312 IAC 17-2-11 Surety bond canceled; effect

Sec. 11. (a) The surety may notify the department and principal of its desire to terminate a bond. (b) Within thirty (30) days after receipt of the notice, the department shall require the principal to file a substitute bond or to discontinue operations and plug and abandon any test hole under this rule. (c) If a substitute bond is timely filed by the principal, liability on the original bond terminates. If a substitute bond is not filed within the thirty (30) day period, the department shall revoke the permit under IC 4-21.5-3 and require the principal to plug and abandon any test hole under this rule. (d) If a principal fails to plug and abandon a test hole, the surety must either: (1) cause the test hole to be properly plugged and abandoned; or (2) forfeit the amount of the bond to the department. If the surety causes a hole to be plugged and abandoned, the bond shall be released by the department.