 
Construct, repair, and/or maintain all regulated pipelines so as to meet or exceed the applicable minimum criteria established by the statutory or regulatory requirements of the state and federal governments for such pipeline.
(F) 
Design and construct all regulated pipelines in accordance with this part and the latest standards mandated by the U.S. Department of Transportation (DOT) and railroad commission for pipelines operating within a class 3 location in accordance with 49 CFR 192.111.
(G) 
Equip all regulated pipelines with an automated pressure monitoring system that detects leaks and shuts off any line or any section of line that develops a leak.
(4) 
Upon approval of a pipeline permit, and prior to the issuance of such permit, the pipeline operator shall deposit with the town, and shall maintain at all times during the continuation of pipeline operations, a fund with the town containing a minimum running balance of $50,000.00 for each regulated pipeline permit application approved. The funds shall be maintained by the town in an interest bearing account from which the town shall reimburse itself for the actual administrative expenses, consulting fees, contracting fees, or the funding of inspector position(s). All interest earned shall be credited to the fund balance or refunded to the operator if and when the minimum balance is achieved. The town shall invoice and notify the pipeline operator, in writing, of any deduction from the application fund, and, within 15 days of receipt thereof, the pipeline operator shall pay to the town, for deposit into the application fund, the amount necessary to return the balance to $50,000.00. If the pipeline operator fails to maintain the fund as required by this section, such failure shall constitute a violation of this article, and the administrator may suspend or revoke the regulated pipeline permit and the town may pursue all remedies provided in this article for such violation. If the pipeline subject to the pipeline permit is disconnected from all sources or supplies of gas, hazardous liquids, and chemicals and capped or sealed at the ends and/or removed in accordance with the provisions of this part, and any required site remediation completed, following final inspection and approval by the town, and fulfillment by the pipeline operator of all of pipeline operator’s obligations under this article, the town shall return any remaining account balance to the operator or the operator’s approved assign.
(5) 
The pipeline operator shall give notice 96 hours prior to the commencement of pipeline construction to all residents, owners or operators of habitable structures and protected use areas that are located within 1,000 feet of the proposed centerline of the pipeline.
(6) 
Within 60 days after completion of pipeline construction the pipeline operator shall provide the town with as-built or record drawings of the pipelines.
(7) 
A preconstruction conference with town staff shall be required prior to the commencement of pipeline construction.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
At least 45 days prior to the scheduled commencement of the installation, construction, reconstruction, reworking, modification, replacement, or operation of a new regulated pipeline, the pipeline operator shall submit an application and pay a fee in the amount set in the town’s fee schedule for a regulated pipeline permit to the town.
(b) 
A regulated pipeline permit application shall meet the following requirements:
(1) 
Any applications for a new regulated pipeline or other activities regulated by this part shall be submitted to the town on a form prescribed by the town.
(2) 
Each application for a regulated pipeline permit shall be accompanied by plans showing the dimensions and locations of the regulated pipeline and related items or facilities within the subject right-of-way or easement, as well as all proposed lift stations, pumps, or other service structures related to such pipeline and the location, type and size of all existing utilities, drainage, right-of-way, and roadway improvements. The plans must additionally show the elevation and location of all known public utilities within 15 feet of the centerline of the proposed pipeline. Any application that fails to meet these requirements will be returned unified to the applicant.
(3) 
Within 30 days after the date of filing of said application and plans, the town shall send notice to the applicant as to whether the application will be accepted for processing. If the application is rejected, reasons for rejection of the application shall be provided in writing.
(c) 
The following information shall be provided in the application for a regulated pipeline permit:
(1) 
The name, business addresses and telephone numbers of the pipeline operator.
(2) 
The names, titles and telephone numbers of the following:
(A) 
The person signing the application on behalf of the pipeline operator.
(B) 
The person designated as the principal contact for the submittal.
(C) 
The person designated as the 24-hour emergency contact.
(3) 
The origin point and the destination of the proposed subject pipeline.
(4) 
A text description of the general location of the proposed subject pipeline.
(5) 
A description of the substance to be transported through the proposed subject pipeline.
(6) 
A copy of the substance material safety data sheet (MSDS).
(7) 
The maximum allowable operating pressure on the proposed subject pipeline, along with the specified minimum yield strength (SMYS) of the pipe, its pressure class, and design calculations in accordance with 49 CFR 192.105, assuming a class 3 or better location.
