Tenn. Comp. R. & Regs. 0400-52-01-.01 - AMOUNT OF PLUGGING BOND
(1) A Plugging Bond
is required to be in force for a well from the time a drilling or re-entry well
permit is granted until the well is plugged and abandoned. The bond shall be
for the sum of $2000 for wells from 0 to 2500 feet in depth; $3000 for wells
that are deeper than 2500 feet, but less than or equal to 5000 feet in depth;
for all wells deeper than 5000 feet the bond shall increase $3000 at the rate
of $1.00 for every foot deeper than 5000 feet. The bonds shall be written in
such a manner that the Principal and Bonding Agent hereto are firmly bound to
the Department , jointly and severally, for the payment of the full penal sum of
the bond so that the well shall be plugged and abandoned in accordance with the
rules and regulations of the Board . An individual well bond shall be released
upon the proper plugging of the well and the filing with the Supervisor of a
Plug and Abandon Report (Form CN-0217), driller's log, downhole surveys, well
cuttings and cores, and other data as required, or if the permit has been
canceled because of lack of proper activity.
(2) The Bonding Agent may notify the
Supervisor in writing of its desire to terminate its liability under the bond
by giving written notice to the Supervisor. The Supervisor shall thereupon
require the Principal in the bond to file a new bond, or to effect a change of
operators on the well within 60 days. If the Principal can no longer be
contacted, then any interested party may seek a change of operators on the well
in accordance with subparagraph (2)(a) of Rule 0400-52-02-.02. If a new bond is
filed by the Principal, or a change of operators is approved by the Supervisor,
liability under the original bond shall cease and terminate as to acts and
operations occurring after the effective date of the new bond or approval of
the change of operators, and the original bond shall be released upon written
request by the Bonding Agent. If a new bond is not filed within the 60 days, or
a change of operators has not been approved, the Supervisor shall revoke the
permit secured by the bond and require the Principal to plug the well in
accordance with the rules and regulations of the Board . In the event of the
failure of the Principal to plug the well, the supervisor may issue a notice of
non-compliance to the Principal and the Bonding Agent requiring the Bonding
Agent either to cause the well to be plugged, or forfeit the amount of the bond
to the Department . The Bonding Agent shall then have 60 days in which to plug
the well. If the well has not been plugged within that time limit, then a
notice of forfeiture shall be issued, as provided for under Rule
0400-52-01-.06. The Bonding Agent shall then have 21 days in which to petition
the Board for a hearing relative to the bond forfeiture, pursuant to the
Administrative Procedures Act , T.C.A. §
4-5-101 et seq. If a hearing is
requested, no further action shall be taken against the bond until such hearing
has taken place and a final order given by the Board . If the well is plugged in
the interim, then the notice of forfeiture shall be canceled and the bond
released.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.