Before any person receives a permit to drill, bore, excavate,
or construct a geothermal energy extraction facility, the person shall submit
to the commission and obtain its approval of a surety bond or cash bond. An
alternate form of security may be approved by the commission after notice and
hearing, as provided by law. At the discretion of the state geologist, an
installation or facility bond may be required for the substantial modification
of a geothermal energy extraction facility in existence prior to December 1,
1992. The state geologist has the discretion to waive the requirement for a
facility bond if the applicant is an instrumentality of the state. Each such
bond must be executed by a responsible surety company authorized to transact
business in this state.
The amount and type of the bond is as follows:
Shallow-well and horizontal-loop
facilities.
1. The state
geologist has the discretion to require a facility bond in the amount of
fifteen thousand dollars for any geothermal energy extraction facility that,
for any reason, constitutes a special threat to important ground water
resources or the environment, or otherwise poses a significant public health
hazard.
2. An installation bond in
the amount of ten thousand dollars is required of installers of all geothermal
energy extraction. This is a blanket bond and must cover all permits for
geothermal energy extraction facilities issued in one year commencing on the
date the first permit covered by the bond is issued. Alternately, at the
discretion of the state geologist, an installation bond in the amount of one
hundred dollars for each well or horizontal loop installed per year may be
submitted.
3. The geothermal system
installer must comply with North Dakota Century Code chapter 38-19 and all
rules and orders of the commission as a condition of the installer's bond. Any
violation of either North Dakota Century Code chapter 38-19 or the rules or
orders of the commission makes the installer liable under the bond and the bond
shall be subject to immediate forfeiture. The installer remains liable under
the installation bond until construction of the geothermal energy extraction
facility has been completed and the work has been approved by the state
geologist. At the discretion of the state geologist, the installer's liability
under the bond may be terminated at an earlier date when it can be demonstrated
that only minor interior work remains to be completed and when completion of
this work is subject to inordinate delays beyond the control of the geothermal
system installer.
The owner of a geothermal energy extraction facility is
responsible for obtaining the facility bond in subsection 1 .
The owner of the geothermal energy extraction facility who is
required to obtain a facility bond under subsection 1 must comply with North
Dakota Century Code chapter 38-19 and all rules and orders of the commission as
a condition of the owner's bond. Any violation of either North Dakota Century
Code chapter 38-19 or the rules or orders of the commission makes the owner
liable under the facility bond, and the bond shall be subject to immediate
forfeiture. The owner of the geothermal energy extraction facility remains
liable under the bond until either of the following occurs:
(1) the wells or loop systems have been
satisfactorily plugged as provided in this chapter, the sites disturbed by any
method of production of geothermal energy have been reclaimed in a manner
approved by the state geologist, and all logs, plugging records, and other
pertinent data required by statute or rules and orders of the commission are
filed and approved; or
(2) the
liability on the bond has been transferred to another bond and such transfer
approved by the commission.
The commission shall advise the surety and the principal when
liability on a surety bond is terminated.
The state geologist is authorized to act for the commission
as to all matters within this section.
Notes
N.D. Admin Code 43-02-07-08
Effective March 1, 1984;
amended effective October 1, 1990; December 1, 1992; April 1, 1994; May 1,
1994; May 1, 2004.
Amended by
Administrative
Rules Supplement 2020-378, October 2020, effective
10/1/2020.
General Authority: NDCC 38-19-03
Law Implemented: NDCC
38-19-03