(8) 
The normal operating pressure range of the proposed subject pipeline, not to exceed the maximum allowable operating pressure as designated above.
(9) 
Engineering plans, drawings, and/or maps with summarized specifications showing the horizontal location, covering depths, and location of shutoff valves of the proposed subject pipeline. To the extent that information can be obtained, drawings shall show the location of other pipelines and utilities that will be crossed or paralleled within 15 feet of the proposed subject pipeline right-of-way.
(10) 
A description of the consideration given to matters of public safety and the avoidance, as far as practicable, of existing habitable structures and congregated areas.
(11) 
Detailed cross section drawings for all public street right-of-way and easement crossings.
(12) 
Methods to be used to prevent both internal and external corrosion.
(13) 
A binder or certificates of all bonds and insurance as required under this division.
(14) 
To the extent not otherwise expressly stated in this section: all information and materials applicable to a pipeline required to be submitted for a permit under section 14.04.032 of this article; and a site plan as required under section 14.04.033 of this article containing all information applicable to a pipeline.
(15) 
All application materials required pursuant to the town’s tree preservation ordinance/regulation, as amended, including a tree survey measured from the outer edge of any improvements, construction areas, development, equipment, materials, temporary roads, access easements and/or built structures, extending 25 feet, without regard to intervening structures or objects.
(16) 
A proposed alignment strip map showing name and address of all affected property owners.
(17) 
All required application and permit fees.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
No regulated pipeline permit shall be approved or issued if the proposed activities do not fully conform to all provisions of this article and all other applicable town ordinances, state and federal law. No regulated pipeline permit may be issued unless and until a conditional use permit is approved by the town council for the well or wells within the town intended to be served by such pipeline.
(b) 
All requirements for a regulated pipeline permit as provided in this part must be completed by the pipeline operator prior to any regulated pipeline permit being considered as being administratively complete. Any application submitted that is determined to be administratively incomplete shall be returned to the pipeline operator with no action taken by the town.
(c) 
Within 30 days after the date of presentation of said application and plans, the administrator shall send notice to the applicant as to whether the application will be accepted for filing and the total charge due. If the application is rejected as incomplete, the administrator shall provide the reasons for rejection of the application in writing.
(d) 
After the filing of an administratively complete application, a meeting between the applicant and town staff may be conducted to seek resolution of any substantive, nonresolvable technical issues.
(e) 
Any change in service of a pipeline not previously addressed by this part to gas, hazardous liquid, or chemical service as a regulated pipeline must be reviewed in accordance with the new pipeline review procedure outlined herein, as if it were a new regulated pipeline.
(f) 
If construction of a regulated pipeline has not commenced within six months of the date of issuance of the regulated pipeline permit, or if the regulated pipeline has not been completed and the surface restored within one year, the regulated pipeline permit shall expire. If the regulated pipeline permit and construction of the subject pipeline has commenced but has not yet been completed, the pipeline operator shall immediately cease construction but shall complete any site remediation required by this part or other applicable law, regulation or ordinance.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
Each pipeline operator subject to this part shall provide to the town the names, mailing addresses, and telephone numbers of at least two primary persons, officers, or contacts available on a 24-hour basis and at least two alternative persons, officers, or contacts to be reached in the event the primary contacts are unavailable who:
(1) 
Can initiate appropriate actions to respond to an emergency.
(2) 
Have access to information on the location of the closest shutoff valve to any specific point in the town.
(3) 
Can furnish the common name of the material then being carried by the pipeline. Any change in the above-referenced contact information must be provided to the town by contacting the town prior to such change.
(b) 
Every pipeline operator subject to this part shall be required to present to the town a safety report and file with the town an annual verified safety report in letter form on or before June 30th of each year to cover a reporting period of June 1st through May 31st. Said written safety report shall contain the following information:
(1) 
A statement that the pipeline has no outstanding safety violations as determined in an inspection or audit by either the railroad commission and/or the U.S. Department of Transportation with regard to any pipeline operating within the town. Alternatively, if there are any safety violations as determined by the railroad commission and/or the U.S. Department of Transportation that have not been corrected, these shall be described to the town with an action plan to correct the safety violations. Said action plan shall include a timeline for corrective action and the individual or firm responsible for each action.
(2) 
Evidence that the pipeline operator has current liability insurance as required by this part.
