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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 .