§ 9-40.080. Securities and Insurance

A.

Securities. Prior to the commencement or continuance of drilling or other uses on an existing permit, the permittee shall file, in a form acceptable to the City Attorney and certified by the City Clerk, a bond or other security in the amount of not less than $10,000.00 for each well that is drilled or to be drilled. Any operator may, in lieu of filing this security for each well drilled, redrilled, produced or maintained, file a security in the amount of not less than $10,000.00 to cover all operations conducted in the City, conditioned upon the permittee well and truly obeying, fulfilling and performing each and every term and provision in the permit. In case of any failure by the permittee to perform or comply with any term or provision in the permit, the Commission may, after notice to the permittee and a public hearing, by resolution, determine the amount of the penalty and declare all or part of the security forfeited in compliance with its provisions. The sureties and principal will be jointly and severally obligated to pay forthwith the full amount of the forfeiture to the City. The forfeiture of any security shall not insulate the permittee from liability in excess of the sum of the security for damages or injury, or expense or liability suffered by the City from any breach by permittee of any term or condition of said permit or of any applicable ordinance or of this security. No security shall be exonerated until after all the applicable conditions of the permit have been met.

B.

Insurance. For the life of the permit, the permittee shall maintain liability insurance of not less than Five Hundred Thousand and No/100ths ($500,000.00) Dollars for one person and One Million and No/100ths ($1,000,000.00) Dollars for all persons and Two Million and No/100ths ($2,000,000.00) Dollars for property damage.

(§ 5, Ord. 1085, eff. January 6, 2006)