West Virginia Code of State Rules › Agency 38 - Mining And Reclamation › Title 38 - LEGISLATIVE RULE DEPARTMENT OF ENVIRONMENTAL PROTECTION MINING AND RECLAMATION › Series 38-22 - Abandoned Wells › Section 38-22-4 - Financial Responsibility Requirements

Current through Register Vol. XLI, No. 28, July 12, 2024
4.1. General requirements. - Operators shall
				comply with W.Va. Code 22B-1-26, and any rules promulgated thereunder and
				22B-5-4 and 5 and any rules promulgated thereunder for all wells.
4.2. Wells for which an operator is known but
				are presently unbonded. Operators of wells which are currently unbonded shall
				comply with W.Va. Code 22B-1-26, and any rules promulgated thereunder and with
				22B-5-4 and 5 and any rules promulgated thereunder, by filing form OP-7 for
				single wells or form OP-8 for multiple wells as provided in the following
				sections or form OP-77 to transfer such well to the operator's existing fifty
				thousand dollar ($50,000) blanket bond.
4.3. Demonstration of unjust hardship;
				suspension of financial responsibility requirements; percentage payments.
4.3.1. An operator desiring to demonstrate
				unjust hardship as a result of having to comply with W.Va. Code §22B-5-4
				and W.Va. Code § 22B-5-5 and therefore, fulfill the legal duties imposed
				by demonstrating financial responsibility under either W.Va. Code §
				22B-5-4(b)(1) or (2), shall file with the Chief a request to be authorized to
				suspend financial responsibility or make percentage payments. Such request
				shall, in addition to any other information as the operator beheves establishes
				such unjust hardship, include information which may be requested by the
				Chief.
4.3.2. An operator who
				demonstrates to the satisfaction of the Chief that complying with the financial
				responsibility requirements will result in an unjust hardship may be authorized
				to either suspend the financial responsibility requirements in accordance with
				W.Va. Code § 22B-5-4(b)(1) or make percentage payments in accordance with
				W.Va. Code § 22B-5-4(b)(2) and the rules promulgated thereunder.
4.3.3. All requests for determinations of
				unjust hardship under this section shall be in writing and shall be responded
				to in writing by the Office of Oil and Gas within thirty (30) days of the
				receipt of the written submittal requesting a determination by the Office of
				Oil and Gas.
4.3.4. Demonstration
				of financial responsibility by percentage payments. - An operator may be
				authorized by the Chief to demonstrate financial responsibility by supplying a
				percentage of any required amount in accordance with the following schedule:
				supplying twenty percent of any required amount by no later than the first day
				of July, one thousand nine hundred ninety-four; forty percent no later than the
				first day of July, one thousand nine hundred ninety-five; sixty percent no
				later than the first day of July, one thousand nine hundred ninety-six; eighty
				percent by the first day of July, one thousand nine hundred ninety-seven; and
				one hundred percent by the first day of July, one thousand nine hundred
				ninety-eight. Such payment shall be accompanied by such forms as prescribed by
				the Chief. In the event an operator is not in compliance with the required
				percentage demonstration of financial responsibility by the required date, the
				operator shall be considered to be in violation of the financial responsibility
				requirements, and the Chief shall order the well(s) shut in and may order the
				wells to be plugged.
4.3.5. The
				Chief shall have the right to forfeit any amounts deposited prior to the
				completion of depositing the total amount in the event that the Chief complies
				with procedures to forfeit a bond.
4.3.6. Demonstration of unjust hardships to
				suspend financial responsibility requirements. - Except for demonstrating
				financial responsibility in compliance with W.Va. Code 22B-5-4(b)(2), the
				determination of unjust hardship to suspend the demonstration of financial
				responsibility shall not extend beyond the first day of July, one thousand nine
				hundred ninety-five. In the event an operator is not in compliance with the
				demonstration of financial responsibility by the required date as set forth
				previously, the operator shall be considered to be in violation of the
				financial responsibility requirements, and the Chief shall order the well(s)
				shut in and may order the wells to be plugged.