§ 19-20. Issuance or refusal of permit.

If after such hearing an application filed pursuant to this chapter be found by the city council to comply in all respects with the terms of this chapter, and the drilling and operation of a well on such drilling is not prohibited by the terms of this chapter, and the city council does not elect to refuse the application as authorized by section 19-11, then the city council shall determine the amount of the principal of the bond provided for in section 19-21, which shall not be less than one hundred thousand dollars ($100,000.00), and after such determination shall issue a permit for the drilling and operation of the well applied for, provided, however, the city council may, pursuant to the provisions of section 19-10, refuse to issue a permit for the particular drilling location on the drilling block as applied for by the applicant and in lieu thereof designate as the drilling location a different drilling site on said drilling block subject to the applicant obtaining all requisite leases, contracts and surface permissions, for the designated substituted drilling site. Each permit issued under this chapter shall (1) by reference have incorporated therein all provisions of this chapter with the same force and effect as if this chapter were copied verbatim in said permit; (2) specify the well location with particularity to lot number, block number, name of addition or subdivision, or other available correct legal description; (3) contain and specify that the term of such permit shall be for a period of one year from the date of the permit and as long thereafter as the permittee is engaged in continuous drilling operations or oil or gas is produced in commercial quantities from the well drilled pursuant to such permit, provided that if at any time after discovery of oil or gas the production thereof in commercial quantities should cease the term shall not terminate if the permittee commences additional reworking operations within ninety (90) days thereafter, and if they result in the production of oil or gas, so long thereafter as oil or gas is produced in commercial quantities from said well; (4) contain and specify such conditions as are by this chapter authorized; (5) specify the total depth to which the well may be drilled, not exceeding the projected depth; and (6) contain and specify that no actual drilling operations shall be commenced until the permittee shall file and have approved by indemnity bond in the designated principal amount as so determined by the city council and conditioned as specified in section 19-21. Said permit, in duplicate originals, shall be signed by the mayor, and prior to delivery to the permittee shall be signed by the permittee (with one original to be retained by the city and one by the permittee); and when so signed shall constitute the permittee's drilling and operating license and the contractual obligation of the permittee to comply with the terms of such permit, and such bond, and this chapter. If the permit for the well be refused, or if the applicant notifies the city council in writing that he does not elect to accept the permit tendered and wishes to withdraw his application, or if the bond of the applicant be not approved and the applicant notifies the city council in writing that he wishes to withdraw his application, then upon the happening of any of said events the cash deposit provided for, to be filed with the application, shall be returned to the applicant, except that there shall be retained therefrom by the city one hundred dollars ($100.00) as a processing fee.

(Ord. No. 929, § 18, 4-12-60)