NAC522.230. Bonds and deposits.  


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  •      1. To ensure that a well, upon abandonment, is plugged in accordance with the regulations of the division and that the well is operated and repaired in a manner which does not cause waste, the division may, except as otherwise provided in this section, require that the owner:

         (a) Obtain a bond in favor of the State of Nevada in a sum of not less than $10,000 for each well, or in a sum of not less than $50,000 covering all wells being drilled or to be drilled in Nevada by one owner;

         (b) Deposit money with the division in a sum of not less than $10,000 for each well or in a sum of not less than $50,000 covering all wells being drilled or to be drilled in Nevada by one owner; or

         (c) Deposit with the division a savings certificate or time certificate of deposit issued by a bank or savings or loan association in Nevada and made payable to the State of Nevada, in a sum of not less than $10,000 for each well or in a sum of not less than $50,000 covering all wells being drilled or to be drilled in Nevada by one owner. All interest earned on the deposit accrues to the account of the owner of the well.

         2. An owner of a well drilled on federal land who has previously deposited a bond with the Federal Government in a form and an amount equivalent to the form and amount approved by the division, is not required to obtain a bond or make the deposit with the division pursuant to this section for wells covered by the bond deposited with the Federal Government.

         3. Any bond required by this section must be issued by a corporate surety authorized to do business in Nevada and must be approved and accepted by the division before deemed valid.

         4. Any bond, savings certificate or time certificate of deposit required by this section must remain in effect until the well has been properly abandoned and plugged or repaired in accordance with this chapter or until it is formally released by the division.

     [Div. of Mineral Res., § 209, eff. 12-20-79]—(NAC A by Dep’t of Minerals, 7-22-87)