 |
Texas Statutes (Last Updated: January 4, 2014) |
 |
NATURAL RESOURCES CODE |
|
Title 3. OIL AND GAS |
|
Subtitle B. CONSERVATION AND REGULATION OF OIL AND GAS |
|
Chapter 91. PROVISIONS GENERALLY APPLICABLE |
|
Subchapter D. PREVENTION OF POLLUTION |
Sec. 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.