ENTITLED An Act to revise certain provisions regarding plugging and performance bonds for oil and gas wells.
Be it enacted by the Legislature of the State of South Dakota:
Section 1. That 45-9-15 be AMENDED:
45-9-15. Plugging and performance bond for wells--Amount--Conditions.
Without limiting its general authority, the board may require, or may delegate to the secretary of environment and natural resources specific authority to require, the furnishing of a plugging and performance bond in the amount of fifty thousand dollars or an amount sufficient to guarantee the costs of well site reclamation, or one hundred thousand dollars blanket, with good and sufficient surety, conditioned for the performance of the duty to plug each dry or abandoned well, to restore the premises, insofar as possible, to the condition that existed before the filing of the application to drill; and conditioned on the proper performance of all of the requirements of 45-9-5 to 45-9-18, inclusive. The condition of the bond relating to restoration of the surface is met if the landowner or lessee and the producer or driller adopt a different plan approved by the board. The board may require additional bond if the circumstances require.
Section 2. That a NEW SECTION be added:
45-9-15.3. Supplemental plugging and performance bond--Idle wells--Amount.
Without limiting its general authority, the board may require, or may delegate to the secretary of environment and natural resources specific authority to require, the furnishing of a supplemental plugging and performance bond in the amount of twenty thousand dollars or an amount sufficient to guarantee the costs of well site reclamation for any oil and gas well that does not produce or otherwise remains unused for more than six months.
An Act to revise certain provisions regarding plugging and performance bonds for oil and gas wells.
I certify that the attached Act originated in the:
Chief Clerk
Speaker of the House
Attest:
Chief Clerk
President of the Senate
Attest:
Secretary of the Senate
House Bill No. 1025 File No. ____ Chapter No. ______
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Received at this Executive Office this _____ day of _____________,
2020 at ____________M.
By for the Governor
The attached Act is hereby approved this ________ day of ______________, A.D., 2020
ss. Office of the Secretary of State
Filed ____________, 2020 at _________ o'clock __M.
Secretary of State
By Asst. Secretary of State
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