060-19 Wyo. Code R. § 19-13 - Bonds

(a) A lessee is not required to post a bond until actual operations, including exploration activities, are to be commenced on the leased lands. Before commencing actual operations, the lessee shall advise the Office and outline in detail the nature of the operations proposed. Operations shall not commence until an adequate bond has been furnished and approved.

(b) The bond shall be in an amount found by the Director sufficient to protect and indemnify the State of Wyoming and shall be in the form approved by the Wyoming Attorney General. Two (2) executed copies of the bond must be submitted to the Office. The bond shall bind the principal and its surety for:

(i) The payment of all moneys, rents, and royalties accruing to the Board;

(ii) Full compliance with all applicable statutes and terms and conditions of the Board's leases and rules and regulations;

(iii) Reclamation of the surface; and

(iv) For the payment of all disturbances to the surface and improvements thereon.

(c) The bond shall be one of the following:

(i) A corporate surety bond executed by the lessee and by a surety authorized to do business in the state;

(ii) A cash bond;

(iii) A certified cashier's check made payable to the Office of State Lands and Investments;

(iv) A certificate of deposit in the name of the Office of State Lands and Investments;

(v) Non-revocable letters of credit; or

(vi) AAA-rated debentures of sufficient market value to meet bonding minimums with a signed stock power made out to the Office of State Lands and Investments.

(d) In lieu of individual lease bonds, the lessee may request and the Director may allow the lessee to file a corporate surety bond in the sum of not less than one hundred thousand dollars ($100,000) covering all of the lessee's state leases.

(e) The furnishing of a bond as required by the Wyoming Department of Environmental Quality or some other agency having jurisdiction over the proposed operation shall not relieve the lessee of the duty to furnish bond as required by this section, but such fact shall be taken into account by the Director in determining a waiver of the bonding requirement or the amount of the bond to be required.

(f) The lessee shall promptly advise the Office of any change in operations. The Office may at any time reduce or increase the amount of the bond as conditions may require.

Notes

060-19 Wyo. Code R. § 19-13