312 IAC 29-12-4 - Bond types

Authority: IC 14-10-2-4; IC 14-37-3

Affected: IC 14-37

Sec. 4.

(a) The bond required in section 3 of this rule shall consist of any one (1) of the following:
(1) A surety bond in the amount of two thousand five hundred dollars ($2,500) for each well drilled or produced.
(2) A cash bond in the amount of two thousand five hundred dollars ($2,500) for each well drilled or produced.
(3) A certificate of deposit in the principal amount of two thousand five hundred dollars ($2,500) for each well drilled or produced, according to terms and specifications provided by the division.
(4) A surety bond in any amount for wells drilled, deepened, or converted; however, the maximum number of wells under the bond may not exceed that number determined by dividing the principal sum of the bond by two thousand five hundred dollars ($2,500).
(5) A blanket bond of forty-five thousand dollars ($45,000) for any number of wells drilled, deepened, or converted.
(b) No surety bond shall be approved unless issued by a company holding an applicable certificate of authority from the Indiana department of insurance. A surety bond shall be executed by the owner or operator as principal and by the surety or for either of them by an attorney-in-fact with certified power of attorney attached.
(c) The division shall obtain possession and custody of all collateral deposited by an applicant until released or replaced under this rule. A certificate of deposit must be assigned in writing to the state and the assignment noted upon the books of the federally insured financial institution issuing the certificate.

Notes

312 IAC 29-12-4
Natural Resources Commission; 312 IAC 29-12-4; filed 12/1/2017, 10:35 a.m.: 20171227-IR-312160230FRA Readopted filed 1/17/2023, 1:53 p.m.: 20230215-IR-312220328RFA

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