Title 5 - Business Licenses and Regulations

5.51 Oil & Gas

5.51.110 Bonds Required.

  1. A.
    At the time of application for any permit required by this Chapter, the applicant shall furnish to the City cash or a corporate surety bond in the sum of $10,000 for each well, or cash or a corporate surety bond in the sum of $50,000 for all wells within the property for which a special use permit has been granted in accordance with 18.370. Any bond shall be executed by the applicant as principal and by a surety company as surety and conditioned that the principal shall faithfully comply with all applicable provisions of the Code and all regulations of the State of Kansas. Any surety company executing a bond hereunder shall be authorized to do business within the State of Kansas and shall be included in the current Federal Register's listing of acceptable sureties on federal bonds. The bond shall secure the City against all costs, charges, and expenses incurred by it by reason of the failure of the principal to fully comply with the applicable provisions of this Code or regulations of the State of Kansas. The bond shall include the correct name or number of the well(s) and such other information as may be necessary to readily identify the well(s).
  2. B.
    Cancellation of Bond
    1. 1.
      The principal or surety may cancel the bond required pursuant to 5.51.110A effective on any anniversary date of said bond, by giving written notice of intent to cancel to the Code Administrator and to the other party (principal or surety) not less than 120 days prior to said anniversary date.
    2. 2.
      In the event that a cancellation notice pursuant to paragraph A above is given, the principal shall, not less than 60 days prior to the anniversary date of the bond, furnish a substitute surety bond or cash complying with the provisions of 5.51.110A to the City, or alternatively, the principal shall, not less than 60 days prior to the anniversary date of the bond, abandon the well and comply with all requirements of this Code and all regulations of the State of Kansas relating to abandonment.
    3. 3.
      Failure on the part of the principal to satisfy the requirements of paragraph B above shall constitute a default, and the Code Administrator shall give notice of default in the manner provided in 5.51.120.

(History: Ord. OG-2448 §4, 2003; OG-1165 §11, 82)

Effective on: 1/1/1901