HomeMy WebLinkAbout14532 ORD - 10/04/1978JKH:hb:9 /19/78
AN ORDINANCE
AMENDING SECTION 35 -151 (F)(4) OF THE CORPUS CHRISTI
CITY CODE BY INCREASING THE AMOUNT OF SURETY BOND OR
CASH DEPOSIT FROM $2,500 TO $4,500; PROVIDING FOR
ACCEPTANCE OR CONTINUATION BEYOND AN INITIAL THREE -
YEAR PERIOD OF "IN LIEU OF PLUGGING" BONDS WHERE
OPERATOR AND PRINCIPAL ON THE BOND STILL HOLDS
VALID LEASE ON MINERALS UNDERLYING THE WELL SURFACE,
AND PROVIDING FOR PROOF BY THE OPERATOR, WHEN POSTING .
OR CONTINUING BOND BEYOND THE INITIAL THREE -YEAR
PERIOD, THAT HE OWNS OR CONTROLS THE MINERALS UNDER-
LYING THAT WELL.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the Corpus Christi City Code, as amended, be
and the same is hereby amended by amending Section 35- 151(F)(4) to hereafter
read as follows:
"(4) A surety Bond in the amount of four thousand five hundred
dollars ($4,500) with good and sufficient corporate surety payable to the
City, providing that the principal will plug said well in accordance with
the provisions of this Article. In lieu of said bond, cash in the amount
of four thousand five hundred dollars ($4,500) may be deposited with the
City on the same conditions. A bond conditioned as provided in Section
35 -161 shall also be filed unless such bond so conditioned is already on
file and in effect. The bond shall be released when the well is plugged and
abandoned, or when the Superintendent has been satisfied that the well is
again producing oil or gas on a regular basis, or when it meets one of
the conditions of exemption listed in paragraph (C), (D), and (E) of this
Section."
"Acceptance or continuation beyond an initial three -year period
of 'in lieu of plugging' bonds shall be permitted only for those wells
which have not been plugged and abandoned where the operator and principal
on the bond still holds a valid lease on the minerals underlying the
surface where such well is located. The operator, when posting or con-
tinuing a bond beyond the initial three -year period shall provide the
Petroleum Inspection Division with evidence that he does in fact own or
control the minerals underlying that well, In cases where the mineral lease
has expired and wells have not been plugged, then the operator and th`y1ty1YlGU
/T' JUL 0 81980
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will be notified at least three months prior to calling on the bond so that
sufficient time will be permitted for the operator or surety to adequately
plug and abandon the well or the City will in fact plug and abandon the well
and charge the cost to the surety.' That the form of said surety bonds shall
be substantially in conformance with Exhibit "1 ", attached hereto and made
a part hereof."
SURETY
KNOW ALL MEN BY THESE PRESENTS:
BOND NO.
as principal
and , a corporation
having permit to do business in Texas, as Surety are held and firmly bound
unto the City of Corpus Christi, Texas as Obligee, in the sum of Four
Thousand Five'Hundred and no /100 ($4,500) Dollars lawful money of the United
States, for which payment well and truly to be made, we bind ourselves, our
heirs, executors, administrators, successors and assigns, jointly and
severally, firmly by these presents.
This bond is made as compliance with the Ordinance of said City
pertaining to the obtaining of a permit for the deferment of plugging of
an oil and /or gas well and the Condition of this Obligation is such that the
principal will plug the well described in said application for deferment, in
accordance with the requirements of City Code, Chapter 35, Article II, and
furthermore principal will reimburse the City any expenditures made by the
City for plugging, in the event principal fails to plug said well, within
three (3) years, as required by City Code, Chapter 35, Article II, and for
any violation of said Ordinance, this bond shall inure to the benefit of
the City of Corpus Christi.
This bond shall be released when a release of permit is issued
for the well, or when the Superintendent has been satisfied that the well
is again producing oil or gas on a regular basis, or when it meets one of
the conditions of exemption listed in paragraphs (C), (D), and (E) of
Section 35 -151 of City Code, Chapter 35, Article II, or when a new bond is
posted and approved.
By
ncipa
This bond limited to:
Surety
Lease name and well number:
By
Attorney -in -Fact
Drilling Block No.
Dated this day of , 19
That the foregoing ordinance was read for he first time and passed to its
second reading on this the_,,Po day o A 19 by the
following vote:
Gabe Lozano, Sr.
Bob Gulley lei
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample
That the foregoing ordinance was read f he econ time and pas ed to its
third reading on this the —Z ' day of 19M, by the
following vote:
Gabe Lozano, Sr.
Bob Gulley
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample /
That the fore in ordinanc a read for the dir time and passed finally
on this the�day of 19f�, by the following vote:
Gabe Lozano, Sr.
Bob Gulley
David Diaz
Ruth Gill
Joe Holt
Tony Juarez, Jr.
Edward L. Sample
PASSED AND APPROVED, this the_�/ day of 19.
ATTEST:
lid �1��toC
City Secret dry MAYORPio•Tem
APPROVED:
THE CITY OF CORPUS 5 ISTI, TEXAS
_
—_DAY OF ,19]Z_:
J. BRUCE AYCOCK, CITY ATTORNEY
BY
Assistant City Attorne
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