(3) 
A statement that the pipeline information specified in subsection (a) of this section is correct. Alternatively, in the event that the required information on file with the town is no longer correct, updated or corrected information shall be submitted within five days of the change and the updated information shall be submitted with the annual safety report.
(4) 
If the pipeline operator has no reporting responsibility to the railroad commission or the U.S. Department of Transportation and is otherwise exempt from the safety regulations of either of such agencies, the following documents pertaining to the preceding reporting period of June 1st through May 31st:
(A) 
Copies of internal reports of responses to pipeline emergencies, as pipeline emergency is defined in this article.
(B) 
Current operations and maintenance logs.
(C) 
Current emergency action plan.
(5) 
A log of all the maintenance and monitoring activities conducted on all lines subject to this division for the reporting period shall be made available upon request by the town.
(6) 
The pipeline operator subject to this part shall submit the annual safety report with respect to all pipelines subject to the ordinances of the town. The safety report and verification shall be executed by an officer or a person who is authorized to sign such safety report letter and make verification.
(c) 
The actual administrative costs incurred by the town in reviewing the annual safety letter shall be billed directly to the pipeline operator’s fund balance established pursuant to this part.
(d) 
Each pipeline operator subject to this part shall file a copy of all initial or followup reports provided to the U.S. Department of Transportation or the railroad commission on unsafe pipeline conditions, pipeline emergencies or pipeline incidents within the town concurrently with the town. In addition, such pipeline operator shall file any initial or followup reports filed with state and federal environmental regulatory agencies pertaining to pipeline releases within the town concurrently with the town.
(e) 
Upon written request, each pipeline operator subject to this part shall make available during normal business hours and at the pipeline operator’s local office, documents for review that are required for submittal to or to be maintained on file for the U.S. Department of Transportation and the railroad commission, including but not limited to the following:
(1) 
Operations and maintenance records.
(2) 
Employee training records.
(3) 
Annual inspection reports.
(4) 
Repair records.
(5) 
Operating records.
(6) 
Insurance records.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
In accordance with U.S. Department of Transportation and railroad commission requirements, each pipeline operator subject to this part shall place and maintain permanent line markers as close as practical over the regulated pipeline(s) at each crossing of a public street, utility easement and railroad. Marker(s) shall also be maintained along each regulated pipeline that is located above ground in an area accessible to the public. The markers shall be of permanent type construction and contain labeling identifying the:
(1) 
Pipeline operator.
(2) 
Twenty-four-hour contact telephone number.
(3) 
A general description of the product transported in the pipeline; i.e., natural gas, oil, petroleum.
(b) 
No person shall tamper with, deface, damage, or remove any pipeline marker, except the pipeline operator.
(c) 
Upon written request of the owner of real property on which a habitable structure is located and through which a regulated pipeline traverses, the pipeline operator shall install temporary pipeline markers or flagging to reduce the possibility of pipeline damage or interference, in accordance with this division.
(d) 
The material, design, color, size, and content of each line marker shall be subject to town council approval prior to installation.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
A pipeline operator that transports gas, oil, liquids, or hydrocarbons through a regulated pipeline located in the town shall be a member in good standing with the one call system or other approved excavation monitoring system as required by state law. The pipeline operator that transports gas, oil, liquids, or hydrocarbons through a regulated pipeline subject to this part shall contract for service with the selected underground utility coordinating system for a minimum of five years unless there is an agreement to change to an alternate system between the town and the pipeline operator. Said pipeline operator shall maintain such services without interruption for the life of the regulated pipeline permit. The selected underground utility coordinating system may be different than the one used by the town for other underground utility services.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
The following regulations shall apply to inactive pipelines:
(1) 
A pipeline operator subject to this part shall maintain and keep current all reporting records specified in this part on all pipelines, regardless of whether such pipelines are inactive or idled.
(2) 
A pipeline operator subject to this part shall purge any inactive pipelines of gas, hazardous liquids, and chemicals, and physically isolate such pipeline if such action does not adversely affect the pipeline operator’s right-of-way easement and does not prevent the pipeline operator from maintaining the physical integrity of the pipeline. A pipeline operator subject to this part shall maintain any inactive pipelines to prevent deterioration.
(3) 
If a regulated pipeline is physically isolated as provided herein, a pipeline operator subject to this part shall include a detailed, written description of the means used to physically isolate the inactive pipeline along with the information required to be provided to the town under section 14.04.094 of this article.
