Section 312IAC16-4-1. Bond required in addition to the annual well fee

   (a) In addition to the annual well fee required by 312 IAC 16-3.5, no person shall drill, deepen, operate, or convert a well for oil and gas purposes until the person has filed and the department has accepted a bond as provided in section 2 of this rule, if the person:

(1) is an applicant for a permit under this article who has never been granted a permit for a well for oil and gas purposes under this article;

(2) has demonstrated a pattern of violation under IC 14-37 and this article within the previous two (2) years;

(3) has failed to pay a civil penalty imposed under IC 14-37-13; or

(4) has failed to pay an annual fee required under IC 14-37-5.

  (b) The purpose of a bond is to provide for compliance with IC 14-37 and this article.

  (c) A bond shall be renewed until there has been compliance with the conditions imposed by IC 14-37 and by the permit for two (2) consecutive years.

  (d) Requirements and procedures applicable to bonds also apply to the substitute securities described in IC 14-37-6-2 and IC 14-37-6-4.

  (e) Any person in whose name the permit is issued shall execute and be named as principal on the bond. The name of the owner or operator on the permit and the principal on the bond shall be the same. (Natural Resources Commission; 312 IAC 16-4-1; filed Feb 23, 1998, 11:30 a.m.: 21 IR 2336; filed Jan 16, 2003, 10:52 a.m.: 26 IR 1898; 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)