HYDRO21518

• Permit No: M1999002
• IBM Index Class Name: Hydrology
• Doc Date: 5/29/1999
• Doc Name: VIC INFO
• Media Type: D
• Archive: No

FINANCIAL ASSURANCE AND ENVIRONMENT~RESPONSE FUND
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b. Operators shall identify and list any shut-in or temporarily abandoned wells on their monthly
production/injection report. In addition, when equipment is removed from a well so as to render it
temporarily abandoned, operators shall file a Sundry Notice, Form 4, with the Commission within
thirty (301 days describing such activity.
c. Any person, other than the operator, who causes equipment from a well to be removed so as
to render it temporarily abandoned shall, prior [o conducting such activity, file a notice of intent
to remove equipment and receive the approval of the Director. The Director may condition such
approval on concurrent plugging and abandonment of the well or on provision of the financial
assurance required of operators in this series.
708. PUBLIC HEALTH, SAFETY AND WELFARE
All operators shall maintain general liability insurance coverage for property damage and bodily injury to third
parties in the minimum amount of five hundred thousand dollars ($500,0001 per occurrence. Operators with
wells or production facilities located in "high density areas" as defined in Rule 603.b. shall maintain such
coverage in the minimum amount of one million dollars ($1,000,000) per occurrence. Such policies shall
include the Commission as a "certificate holder" so that the Commission may receive advance notice of
cancellation.
709. FINANCIAL ASSURANCE
All financial assurance provided to the Commission pursuant to this Series shall remain in place until such time
as the Director determines an operator has complied with the statutory obligations described herein, or until
such time the Director determines a successor-in-interest has filed satisfactory replacement financial
assurance, at which time the Director shall provide written approval for release of such financial assurance.
Whenever an operator fails to fulfill any statutory obligation described herein, and the Commission undertakes
to expend funds to remedy the situation, the Director shall make application to the Commission for an order
calling or foreclosing the operator's financial assurance.
a. Operators and third party providers of financial assurance shall be served with a copy of such
application pursuant to Rule 503. and shall be accorded an opportunity to be heard thereon. Any
third party provider of financial assurance which subsequently fails to comply with a Commission
order to make such financial assurance available shall be considered an unacceptable provider of
any new financial assurance to operators in Colorado, until such time as it applies for and
receives an order of reinstatement. This provision shall be stayed by the filing of a judicial appeal.
In addition, the Commission may institute suit to recover such monies.
b. If an operator's financial assurance is called or foreclosed by the Commission, the called or
foreclosed amount shall be deposited in the Environmental Response Fund to be expended by the
Director for the purposes referenced in Rule 701., and an overhead recovery fee of ten percent
(10%) of the funds expended by the Director as direct costs shall be charged against any excess
of the financial assurance over such costs.
Any remainder of such financial assurance after such cost recovery shall be returned to its
provider. In no circumstances will the liability of a third party provider of financial assurance
exceed the face amount of such financial assurance.
c. If an operator's financial assurance is called or foreclosed by the Commission, such operator's
Certificates of Clearance, Form 10, are forthwith suspended and no sales of gas or oil shall be
allowed, except as may be allowed by the Commission order, until such time as the operator's
financial assurance has been replaced or restored.
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