(b) 
The following regulations shall apply to idled pipelines:
(1) 
If a regulated pipeline is idled, a pipeline operator subject to this part shall make an entry to the required reporting records as required in this part that the pipeline has been idled.
(2) 
If a regulated pipeline is idled, a pipeline operator subject to this part shall purge and disconnect such pipeline from all sources or supplies of gas, hazardous liquids, and chemicals, and cap or seal such pipeline at the ends.
(3) 
Reactivation of idled regulated pipelines shall require notification to the town pursuant to the standards and requirements specified in this part. Reactivation shall require pressure testing for integrity and compliance with railroad commission and/or U.S. Department of Transportation regulations.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
Each pipeline operator subject to this part shall maintain written procedures to minimize the hazards resulting from an emergency. These procedures shall at a minimum provide for the following:
(1) 
Prompt and effective response to emergencies, including but not limited to the following:
(A) 
Leaks or releases that can impact public health, safety, or welfare.
(B) 
Fire or explosions at or in the vicinity of a pipeline or pipeline easement.
(C) 
Natural disasters.
(2) 
Effective means to notify and communicate required and pertinent information to local fire, police, and public officials during an emergency.
(3) 
The availability of personnel, equipment, tools, and materials as necessary at the scene of an emergency.
(4) 
Measures to be taken to reduce public exposure to injury and probability of accidental death or dismemberment.
(5) 
Emergency shut down and pressure reduction of a pipeline.
(6) 
The safe restoration of service following an emergency or incident.
(7) 
A followup incident investigation to determine the cause of the incident and require the implementation of corrective measures.
(b) 
Each pipeline operator subject to this part shall meet annually with the inspector and fire inspector to review emergency response plans. These reviews shall be in accord with U.S. Department of Transportation and railroad commission requirements and the pipeline operator will do the following:
(1) 
Furnish or update a copy of the emergency response plan described in subsection (a) of this section.
(2) 
Review the responsibilities of each governmental organization in response to an emergency or incident.
(3) 
Review the capabilities of the pipeline operator to respond to an emergency or incident.
(4) 
Identify the types of emergencies or incidents that will result in or require contacting the town.
(5) 
Plan mutual activities that the town and the pipeline operator can engage in to minimize risks associated with pipeline operation.
(6) 
The town shall provide the pipeline operator with a list of additional contacts that shall be made in the event of a pipeline emergency or incident. The town will inform the pipeline operator of the emergency response groups that will be contacted through 911.
(c) 
Upon discovery of a pipeline emergency or incident, any affected pipeline operator subject to this part shall as soon as practical communicate to the town the following information:
(1) 
A general description of the emergency or incident.
(2) 
The location of the emergency or incident.
(3) 
The name and telephone number of the person reporting the emergency or incident.
(4) 
The name of the pipeline operator.
(5) 
Whether or not any hazardous material is involved and identification of the hazardous material so involved.
(6) 
Any other information as requested by the emergency dispatcher or other such official at the time of reporting the emergency or incident.
(d) 
Upon discovery of a pipeline emergency or incident, a pipeline operator subject to this part shall contact any other emergency response groups that are necessary that may not be activated through the county 911 system.
(e) 
Upon discovery of a pipeline emergency or incident, a pipeline operator subject to this part shall contact the fire department immediately after the discovery of any pipeline emergency.
(f) 
Notwithstanding any provision in this division, each pipeline operator subject to this part shall equip and maintain any pipeline containing natural gas which contains hydrogen sulfide in concentrations of more than 100 parts per 1,000,000,000 with an audible alarm system that will provide an alarm to the general public in the event of a leak from any pipeline, gathering, or flow line subject to this division. Said audible alarm system shall be of a type and design approved by the town.
(g) 
Within two years of the effective date of the pipeline permit and every two years thereafter, each pipeline operator subject to this part shall conduct an on-site, emergency drill that includes, but shall not be limited to, the personnel operating the pipeline, local law enforcement personnel and officials of the town.
(h) 
Notwithstanding the foregoing, a pipeline operator subject to this part shall report all incidents involving well safety or integrity that do not rise to the level of a pipeline emergency to the town by completing an incident report on forms prepared by the town. Incident reports must be filed by the pipeline operator within 24 hours of discovering the incident.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
All repairs and maintenance of regulated pipelines are to be performed in accordance with U.S. Department of Transportation and railroad commission mechanical integrity requirements.
