Mich. Admin. Code R. 324.212

Current through Vol. 24-19, November 1, 2024

Section R. 324.212 - Conformance bond amounts

Rule 212.

A person who drills or operates a well shall file a conformance bond with the supervisor for the following amounts, as applicable:

(a) Single well conformance bonds shall be filed in the following amounts, as applicable:

(i) $20,000.00 for wells up to and including 2,000 feet deep, true vertical depth.

(ii) $40,000.00 for wells deeper than 2,000 feet, but not deeper than 4,000 feet, true vertical depth.

(iii) $50,000.00 for wells deeper than 4,000 feet, but not deeper than 7,500 feet, true vertical depth.

(iv) $60,000.00 for wells deeper than 7,500 feet, true vertical depth.

(b) A person may file single well conformance bonds in an amount equal to 1/2 of the amount specified in subdivision (a) of this rule for wells where well completion operations have not commenced. A person shall not file single well conformance bonds under this subdivision for more than 5 wells. A person shall file single well conformance bonds in the full amount specified in subdivision (a) of this rule or file a blanket conformance bond as specified in subdivision (c) of this rule or submit a statement of financial responsibility pursuant to R 324.210 before the commencement of well completion operations on any well.

(c) Blanket conformance bonds may be filed as an alternative to single well conformance bonds. If a blanket conformance bond is utilized, then the permittee shall provide the supervisor with a list of wells covered by the blanket conformance bond. A maximum of 100 wells may be covered by a blanket conformance bond. If the permittee has more than 100 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 following amounts, as applicable:

(i) $100,000.00 for wells up to and including 2,000 feet deep, tme vertical depth.

(ii) $200,000.00 for wells deeper than 2,000 feet, but not deeper than 4,000 feet, true vertical depth.

(iii) $250,000.00 for wells deeper than 4,000 feet, true vertical depth, (d) A person shall not be required to file a blanket conformance bond or bonds in an aggregate amount of more than $250,000.00. When the aggregate amount of the conformance bonds is $250,000.00, the permittee may file 1 blanket conformance bond of $250,000.00 to cover all of his or her wells.

Mich. Admin. Code R. 324.212

1996 AACS; 2018 MR 11, Eff. 6/7/2018