R 324.211
R 324.211 Liability on conformance bond.
Cite as Mich. Admin. Code R 324.211
Rule 211. (1) The liability on the conformance bond is conditioned upon compliance with
the act, these rules, permit conditions, instructions, or orders of the supervisor. Subject to
the provisions in R 324.213, liability shall cover all oil and gas operations of the permittee
as follows:
(a) Through transfer of the permit for the subject well under R 324.206(6).
(b) Through final completion approved by the supervisor of the subject well.
(c) Otherwise as approved by the supervisor.
(2) The supervisor shall look to the conformance bond for immediate compliance with,
and fulfillment of, the full conditions of the act, these rules, permit conditions, instructions,
or orders of the supervisor. All expenses incurred by the supervisor in achieving
compliance with, and fulfillment of, all conditions of the act, these rules, permit conditions,
instructions, or orders of the supervisor shall be paid by the permittee or the surety or from
cash or securities on deposit. The claim shall be paid within 30 days of notification to the
permittee or surety that expenses have been incurred by the supervisor. If the claim is not
paid within 30 days, the supervisor, acting for and on behalf of the state, may bring suit for
the payment of the claim.