West Virginia Code of State Rules › Agency 38 - Mining And Reclamation › Title 38 - LEGISLATIVE RULE DEPARTMENT OF ENVIRONMENTAL PROTECTION MINING AND RECLAMATION › Series 38-23 - Coalbed Methane Wells (See 1st Public Hearing 07/13/95) › Section 38-23-10 - Rules Applicable to Separate Bonds; Blanket Bonds; Financial Responsibility; Financial Security for Stimulation in the Absence of Consent of Affected Coal Operators or Owners; Regulation; Designation of Agent; Transfer of Title and Operator Status; Transfer Procedures; Periodical Circular; Ineffective Bonds; and Financial Responsibility

Current through Register Vol. XLI, No. 28, July 12, 2024
10.1. Separate Bonds - Each permit
				application filed after the effective date of these regulations for a coalbed
				methane well shall be accompanied by a separate bond with corporate surety or
				cash or other collateral security in compliance with W.Va. Code §
									22-21-8
				and shall be submitted with Form OP-7, "Bond for Single Well", except where (a)
				a blanket bond is being furnished pursuant to W.Va. Code §
									22-21-8(c);
				or (b) the permit application is for a permit to convert an existing oil or gas
				well to a coalbed methane well or to plug a coalbed methane well which is
				already subject to corporate surety, cash or collateral security which
				satisfied applicable requirements at the time such corporate surety, cash or
				collateral security was furnished. Any corporate surety bond, cash or
				collateral security furnished prior to the effective date of these rules shall
				remain in effect for the Office until such time as the well operator is issued
				any new determination of financial responsibility as may be required by these
				rules.
10.2. Blanket Bonds - Any
				blanket bond for coalbed methane wells furnished after the effective date of
				these regulations shall have corporate surety or cash or other collateral
				security and shall be submitted with Form OP-8 "Blanket Bond for Wells." Any
				blanket bond with corporate surety, cash or collateral security furnished in
				connection with any coalbed methane permit or permits issued prior to the
				effective date of these regulations shall remain in effect for the benefit of
				the Department until such time as the well operator is issued any additional
				permit and such well operator has furnished new or additional corporate surety
				cash or collateral security complying with W.Va. Code §§
									22-21-8;
				provided, that if a blanket bond furnished prior to the effective date of these
				regulations complies with the requirements of W.Va. Code §
									22-21-8,
				a new blanket bond shall not be required to be submitted with a permit
				application; provided, further, that if a permit application is for a permit to
				plug a well which is already subject to a corporate surety, cash or collateral
				security which satisfied applicable requirements at the time such corporate
				security, cash or collateral security was furnished, no additional corporate
				security, cash or collateral security shall be required. Any corporate surety
				bond, cash or collateral security furnished prior to the effective date of
				these rules shall remain in effect for the Office until such time as the well
				operator is issued any new determination of financial responsibility as may be
				required by these rules.
10.3.
				Financial Security for Individual Coalbed Methane Wells that will be Stimulated
				in the Absence of consent of Affected Coal Owners or Operators.
10.3.1. In addition to the bond required by
				W.Va. Code §
										22-21-8,
				where a board order directs the Chief to issue a permit authorizing stimulation
				in the absence of consent of the affected coal operators or owners of workable
				coal seams, prior to the Chief issuing the permit the applicant must file Form
				OP-10, "Bond to Stimulate Coalbed Methane Well in the Absence of Coal
				Owner/Operator's Consent" which form shall be accompanied by a separate bond
				with corporate surety or cash or other collateral security in the amount set by
				order of the board pursuant to W.Va. Code §
										22-21-13(d)(5).