SECTION 165:10-1-11. Financial statement as surety

(a)   A plugging agreement shall be accompanied by surety. The surety requirement may be met by furnishing the operator's current financial statement (Form 1006A) to the Conservation Division, which shall be a full statement of the operator's assets and liabilities and shall reflect the operator's total net worth of not less than $50,000.00 in U.S. dollars located in this State.

(b)   The value of producing oil and gas leaseholds for which the financial statement stands as surety will be deducted from total net worth unless the financial statement is accompanied by the written appraisal of a recognized independent appraiser of oil and gas properties showing the fair market value of the leasehold interest owned by the operator.

(c)   The Director of Conservation may require proof in the form of an appraisal or other proof of the fair market value of any asset listed in the financial statement, and the Director of Conservation may also require proof that the financial statement truly shows the net fair market value of all assets over and above all debts and encumbrances.

(d)   A current financial statement shall be filed every twelve (12) months on Form 1006A.

(e)   Only one operator's name shall appear on each Form 1006A.

(f)   Along with the Form 1006A, an operator is required to file a Form 1006B (Operator's Agreement to Plug Oil, Gas and Service Wells Within the State of Oklahoma) with the Conservation Division.

(g)   The Commission shall reject the operator's Form 1006A if the operator fails to file the documentation required by this Section with the Conservation Division.

[Source: Amended at 13 Ok Reg 2373, eff 7-1-96]