Rules & Regulations of the State of Tennessee
Title 0400 - Environment and Conservation
Subtitle 0400-52 - Drilling, Re-Entering, Plugging and Abandoning Exploratory and Exploitation Oil and Gas Wells (Transferred from 1040-02)
Chapter 0400-52-01 - Bond (Transferred from 1040-02-01)
Section 0400-52-01-.06 - FORFEITURE

(1) The Supervisor shall cause a notice of noncompliance to be served upon the operator by certified mail, addressed to the permanent address shown on the application for a permit:

(2) The notice shall specify in what respects the operator has failed to comply with this chapter or the regulations or orders of the Board or Department.

(3) If the operator has not reached an agreement with the Supervisor, or has not complied with the requirements set forth within 30 days after mailing the notice, the plugging bond shall then be forfeited to the Department, and the money used by the Department to properly plug the well(s), and/or the reclamation bond used to reclaim the well site(s) and access roads. .

(4) In the case of the plugging bonds, such bonds are penal in nature, and the full amount of the bond shall be forfeited.

(5) In the case of reclamation bonds, such bonds are considered to be performance bonds, and any portion of a reclamation bond not expended to perform the reclamation work shall be refunded to the operator or his Bonding Agent if the conditions of the bond are fully satisfied.