Section 312 IAC 1.5-8-11 - Bonds to drill test holeAuthority: IC 14-38-2-7
Affected: IC 14-38-2
Sec. 11.
(a) Except for a federal or state agency, a person shall not commence drilling a test hole until the department approves a:(1) bond of one thousand dollars ($1,000) for each test hole to be drilled; or(2) blanket bond of five thousand dollars ($5,000) for all test holes to be drilled during the bond. A bond under this subsection must be as prescribed by the department, and comply with IC 14-38-2, 312 IAC 17-2, and an order of the commission.
(b) The name of the principal on the bond and of the operator must be identical.(c) An operator of the well shall maintain a bond approved under subsection (a) until the operator of the well plugs, abandons, and provides complete drilling information for each test hole included under the bond. The department shall release the bond under subsection (a) to the operator of the well after the operator complies with this subsection.(d) The department may not approve a surety bond unless the surety bond is issued by a company holding an applicable certificate of authority from the department of insurance. A surety bond must be executed by: (1) the owner or operator of the well as principal and the surety; or(2) an attorney on behalf of the owner or operator of the well as principal or the surety with a certified power of attorney attached.(e) An operator of a well shall make a cash bond on a certified check delivered and made payable by the operator to the department.(f) A certificate of deposit must be assigned in writing to the state and the assignment noted on the books of the bank issuing the certificate.Natural Resources Commission; 312 IAC 1.5-8-11; filed 9/9/2024, 10:58 a.m.: 20241009-IR-312240163FRA