N.D. Admin. Code 43-02-07.1-11
Before any person receives a permit to drill a well while exploring for geothermal resources, the person shall submit to the commission and obtain its approval of a surety bond or cash bond. An alternative form of security may be approved by the commission after notice and hearing, as provided by law. The operator of such well must be the principal on the bond covering the well. Each surety bond must be executed by a responsible surety company authorized to transact business in North Dakota. The bond must be based upon the projected total depth of the well and the surface restoration costs. Bonds must be conditioned upon full compliance with North Dakota Century Code chapter 38-19, and all administrative rules and orders of the commission. The well bonds eventually can be transferred to the facility bond if both are under the same operator. If the well operator and the facility operator are not one and the same, the well bonds continue until the well has been satisfactorily plugged, which must include practical reclamation of the well site and appurtenances; and all logs, plugging records, and other pertinent data required by statute or rules and orders of the commission are filed and approved.
Bond termination. The commission, in writing, shall advise the principal and any sureties on any bond as to whether the plugging and reclamation is approved. If approved, liability under such bond may be terminated formally upon receipt of a written request by the principal. The request must be signed by an officer of the principal or a person authorized to sign for the principal.
Director's authority. The director is vested with the power to act for the commission as to all matters within this section, except requests for alternative forms of security, which only may be approved by the commission. The commission may refuse to accept a bond if the operator or surety company has failed in the past to comply with statutes, rules, or orders relating to the operation of wells; if a civil or administrative action brought by the commission is pending against the operator or surety company; or for other good cause.
N.D. Admin Code 43-02-07.1-11
General Authority: NDCC 38-19-03
Law Implemented: NDCC 38-19-03