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<blockquote data-quote="Fly Carpin" data-source="post: 298390" data-attributes="member: 1187"><p>43-02-03-15. Bond and transfer of wells.</p><p></p><p>1. Bond requirements. Prior to commencing construction of a site or appurtenance or roadaccess thereto, any person who proposes to drill a well for oil, gas, injection, or source well foruse in enhanced recovery operations, shall submit to the commission, and obtain its approval,a surety bond or cash bond. An alternative form of security may be approved by thecommission after notice and hearing, as provided by law. The operator of such well shall bethe principal on the bond covering the well. Each surety bond shall be executed by aresponsible surety company authorized to transact business in North Dakota.</p><p>2. Bond amounts and limitations. The bond shall be in the amount of fifty thousand dollarswhen applicable to one well only. Wells drilled to a total depth of less than two thousand feet[609.6 meters] may be bonded in a lesser amount if approved by the director. When theprincipal on the bond is drilling or operating a number of wells within the state or proposes to13do so, the principal may submit a bond conditioned as provided by law. Wells utilized forcommercial injection operations must be bonded in the amount of one hundred thousanddollars. A blanket bond covering more than one well shall be in the amount of one hundredthousand dollars, provided the bond shall be limited to no more than six of the following inaggregate:</p><p>a. A well that is a dry hole and is not properly plugged;</p><p>b. A well that is plugged and the site is not properly reclaimed;</p><p>c. A well that is abandoned pursuant to subsection 1 of North Dakota Century Code section38-08-04 or section 43-02-03-55 and is not properly plugged and the site is not properlyreclaimed; and</p><p>d. A well that is temporarily abandoned under section 43-02-03-55 for more than sevenyears.</p><p></p><p>$100k doesn't do dick when we're talking real reclamation of the landscape. Now I know what that guy from a Texas pipeline company meant when he told me ND was the easiest state to work in from a regulatory perspective.</p></blockquote><p></p>
[QUOTE="Fly Carpin, post: 298390, member: 1187"] 43-02-03-15. Bond and transfer of wells. 1. Bond requirements. Prior to commencing construction of a site or appurtenance or roadaccess thereto, any person who proposes to drill a well for oil, gas, injection, or source well foruse in enhanced recovery operations, shall submit to the commission, and obtain its approval,a surety bond or cash bond. An alternative form of security may be approved by thecommission after notice and hearing, as provided by law. The operator of such well shall bethe principal on the bond covering the well. Each surety bond shall be executed by aresponsible surety company authorized to transact business in North Dakota. 2. Bond amounts and limitations. The bond shall be in the amount of fifty thousand dollarswhen applicable to one well only. Wells drilled to a total depth of less than two thousand feet[609.6 meters] may be bonded in a lesser amount if approved by the director. When theprincipal on the bond is drilling or operating a number of wells within the state or proposes to13do so, the principal may submit a bond conditioned as provided by law. Wells utilized forcommercial injection operations must be bonded in the amount of one hundred thousanddollars. A blanket bond covering more than one well shall be in the amount of one hundredthousand dollars, provided the bond shall be limited to no more than six of the following inaggregate: a. A well that is a dry hole and is not properly plugged; b. A well that is plugged and the site is not properly reclaimed; c. A well that is abandoned pursuant to subsection 1 of North Dakota Century Code section38-08-04 or section 43-02-03-55 and is not properly plugged and the site is not properlyreclaimed; and d. A well that is temporarily abandoned under section 43-02-03-55 for more than sevenyears. $100k doesn't do dick when we're talking real reclamation of the landscape. Now I know what that guy from a Texas pipeline company meant when he told me ND was the easiest state to work in from a regulatory perspective. [/QUOTE]
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