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, this
section applies to the following:

        (1) An applicant for a permit under this article who has never
been granted a permit for a well for oil and gas purposes under
this article.

        (2) A person who has demonstrated a pattern of violation under
this article within the previous two (2) years.

        (3) A person who has failed to pay a civil penalty imposed
under IC 14-37-13.

        (4) A person who has failed to pay an annual fee required under
IC 14-37-5.

    (b) In addition to the annual fee required under IC 14-37-5, an
applicant or a person described in subsection (a) shall execute and
file with the department:

        (1) a bond of two thousand five hundred dollars ($2,500) for
each well;

        (2) a bond in any amount if the number of wells does not
exceed the number determined by dividing the principal amount
of the bond by two thousand five hundred dollars ($2,500); or

        (3) a blanket bond of forty-five thousand dollars ($45,000) for
any 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 this
chapter, 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 acquired
during the duration of a bond that was accepted by the commission
before March 11, 1971, must be replaced by a new blanket bond in
the 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 covered
under 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 each
well 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 gas
well

    

Sec. 4. Instead of a bond required by section 1 of this chapter, the
commission may require a well owner or operator to provide proof
of financial ability to abandon a noncommercial natural gas well. The
proof must be established by a financial statement and personal
guaranty.

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 alternative
security provided under this chapter when a permit is revoked under
IC 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.)