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 Oklahoma Administrative Code (Last Updated: March 11, 2021)
 TITLE 385. Department of the Commissioners of the Land Office
 Chapter 15. Sale and Operation of Oil and Gas Leases

  SECTION 385:15-1-20. Bond requirements  

Latest version.
  • (a)   Amount of bond; forms. Each mineral lessee whose interest(s) is not covered by a performance fee must post a Performance Bond to cover the following agreements with this Department:
    (1)   Bond posted must be in the total sum required to cover any or all agreements in accordance with the following:
    (A)   Oil & Gas Lease Bond (one or more leases) - $10,000.00
    (B)   Salt Water Disposal Agreement - $10,000.00
    (2)   All bonds must be prepared on Commission forms. Bond forms will be supplied upon request. Maximum bond required for Oil and Gas Leases and related operations (on current Department form).
    (b)   Release of bond. Bonds will be released upon written request of the lessee or bonding company when all contracts covered thereby are satisfactorily terminated as determined by the CLO.
    (c)   Underwriter requirements. All surety bonds must be made by a company authorized to do business in the State of Oklahoma.
    (d)   Cash deposit for loan of abstracts. Firms desiring to borrow abstracts may post a cash deposit in the amount of $500.00 which is required, to insure the return of the abstracts borrowed. Upon return of said abstracts the deposit will be refunded.
    (e)   Cash Bond as Performance Bond. A mineral lessee as defined in (a) above may post a bond by submitting cash in the amount of $10,000.00 as a Performance Bond with the Commissioners of the Land Office, from which the Commissioners of the Land Office may debit, or draw the entire sum, to pay for loss or damage resulting from the lessee's operations, or violations of the duties and obligations imposed by the lease. The bonds are not substitute liability, or liability limits but merely serve as minimal security for the debts and obligations. The lessee shall not be entitled to interest while this bond is held by the Commissioners of the Land Office.
[Source: Amended at 15 Ok Reg 1745, eff 5-12-98; Amended at 21 Ok Reg 633, eff 12-19-03 (emergency); Amended at 21 Ok Reg 1043, eff 5-13-04; Amended at 29 Ok Reg 1299, eff 6-25-12]