312 IAC 29-12-4 - Bond types
Authority: IC 14-10-2-4; IC 14-37-3
Affected: IC 14-37
Sec. 4.
(a) The bond
required in section 3 of this rule shall consist of any one (1) of the
following:
(1) A surety bond in the amount of
two thousand five hundred dollars ($2,500) for each well drilled or
produced.
(2) A cash bond in the
amount of two thousand five hundred dollars ($2,500) for each well drilled or
produced.
(3) A certificate of
deposit in the principal amount of two thousand five hundred dollars ($2,500)
for each well drilled or produced, according to terms and specifications
provided by the division.
(4) A
surety bond in any amount for wells drilled, deepened, or converted; however,
the maximum number of wells under the bond may not exceed that 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 any number of wells
drilled, deepened, or converted.
(b) No surety bond shall be approved unless
issued by a company holding an applicable certificate of authority from the
Indiana department of insurance. A surety bond shall be executed by the owner
or operator as principal and by the surety or for either of them by an
attorney-in-fact with certified power of attorney attached.
(c) The division shall obtain possession and
custody of all collateral deposited by an applicant until released or replaced
under this rule. A certificate of deposit must be assigned in writing to the
state and the assignment noted upon the books of the federally insured
financial institution issuing the certificate.
Notes
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