(b) 
If nonemergency repairs necessitate excavation of a regulated pipeline, the pipeline operator shall send notification to occupants of business establishments and residential dwellings located within 500 feet from the centerline of the pipeline to be excavated at least ten days prior to commencing such repairs.
(c) 
If aboveground nonemergency repairs that are not routine maintenance are required, the pipeline operator shall send notification to occupants of businesses and residential dwellings located within 500 feet from the centerline of the pipeline section to be repaired at least ten days prior to commencing such repairs.
(d) 
The notice required in subsections (b) and (c) of this section shall be sent by U.S. regular mail, postage prepaid mailed at least ten days prior to commencing any nonemergency repair; provided, however, that the pipeline operator may use hand delivery notice as an alternative, at the pipeline operator’s discretion.
(e) 
Inspection of the interior of all regulated pipelines shall comply with U.S. Department of Transportation and railroad commission rules.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
Nothing in this part shall be construed as an assumption by the town of any responsibility of a pipeline operator of a regulated pipeline not owned by the town, and no town officer, employee, or agent shall have authority to relieve a pipeline operator from their responsibility under this part or by any other law, ordinance, or resolution.
(b) 
Nothing in this part shall be construed as a waiver of immunity from suit or from liability with respect to the town, its officials, or employees and to the fullest possible extent all such immunities and all other limitations on liability are retained.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
A pipeline operator subject to this part shall keep protected and painted all pipeline risers and all appurtenances related to regulated pipeline construction and operations which are composed of materials which are generally protected or painted. Such operator shall repaint all such items at sufficiently frequent intervals to maintain same in good condition. It shall be a violation of this article for any pipeline operator subject to this part to permit any pipeline riser and/or appurtenances related to pipeline construction and operations to be in a state of disrepair or to have chipped, peeling, or unpainted portions thereof.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
In the event a regulated pipeline is placed within any public right-of-way under the jurisdiction of the town, the pipeline operator shall comply with the right-of-way use regulations as provided in this code. Nothing in this part grants permission for the use of any street, right-of-way, or property of the town, and any such use shall be subject to the town at its sole discretion.
(b) 
To the extent that the provisions of this part conflict with the town’s right-of-way use ordinance/regulations, this part shall control.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
Any pipeline operator subject to this part, who shall have failed to comply with this division, shall be deemed to be maintaining a nuisance and the town may take such measures to remedy such nuisance, including but not limited to revocation of the pipeline operator’s pipeline permit.
(b) 
It shall be a violation of this part for a person to knowingly make a misrepresentation of any information to be reported pursuant to this division. It shall also be a violation of this part if the person makes such misrepresentation as a result of failure to exercise such due diligence of investigation or inquiry, as would a reasonably prudent pipeline operator conducting business in the jurisdiction of the town.
(c) 
Each violation of any section, subsection, or part of this part shall be a separate offense. Each day of ongoing violation shall be a separate offense, and shall carry with it a fine of not less than $1,000.00 per day and not more than $2,000.00 per day. If fines are not paid within 30 days of issuance, the well permit may be suspended or revoked by the town.
(d) 
The town shall be entitled to injunctive relief or any other appropriate relief in a court of appropriate jurisdiction to prevent violation of or to compel compliance with this part.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
(a) 
In the event that a pipeline permit is issued for a regulated pipeline or other operations under this part, no actual operation shall be commenced until the pipeline operator files with the town secretary a bond and a certificate of insurance as follows:
(1) 
No person shall begin the construction or operation of any regulated pipeline until such person has obtained a valid permit and filed with the town secretary a duly executed bond executed by the pipeline operator as principal with an A.M. Best “A” rated surety company that is acceptable to the town and is licensed to conduct business in the state as surety, payable to the town and the policy shall name the town as an additional insured and such surety company shall maintain an A.M. Best “A” rating for the policy period. Said bond shall include conditions that the pipeline operator, its heirs, assigns and successors will do the following:
(A) 
Comply with the terms and conditions of the application and this part in the construction, operation and maintenance of the pipeline and related structure(s).
(B) 
Restore all streets and sidewalks and all other public places and all public utilities that may be injured or damaged in the operation to their former condition.
