North Dakota Administrative Code › Title 43 - Industrial Commission › Article 43-02 - Mineral Exploration and Development › Chapter 43-02-07 - Geothermal Energy Production › Section 43-02-07-08 - Bond

Current through Supplement No. 393, July, 2024
Before any person receives a permit to drill, bore, excavate,
				  or construct a geothermal energy extraction facility, the person shall submit
				  to the commission and obtain its approval of a surety bond or cash bond. An
				  alternate form of security may be approved by the commission after notice and
				  hearing, as provided by law. At the discretion of the state geologist, an
				  installation or facility bond may be required for the substantial modification
				  of a geothermal energy extraction facility in existence prior to December 1,
				  1992. The state geologist has the discretion to waive the requirement for a
				  facility bond if the applicant is an instrumentality of the state. Each such
				  bond must be executed by a responsible surety company authorized to transact
				  business in this state.
The amount and type of the bond is as follows:
Shallow-well and horizontal-loop
				  facilities.
1. The state
				geologist has the discretion to require a facility bond in the amount of
				fifteen thousand dollars for any geothermal energy extraction facility that,
				for any reason, constitutes a special threat to important ground water
				resources or the environment, or otherwise poses a significant public health
				hazard.
2. An installation bond in
				the amount of ten thousand dollars is required of installers of all geothermal
				energy extraction. This is a blanket bond and must cover all permits for
				geothermal energy extraction facilities issued in one year commencing on the
				date the first permit covered by the bond is issued. Alternately, at the
				discretion of the state geologist, an installation bond in the amount of one
				hundred dollars for each well or horizontal loop installed per year may be
				submitted.
3. The geothermal system
				installer must comply with North Dakota Century Code chapter 38-19 and all
				rules and orders of the commission as a condition of the installer's bond. Any
				violation of either North Dakota Century Code chapter 38-19 or the rules or
				orders of the commission makes the installer liable under the bond and the bond
				shall be subject to immediate forfeiture. The installer remains liable under
				the installation bond until construction of the geothermal energy extraction
				facility has been completed and the work has been approved by the state
				geologist. At the discretion of the state geologist, the installer's liability
				under the bond may be terminated at an earlier date when it can be demonstrated
				that only minor interior work remains to be completed and when completion of
				this work is subject to inordinate delays beyond the control of the geothermal
				system installer.
The owner of a geothermal energy extraction facility is
				  responsible for obtaining the facility bond in subsection 1 .
The owner of the geothermal energy extraction facility who is
				  required to obtain a facility bond under subsection 1 must comply with North
				  Dakota Century Code chapter 38-19 and all rules and orders of the commission as
				  a condition of the owner's bond. Any violation of either North Dakota Century
				  Code chapter 38-19 or the rules or orders of the commission makes the owner
				  liable under the facility bond, and the bond shall be subject to immediate
				  forfeiture. The owner of the geothermal energy extraction facility remains
				  liable under the bond until either of the following occurs:
(1) the wells or loop systems have been
				satisfactorily plugged as provided in this chapter, the sites disturbed by any
				method of production of geothermal energy have been reclaimed in a manner
				approved by the state geologist, and all logs, plugging records, and other
				pertinent data required by statute or rules and orders of the commission are
				filed and approved; or
(2) the
				liability on the bond has been transferred to another bond and such transfer
				approved by the commission.
The commission shall advise the surety and the principal when
				  liability on a surety bond is terminated.
The state geologist is authorized to act for the commission
				  as to all matters within this section.