Current through Register Vol. XLI, No. 50, December 13, 2024
Section 35-8-8 - Separate Bonds; Blanket Bonds; Financial Responsibility; Registration; Designation of Agent; Transfer of Title and Operator Status; Transfer Procedures; Ineffective Bonds; and Financial Responsibility from Competing Interests8.1. Separate Bonds.8.1.a. Each permit application filed after the effective date of this rule shall be accompanied by a separate bond with corporate surety or cash or other collateral security in compliance with W. Va. Code § 22-6A-15 and shall be submitted in a form approved by the Chief, except where: (1) a blanket bond is being furnished pursuant to W. Va. Code § 22-6A-15(c); or (2) the permit application is for a permit to plug a well that is already subject to corporate surety, cash or collateral security that satisfied applicable requirements at the time the corporate surety, cash or collateral security was furnished.8.1.b. The demonstration of financial responsibility for individual wells after December 14, 2011 shall be accompanied by a separate bond with corporate surety or cash or other collateral security in the amount of fifty thousand dollars ($50,000) in compliance with W. Va. Code §§ 22-6A-15, except where a blanket bond is being furnished pursuant to W. Va. Code § 22-6A-15(c), and shall be submitted in a form approved by the Chief. Any corporate surety bond, cash or collateral security furnished prior to December 14. 2011 shall remain in effect for the benefit of the Office until such time as the well operator is issued any new determination of financial responsibility as may be required by this rule.8.2. Blanket Bonds. 8.2.a. Any blanket bond furnished after December 14, 2011 shall have corporate surety, cash or other collateral security and shall be submitted in a form approved by the Chief. Any blanket bond with corporate surety, cash or collateral security furnished in connection with any permit or permits issued prior to December 14, 2011 shall remain in effect for the benefit of the Office until such time as the well operator is issued any additional permit and has furnished new or additional corporate surety, cash or collateral security complying with W. Va. Code § 22-6A-15. If a permit application is for a permit to plug a well that is already subject to corporate surety, cash or collateral security that satisfied applicable requirements at the time the corporate surety, cash or collateral security was furnished, no additional corporate security, cash or collateral security is required.8.2.b. The demonstration of financial responsibility for multiple wells after the effective date of this rule shall be accompanied by corporate surety or cash or other collateral security in compliance with W. Va. Code § 22-6A-15 and shall be submitted in a form approved by the Chief. Any corporate surety bond, cash or collateral security furnished prior to December 14, 2011 shall remain in effect for the benefit of the Office until the well operator is issued any new determination of financial responsibility as may be required by this rule.8.3. Registration; Designated Agent; Transfer of Title and Operator Status. 8.3.a. All persons owning or operating or proposing to own or operate a horizontal well in West Virginia shall register with the Chief. In all cases, an agent or attorney in fact shall be designated on Form OP-1, "Designation of Agent by Well Owner or Operator" by and for each well or operator upon whom process, notices, orders, and other communications issued pursuant to Chapter 22 of the West Virginia Code may be served. The designation shall not be effective until it has been accepted in writing by the designee and approved by the Chief. Every well owner or operator who has designated an agent or attorney in fact shall, within five (5) days after termination of the designation, notify the Chief of the termination and designate a new agent on Form OP-1. This rule applies to all well operators, not merely those specifically required by W. Va. Code § 22-6A-7 to designate an agent. A well operator who is a natural person and a resident of the State of West Virginia may list himself or herself instead of an agent for service of all papers.8.3.a.1. When a well work permit or title to an existing well or the right to operate a well is transferred from one well work permittee or operator to another, the Chief shall be notified in writing of the name and address of the transferee within thirty (30) days of the transfer by the transferor or, if the transferor no longer exists, by one or more of the owners of the well work permit or existing well. A copy of the notification shall be delivered to the transferee. Failure to notify the Chief of the transfer is a violation of this rule by the transferor.8.3.a.2. The transferee shall forthwith register with the Chief if the transferee has not previously registered. In any event, the transferee shall forthwith notify the Chief of its designated agent or attorney in fact pursuant to this rule, unless a designation has already been made and approved. The transferee shall file with the Chief on prescribed forms the well name and the permit number of the transferred well work permit or existing well, the county and district in which the transferred well or well work permit is located, the names and addresses of the transferor and the transferee, a copy of the instrument of assignment or transfer or a certification of the assignment or transfer acceptable to the Chief, and the applicable bond, cash or collateral security described in W. Va. Code § 22-6A-15.8.3.a.3. No assignment or transfer by the transferor shall relieve the transferor of any obligations or liabilities incurred pursuant to this rule or Chapter 22 of the West Virginia Code, unless and until the Chief approves the transfer application and notifies the transferee and transferor that they have complied with the provisions of this subsection.8.4. General Filing Requirements and Procedures for Application to Transfer Operator and Declaration of Operator Status. 8.4.a. Each application to transfer an existing well shall be on Form OP-77. Each application to transfer a well work permit shall be done on Forms OP-6A and WW-6A1PT and shall also include a Department of Highways road bond letter issued to the transferee and an update to the emergency contact information provided in the Well Site Safety Plan pursuant to section 5.7. of this rule.8.4.b. No transfer of operator or declaration of operator status will be approved until a copy of Form OP-1, "Operator Registration Form and Designation Form," has been filed with the Chief.8.4.c. A separate application must be submitted for each existing well or well work permit for which a transfer is desired.8.4.d. Each application to transfer an existing well must be accompanied by a filing fee of fifty dollars ($50). Each application to transfer a well work permit must be accompanied by a filing fee of five hundred dollars ($500). Where an operator or permittee is submitting several existing well or well work permit transfer applications at one time, a single check may be submitted for a sum equal to the number of applications multiplied by fifty dollars ($50) or five hundred dollars ($500), respectively. The fee should be paid by the transferor, but in no case will any well be transferred without payment of the fee.8.4.e. Upon receipt of an application to transfer an existing well or well work permit from one operator or permittee to another or to transfer an existing well or well work permit from one bond to another bond, the Chief will review the submitted data along with other available information and approve or disapprove the application within sixty (60) days or ninety (90) days, respectively. If the Chief disapproves the application, he or she shall state the reasons for the disapproval and allow the parties to resubmit the application with corrected or additional information.8.5. If for any reason the bond or other proof of financial responsibility on an existing well or well work permit is rendered invalid or ineffective, the operator has sixty (60) days in which to replace the bond or other proof of financial responsibility. In the event the bond or other proof of financial responsibility is not replaced, the Chief shall order the well to be shut in and may order the well to be plugged.8.6. Nothing in this section shall prohibit the Chief from accepting and holding bonds or other forms of financial responsibility from more than one competing interest.