Applicant's bond.
Houston Code of Ordinances § 31-26
in effectSec. 31-26. - Applicant's bond.
(a) If the issuance of a permit under this article is authorized, the same shall not be issued until the applicant files with the building official a bond, executed by the permittee as principal and by a good and sufficient corporate surety company licensed to do business in state as surety, and whose name appears on the current list published by the United States Treasury Department of accepted sureties on federal bonds, conditioned that the principal obligor will drill and operate the well in strict accordance with the terms of this chapter, and that the principal will remedy any and all damages to streets, curbs, gutters, water lines, fire hydrants and other public property, occasioned in any manner by his drilling of the well. Such bond shall inure to the benefit of the city, shall be in a form to comply herewith, and shall be in the amount of $50,000.00, and shall be approved by the city attorney. A permittee shall not be required to post additional bond if he has approved bonds on file with the city as required by this section totaling $100,000.00.
(b) If the issuance of a permit to operate a well currently producing oil or gas after all drilling operations have ceased is authorized, the same shall not be issued until the applicant files with the building official a bond in the amount of $15,000.00 in accordance with and for the purposes set out in subsection (a) above, except that said security may be in the form of a bond, letter of credit, or other acceptable security approved by the building official and the city attorney. A permittee shall not be required to post additional bond if he has approved bonds or other security on file with the city as required by this section totaling $30,000.00. Any permittee who initially posted a $50,000.00 bond, and whose well is in the producing stage and all drilling operations have ceased, may submit an application to the building official in accordance with section 31-24 to reduce the existing $50,000.00 bond to comply with the lower security provisions of this subsection.
(c) Failure to keep the bond or alternative security in full force and effect, in accordance with the terms hereof, shall cause a revocation of the permit and shall be unlawful.
(Code 1968, § 30-26; Ord. No. 88-1506, § 1, 9-14-88; Ord. No. 90-635, § 67, 5-23-90)
Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH31OIGAWE_ARTIIPE_S31-26APBOFetched: 10/26/2026