9.48—Performance bond.
(a)
Prior to approval of a plan of operations, the operator shall be required to file a suitable performance bond with satisfactory surety, payable to the Secretary or his designee. The bond shall be conditioned upon faithful compliance with applicable regulations, and the plan of operations as approved, revised or supplemented. This performance bond is in addition to and not in lieu of any bond or security deposit required by other regulatory authorities.
(b)
In lieu of a performance bond, an operator may elect to deposit with the Secretary or his designee, cash or negotiable bonds of the U.S. Government. The cash deposit or the market value of such securities shall be at least equal to the required sum of the bond. When bonds are to serve as security, there must be provided to the Secretary a power of attorney.
(c)
In the event that an approved plan of operations is revised or supplemented in accordance with § 9.40, the Regional Director may adjust the amount of the bond or security deposit to conform to the modified plan of operations.
(1)
Equal to the estimated cost of reclaiming the site, either in its entirety or in phases, that has been damaged or destroyed as a result of operations conducted in accordance with an approved, supplemented, plan of operations; plus
(2)
An amount set by the Superintendent consistent with the type of operations proposed, to bond against the liability imposed by § 9.51(a); to provide the means for rapid and effective cleanup; and to minimize damages resulting from an oil spill, the escape of gas, wastes, contaminating substances, or fire caused by operations. This amount shall not exceed twenty-five thousand dollars ($25,000) for geophysical surveys when using more than one field party or five thousand dollars ($5,000) when operating with only one field party, and shall not exceed fifty thousand dollars ($50,000) for each wellsite or other operation.
(3)
When an operator's total bond or security deposit with the National Park Service amounts to two hundred thousand dollars ($200,000) for activities conducted within a given unit, no further bond requirements shall be collected for additional activities conducted within that unit, and the operator may substitute a blanket bond of two hundred thousand dollars ($200,000) for all operations conducted within the unit.
(e)
The operator's and his surety's responsibility and liability under the bond or security deposit shall continue until such time as the Superintendent determines that successful reclamation of the area of operations has occurred and, where a well has been drilled, the well has been properly plugged and abandoned. If all efforts to secure the operator's compliance with pertinent provisions of the approved plan of operations are unsuccessful, the operator's surety company will be required to perform reclamation in accordance with the approved plan of operations.
(f)
Within thirty (30) days after determining that all reclamation requirements of an approved plan of operations are completed, including proper abandonment of the well, the Regional Director shall notify the operator that the period of liability under the bond or security deposit has been terminated.