§ 4.24.070. Issuance of permit

If, after the investigation as herein above provided for in Section 4.24.060, the council shall find that the application complete with all of the provisions of this chapter and all other laws, that the representations in the same are true, and that the operations proposed by the same will not endanger or prejudice the city or any public or private property or interstate, the council shall issue to applicant as permittee thereunder, a written permit in the form as prescribed by the council.

The right to privilege of any permittee to conduct operations within the city shall be subject to the exercise of the rights and privileges of the council and the city, and the permittee shall be subject to, and all his operations within the city, conditioned upon the due performance of, and faithful compliance with the following requirements, and every permit shall be issued and shall remain in force and effect expressly subject thereto, which requirements are as follows, to wit:

A.

That no part of the well hole proposed to be drilled, or drilled, by permittee, shall be situated within 100 feet of the exterior boundary line of any real property in which the city has or claims to have any right, title or interest. This section does not include, and shall not be interpreted to mean, city streets and alleys, when it speaks of property in which the city has or claims to have some right, title or interest.

B.

That the drilling of the well, and all other operations of permittee on the premises covered by the permit will be carried on in a lawful, careful, and workmanlike manner, in accordance with the modern and approved drilling methods and practices.

C.

That the well, or well-hole, proposed to be drilled, and drilled, pursuant to such permit, will be drilled, for its entire depth, only within the exterior boundaries of the premises owned, leased or controlled by permittee; and in the event any survey may of the well-hole shall disclose that the same during any part of its course trespasses upon any land owned by the city or nay right, title or interest, the permit may revoked, as hereinafter provided; and in addition, all proceeds and avails of any sale, or the market value of all oil, gas, or other hydrocarbon substances produced and saved or sold from or through such well-hole, or well, shall, immediately, upon the production or sale thereof, be deposited and impounded without any deduction whatsoever for royalty, or cost of producing or marketing the same, other than any reasonable expense of dehydration, in a solvent and reputable bank in the city, and shall not be released or withdrawn therefrom until the ownership thereof has been determined by a court of competent jurisdiction.

D.

That permittee shall at all times comply with each and all provisions, requirements and conditions of this chapter, and all other ordinances of the city, and of all laws of the United States of America, and of all laws of the state, in any way pertaining to or applying to the operations of permittee.

E.

Permittee shall at all times faithfully make, record and keep complete and accurate drilling and other records, specifically including a log of the well, cores, and core record of the well, history of the well, monthly oil production and gas production and disposition report, all of which shall be open to inspection at all times by the city, its engineer, or other agent designated by the council for that purpose.

F.

That the council, at any time, shall have the right and privilege, in its discretion, to require permittee to make, record and keep true and accurate surveys of the well-hole for the purpose of determining and showing the true location and direction of the well-hole throughout its entire depth, provided that any and all such surveys must be made, recorded and kept by a method or methods deemed accurate by the council and made and recorded by a reputable engineer skilled in the making of such surveys, who shall meet with the approval of the council; any and all of which surveys shall be made, recorded and kept at the sole risk, cost and expense of the permittee. The council shall have the right at any time in its discretion, to make, record and keep such surveys of the well-hole at the sole risk, cost and expense of the permittee; provided that the record of any and all surveys of the well-hole which are made or caused to be made by the permittee, together with a report of the engineer making such survey, shall be open at any and all times, either while in progress or after completion thereof, to inspection by the council, its engineer, or other agent designated for that purpose.

G.

That permittee at any time when required by the council, and in any event, upon the completion of the well or abandonment of the well-hole, shall furnish to and file with the council full, true and accurate copies of any and all such well-hole surveys. Every survey made shall be accompanied by a written report from the engineer or engineers making such survey, and showing the location and direction of the well-hole throughout its entire depth with reference to the exterior boundaries of the premises owned, leased or controlled by the permittee, and shall also furnish to and file with the council as and when required to be filed with the state division of oil and gas, department of natural resources, executed duplicate copies of all drilling records, including, but not exclusive of, "Log of Oil or Gas Well," "Log and Core Record of Oil or Gas Well," "History of Oil or Gas Well," and "Monthly Oil Production and Gas Production and Disposition Report;" provided, however, that the records and reports of surveys and other drilling and production records, when filed with the council, as herein above provided and required to be done shall only be open to inspection by the members of the council, officers of the city, their assistants and deputies, and to such others as it shall be authorized in writing by the permittee to make such inspection.

H.

The council, its engineer or other agent designated for that purpose, and any officer or employee of the city, shall have the right and privilege at any time to enter upon the premises covered by the permit, for the purpose of making any of the inspections herein above provided for, or for any other lawful purpose.

