Utah Admin. Code R652-40-1000 - Bonding Provisions
1. Prior to the
issuance of an easement, or for good cause shown at any time during the term of
the easement, upon 30 days' written notice, the applicant or grantee, as the
case may be, may be required to post with the division a bond in the form and
amount as may be determined by the division to assure compliance with all terms
and conditions of the easement.
2.
All bonds posted on easements may be used for payment of all monies, rentals,
and royalties due to the grantor, also for costs of reclamation and for
compliance with all other terms and conditions of the easement, and rules
pertaining to the easement. The bond shall be in effect even if the grantee has
conveyed all or part of the easement interest to a sublessee, assignee, or
subsequent operator until the grantee fully satisfies the easement obligations,
or until the bond is replaced with a new bond posted by the sublessee or
assignee.
3. Bonds may be increased
in reasonable amounts, at any time as the division may decide, provided grantor
first gives grantee 30 days' written notice stating the increase and the
reason(s) for the increase.
4.
Bonds may be accepted in any of the following forms at the discretion of the
division:
(a) Surety bond with an approved
corporate surety registered in Utah.
(b) Cash deposit. However, the state will not
be responsible for any investment returns on cash deposits.
(c) Certificate of deposit in the name of
"Utah Division of Forestry, Fire and State Lands and Grantee, c/o Grantee's
address", with an approved state or federally insured banking institution
registered in Utah. The certificate of deposit must have a maturity date no
greater than 12 months, be automatically renewable, and be deposited with the
division, the grantee will be entitled to and receive the interest payments.
All certificates of deposit must be endorsed by the grantee prior to acceptance
by the director.
(d) Other forms of
surety as may be acceptable to the division.
Notes
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