(1) Prior to the execution and delivery of any
geothermal RESOURCES lease, the lessee shall furnish to the department a bond
in the minimum amount of $2,000 conditioned upon the compliance of the lessee
of his obligations under the lease and the terms of these rules. In no case
shall the bond be less than the total estimated cost to the state of completing
the work required by the law and these rules.
(2) Prior to initiation of operations to
drill a well for any purpose to 1,000 feet or deeper, the lessee shall increase
the bond to the amount of $10,000.
(3) At any time during the existence of a
geothermal resources lease, the board may require new or additional bonds to
protect the interest and rights of the state and may require the lessee to post
a bond, in an amount to be set by the board, to insure the payment of damages
to any surface lessee.