I.

Permittee shall enclose any derrick as herein above in section 4.24.020 provided for and described, if and when such enclosure shall be required and ordered by the council.

J.

Nothing in the permit shall be deemed or considered to affect, or shall in any way, affect the responsibility or liability of city to third persons while the city is acting in its governmental capacity. Permittee shall give prompt notice to the city of any and all accidents, including injuries to persons and damage to property occurring either on the premises covered by the permit or on property of the city or other public property, and arising out of or incident to any operations of permittee.

K.

Permittee shall pay promptly when due, any ad valorem or other property tax, or excise tax, or license tax assessed and levied, or any permit or licensee fee imposed by any ordinance of the city, and also make prompt payment, to wit, within ten days after demand therefor by the city of any cost or expense incurred by the city, and which is or may be authorized by law or ordinance to be incurred by the city and imposed upon permittee in connection with or as a result of the operations of permittee.

L.

No permit, even though issued, shall become effective for any purpose whatsoever unless and until permittee shall have procured and filed with the council a surety bond, or bonds, as required, and shall also file with the city, or the proper department thereof, any and all other bonds required of permittee by any ordinance of the city, or unless and until such bond or bonds shall have been approved in the manner required by this chapter or any ordinance of the city requiring the filing of a bond by permittee.

M.

Permittee shall not discharge or cause or suffer to be discharged into the air any natural gas, either before or after the removal of the gasoline therefrom, and any such discharge may be temporarily excused solely by an act of God or other causes beyond the reasonable control of permittee while in the exercise of utmost care and diligence. This section shall not be construed to prevent the discharge of natural gas into the air in compliance with the regulations of the state oil and gas inspector in cleaning out or blowing a well.

N.

Permittee shall equip his well with casings of sufficient strength, and with such other safety devices as may be necessary and required by and in accordance with methods approved by the state oil and gas supervisor, and that permittee will use utmost care and diligence to effectually prevent blowouts and explosions and fires, and will at all times keep installed and maintained such casings and other safety devices.

O.

Permittee shall, upon demand of the council, through its authorized agent, or officer, erect dykes and walls of suitable height and strength around the derrick, or tanks containing inflammable fuels, to prevent the overflow of burning fuels onto surrounding territory.

P.

Permittee shall install every device in the nature of exhaust mufflers, and other equipment for the elimination of noises, obtainable and practicable for that purpose, on all operating machinery and equipment, and on the well in all instances where objectionable noises might otherwise exist.

Q.

Permittee shall immediately remove that derrick, and all other structures, not required, in the event gas only be produced from the well, and erect a suitable and slightly structure over the well of the most modern and approved design for the purpose, using only such space for the same as is necessary, and also shall fill all holes and excavations save the well, and restore all surfaces to their original condition.

R.

Permittee shall promptly notify the council, in writing, of any change made; if a partnership, in its partners or designated agent, and of any change of any address of any thereof; if a corporation, of any of its officers, including its general manager and/or any designated agent and any change in the address of such general manager and/or agent, and any change in address of its principal place of business in the state; if other than partnership or corporation, the change of any address required to be stated in the application, or the change in any designated agent of permittee and/or in the address of such agent.

S.

Every applicant and permittee shall appoint and at all times maintain an agent, who shall maintain a place of residence within the state, upon whom all orders, notices and processes provided for or permitted by this chapter may be served. Said appointment shall be in writing filed with the council, duly executed and acknowledged by applicant and permittee, and be accepted in writing, executed and acknowledged by such agent, upon forms approved by the council. Nothing herein shall be deemed or construed to mean or require that service of any such order, notice or process may be served upon applicant, or permittee, or any of its members, or officers.

T.

No permit may be assigned by the permittee, without first obtaining the written consent of the council to the proposed assignment; provided that the council shall, prior to giving such consent, make such investigation of and require the filing with the council by such proposed assignee of such information hereby for the original issuance of a permit and such additional information as the council may require; and provided, further, that the council may, in its discretion, as is herein provide in the case of an original application for a permit, refuse to consent to any such proposed assignment of a permit, refuse to consent to any such proposed assignment of a permit. The written consent of the council to any proposed assignment of a permit, and the furnishing to and filing with the council of a new surety bond naming therein the assignee of the permit as the principal, (which bond shall comply in all respects with the bond hereinafter required to be furnished and filed), shall be conditions precedent to the validity of any assignment thereof, and any such assignment made, or attempted to be made, without such written consent of the council, and without the furnishing and filing of such new bond, shall ipso facto be, and become, void and without any force or effect.

(Ord. No. 131)