HomeMy WebLinkAbout11093 - Oil Well Blanket BondRESOLUTION NO. _11093
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AN OIL WELL BLANKET BOND IN
CONNECTION WITH OIL WELL DRILLING IN CITY OF
NEWPORT BEACH WELLS #1 THROUGH $16 LOCATED IN
• THE BANNING OIL FIELD
WHEREAS, the City of Newport Beach (Principal) has
applied for a Permit from the County of Orange, pursuant to the
provisions of Title 7, Division 8, Article 1 of the Codified
Ordinances of the County of Orange, for the drilling or
redrilling of oil wells designated as City of Newport Beach Wells
#1 through Well #16 for the production of oil or gas therefrom on
property located in Banning oil field, just north of Pacific
Coast Highway and easterly of the old alignment of the Santa Ana
River in the County of Orange; and
WHEREAS, as a condition precedent to the issuance of
said Permit, Principal, the City of Newport Beach, is required to
furnish a Bond in the amount of $5,000.00 for each oil well OR,
in lieu of filing such bond for each well drilled, file a bond in
the amount of $25,000.00 to cover ALL operations conducted by
Principal within the County of Orange; and
WHEREAS, Principal has and does elect to exercise the
option of filing the "blanket bond" to cover ALL of its oil well
drilling operations; and
WHEREAS, Safeco Insurance Company of America is
authorized to transact surety business in the State of
California, and as such holds the Bond for the sum of $25,000.00
as surety for the County of Orange on behalf of the City of
Newport Beach; and
WHEREAS, the premium for this Bond is $360.00 for the
period of one year; and
•
WHEREAS, City staff has recommended that the City
Manager of the City of Newport Beach be authorized to execute the
Indemnity Agreement, a copy of which is attached hereto, marked
Exhibit "A" and incorporated herein by reference;
•
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Newport Beach that the City Council of the City of
Newport Beach does hereby authorize the Mayor and City Clerk to
execute said Indemnity Agreement for the Bond with Safeco
Insurance Company of America on behalf of the City of Newport
Beach and to pay the premium for this bond in the amount of
$360.00, and
BE IT FURTHER RESOLVED that. the City Manager be and
hereby is authorized to execute the Indemnity Agreement and to
renew this Bond in subsequent years conditional to premiums
remaining within funds budgeted for this purpose.
ATTE T:
City Clerk
12/14/81
PR
ADOPTED this 14th day of December , 1981.
2
ay,� r
TIIE CONDITION of this obligation is such that Whereas, the said Principal is apply-
ing o:• has nppliod for a permit pursuait to the provisions of Title 7, Division 8,
Artic:.e 1,
of
OF ORANGE
of the CCounty of �T c the drillin^ or
OF NEt,1Y0RT ARAM TAnnILS, ,kl ^•
V/ redri'lling
Oil. WE ML
BLlN},l:l 130'.1.0
CITY
asT' ROUGH
916 and for the.
production
BOND NO. 4379692
oil or gas therefrom on
property
described as follows:
h0, PPF`UMU c36n nn
IN
1JJOl4 .4l.L mm BY '111C`.;1:
PRESENTS, That
we —CITY ny m7 upnRT RFACi1
EASTERLY
as
Principal, and
SAFECO INSURANCE COMPANY OF AIIERICA
RIVER Y.Pd '£IIP F01J "Tmv nn ORANGE
a
corporation or,,:utized
and Cxisting under and by virtue of the
la, +s of the State or
14ASIIINGTON
and authorized to transact surety
business in th ^_ State
of Cnlifornin,
as Surct,y, a1•e held and firnly bound unto the
COUNT'- OF ORrW;E, ULIFORNIA,
in tho
sum of 1111:"8'1' -FiVll TIIOUSAND AND NO 1100 DOLLARS
•
($25,000,00), Lawful
money of the lfr.it
^_d St:ctcs of America, to be paid to the said
County of Orange, for
which p ;:yment,
wsl.l and truly to he made, we bind ourselves,
our heirs, exe_utors
and succcssurs,
Jointly acid severally, firmly by these presents
TIIE CONDITION of this obligation is such that Whereas, the said Principal is apply-
ing o:• has nppliod for a permit pursuait to the provisions of Title 7, Division 8,
Artic:.e 1,
of
the Codified Orc�inances
of the CCounty of �T c the drillin^ or
OF NEt,1Y0RT ARAM TAnnILS, ,kl ^•
V/ redri'lling
of
an Oil Well designated
CITY
asT' ROUGH
916 and for the.
