Any person
who has drilled or is drilling or proposes to drill any geothermal resources
well shall post with the division, and obtain approval thereof, a bond, in a
form approved by the division, conditioned to plug such well, if non-productive
or when abandoned, in such a way as to confine all fluids in their native
strata. Each such bond shall be executed by a responsible surety company
authorized to transact business in the state of New Mexico and shall describe,
or by subsequent rider describe, the name and exact location of the well, or
wells, covered by the bond. Bonds may be either one-well bonds or multi-well
bonds, in the amounts stated below in accordance with type of bond and depth of
well(s):
(1) One-well bonds:
Projected depth of proposed well or
Actual depth of existing well Amount of bond
Less than 500 feet deep ("shallow") $2,000
500 feet to 2,000 feet deep ("intermediate") $3,000
More than 2,000 feet deep ("deep") $5,000.
Revised plans for an actively drilling shallow or
intermediate well being drilled under a one-well bond may be approved by the
division for drilling as much as 15 percent deeper than the maximum depth on
the well's bond, provided, however, any well drilled more than 15 percent
deeper than the maximum allowed depth on the bond must be covered by a new bond
in the amount prescribed for the deeper depth bracket, in which case the old
bond will be released.
(2)
Multi-well bonds:
Projected depth of proposed wells or
Actual depth of existing wells Amount of bond
Less than 500 feet deep ("shallow") $10,000
500 feet to 2,000 feet deep ("intermediate") $10,000
More than 2,000 feet deep ("deep") $10,000
(a) Not more than ten shallow wells may be
drilled under a $10,000 multi-well bond. A $2,000 one-well bond shall be posed
for each additional shallow well drilled or an additional $10,000 multi-well
bond must be posted for each additional ten (or portion thereof) shallow wells
drilled.
(b) Not more than six
intermediate wells may be drilled under a $10,000 multi-well bond. A $3,000
one-well bond shall be posted for each additional intermediate well drilled or
an additional $10,000 multi-well bond must be posted for each additional six
(or portion thereof) intermediate wells drilled.
(c) Not more than four deep wells may be
drilled under a $10,000 multi-well bond. A $5,000 one-well bond shall be posted
for each additional deep well drilled or an additional $10,000 multi-well bond
must be posted for each additional four (or portion thereof) deep wells
drilled.
(d) The $10,000 multi-well
bond may be used to cover the drilling of a combination of wells, i.e., shallow
and intermediate, shallow and deep, intermediate and deep, or shallow,
intermediate and deep, provided however, that the $10,000 capacity of the bond
shall be charged in an amount equal to the one-well bond requirement for each
such combination well according to its depth.
(e) Revised plans for an actively drilling
shallow or intermediate well being drilled under a multi-well bond may be
approved for drilling as much as 15 percent deeper than the well's maximum
depth bracket without affecting the bond. Any well drilled more than 15 percent
deeper than its depth bracket, however, shall be placed in the next deeper
depth bracket, and the $10,000 capacity of the multi-well bond charged
accordingly. Additional bonding will be required in the event the capacity of
the bond to cover the well in its new depth bracket is inadequate.
