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.)
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.)
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.)
