WILLIAM DONALD SCHAEFER, Governor

Ch. 367

6-104.6. 6-104.7.

(A)     (1) A PERMIT SHALL BE EXPRESSLY CONDITIONED UPON COMPLIANCE
WITH ALL REQUIREMENTS OF THIS SUBTITLE AND ANY REGULATIONS ADOPTED
UNDER THIS SUBTITLE.

(2) THE DEPARTMENT MAY PLACE IN A PERMIT CONDITIONS WHICH
THE DEPARTMENT DEEMS REASONABLE AND APPROPRIATE TO ASSURE THAT THE
OPERATION SHALL FULLY COMPLY WITH THE REQUIREMENTS OF THIS SUBTITLE,
AND PROVIDE FOR PUBLIC SAFETY AND THE PROTECTION OF THE STATE'S
NATURAL RESOURCES.

(B)     VIOLATION OF A PERMIT CONDITION IS A VIOLATION OF THIS SUBTITLE
SUBJECT TO ENFORCEMENT AND PENALTIES UNDER THIS SUBTITLE.

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;

(5)     Post a performance bond to the State in the amount [of at least
$10,000] NOT TO EXCEED $100,000 for each oil or gas well, [or at least $50,000] AND
NOT TO EXCEED $500,000 as a blanket bond for all of the permit holder's oil or gas wells,
with good and sufficient surety, as provided in subsection (d)(1) of this section,
conditioned upon compliance with the provisions of this subtitle;

(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; and

(7)     Notify the Department and the Department of the Environment of the
location of the equipment required by regulation for the prevention and containment of
gas leaks and oil spills.

(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] LIABILITY insurance coverage under subsection (a)(6) of this
section.

(c)     The Department shall adopt regulations requiring each holder of a permit to
drill for gas or oil to have equipment available for the prevention and containment of gas
leaks and oil spills.

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