Sec. 551.4. Financial security: generally

(a) The owner of an oil and gas well or of a solution mining well must file with the department and continuously keep in force financial security payable to the department to guarantee the performance of his or her well plugging and abandoning obligations under Part 555 of this Title. The owner may keep in force financial security in excess of that required. Financial security filed and maintained with the department for solution mining wells cannot also be used to satisfy the financial security requirements for oil and gas wells under this Part. A general partner of a partnership or of a limited partnership that is the owner of such a well may, on behalf of that partnership or limited partnership, file and continuously keep in force the financial security to satisfy the financial security requirements pertaining to that partnership or limited partnership.

(b) Financial security requirements must be satisfied by filing:

(1) a surety bond in favor of the State on a form the department prescribes from a corporate surety authorized to do business as such in the State; or

(2) a personal bond in favor of the State accompanied by an irrevocable letter of credit from a financial institution authorized to do business in the State; or

(3) any other comparable financial security that the department accepts.

(c) The owner of a well required to file financial security must continuously maintain that financial security with the department until:

(1) a subsequent owner has filed financial security acceptable to the department and the department has approved the transfer to the subsequent owner; or

(2) the well giving rise to the financial security requirement has been plugged and abandoned to the satisfaction of the department in accordance with Part 555 of this Title.