Pay Up! Security-free Period Ends for Exempt Operators
Effective April 16, 2016 for 120 days, Emergency Statewide Order No. 29-B, issued by the Commissioner of Conservation, suspended certain security requirements for permits to drill and amendments to permits to drill for operators who had “…exhibited a record of compliance with the statutes, rules, and regulations of the Office of Conservation for 48 months preceding the permit date of the well…” (the “Emergency Order”). The Emergency Order expired August 12, 2016. Going forward, formerly exempt operators must provide security as per the requirements of Statewide Order No. 29-B in the form(s) of certificates of deposit, performance bonds, or letters of credit, all issued in sole favor of the Office of Conservation in the amounts prescribed by the Order. Word on the street is the Office of Conservation will additionally accept gold bullion as security, but such rumor cannot be confirmed.
The Emergency Order can be found HERE.
The Current Order can be found HERE.
The Office of Conservation’s Financial Security site can be found HERE.