N.D. Admin. Code 43-02-07.1-12
Before any person receives a permit to construct a facility for the development or production of deep-well 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 facility must be the principal on the bond covering the facility. The amount of the bond must be commensurate with the size and scope of the facility and the costs of abandoning the operation and reclamation. The information provided in section 43-02-07.1-14, along with any additional information available to the department, must be used to determine the amount of the bond. Each surety bond must be executed by a responsible surety company authorized to transact business in North Dakota. Bonds must be conditioned upon full compliance with North Dakota Century Code chapter 38-19, and all administrative rules and orders of the commission, and continue until the surface facility and all wells have been satisfactorily plugged and reclaimed 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.
The size and the scope of the operation must be evaluated annually and the department may increase or decrease the bond amount to reflect the results of the evaluation.
N.D. Admin Code 43-02-07.1-12
General Authority: NDCC 38-19-03
Law Implemented: NDCC 38-19-03