§ 4.24.090. Bond

Before delivery of any permit authorized by the council to be issued hereunder, permittee shall, as to each well for which a permit is authorized to be issued, furnish to and file with the council an indemnity bond in the principal sum of $25,000.00, executed by such permittee as principal, and as surety by a corporation authorized and admitted to engage in the business of and act as a surety upon such bonds under and pursuant to the laws of the state; provided that such bond must be approved as to the surety, and otherwise as to the sufficiency thereof by the council, and as to the form thereof by the city attorney of the city. Said bond shall be in favor of and name the city as oblige, and run to it, and shall by its terms inure to the benefit of any and all persons, firms and corporations who may suffer any loss, injury or damage for which indemnification is therein provided, so as to give rights of action to them and to their heirs, administrators, executors, successors and assigns, in like manner as though they, and each of them, were named in said bond as obligees thereunder. Said bond, in said full sum of $25,000.00 shall be kept in full force and effect at all time until the said well shall have been either abandoned or completed, within the meaning of the laws of the state for the conservation of petroleum and gas, and until all the covenants thereof with reference to discontinuance, abandonment and completion have been fully complied by permittee, as the same are applicable.

After completion of well, whenever it is intended to produce oil, gas or other hydrocarbon substances therefrom, before such production is commenced, the person, firm or corporation owning, and intending to operate the same, for production, shall furnish to and file with the city council an indemnity bond in the principal sum of $5,000.00 executed by such operator as principal, and by a corporation authorized to engage in the business of and act as surety upon such bonds under and pursuant to the laws of the state, as surety, approved in like manner and by the same authorities as in the case of the bond required by this section, and shall run to the city, as obligee, and insure to the benefit of any and all persons, firms and corporation who may suffer any loss, injury or damage, for which indemnification is therein provided, so as to give rights of action to them and to their heirs, administrators, executors, successors and assigns, in like manner as though they, and each of them, were named in said bond as obligees thereunder.

Said bond in said full penal sum of $5,000.00 shall be kept and maintained by such operator in full force and effect so long as production continues from such well, and shall be conditioned as follows, and the conditions thereof shall be stated substantially in the following language:

"If the above bounded principal shall well and truly indemnify the city, a municipal corporation, and any and all persons, firms and corporations from and against all loss, damage, liability and claim of liability, directly or indirectly caused by or arising out of, or incident to, any of principal's operations on the property hereinabove described, on which such well is located (1) to any public property, aside from ordinary wear and tear of the public streets and highways, or (2) to any private property or persons or (3) occasioned by the failure or neglect by any operator to faithfully comply wit and abide by each and all the provisions, requirements and conditions of all ordinances of the city, all laws of the State of California, and all laws of the United States of America, that in any manner pertain or apply to any of the principal's operations of such well."

"Then this obligation shall be null and void, otherwise it shall remain in full force and effect."

"This bond shall inure to the benefit of any and all persons, firms and corporations who may suffer any loss, injury or damage for which indemnification is herein provided, so as to give rights of action to them and to their heirs, administrators, executors, successors and assigns, the same as though they were named herein as obligees under this bond."

"Each and all of the obligations herein imposed and made binding upon the principal and the surety shall in like manner bind, jointly and severally, the respective heirs, administrators, executors, and successors of said principal and of surety."

(Ord. No. 131)