Section 312IAC16-4-3. Bond cancellation

   (a) A surety may in writing notify the department and the owner or operator of its intention to terminate liability under a bond. The surety shall deliver the notification to the owner or operator by personal service or by certified mail. Proof of service of the notification shall be provided by the surety to the division.

  (b) Within thirty (30) days after receipt of a notice under subsection (a), the owner or operator must file a substitute bond or must:

(1) with respect to a well for oil and gas purposes, discontinue operations and abandon the well under IC 14-37, and this article; or

(2) with respect to a geophysical survey operation, cease activities and satisfy outstanding obligations under IC 14-37 and 312 IAC 22-3 [sic., 312 IAC 17-3].

  (c) If a substitute bond is filed by the owner or operator and accepted by the department, liability on the original bond ceases.

  (d) If a substitute bond is not filed and the owner or operator does not satisfy the requirements of subsection (b), the department shall revoke the permit under IC 4-21.5 and 312 IAC 3-1.

  (e) If the owner or operator fails to abandon a well:

(1) the surety must forfeit to the division director the principal sum of the bond; or

(2) with respect to a well for oil and gas purposes, the surety may cause the well to be properly abandoned.

(Natural Resources Commission; 312 IAC 16-4-3; filed Feb 23, 1998, 11:30 a.m.: 21 IR 2337; readopted filed Nov 17, 2004, 11:00 a.m.: 28 IR 1315; readopted filed Mar 25, 2010, 2:57 p.m.: 20100421-IR-312100033RFA; readopted filed Sep 30, 2015, 12:13 p.m.: 20151028-IR-312150224RFA)