§ 54-48. Conditions precedent to issuance.

Each of the following shall be a condition precedent to the issuance of a drilling permit under this division:

(1)

The applicant shall file a corporate surety bond approved by the city clerk, executed by a bonding or surety company authorized to do business in the state, in the amount of $25,000.00, payable to the city, conditioned upon full and faithful compliance with all of the terms and provisions of this article and the conditions of the permit authorized by this division, and saving the city and holding it free and harmless of and from all judgments for damages sustained by the city if any claim for damage or injury is maintained against the city as a result of the activities of the applicant or his agents, servants or employees or persons in privity with the applicant in the drilling, completion or plugging of the oil or gas well.

(2)

The applicant shall file a policy of indemnity insurance, or a certificate of such policy, issued by an insurance company authorized to do business in the state and naming the city as a coinsured, insuring and providing indemnity for judgments and defense of actions for injuries, loss or damage for which the applicant or the applicant's agents, servants and employees or persons in privity with the applicant may be liable as the result of the drilling, completion, operation or maintenance of any oil or gas well or any structure, apparatus, machinery or facilities appurtenant thereto or used in connection therewith. Such insurance coverage shall be in an amount not less than $500,000.00 aggregate for injury and property damage, per occurrence. Such insurance policy or certificates thereof shall be accompanied by a certificate of the insurer that such insurance is in full force and shall not be canceled without 30 days' written notice thereof to the city clerk. Such insurance shall be maintained continuously in effect during the entire period during which the applicant, permittee or persons in privity with the applicant and permittee are conducting drilling, completion, maintenance or production operations with respect to any well drilled under this article.

(3)

The application shall state and describe the manner and method by which the applicant shall dispose of any liquefied petroleum or liquid waste produced from the well during the drilling and completion thereof, as well as during the production or maintenance thereof. Such disposal shall be in accordance and in compliance with all applicable rules and regulations of the state conservation commission, the state department of health and environment and this article.

(Code 1976, § 9.7-6)