312 IAC 17-2-10 Bonds

Sec. 10. (a) No person, except a federal or state agency, shall commence a test hole until the person has filed and the department has approved a bond of one thousand dollars ($1,000) for each test hole drilled or a blanket bond of five thousand dollars ($5,000) for all test holes drilled by the person for the duration of the bond. The bond shall be on a form prescribed by the division, and, as a minimum, shall provide for compliance with IC 14-38-2, this rule, and orders of the commission. (b) The name of the principal on the bond and of the operator shall be identical. (c) An operator shall maintain a bond approved under subsection (a) until the operator plugs, abandons, and provides complete drilling information for each test hole included under the bond. Upon compliance by the operator with this subsection, a test hole bond shall be released by the department. (d) 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 operator as principal and by the surety or for either of them by an attorney-in-fact with certified power of attorney attached. (e) A cash bond shall be made upon a certified check delivered and made payable by the operator to the department. (f) 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.