NAC534A.250. Bond: Filing requirements; amount; form; duration.

     1. Except as otherwise provided in this section, the operator shall provide a sufficient bond in the sum of not less than $10,000 in favor of the State of Nevada for each geothermal well, conditioned on the plugging of the well upon abandonment in accordance with NAC 534A.170 to 534A.690, inclusive. The bond must be submitted with the application for a permit to drill or operate an individual geothermal well or an application for a permit to drill or operate geothermal wells in a project area.

     2. An operator may file a blanket bond, in a sum of at least $50,000, to cover all wells to be drilled or operated by the operator.

     3. A bond must be:

     (a) In cash;

     (b) Issued by a surety authorized to do business in Nevada; or

     (c) In the form of a savings certificate or time certificate of deposit which is:

          (1) Issued by a bank or savings and loan association operating in Nevada; and

          (2) Payable to the State of Nevada.

     4. An operator who has deposited a performance bond with the Federal Government for wells drilled on federal land shall file a copy of that bond with the Division.

     5. The bond required by this section must remain in effect until the well is properly abandoned, the surface is properly restored and the bond is formally released by the Division.

     (Added to NAC by Comm’n on Mineral Resources, eff. 11-12-85; A 12-16-92)