Mich. Admin. Code R. 299.2332

Current through Vol. 24-18, October 15, 2024
Section R. 299.2332 - Conformance bond amounts

Rule 2332. A person who drills or operates a well shall file a conformance bond with the supervisor of mineral wells for the following amounts, as applicable:

(a) Single well conformance bonds shall be filed in the following amounts, as applicable:
(i) $33,000.00 for a disposal, storage, or brine well.
(ii) For an individual test well:
(A) $5,500.00 for a depth of 0 to 1,000 feet.
(B) $11,000.00 for a depth greater than 1,000 feet to 2,000 feet.
(C) $22,000.00 for a depth greater than 2,000 feet to 4,000 feet.
(D) $33,000.00 for a depth greater than 4,000 feet.
(iii) For a blanket test well permit, the following:
(A) $5,500.00 for 1 to 24 wells.
(B) $11,000.00 for 25 to 49 wells.
(C) $16,500.00 for 50 to 75 wells.
(D) $22,000.00 for 76 to 200 wells.
(b) Blanket conformance bonds may be filed as an alternative to single well conformance bonds. If a blanket conformance bond is used, then the permittee shall provide the supervisor of mineral wells with a list of wells covered by the blanket conformance bond. A maximum of 50 brine, storage, disposal, or individual test wells or any combination of these may be covered by a blanket conformance bond. If the permittee has more than 50 wells in a category, then the additional wells may be covered by single well conformance bonds or additional blanket conformance bonds. Blanket conformance bonds shall be filed in the amount of $440,000.00.
(c) Blanket test well permits shall not be eligible for blanket conformance bonds.
(d) The permittee is not required to file a blanket conformance bond or bonds in an aggregate amount of more than $440,000.00. If the aggregate amount of the conformance bonds is $440,000.00, then the permittee may file 1 blanket conformance bond of $440,000.00 to cover all of his or her wells.

Mich. Admin. Code R. 299.2332

2004 AACS; 2008 AACS