Nebraska Administrative Code › Topic - OIL AND GAS CONSERVATION COMMISSION › Title 267 - NEBRASKA OIL AND GAS CONSERVATION COMMISSION › Chapter 3 - DRILLING, DEVELOPMENT, PRODUCING AND ABANDONMENT › Section 267-3-004 - FORM 3A - BOND

Current through June 17, 2024
Prior to commencement of dirt work preceding drilling, or
				  assuming operation of any well, the person, firm or corporation commencing said
				  drilling or operation shall make, or cause to be made, and file with the
				  Commission a good and sufficient bond in the sum of not less than ten thousand
				  dollars ($10,000) for each well or hole and payable to the State of Nebraska,
				  conditioned for the performance of the duty to comply with all the provisions
				  of the laws of the State of Nebraska and the rules, regulations and orders of
				  the Commission. Said bond shall remain in force and effect until plugging of
				  said well or hole is approved by the Director or authorized deputy, a new bond
				  is filed by a successor in interest or the bond is released by the Director. It
				  is provided, however, that any owner in lieu of such bond may file with the
				  Director a good and sufficient blanket bond in the principal sum of not less
				  than one hundred thousand dollars ($100,000) covering all wells or holes
				  drilling or to be drilled in the State of Nebraska by the principal in said
				  bond; and upon acceptance and approval by the Director of such blanket bond,
				  said bond shall be considered as compliance with the foregoing provisions
				  requiring an individual well or hole bond.
The Director may refuse to accept a bond or add wells to a
				  blanket 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; or for other
				  good cause.
Any person required to file a surety bond pursuant to this
				  rule may post cash or certificate of deposit in the amount required subject to
				  the following conditions:
If a person posts cash, it may be in the form of a cashier's
				  check, certified check or legal tender of the United States of America
				  delivered to the Commission.
A certificate of deposit shall comply with the
				  following:
* The certificate of deposit shall be in the name of the
				  Nebraska Oil and Gas Conservation Commission and only the signature of the
				  Commission's authorized representative shall be on the withdrawal card as the
				  authorized signature to withdraw the deposit.
* The certificate of deposit shall be in a bank or financial
				  institution insured by the Federal Deposit Insurance Corporation and located in
				  the State of Nebraska.
* The Commission may reject any certificate of deposit, when,
				  combined with other certificates of deposit on that bank or financial
				  institution, exceeds the limits of Federal Deposit Insurance Corporation
				  insurance coverage.
* The certificate of deposit shall be in the custody of the
				  Commission.
* The certificate of deposit shall be automatically
				  renewable.
* Interest earned on the certificate of deposit is the
				  property of the person who provided the money for it. The certificate of
				  deposit and the money it represents is the property of the Commission until
				  released by the Director.
Any person, other than the operator or owner of the well,
				  engaged in pulling casing from abandoned oil or gas wells and wells used in
				  connection therewith, or who purchases such wells for the purpose of salvaging
				  material from the same, shall file with the Commission a ten thousand dollar
				  ($10,000) blanket bond to guarantee the ultimate plugging of these wells
				  conformable with the rules, regulations or orders of the Commission.
The State Board of Educational Lands and Funds shall be
				  contacted for bonding requirements on State Land, and the U. S. Bureau of Land
				  Management should be contacted for additional bonding requirements on Federal
				  Land.