Okla. Admin. Code § 165:10-1-14

Current through Vol. 42, No. 7, December 16, 2024

Section 165:10-1-14 - Cashier's check, certificate of deposit, or other negotiable instrument

(a) An operator may deposit cash, a cashier's check, a certificate of deposit, bank joint custody receipt, or other negotiable instrument in the amount of $25,000.00 in U.S. dollars as surety. In the alternative, the operator may deposit cash, a cashier's check, a certificate of deposit, bank joint custody receipt, or other negotiable instrument of a lesser amount but that is sufficient to cover the total estimated cost of properly plugging and abandoning each and every well, the operations for which, the operator is responsible. Said estimated cost shall be documented on Form 1006D (Affidavit of Well Plugging Cost) for each and every well. Said alternate amount shall be increased upward, but not to exceed $25,000.00 in U.S. dollars, as additional wells are added to the operator's responsibilities, unless otherwise ordered by the Commission. However, any instrument must constitute an unconditional promise to pay and be in the form negotiable by the Commission.

(b) A certificate of deposit shall be for a term of no less than three hundred sixty-five (365) days.

(c) Financial institutions issuing certificates of deposit pursuant to this Section shall do so in the following manner: "Oklahoma Corporation Commission or Oklahoma Corporation Commission and (Name of the Operator)." Financial institutions issuing the certificates of deposit shall retain the original documents and copies of the certificates of deposit shall be furnished to the Commission.

(d) Along with the negotiable instruments described in (a) of this Section, an operator is required to file a Form 1006B (Operator's Agreement to Plug Oil, Gas and Service Wells Within the State of Oklahoma) with the Conservation Division.

(e) The Commission shall reject the negotiable instruments described in (a) of this Section if the operator fails to file the documentation required by this Section with the Conservation Division.

Okla. Admin. Code § 165:10-1-14

Amended at 13 Ok Reg 2373, eff 7-1-96

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015.