In case there are applications by more than one applicant filed with the city clerk and pending at the same time for permits to drill in any one-half block, or area of land equal thereto, as defined in the section setting forth regulations covering the granting of permits, in this chapter, that application shall be granted, if otherwise sufficient, which shall be made by the person, firm or corporation holding the greater area of the land in the one-half block or area, by lease or other contract with the owner or owners permitting the drilling thereon for oil and gas; but in case a permit be issued to a person, firm or corporation which does not hold lease or other valid drilling contract in writing from the owners of all the land within the one-half block or area of land equal thereto then any owner of the unleased land in the one-half block or area equal thereto, and any person, firm or corporation other than the permittee holding oil and gas leases on land in the one-half block or area equal thereto, shall have the right to share in the ownership and benefits of such oil and gas wells in the proportion that the area of his or its land or lease bears to the area of the one-half block, or area equal thereto, exclusive of streets and alleys; provided, that within ten days from the date of the issuance of such permit, he or it shall file with the city clerk his or its election, in writing, to pay to the holder of the permit or his or its assigns, a like proportion of the total cost and expense of drilling, completing and operating a well and shall, within that time, make and file with the city clerk, a bond with an authorized surety company as surety, and in an amount representing that portion of the estimated maximum cost of the well that the area of ground held or owned under lease by the principal bears to the whole area of the one-half block or area equal thereto, conditioned that the principal in the bond pay to the permittee and his assigns, such proportion of the cost of drilling and operating of the well, from time to time as required in the operations, such bond to be approved by the mayor and held by the city clerk for the benefit of all persons interested.

    If an application be found by the council to comply in all respects with the terms of this chapter, the city council shall be authorized to issue a permit for the drilling of the well applied for. The permit shall specify the particular location of the well to be drilled and it is unlawful for the permittee to drill elsewhere in the block. In case such permit is not granted, the inspection fee filed with the application shall be returned or refunded to the applicant. (Prior code § 28-1-5)