Section 312 IAC 1.5-8-9 - Bonds required in addition to fee assessed for wellAuthority: IC 14-10-2-4; IC 14-37-3
Affected: IC 14-37
Sec. 9.
(a) The bond required under 312 IAC 29-12-3 is one (1) of the following: (1) A surety bond of two thousand five hundred dollars ($2,500) for each well drilled or produced.(2) A cash bond of two thousand five hundred dollars ($2,500) for each well drilled or produced.(3) A certificate of deposit of two thousand five hundred dollars ($2,500) for each well drilled or produced according to the terms and specifications of the department.(4) A surety bond in any amount for a drilled, deepened, or converted well. The maximum number of wells under a surety bond under this subdivision may not exceed the number determined by dividing the principal sum of the bond by two thousand five hundred dollars ($2,500).(5) A blanket bond of forty-five thousand dollars ($45,000) for a drilled, deepened, or converted well.(b) The department shall not approve a surety bond under this section 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.(c) The department shall gain possession and custody of collateral deposited by a person applying for a bond under this section until the person is released or replaced under 312 IAC 29-12. A certificate of deposit must be assigned in writing to the state and the assignment noted on the books of the federally insured financial institution issuing the certificate.Natural Resources Commission; 312 IAC 1.5-8-9; filed 9/9/2024, 10:58 a.m.: 20241009-IR-312240163FRA