§ 72-22. Issuance or refusal of permit.

The city council, within 30 days after the filing of the application for a permit to drill and operate a well, shall determine whether or not said application complies in all respects with the provisions of this chapter, and if it does, the city council shall then fix the amount of the principal of the bond and insurance provided for in section 72-24 herein, and after such determination shall issue a permit for the drilling and operation of the well applied for. Each permit issued under this chapter shall:

(1)

By reference have incorporated therein all the provision 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 drilling operations with no cessations of such operations for more than 90 days, 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 shall cease, the term shall not terminate if the permittee commences additional reworking operations within 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 operations shall be commenced until the permittee shall have complied with section 72-24 of this chapter.

Said permit, in duplicate originals, shall be signed by the city manager 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 they terms of such permit, and such bond, and this chapter.

If the permit for the well be reused, or if the applicant notifies the city council in writing that he does not elect to accept the permit as 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 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 $100.00 as a processing fee.

(Ord. No. 1251-3-01, 3-20-2001; Ord. No. 1535-11-09, § 3, 11-17-2009)