South Carolina Code of Regulations › Chapter 121 - DEPARTMENT OF NATURAL RESOURCES › Section 121-8.6 - Performance Bond

Current through Register Vol. 48, No. 6, June 28, 2024
A.
		  Before any person shall be granted a well drilling permit, such person shall
		  file with the Commission a reasonable performance bond in an amount as
		  hereinafter set forth, as provided in Section
		  121-8.5(b).
		  Such bond shall be payable to the State of South Carolina for each well,
		  executed by such person as principal, and by some surety approved by the
		  Commission. The bond shall be conditioned to secure the faithful performance of
		  all requirements of the Act, these rules and regulations, and any permit
		  conditions and restrictions. If the operator fails to comply with requirements
		  of the Act, these rules and regulations, or any permit conditions or
		  restrictions, said bond shall be forfeited and the Commission shall expend the
		  proceeds of the bond to fulfill the operator's responsibilities to protect the
		  State and its citizens from any injury which may result from such failure. The
		  bond shall remain in effect for a period of two years from the date of receipt
		  of all data required by these rules and regulations, whichever occurs last. The
		  amount of such bond shall be in accordance with the following relationship with
		  proposed bottom depth for onshore wells.
Depth in feet
Amount of bond required
to 10,000
$20,000
10,000-15,000
$30,000
15,000-20,000
$40,000
20,000 or more
$50,000
The amount of bond required for each well on submerged lands
			 shall be one hundred thousand ($100,000) dollars.
B. The Commission, in its discretion for good
		  cause, after notice and hearing may require a different amount of bond because
		  of environmentally sensitive conditions at the drill site or for other
		  justifiable reasons and may determine any existing bond to be inadequate and
		  require the filing of a new and different bond or an appropriate amendment to a
		  previously filed bond.
C. Any such
		  bond filed with the Commission, including any amendment or addendum thereto,
		  must set forth the correct legal name and address of the principal and the
		  surety thereto and must be countersigned by a South Carolina agent of such
		  surety, setting forth the correct legal name of such agent and such agent's
		  company affiliation and correct business address.
D. The Commission in its discretion may allow
		  the filing of a blanket bond (except for wells on submerged lands) by an
		  operator in the amount of one hundred thousand ($100,000) dollars. The
		  Commission, after notice and hearing may for good cause, require the filing of
		  a new blanket bond of a different amount superseding any previous order by the
		  Commission regarding a blanket bond, and any blanket bond shall require and
		  have the same requirements as set forth hereinabove for single well bonds
		  except that blanket bonds may apply to more than one well and the amount of
		  such blanket bond may not be required to be in accordance with the aforesaid
		  relationship of footage.
E. Failure
		  to comply with any of the conditions of this section shall not be cause for
		  avoidance of any of the obligations and conditions set forth herein by any
		  principal or surety.