Tenn. Comp. R. & Regs. 0400-52-01-.05 - EXECUTION

Any of the following shall serve as bonds:

(1) A surety bond executed by the well operator as principal and by a corporate surety authorized to do business in Tennessee; or

(2) Cash; or

(3) A certified check; or

(4) A Certificate of Deposit, if it is made out exactly as follows: "Operator Name and Tennessee Department of Environment and Conservation or Tennessee Department of Environment and Conservation"; and does not contain any terms or conditions that provide that the issuing bank may charge against the deposit any debt of the depositor(s) owing to it (set-off terms); or any terms or conditions that provide that anyone whose signature appears on the signature card may withdraw funds from the account. The operator shall be entitled to any interest earned on a certificate of deposit as the same becomes due and payable. The treasurer of the State of Tennessee shall receive and hold the originals of such certificates in the name of the State of Tennessee, in trust, for the purpose for which such deposit is made, and shall at all times be responsible for the custody and safekeeping of such deposits; provided, however, that the certificate may be returned to the issuing financial institution as may be necessary for renewal from time to time; or

(5) An irrevocable letter of credit issued by any federally insured bank or savings and loan association. The letter of credit shall comply with the format shown on Form CN-0120 (Comprehensive Bond Identification).

Notes

Tenn. Comp. R. & Regs. 0400-52-01-.05

Original rule filed March 20, 2013; effective June 18, 2013.

Authority: T.C.A §§ 60-1-201 et seq., and 4-5-201 et seq.