§ 97.3

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.