Administrative Rules for
Michigan's Mineral Well Operations Regulations - Part 625

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R 299.2332 Conformance bond amounts.

 

Rule 2332. A person who drills or operates a well shall file a conformance bond with the supervisor of mineral wells for the following amounts, as applicable:

            (a) Single well conformance bonds shall be filed in the following amounts, as applicable:

                        (i) $30,000.00 for a disposal, storage, or brine well.

                        (ii) For an individual test well:

                                    (A) $5,000.00 for a depth of 0 to 1,000 feet.

                                    (B) $10,000.00 for a depth greater than 1,000 feet to 2,000 feet.

                                    (C) $20,000.00 for a depth greater than 2,000 feet to 4,000 feet.

                                    (D) $30,000.00 for a depth greater than 4,000 feet.

                        (iii) For a blanket test well permit, the following:

                                    (A) $5,000.00 for 1 to 24 wells.

                                    (B) $10,000.00 for 25 to 49 wells.

                                    (C) $15,000.00 for 50 to 75 wells.

                                    (D) $20,000.00 for 76 to 200 wells.

            (b) Blanket conformance bonds may be filed as an alternative to single well conformance bonds. If a blanket conformance bond is used, then the permittee shall provide the supervisor of mineral wells with a list of wells covered by the blanket conformance bond. A maximum of 50 brine, storage, disposal, or individual test wells or any combination of these may be covered by a blanket conformance bond. If the permittee has more than 50 wells in a category, then the additional wells may be covered by single well conformance bonds or additional blanket conformance bonds. Blanket conformance bonds shall be filed in the amount of $400,000.00.

            (c) Blanket test well permits shall not be eligible for blanket conformance bonds.

            (d) The permittee is not required to file a blanket conformance bond or bonds in an aggregate amount of more than $400,000.00. If the aggregate amount of the conformance bonds is $400,000.00, then the permittee may file 1 blanket conformance bond of $400,000.00 to cover all of his or her wells.

 

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