Ch. 777                                          LAWS OF MARYLAND

SHALL COMPLETE AND SUBMIT WITH THE APPLICATION AN ENVIRONMENTAL
IMPACT STUDY THAT ADDRESSES THE POTENTIAL FOR ANY ADVERSE
ENVIRONMENTAL EFFECTS ON THE CRITICAL AREA AS A RESULT OF THE
DRILLING.

(2) (I) THE DEPARTMENT SHALL FORWARD A COPY OF THE
PERMIT APPLICATION AND THE ENVIRONMENTAL IMPACT STUDY REFERRED TO
IN SUBSECTION (C)(1) TO THE CRITICAL AREA COMMISSION FOR ITS

REVIEW AND COMMENT.----------------------------------------------------------

(II) THE DEPARTMENT SHALL CONSIDER AND COMMENT,
IN WRITING ON THE OBJECTIONS AND CONCERNS OF THE CRITICAL AREA
COMMISSION BEFORE ISSUING A PERMIT UNDER THIS SUBSECTION.--------

6-105.

(A)  Every holder of a permit to drill for gas or oil shall:

(1)  Submit a completion report on forms to be
supplied by the Department within 30 days after the drilling of a
well has been completed;

(2)  Submit cutting samples at the request of the
Department;

(3)  Notify the Department when a well is about to be
abandoned;

(4)  Seal and plug the well in a manner approved by
the Department; [and]

(5)  Post a performance bond to the State in the
amount of [$2,500] AT LEAST $10,000 FOR EACH OIL OR GAS WELL, OR
AT LEAST $50,000 AS A BLANKET BOND FOR ALL OF THE PERMIT HOLDER'S
OIL OR GAS WELLS, with good and sufficient surety, AS PROVIDED IN
SUBSECTION (C)(1) OF THIS SECTION, conditioned upon compliance
with the provisions of this subtitle; AND

(6)  OBTAIN AND KEEP IN EFFECT LIABILITY INSURANCE
COVERAGE IN AN AMOUNT NOT LESS THAN $300,000 FOR EACH PERSON AND
$500,000 FOR EACH OCCURRENCE OR ACCIDENT TO PAY DAMAGES FOR
INJURY TO PERSONS OR DAMAGE TO PROPERTY CAUSED BY THE DRILLING,
PRODUCTION OPERATIONS, OR PLUGGING OF ALL OF THE PERMIT HOLDER'S
GAS OR OIL WELLS IN THE STATE.

(B)  THE DEPARTMENT MAY ADOPT REGULATIONS TO INCREASE THE
MINIMUM AMOUNTS OF:

(1)  PERFORMANCE BONDS UNDER SUBSECTION (A)(5) OF THIS
SECTION; AND

(2)  LIABILITY INSURANCE COVERAGE UNDER SUBSECTION
(A)(6) OF THIS SECTION.

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