5.35.060 Issuance or Refusal of Permit.
(a) The City Manager, within twenty (20) 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 Manager shall then fix the amount of the principal of the bond and insurance in accordance with the provision of KMC 5.35.090, 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 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 (1) year from the date of the permit and as long thereafter as the permittee is engaged in drilling operations with no cessation of such operations for more than one hundred twenty (120) 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 commenced additional reworking operations within one hundred twenty (120) days thereafter as oil or gas is produced in commercial quantities from said well, except that for good cause the City Manager upon application may extend the one hundred twenty (120) day requirements for additional periods of sixty (60) days but for not more than the aggregate of one (1) year;
(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 file and have approved an indemnity bond in the designated principal amount as so determined by the City Manager and conditioned as specified in the section below. Said permit, in duplicate originals, shall be signed by the City Manager of the City, 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.
(b) If the permit for the well be refused, or if the applicant notifies the City Manager in writing that he or she does not elect to accept the permit as tendered and wishes to withdraw his or her application, or if the bond of the applicant be not approved and the applicant notifies the City Manager in writing that he or she wishes to withdraw his or her 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 one hundred dollars ($100.00) as a processing fee.
(Ords. 508, 800)