New Mexico Administrative Code › Title 19 - NATURAL RESOURCES AND WILDLIFE › Chapter 14 - GEOTHERMAL POWER › Part 20 - PLUGGING BOND › Section 19.14.20.8 - PLUGGING BOND

Current through Register Vol. 35, No. 13, July 16, 2024
A. Any person
				who has drilled or is drilling or proposes to drill any geothermal resources
				well shall post with the division, and obtain approval thereof, a bond, in a
				form approved by the division, conditioned to plug such well, if non-productive
				or when abandoned, in such a way as to confine all fluids in their native
				strata. Each such bond shall be executed by a responsible surety company
				authorized to transact business in the state of New Mexico and shall describe,
				or by subsequent rider describe, the name and exact location of the well, or
				wells, covered by the bond. Bonds may be either one-well bonds or multi-well
				bonds, in the amounts stated below in accordance with type of bond and depth of
				well(s):
(1) One-well bonds:
Projected depth of proposed well or
Actual depth of existing well Amount of bond
Less than 500 feet deep ("shallow") $2,000
500 feet to 2,000 feet deep ("intermediate") $3,000
More than 2,000 feet deep ("deep") $5,000.
Revised plans for an actively drilling shallow or
				  intermediate well being drilled under a one-well bond may be approved by the
				  division for drilling as much as 15 percent deeper than the maximum depth on
				  the well's bond, provided, however, any well drilled more than 15 percent
				  deeper than the maximum allowed depth on the bond must be covered by a new bond
				  in the amount prescribed for the deeper depth bracket, in which case the old
				  bond will be released.
(2)
				Multi-well bonds:
Projected depth of proposed wells or
Actual depth of existing wells Amount of bond
Less than 500 feet deep ("shallow") $10,000
500 feet to 2,000 feet deep ("intermediate") $10,000
More than 2,000 feet deep ("deep") $10,000
(a) Not more than ten shallow wells may be
				drilled under a $10,000 multi-well bond. A $2,000 one-well bond shall be posed
				for each additional shallow well drilled or an additional $10,000 multi-well
				bond must be posted for each additional ten (or portion thereof) shallow wells
				drilled.
(b) Not more than six
				intermediate wells may be drilled under a $10,000 multi-well bond. A $3,000
				one-well bond shall be posted for each additional intermediate well drilled or
				an additional $10,000 multi-well bond must be posted for each additional six
				(or portion thereof) intermediate wells drilled.
(c) Not more than four deep wells may be
				drilled under a $10,000 multi-well bond. A $5,000 one-well bond shall be posted
				for each additional deep well drilled or an additional $10,000 multi-well bond
				must be posted for each additional four (or portion thereof) deep wells
				drilled.
(d) The $10,000 multi-well
				bond may be used to cover the drilling of a combination of wells, i.e., shallow
				and intermediate, shallow and deep, intermediate and deep, or shallow,
				intermediate and deep, provided however, that the $10,000 capacity of the bond
				shall be charged in an amount equal to the one-well bond requirement for each
				such combination well according to its depth.
(e) Revised plans for an actively drilling
				shallow or intermediate well being drilled under a multi-well bond may be
				approved for drilling as much as 15 percent deeper than the well's maximum
				depth bracket without affecting the bond. Any well drilled more than 15 percent
				deeper than its depth bracket, however, shall be placed in the next deeper
				depth bracket, and the $10,000 capacity of the multi-well bond charged
				accordingly. Additional bonding will be required in the event the capacity of
				the bond to cover the well in its new depth bracket is inadequate.