CHAPTER 6. BONDING

IC 14-37-6
    Chapter 6. Bonding

IC 14-37-6-1
Bonds required for oil and gas well applicants
    Sec. 1. (a) Except as otherwise provided in this chapter, thissection applies to the following:
        (1) An applicant for a permit under this article who has neverbeen granted a permit for a well for oil and gas purposes underthis article.
        (2) A person who has demonstrated a pattern of violation underthis article within the previous two (2) years.
        (3) A person who has failed to pay a civil penalty imposedunder IC 14-37-13.
        (4) A person who has failed to pay an annual fee required underIC 14-37-5.
    (b) In addition to the annual fee required under IC 14-37-5, anapplicant or a person described in subsection (a) shall execute andfile with the department:
        (1) a bond of two thousand five hundred dollars ($2,500) foreach well;
        (2) a bond in any amount if the number of wells does notexceed the number determined by dividing the principal amountof the bond by two thousand five hundred dollars ($2,500); or
        (3) a blanket bond of forty-five thousand dollars ($45,000) forany number of wells.
As added by P.L.1-1995, SEC.30. Amended by P.L.48-2002, SEC.4.

IC 14-37-6-2
Cash or certificate of deposit instead of bond
    Sec. 2. Instead of the bond required by sections 1 and 6 of thischapter, the department may accept cash or a certificate of deposit.
As added by P.L.1-1995, SEC.30.

IC 14-37-6-3
Duration of bond
    Sec. 3. Each blanket bond for wells created, modified, or acquiredduring the duration of a bond that was accepted by the commissionbefore March 11, 1971, must be replaced by a new blanket bond inthe amount of thirty thousand dollars ($30,000) before January 2,2002. The new replacement bond remains in effect until:
        (1) the:
            (A) owner or operator plugs and abandons each well coveredunder the blanket bond in accordance with:
                (i) this article; and
                (ii) rules adopted under this article; and
            (B) bond is released by the department; or
        (2) a substitute bond is accepted by the department for eachwell secured by the blanket bond.
As added by P.L.1-1995, SEC.30. Amended by P.L.236-2001, SEC.1.
IC 14-37-6-4
Proof of financial ability to abandon noncommercial natural gaswell
    Sec. 4. Instead of a bond required by section 1 of this chapter, thecommission may require a well owner or operator to provide proofof financial ability to abandon a noncommercial natural gas well. Theproof must be established by a financial statement and personalguaranty.
As added by P.L.1-1995, SEC.30.

IC 14-37-6-5
Forfeiture of bond or alternative security
    Sec. 5. The director shall order forfeiture of a bond or alternativesecurity provided under this chapter when a permit is revoked underIC 14-37-13.
As added by P.L.1-1995, SEC.30.

IC 14-37-6-6
Repealed
    (Repealed by P.L.80-2005, SEC.8.)