27-654. Drilling bond; amount;
responsibility
A. The commission shall require every person who engages in the drilling, ownership
or operation of a well, or the entering or deepening of an abandoned well, to file with
the commission, on a form to be determined by the commission, a reasonable bond with good
and sufficient security conditioned upon the performance of the duties required by this
section and the duties upon abandonment, as approved by the commission, of the well in an
amount to be determined by the commission.
B. In no case may the bond be less than five thousand dollars for each individual
well or less than twenty-five thousand dollars for any number of wells.
C. The bond shall remain in full force and effect until all requirements of the
commission have been satisfied or until otherwise released by the commission.
D. The owner or operator is responsible for the full cost of plugging each dry or
abandoned well. If the owner or operator fails to properly plug and abandon the well,
the commission may:
1. Forfeit the bond and use the money for that purpose.
2. Sue the owner or operator for costs in excess of the amount of the bond and the
owner or operator is liable for that amount.
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