Okla. Admin. Code § 385:15-1-20 - Bond requirements

(a) Performance bond for oil and gas leases. Successful bidders awarded oil and gas leases by the Land Office shall not be required to post a performance bond. Performance bonds previously posted shall remain effective until released by the Land Office.

(b) Performance bond for saltwater disposal agreements. A performance bond in the amount of Ten Thousand Dollars ($10,000) shall be posted for each saltwater disposal agreement.

(c) Release of bond. Performance bonds shall be released upon written request of the lessee or bonding company after all contracts covered thereby are satisfactorily terminated, as determined by the Land Office.

(d) Underwriter requirements. All surety bonds must be made by a company authorized to do business in the State of Oklahoma.

(e) Performance bond, liability, and interest. Performance bonds shall not be a substitute for liability or liability limits but merely serve as minimal security for the debts and obligations. The person posting the performance bond shall not be entitled to interest while the performance bond is held by the Land Office.

Notes

Okla. Admin. Code § 385:15-1-20

Amended at 15 Ok Reg 1745, eff 5-12-98; Amended at 21 Ok Reg 633, eff 12-19-03 (emergency); Amended at 21 Ok Reg 1043, eff 5-13-04; Amended at 29 Ok Reg 1299, eff 6-25-12

Amended by Oklahoma Register, Volume 38, Issue 24, September 1, 2021, eff. 9/11/2021