Current through Register Vol. XLI, No. 50, December 13, 2024
Section 64-19-8 - Bonding of Water Well and Pump Installation Contractors8.1. Each water well and pump installation contractor shall have a current contractor's bond payable to the Commissioner upon forfeiture and liability insurance coverage effective throughout West Virginia in a form determined by the Commissioner. The Commissioner shall determine the amount of the contractor's bond, which may not exceed five thousand dollars. Lack of a current contractor's bond is considered sufficient grounds for denial of a water well or pump installation permit.8.2. Forfeiture of the contractor's bond is predicated upon a failure to drill, construct, repair, replace, alter or abandon a well or upon installation of a pump in a water well in accordance with this rule and the Bureau's rule, Water Well Design Standards, 64CSR46.8.3. The surety shall have the option of forfeiting the contractor's bond or completing the well in accordance with this rule and standards specified in subsection 8.2 of this rule. The Commissioner shall expend all proceeds from a forfeiture to alter or abandon the well in accordance with applicable rules and standards. The Commissioner shall retain and expend any excess funds for the purpose of altering or abandoning water wells in accordance with applicable rules and standards.8.4. The surety shall have the option of canceling a contractor's bond after providing notice to the Commissioner at least thirty days prior to cancellation.8.5. In lieu of the bond required by subsection 8.1 of this rule, the Commissioner may accept an irrevocable letter of credit issued by a bank chartered by the State of West Virginia or a member bank of the federal reserve system. Confirmation of the irrevocable letter of credit shall be in writing and shall be signed by the issuing or confirming bank.