Section 312 IAC 29-12-6 - Bond cancellationAuthority: IC 14-10-2-4; IC 14-37-3
Affected: IC 4-21.5; IC 14-37
Sec. 6.
(a) A surety may provide written notification to the division and the owner or operator of its intention to terminate liability under a bond. The surety shall deliver the notification to the owner or operator by personal service or by certified mail. Proof of service of the notification shall be provided by the surety to the division.(b) Within thirty (30) days after receipt of a notice under subsection (a), the owner or operator must file a substitute bond or must discontinue operations of any well covered by the bond and plug and abandon the well under IC 14-37 and 312 IAC 29-33.(c) If an acceptable substitute bond is filed by the owner or operator, liability on the original bond ceases.(d) If an acceptable substitute bond is not filed by the owner or operator, or the owner or operator fails to plug and abandon any well according to subsection (b): (1) the surety's liability under the bond shall not cease; and(2) the division shall file a complaint to revoke the permit for the well for oil and gas purposes under IC 4-21.5 and 312 IAC 29-34-5.(e) If the owner or operator fails to abandon a well as required by IC 14-37 and this article: (1) the surety must forfeit to the division the principal sum of the bond; or(2) with respect to a well for oil and gas purposes, the surety may cause the well to be properly plugged and abandoned. Natural Resources Commission; 312 IAC 29-12-6; filed 12/1/2017, 10:35 a.m.: 20171227-IR-312160230FRAReadopted filed 1/17/2023, 1:53 p.m.: 20230215-IR-312220328RFA