production
of
oil or gas therefrom on
property
described as follows:
LOCATED
IN
BANNING OIL FIELD, JUST
NORTH OF
PACIFIC COAST HIGWAY AND
EASTERLY
OF
, Si NTk AM
RIVER Y.Pd '£IIP F01J "Tmv nn ORANGE
AND MICREIS, as a condition precedent to the issuance of said permit, the Principal
is ree,.uircd to funtish a hond in the :mount of FIVE T13OUSMO IMLAILS ( ;S,000.00),
or i'r'ncipal ncty in lieu of filing suet bond for each well drilled, redrilled, pro -
ducod or rt:ri.ntained, file a bend in th, amount of 'IMENTY -FIVE. THOUSAND UJLlr1RS
($2S,I00,00) to cover all Such operations condur.ted by him within the County of
Orange, AND WHERVAS, said Principal ha>, and clues hereby elect to exercise the option.
of fi:ing this bond to cover all of Iris such operations within the County of Orange.
NOW, '.]J1:IdiGOI7S, if the said Principal shall faithfully comply with all of the pro-
visions of said OrdinnneeS, -and any an.l all anenclments thereto, it, 'the drilling.,
rcd_i:linJ, and maintaining all production operntion:: and facilities until all of
his wells a.ru properly nb:m.ioncd in curformity with the provisions of said Ordinances
and slall i.ndernnify the COWILY of Ur:in•c against all ce::ts, charl;es and expenses
incurrc.l by SaIJ COUrty by ic:!SO11 Of r:rc failurC of Said Pritleil �(S1fjc!1_1, omply,
A, \ I /,N
with the provi::ions of said Ordinance::, then t!:is uhlig:rtion 'irall be ;mid; othpr-
wisc to remain in full fore_ anal effect.
-1 -•
.. _. E -0
I
ACKNOWLEDGMENT BY SURETY
STATE OF CALIMRNIA
County of ORANGE ss
On this 28th OCTOB 1981
appeared r Jay of before me personally
SAFECO INSURANCE COMPANY OF AMERICA, GENERAL INSURANCE COMPANY OF AMERICA,QFIRSTYNATIONAL
INSURANCE COMPANY OF AMERICA or SAFECO NATIONAL INSURANCE COMPANY, the corporation that executed the
within instrument, and acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand
the day and year in this certificate first
'-----------------
above writt
-
D ------------- - - - - -•
J OFFICIAL SEAL
CATHECRE L. ANDEMN
dt. Notary Pub*c . California
Notary Pub in
r ORANGE COUNTY
3 t4j;rmission Expireslanuery 14, 1963
County
s.oa_____ _____________ ----I
affixed my i official seal, at my office in the aforesaid County,
L. ANDERSON
PRINTED IN U 5 A.
I
(Enter name of Principal hem)
CITY OF NL74PORT BEACH
By:
• _ (Signature)
(Enter name ofCSTge 7� r�1�RICA
SAFECO INSU
By,
Patricia L. Jo}lns n
vnatt ;r
ATTORNEY —IN —FA
i TIIE SI,GNATURES OF BOTH TILL' SURETY MIJ 7..111 PRINCIPAL MUST BE ACKNOWLEDGED BY A NOTARY
PUBLIC.
Note: If the Principal named in the bond is a corporation the officers must be
listed below.
(Name) (Address)
If the Principal named in the bond is a partnershiR,,the persons constituting"
such partnersh ;p must be listed below.
m
(Name) ( Address)
NO.
4379692
IN WITNESS MIEVEOF, said Principal and
said Surety
have caused
these presents to
be dulv signed and sealed this 28th
dery of
-OCTOBER,
1981
(Enter name of Principal hem)
CITY OF NL74PORT BEACH
By:
• _ (Signature)
(Enter name ofCSTge 7� r�1�RICA
SAFECO INSU
By,
Patricia L. Jo}lns n
vnatt ;r
ATTORNEY —IN —FA
i TIIE SI,GNATURES OF BOTH TILL' SURETY MIJ 7..111 PRINCIPAL MUST BE ACKNOWLEDGED BY A NOTARY
PUBLIC.
Note: If the Principal named in the bond is a corporation the officers must be
listed below.
(Name) (Address)
If the Principal named in the bond is a partnershiR,,the persons constituting"
such partnersh ;p must be listed below.
m
(Name) ( Address)
• r �.
' POWER OF SAFECO INSURANCE COMPANY OF AMERICA
ATTORNEY GENERAL INSURANCE COMPANY OF AMERICA
HOME OFFICE: SAFECO PLAZA
SAFECO SEATTLE, WASHINGTON 98185
No. 6218
KNOW ALL BY THESE PRESENTS:
That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA,each
a Washington corporation, does each hereby appoint
----- --------=-- ---- ------ --PATRICIA L.
its true and lawful attorney(s) -in -fact, with full authority to execute on its behalf fidelity and surety bonds or undertakings
and other documents of a similar character issued in the course of its business, and to bind the respective company thereby.
IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OFAMERICA and GENERAL INSURANCE COMPANY
OF AMERICA have each executed and attested these presents
10th November 80
this _ day of 19_.
CERTIFICATE
Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA
and of GENERAL INSURANCE COMPANY OF AMERICA:
"Article V, Section 13. — FIDELITY AND SURETY BONDS ... the President, any Vice President, the Secretary, and any
Assistant Vice President appointed for that purpose by the officer in charge of surety operations, shall each have authority
to appoint individuals as attorneys -in -fact or under other appropriate titles with authority to execute on behalf of the
company fidelity and surety bonds and other documents of similar character issued by the company in the course of its
business; -..'On any instrument making or evidencing such appointment, the signatures may be affixed by facsimile. On any
instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be
impressed or affixed or in any other manner reproduced; provided, however, that the seal shall not be necessary to the
validity of any such instrument or undertaking."
Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA
and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970.
"On any certificate executed by the Secretary or an assistant secretary of the Company setting out, .a
(i) The provisions of Article V. Section 13 of the By -Laws, and _
(ii) A copy of the power -of- attorney appointment, executed pursuant thereto, and
(iii) Certifying that said power -of- attorney appointment is in full force and effect, - -
the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof."
I, W.D. Hammersla, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE
COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of
Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true andcorrect, andthat both the
By -Laws, the Resolution and the Power of Attorney are still in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation
this
28t11
day of OCTOBER 19 81
S -976 AS 3/81 - - PSINTEn IN USA
4
GENERAL AGREEMENT
OF INDEMNITY
SAFECO
SAFECO INSURANCE COMPANY OF AMERICA.
GENERAL INSURANCE COMPANY OF AMERICA
FIRST NATIONAL INSURANCE COMPANY
OF AMERICA
HOME OFFICE: SAFECO PLAZA
SEATTLE, WASHINGTON 98185
AGREEMENTS
Each of us who sign this form have read and understand the statements made in it. We each believe them to be true and ask that you rely on
them as true. You are authorized to confirm bank balances or any other statement in the form. Each of us has signed this form because we
want you to issue one or more bonds for
CITY OF NEWPORT BEACH
called Applicant, whenever you are asked to do so by Applicant. If you issue any bond for Applicant, each of us agrees:
1. To pay you, when you ask for it
(a) The amount of any loss or expense, including your lawyer's fees, which ^ pay or become liable to Day because of issuing the bond.
(b) The price for the bond or any renewal of it until you receive evidence which is satisfactory to you thatyou have no more responsibility on
the bond.
(c) Your lawyers fees, if we do not pay you any amount due when you ask for it and you hire a lawyer to make any of us pay. 1
2. You have the right to determine how any claims or suit will be handled or paid.
3. Your itemized statement of the amount of loss and expense shall be evidence of the amount we must pay. you.
4. To provide you with collateral, should you request it, as security against loss if a claim arises.
5. You will not be held liable for any damages the Applicant or any of us sustain as a result of you being released from suretyship by law.
6. You may at any time examine or exercise joint control or custody of any assets held in trust in connection with any such bond.
7. If any bond you issue is renewed, is replaced by another bond issued by you, is continued for an additional time period by certificate, or is
endorsed in any manner, each of us will he responsible to you as we were on the original bond.
S. All terms in this agreement will apply to any bondyou issue for Applicant until we notifyyou inwriting thatwedo notwantyou lolssue any
more bonds for Applicant. 1
9. 'You" and "Your" refers to the company issuin any hand for Applicant because of this agreement.
Signed and Dated the _28th day of 09Cto= _ t9 81
If Applicant is an INDIVIDUAL, sign here:
If Applicant is a PARTNERSHIP, all partners sign here:
(Individually and as Partner) (Individually and as Partner)
(Individually and as Partner) (Individually and as Partner)
If Applicant is a CORPORATION, sign here:
. / (Name of Corporation)
Attest: By: V
. fLes daaF-
C wk 7 L:
ADDITIONAL INDEMNITY
In consideration of SAFECO issuing the bond(s) applied for by the applicant the undersigned, now referred to as indemnitor, acknowledges that
the above application has been read and the indemnitor is aware of the contents of the application. The indemnitor agrees to be bound by the
application to the same extent as the applicant. This obligation imposes individual liability on the indemnttor as well as joint liability with the
applicant. The indemnitor has sufficient interest in the performance of this obligation to execute this agreement and is fully empowered to p
exercise this agreement.
ADDITIONAL INOEMNITORS, sign here: (May include spouses of above signed applicants, owners of closely held corporation and /or third
parties.)
(Indemmtor) (Indemmtor)
(Indemnitor) (indemnitor)
P.1%, -Z, IN l' S .