Oil and gas; evidence of financial ability for drilling and operating wells; modifying surety amount and types; effective date.
What changed between versions
Replaced a flat $50,000 Category A surety requirement with a tiered Category B system where amounts increase based on the number of wells operated (1-10 wells: $25,000; 11-50 wells: $50,000; 51-100 wells: $100,000; 101+ wells: $150,000).
Added provisions allowing operators with low estimated plugging liability to post reduced surety amounts based on affidavits from licensed well pluggers, rather than the standard amount.
Introduced specific eligibility criteria for operators of record as of June 7, 1989, allowing those without outstanding fines or contempt citations to post Category A surety, while requiring new operators or those with fines to post Category B surety.
Maintained the November 1, 2025 start date for phasing out Category A surety for new operators, but added conditions for existing operators to retain it based on good standing.
Added authority for the Commission to require additional surety beyond the standard amount for pollution or improper plugging incidents, up to $150,000, following notice and hearing procedures.