SENATE BILL NO. 362
INTRODUCED BY T. KEATING
AN ACT AUTHORIZING THE USE OF A SURETY BOND IN ADDITION TO THE OTHER METHODS OF GUARANTEE TO ENSURE THE PROPER CLOSURE OF OIL AND GAS WELLS; AND AMENDING SECTION 82-11-163, MCA.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 82-11-163, MCA, is amended to read:
"82-11-163. Landowner's bond on noncommercial well. If the owner of the surface land upon which has been drilled a well that fails to produce oil or gas in commercial quantities acquires the well for domestic purposes, the board may cancel and absolve the bond required in 82-11-123 upon its acceptance of surety in the form of a certificate of deposit, or a surety bond in the amount of $5,000 for a single well, or in the amount of $10,000 for more than one well, or in the form of a property bond of two times the value of the required certificate of deposit or surety bond. The release of the certificate of deposit, surety bond, or property bond must be conditioned on proof provided by the landowner that the well has been properly plugged."
Section 2. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
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Latest Version of SB 362 (SB0362.ENR)
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