§ 12-59. Application procedure; fees.

(a)

An application for a drilling permit shall be filed in duplicate in the office of the city secretary for each well to be drilled. Such application shall be signed, and the accuracy of the contents and exhibits attached shall be sworn to before a notary public by the applicant having legal authority to enter into contracts binding upon the applicant and shall include the following:

(1)

The name and address of the applicant, and if the applicant is a corporation, the name and address of the person upon whom process may be served for such corporation, and if the applicant is a partnership, the names and addresses of the general partners;

(2)

The name, address and telephone number of a person, other than applicant, designated as the local agent of the applicant to receive for the applicant all processes, citations, notices and demands hereunder and, if appropriate, more than one telephone number should be furnished;

(3)

Designation of a drilling block or production unit to be covered by the application with a metes and bounds description as reflected by the official survey or plat where previously subdivided and a statement to the effect that to the best of the knowledge and belief of the applicant the application for a permit to drill complies with all of the requirements of this article;

(4)

In addition to the designation of the unit by plat, the applicant shall file a proposed surface location of the well, together with distances from the well to the exterior boundary lines of the drilling unit certified to by a surveyor licensed by the state. The plat shall show distances from the proposed surface well location to any residences or structures intended for human occupancy which are located within 300 feet from the surface well location and shall show whether or not such well location is in compliance with other sections of this article which shall be attached to the application as exhibit 1;

(5)

The proposed total depth of the well;

(6)

A true copy of the state railroad commission form one and the railroad commission drilling permit, if issued, shall be attached to the application as exhibits 2 and 3, respectively;

(7)

An insurance certificate dated not more than ten days prior to the filing of the application shall be attached to the application as exhibit 4, which certificate shall indicate that the applicant has complied with at least the minimum insurance requirements specified herein;

(8)

A copy of the bonds required by this article shall be attached as exhibit 5. If no bond is required, applicant shall attach to the application as exhibit 5 a statement to the effect that no bond is required with a brief statement pertaining to the reason for the exception to the bond requirement;

(9)

Each application shall be accompanied by a list of the names and last known addresses of all record owners of interests in and to oil, gas and other minerals under the property included within the drilling block on which the proposed well is to be located. The list shall be attached to the application as exhibit 6 and shall specify the fractional share of operating rights within the drilling unit by each of the owners. This requirement can be waived by the city secretary provided that the operator agrees to furnish the city a true and correct copy of the division order contract once it is executed by all interested parties. The division order contract shall be furnished to the city within six months following completion of a well;

(10)

The permit application shall include a statement by the applicant authorizing the city to expend such funds as may be necessary under the circumstances to regain well control in accordance with the terms and provisions in this article regarding wells that are out of control.

(b)

All applications for permits to drill shall be accompanied by a filing fee made payable to the city in the amount provided in the city fee schedule.

(c)

No applications or reports are required for well service operations.

(d)

The application shall also be accompanied with two duly executed bonds given by the applicant, as principal, and a surety company authorized to do business in the state, as surety, running to the city for the benefit of the city and all persons concerned.

(1)

One bond shall be in the sum of $25,000.00 covering the period from the commencement of drilling operations until the completion or abandonment of the well and 90 days thereafter, conditioned that:

a.

If the permit be granted and if drilling operations be commenced thereunder the applicant and his or its assigns will comply with the terms and conditions of this article in the drilling of the well, including the completion or abandonment thereof;

b.

That the applicant will restore the streets, alleys and sidewalks and such other public places of the city which may be disturbed in such operations to their former condition;

c.

The applicant, after drilling operations are completed, will clear the blocks and lots of all litter, machinery, derricks and buildings erected, used, or allowed in the drilling operations and not needed in production operations; and

d.

He will pay any and all damages to property within the city, of which his negligence was the proximate cause, suffered by any person from fire, explosion, or from oil, gas or wastewater, arising out of the drilling of such well, and will hold the city harmless from any and all such loss.

(2)

The other bond shall be in the sum of $5,000.00 covering the period from the completion of the well as an oil and gas well until its abandonment and six months thereafter, conditioned that if the permit be granted and the well be completed as a producing oil and gas well the applicant and his assigns will pay or cause to be paid to any owners of royalty in the drilling district in which the well is located owning royalty under land not covered by applicant's mineral interests, leases or contracts, a royalty equal to 1/8 of the proportion of the oil produced and saved that the square feet of ground under which such royalty is owned bears to the square feet contained in such drilling district.

(3)

All bonds accompanying applications shall be approved by the city secretary and filed with him; provided, that in lieu of any surety bond or bonds required to be given hereby, the applicant or permittee may file with the city secretary the personal undertaking of the applicant or permittee, which shall contain the same conditions as hereinabove provided with respect to surety bonds. In order to secure such undertaking, the applicant or permittee shall, immediately after filing the same, deposit in escrow in a national bank selected by the permittee and approved by the city secretary, securities of the United States or of the state of a par value equal to the amount of the surety bond or bonds in lieu of which such undertaking or undertakings are given, and a duly attested copy of each such undertaking secured by such securities shall be delivered to such bank with such securities.

(Ord. No. 20, § 7, 2-1-1949)