City Council Minutes 1993 06 15 - Laserfiche WebLink

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be released upon successful completion and reclamation of the well and the tank battery? Siple: We're presently required to post a bond with the Oil & Gas Conservation Commission to cover surface damages, restoration, and plugging obligations. Depending on the amount of the bond that the City would require, it ' s definitely something we would consider. Lathrop was thinking something in the order of $25,000.00. Siple stated that the bond that they have with the Oil & Gas Conservation Commission is $25,000.00 for the plugging liability and $30,000.00 for surface damages, which is a "statewide" and not a "site specific" bond. Lathrop suggested that this be a "site specific" bond to the northwest quarter and the tank battery that would serve the other well heads. Siple: That's something I'd have to take back to our management for their approval and discussion. Howard's concern was, when the wells are first put in there is the risk of sparks, explosive gas fires, etc. He wondered what Gerrity Oil is doing to help mitigate the drilling operation? Siple: We abide by all of the rules and regulations of the Oil & Gas Conservation Commission, which requires us to follow strict safety procedures. All of our equipment is tested before we commence drilling any well. All of the safety factors are taken into consideration and double checked, before we commence operations. As far as drilling in an area this close to a populated area, we would be willing to post a guard to keep curious onlookers away. The drilling site would be approximately 350' x 350' site. We'd be willing to put a temporary fence around the site and post a guard. Howard: Is that in any of our agreements? 7