Texas Natural Resources Code - Section 91.1042. Blanket Bond
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§ 91.1042. BLANKET BOND. (a) A person required to file a
bond, letter of credit, or cash deposit under Section 91.103 may
file a blanket bond to cover all wells for which a bond, letter of
credit, or cash deposit is required as follows:
(1) a person who operates 10 or fewer wells shall file
a $25,000 blanket bond;
(2) a person who operates more than 10 but fewer than
100 wells shall file a $50,000 blanket bond; and
(3) a person who operates 100 or more wells shall file
a $250,000 blanket bond.
(b) Notwithstanding Subsection (a), the commission by rule
shall set the amount of the bond for an operator of bay or offshore
wells at a reasonable amount that exceeds the amount provided by
Subsection (a)(1), (2), or (3), as applicable.
(c) When calculating the number of an operator's wells for
purposes of Subsection (a), the commission shall exclude a well if
the well bore is included in a well-specific plugging insurance
policy described by Section 91.104(c).
(d) If the inclusion of a bay or offshore well whose well
bore is included in a well-specific plugging insurance policy
described by Section 91.104(c) in the calculation under Subsection
(b) of the amount of the bond an operator of bay or offshore wells is
required to file would result in an increase in the amount of the
bond that would otherwise be required, the rules must provide for
the exclusion of the well from the calculation.
Added by Acts 1991, 72nd Leg., ch. 603, § 10, eff. Sept. 1, 1991.
Amended by Acts 2001, 77th Leg., ch. 1233, § 23, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1233, § 24, eff. Sept. 1, 2004;
Acts 2005, 79th Leg., ch. 489, § 3, eff. June 17, 2005.
Section: 91.1011 91.1012 91.1013 91.102 91.103 91.104 91.1041 91.1042 91.105 91.106 91.107 91.108 91.109 91.1091 91.110
Last modified: August 10, 2007
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