Section 312IAC16-4-2. Bond types

   (a) The bond required in section 1 of this rule shall consist of any one (1) of the following:

(1) A surety bond in the amount of two thousand five hundred dollars ($2,500) for each well drilled or produced.

(2) A cash bond in the amount of two thousand five hundred dollars ($2,500) for each well drilled or produced.

(3) A certificate of deposit in the principal amount of two thousand five hundred dollars ($2,500) for each well drilled or produced, according to terms and specifications provided by the division.

(4) A surety bond in any amount for wells drilled, deepened, or converted; however, the maximum number of wells under the bond may not exceed that number determined by dividing the principal sum of the bond by two thousand five hundred dollars ($2,500).

(5) A blanket bond of forty-five thousand dollars ($45,000) for any number of wells drilled, deepened, or converted.

  (b) No surety bond shall be approved unless issued by a company holding an applicable certificate of authority from the department of insurance, state of Indiana. A surety bond shall be executed by the owner or operator as principal and by the surety or for either of them by an attorney-in-fact with certified power of attorney attached.

  (c) With respect to a noncommercial gas well drilled on real estate owned by a bona fide resident of Indiana, the deputy director may waive the bond described in subsection (a), provided the person does the following:

(1) Submits written proof of financial responsibility.

(2) Enters on a division form an agreement to maintain and abandon the well in accordance with IC 14-37 and this article. The deputy director may require the agreement provided under this subsection to be recorded.

  (d) The division shall obtain possession and custody of all collateral deposited by an applicant until released or replaced under this rule. A certificate of deposit must be assigned in writing to the state and the assignment noted upon the books of the bank issuing the certificate. (Natural Resources Commission; 312 IAC 16-4-2; 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)