R649-13-4. Bonding Schedules

(1)(a) Tier 1 Requirements: (i) The operator's total well count production shall be equal to or greater than 1,000 BOE per day average for the previously reportable 12 months; and (ii) An at risk well ratio equal to or less than 20%. (b)(i) Tier 1 base blanket bond table for total state well count: TABLE BASE BLANKET BOND STATE WELL COUNT AMOUNT OF BOND 1-10 $200,000 11-25 $300,000 26-50 $400,000 51- 100 $500,000 101-250 $650,000 251-500 $800,000 501-750 $1,000,000 751-1000 $1,250,000 1001-1500 $1,500,000 1501-2000 $2,000,000 2001-2500 $2,500,000 (ii) Tier 1 at risk well supplemental schedule for state at risk wells based on average TVD: TABLE AT RISK WELL SUPPLEMENT SCHEDULE AVERAGE TVD AMOUNT OF BOND PER AT RISK WELL 0 - 500 FEET $2,500 501 - 1,000 FEET $5,000 1,001 - 3,000 FEET $10,000 3,001 - 6,000 FEET $20,000 6,001 - 9,000 FEET $32,500 9,001 - 12,000 FEET $42,500 12,000+ FEET $55,000 (2)(a) Tier 2 Requirements: (i) The operator's total well count production shall be equal to or greater than 500 BOE per day average for the previously reportable 12 months; and (ii) An at risk well ratio equal to or less than 22%. (b)(i) Tier 2 base blanket bond table for total state well count: TABLE BASE BLANKET BOND STATE WELL COUNT AMOUNT OF BOND 1-10 $300,000 11-25 $450,000 26-50 $600,000 51- 100 $750,000 101-250 $975,000 251-500 $1,200,000 501-750 $1,500,000 751-1000 $1,875,000 1001-1500 $2,250,000 1501-2000 $3,000,000 2001-2500 $3,750,000 (ii) Tier 2 at risk well supplemental schedule for state at risk wells based on average TVD: TABLE AT RISK WELL SUPPLEMENT SCHEDULE AVERAGE TVD AMOUNT OF BOND PER AT RISK WELL 0 - 500 FEET $2,500 501 - 1,000 FEET $5,000 1,001 - 3,000 FEET $10,000 3,001 - 6,000 FEET $20,000 6,001 - 9,000 FEET $32,500 9,001 - 12,000 FEET $42,500 12,000+ $55,000 (3)(a) Tier 3 Requirements: (i) The operator's total well count production shall be equal to or greater than 200 BOE per day average for the previously reportable 12 months; and (ii) An at risk well ratio equal to or less than 25%; or (iii) Production greater than 1,000 BOE per day for the previously reportable 12 months with no required at risk well ratio. (b)(i) Tier 3 base blanket bond table for total state well count: TABLE BASE BLANKET BOND STATE WELL COUNT AMOUNT OF BOND 1-10 $400,000 11-25 $600,000 26-50 $800,000 51- 100 $1,000,000 101-250 $1,300,000 251-500 $1,600,000 501-750 $2,000,000 751-1000 $2,500,000 1001-1500 $3,000,000 1501-2000 $4,000,000 2001-2500 $5,000,000 (ii) Tier 3 at risk well supplemental schedule for state at risk wells based on average TVD: TABLE AT RISK WELL SUPPLEMENT SCHEDULE AVERAGE TVD AMOUNT OF BOND PER AT RISK WELL 0 - 500 FEET $2,500 501 - 1,000 FEET $5,000 1,001 - 3,000 FEET $10,000 3,001 - 6,000 FEET $20,000 6,001 - 9,000 FEET $32,500 9,001 - 12,000 FEET $42,500 12,000+ $55,000 (4) Individual Well Depth Performance Bond, which is based on TVD: TABLE INDIVIDUAL WELL DEPTH PERFORMANCE BOND TVD AMOUNT OF BOND PER WELL 0 - 500 FEET $5,000 501 - 1,000 FEET $10,000 1,001 - 3,000 FEET $20,000 3,001 - 6,000 FEET $40,000 6,001 - 9,000 FEET $65,000 9,001 - 12,000 FEET $85,000 12,000+ $110,000