SECTION 165:10-8-5. Surety requirements for reclaimers

(a)   Agreement to close. Any operator of a recycling/reclaiming facility shall file with the Surety Department for the Oil and Gas Conservation Division an agreement to properly close and reclaim the site in accordance with approved closure and reclamation procedures upon termination of recycling/reclaiming operations. The agreement shall be on forms available from the Conservation Division and shall be accompanied by surety. The agreement shall provide that if the Commission finds that the operator has failed or refused to close the facility or take remedial action as required by law and the rules of the Commission, the surety shall pay to the Commission the full amount of the operator's obligation up to the limit of the surety.

(b)   New facilities. Category A (165:10-1-11) or Category B (165:10-1-13) surety shall be required for coverage of the closure costs, including well pluggings and general site restoration. These costs shall be calculated upon the projected costs of closure for the facility, based on estimated costs of earth work, remediation, revegetation, plugging, etc. Such information shall be provided by the applicant and reviewed, adjusted and ordered by the Commission.

(c)   Existing facilities. For facilities in operation prior to the effective date of this Part, the Commission can require, by order, the establishment of an escrow account to cover the costs of closure, by using a per barrel fee to be deposited into the account. Any interest the account earns until the total amount is collected shall be reinvested in the account. Any interest accrued after the account balance is full shall be returned to the operator.

[Source: Added at 11 Ok Reg 3691, eff 7-11-94; Amended at 27 Ok Reg 2128, eff 7-11-10; Amended at 37 Ok Reg 1121, eff 1-1-20]