(C) 
Remove all litter, machinery, buildings, trash and waste used, accumulated or allowed in the construction of any pipeline within ten days of the completion of said construction.
(D) 
Remove all litter, machinery, buildings, trash and waste used, accumulated or allowed in the operation of any pipeline within ten days of the completion of said operations.
(2) 
Such bond shall be in the sum of $5,000,000.00 and before the pipeline permit shall be issued, the bond must be approved by the town and filed with the town secretary. Such bond shall become effective upon the granting of the pipeline permit and shall remain in full force and effect until all work under the terms of such pipeline permit has been completed. Such bond may later be amended to include other pipelines, under provisions of other applications or other permits.
(3) 
In addition to the bond required in subsection (a)(1) above of this section, each person desiring to construct a regulated pipeline or to conduct any other work under the provisions of this part shall be required to carry public liability insurance with a carrier rated “A” or better by A.M. Best in a minimum amount of $2,000,000.00 for one person and $10,000,000.00 for one accident and property damage insurance in the amount of $20,000,000.00 for one accident, which shall remain in full force and effect and be carried so long as such pipeline is operated. A certificate of insurance shall be furnished annually by the permittee or the subsequent pipeline operator showing that such insurance is and continues in effect.
(4) 
Each pipeline operator subject to this part shall provide and maintain in full force and effect during the term of its permit insurance with the following minimum limits:
(A) 
Worker’s compensation at statutory limits.
(B) 
Employer’s liability, including bodily injury by accident and by disease, for $1,000,000.00 combined single limit per occurrence and a 12-month aggregate policy limit of $1,000,000.00.
(C) 
Commercial general liability coverage, including blanket contractual liability, products and completed operations, personal injury, bodily injury, broad form property damage, operations hazard, pollution, explosion, collapse, and underground hazards for $25,000,000.00 per occurrence and a 12-month aggregate policy limit of $50,000,000.00.
(D) 
Automobile liability insurance (for automobiles used by the pipeline operator in the course of its performance under the pipeline permit, including employer’s nonownership and hired auto coverage) for $20,000,000.00 combined single limit per occurrence.
(b) 
The town may adjust the above minimum liability limits every five years during the term of the pipeline permit, or sooner as determined by town council, to compensate for the effects of inflation and with the objective to reestablish the value of coverage required as of the effective date of this division.
(c) 
Each policy or an endorsement thereto, except those for worker’s compensation and employer’s liability, shall name the town and its officers, officials, employees, successors, and assigns as additional insured parties, but limited to risks indemnified pursuant to this division. If any such policy is written as “claims-made” coverage and the town is required to be carried as an additional insured, then the pipeline operator subject to this part shall purchase policy period extensions so as to provide coverage to the town for a period of at least two years after the last date that the pipeline permit is in effect. No deductible shall exceed ten percent of the minimum limits of liability or one percent of the consolidated net worth of such pipeline operator and its permitted affiliates, whichever is greater.
(d) 
Each pipeline operator subject to this part shall assume and bear any claims or losses to the extent of deductible amounts and waives any claim it may ever have for the same against the town and its officers, officials, employees, successors, and assigns in respect of any covered event.
(e) 
All such policies and certificates shall contain an agreement that the insurer shall notify the town in writing not less than 30 days before any material change, reduction in coverage or cancellation of any policy. Each pipeline operator subject to this part shall give written notice to the town within five days of the date upon which total claims by any party against such pipeline operator reduce the aggregate amount of coverage below the amounts required by the regulated pipeline permit.
(f) 
Each policy must contain an endorsement to the effect that the insurer waives any claim or right in the nature of subrogation to recover against the town, its officers, officials, employees, successors, and assigns.
(g) 
Each policy must contain an endorsement that such policy is primary insurance to any other insurance available to the town as an additional insured with respect to claims arising thereunder.
(h) 
The town council may modify the requirements of this section, as it deems appropriate, in order to account for the risk and possible threat to the public health, safety, and general welfare posed by the operation of pipelines within the town.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)
Any violation of the provisions of any or all sections of this part shall be grounds for the termination of any regulated pipeline permit. The termination of any regulated pipeline permit shall require the immediate cessation of all operations subject to such pipeline permit and shall require the pipeline operator subject to this part to reapply for a new pipeline permit in full accordance with the provisions of this part.
(Ordinance 2011-12-6D, sec. 2.03 adopted 12/6/11)