25 Pa. Code § 78a.308 - Collateral bonds-negotiable bonds
Negotiable bonds submitted and pledged as collateral for collateral bonds under section 3225(a)(3) of the act (relating to bonding) are subject to the following conditions:
(1) The Department will use the current
market value of governmental securities, other than United States Treasury Zero
Coupon Bonds, for the purpose of establishing the value of the securities for
bond deposit.
(2) The current
market value must be at least equal to the amount of the required
bond.
(3) The Department may
periodically evaluate the securities and may require additional amounts if the
current market value is insufficient to satisfy the bond amount requirements
for the oil or gas well operations.
(4) The operator may request and receive the
interest accruing on governmental securities filed with the Department as the
interest becomes due and payable. An operator will not receive interest
accruing on governmental securities until the full amount of the bond has been
accumulated. No interest may be paid for postforfeiture interest accruing
during appeals and after resolution of the appeals, when the forfeiture is
adjudicated, decided or settled in favor of the Commonwealth.
Notes
This section cited in 25 Pa. Code § 78a.303 (relating to form, terms and conditions of the bond).
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