                                 CODE OF VIRGINIA

 BONDING AND FINANCIAL SECURITY REQUIRED (§ 45.2-1633)

A. To ensure compliance with all laws and regulations pertaining to permitted
activities and the furnishing of reports and other information required by the
Board or Director, each permit applicant shall give bond with surety acceptable
to the Director and payable to the Commonwealth. At the election of the permit
applicant, a cash bond may be given. The amount of the bond required shall be
sufficient to cover the costs of properly plugging the well and restoring the
site but in no case shall the amount of the bond be less than $10,000 per well
plus $2,000 per acre of disturbed land, calculated to the nearest tenth of an
acre. Each bond shall remain in force until released by the Director. The
Director may require additional bond or financial security for any well proposed
to be drilled in Tidewater Virginia.

B. Upon receipt of an application for multiple permits for gas or oil operations
and at the request of the permit applicant, the Director may, in lieu of
requiring a separate bond for each permit, require a blanket bond. The amount of
the blanket bond shall be as follows:

   1. For one to 10 wells, $25,000.

   2. For 11 to 50 wells, $50,000.

   3. For 51 to 200 wells, $100,000.

   4. For more than 200 wells, $200,000.
   				For purposes of calculating blanket bond amounts, from one-tenth of an
   acre to five acres of disturbed land for a separately permitted gathering
   pipeline shall be equivalent to one well. The Director shall adopt regulations
   for the release of acreage used to calculate blanket bond amounts for
   separately permitted gathering pipelines in cases where sites have been
   stabilized.

C. Any gas or oil operator who elects to post a blanket bond shall pay into the
Gas and Oil Plugging and Restoration Fund those fees and assessments required
under the provisions of &#xA7; 45.2-1634.

HISTORY: 1990, c. 92, § 45.1-361.31; 2019, c. 351; 2021, Sp. Sess. I, c. 387.