43 C.F.R. Subpart 3215—Bond Collection After Default
Title 43 - Public Lands: Interior
Unless you comply with the requirements listed at 43 CFR 3200.4, we may collect money from the bond to correct your noncompliance. This amount can be as large as the face amount of the bond. Some examples of when we will collect against your bond are when you do not: (a) Properly plug and abandon a well; (b) Reclaim the lease area; (c) Pay outstanding royalties; or (d) Pay assessed royalties to compensate for drainage. Yes. If we collect against your bond, before you conduct any further operations you must either: (a) Post a new bond equal to the value of the original bond; or (b) Restore your existing bond to the original amount. If we collect against your bond and you do not restore it to the original amount, we may shut-in any well(s) or utilization facilities and begin canceling all of your leases covered by that bond. No, we do not cancel or terminate bonds. However, we may: (a) Terminate the period of liability of a surety or other bond provider at any time. The bond provider must give you and BLM 30 days notice when they terminate your bond. Once your bond is terminated, do not conduct any operations until you provide a new bond which meets our requirements. We will also release an old bond once you file a new bond with a rider covering existing liabilities and we accept it; or (b) Release your bond after a reasonable period of time, if we determine that you have paid all royalties, rents, penalties, and assessments, satisfied all permit or lease obligations and reclaimed the site according to your operations plan. No, when we release your bond, we relinquish the security but we continue to hold the lessee or operator responsible for noncompliance. Specifically, we do not waive any legal claim we may have against any person under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.), or other laws and regulations.
Title 43: Public Lands: Interior
PART 3200—GEOTHERMAL RESOURCE LEASING
Subpart 3215—Bond Collection After Default
§ 3215.10 When may BLM collect against my bond?
§ 3215.11 Must I replace my bond after BLM collects against it?
§ 3215.12 What will BLM do if I do not restore the face amount or file a new bond?
§ 3215.13 Will BLM cancel or terminate my bond?
§ 3215.14 When BLM releases my bond, does that end my responsibilities?
