Article 2 — LICENSE.

Except as otherwise provided in this Chapter, it shall be unlawful to erect any derrick or drill any oil well hole, or to use or operate or maintain the same, or any portion thereof, in or upon any real property in the City.

No person shall drill, cause to drilled, or commence to drill any oil well hole, or erect or cause to be erected any derrick, without having first obtained a license therefor from the License Inspector.

No person shall drill any oil well hole, or erect or cause to be erected any derrick, except as provided in such license.

Before issuing such license, the License Inspector shall require of the applicant:

a) The payment of the license tax, as required by Section 97.2.5. of this Article.

b) The execution of an application for a business license as required in Division 3 of this Code.

• c) A map or plat of the real property on which the well is to be located.

• d) A statement from the Planning Director that such use is not in violation of the zoning laws of the City.

e) A City building permit or a statement from the Director of Public Works that such permit is unnecessary.

f) Such other information as the License Inspector deems necessary or proper.

(Amended by O-1725; O-2202; O-2604)

See Section 33.13.1. in Division 3 of this Code.

Before issuing a license, in the cases where in the opinion of the License Inspector, the conduct of the proposed operations may constitute or create a hazard to life or property or be materially detrimental to property, the License Inspector may send the license application to the License Review Board. The License Review Board may impose such conditions thereon, in addition to those otherwise provided herein, as are reasonably necessary to prevent the proposed operations from being conducted in such a manner as to constitute or create a hazard to life or property or be materially detrimental to property. The applicant may appeal the decision of the License Review Board and the imposition of any such conditions to the City Council pursuant to the provisions contained in Article 5 of Chapter 1 of this Code.

The license may be revoked or suspended in the same manner and for the same reasons as provided for the revocation and suspension of licenses by the provisions of Division 3, Chapter 1, Article 9 of this Code.

ARTICLE 3 - BOND.

Except as provided in this Division, no license for the erection of any derrick or the drilling of any oil well hole shall be issued by the License Inspector or be valid or effective for any purpose, unless at the time of such issuance there is on file with the License Inspector and in full force and effect, in a form approved by the City Attorney, a cash bond or surety bond covering such derrick or the drilling of such oil well hole. Such bond shall name the City as obligee and shall be executed by the applicant as principal, and except for a cash bond, as surety by a corporation authorized to act as surety pursuant to the laws of the State.

The conditions of the bond shall be:

a) That the City be indemnified against any expense or liability resulting from the operation or use of the land and equipment for which the license is granted.

• b) That upon cessation of operations or abandonment, the property be cleaned and made safe and the derrick, other equipment and sumps be removed.

c) That the licensee comply with all the laws of the City and all other applicable laws.

d) That the licensee comply with all the terms and conditions of the license to the reasonable satisfaction of the License Inspector.

e) Such other conditions as the City Attorney shall reasonably require incidental to the foregoing conditions.

(Amended by O-2231)

The amount of the bond shall be Five Thousand Dollars ($5,000) for each well drilled, or, at the election of the licensee, Twenty-Five Thousand Dollars ($25,000) for five (5) or more wells.

The bond shall be terminated:

a) Upon the licensee’s filing with the License Inspector a substitute bond in the principal sum required by this Chapter.

b) Upon the licensee’s filing with the License Inspector a request for release of the bond showing an abandonment of all operations for which the license was issued, or upon the revocation of such license, provided that all the conditions of the bond have been complied with to the reasonable satisfaction of the Director of Public Works and the City Council.

Before abandoning any oil well hole, the licensee shall give written notice of intention to abandon to the License Inspector at the same time such notice is furnished to the State Division of Oil and Gas, or at least five (5) days prior to the abandonment, whichever is the first of such events to occur.