Section 312 IAC 29-12-4 - Bond typesAuthority: IC 14-10-2-4; IC 14-37-3
Affected: IC 14-37
Sec. 4.
(a) The bond required in section 3 of this rule shall consist of any one (1) of the following:(1) A surety bond in the amount of two thousand five hundred dollars ($2,500) for each well drilled or produced.(2) A cash bond in the amount of two thousand five hundred dollars ($2,500) for each well drilled or produced.(3) A certificate of deposit in the principal amount of two thousand five hundred dollars ($2,500) for each well drilled or produced, according to terms and specifications provided by the division.(4) A surety bond in any amount for wells drilled, deepened, or converted; however, the maximum number of wells under the bond may not exceed that number determined by dividing the principal sum of the bond by two thousand five hundred dollars ($2,500).(5) A blanket bond of forty-five thousand dollars ($45,000) for any number of wells drilled, deepened, or converted.(b) No surety bond shall be approved unless issued by a company holding an applicable certificate of authority from the Indiana department of insurance. A surety bond shall be executed by the owner or operator as principal and by the surety or for either of them by an attorney-in-fact with certified power of attorney attached.(c) The division shall obtain possession and custody of all collateral deposited by an applicant until released or replaced under this rule. A certificate of deposit must be assigned in writing to the state and the assignment noted upon the books of the federally insured financial institution issuing the certificate.Natural Resources Commission; 312 IAC 29-12-4; filed 12/1/2017, 10:35 a.m.: 20171227-IR-312160230FRAReadopted filed 1/17/2023, 1:53 p.m.: 20230215-IR-312220328RFA