The West Virginia fracking bond is here! Article 6A. Natural Gas Horizontal Well control Act has formalized the permitting and surety bonding requirements of fracking in the state. Pursuant to statute, “Horizontal drilling” means a method of drilling a well for the production of natural gas that is intended to maximize the length of wellbore that is exposed to the formation and in which the wellbore is initially vertical but is eventually curved to become horizontal, or nearly horizontal, to parallel a particular geologic formation. The West Virginia horizontal well bond will cover the permitee’s well site, other than a coalbed methane well, drilled using a horizontal drilling method, and which disturbs three acres or more of surface, excluding pipelines, gathering lines and roads, or utilizes more than two hundred ten thousand gallons of water in any thirty day period. Along with the West Virginia horizontal well surety bond the operator must also file an erosion and sediment control plan. The plan must contain methods of stabilization and drainage, including a map of the project area indicating the amount of acreage disturbed. The erosion and sediment control plan shall meet the minimum requirements of the West Virginia Erosion and Sediment Control Manual as adopted and from time to time amended by the department. The erosion and sediment control plan shall become part of the terms and conditions of any well work permit that is secured by a West Virginia horizontal well bondand that is issued pursuant to the Act, and the provisions of the plan shall be carried out where applicable in the operation. The erosion and sediment control plan shall set out the proposed method of reclamation which shall comply with the requirements of section fourteen of the Act. Pursuant to §22-6A-15, a separate West Virginia fracking bond may be furnished for each horizontal well drilled. Each of these bonds shall be in the sum of $50,000 payable to the State of West Virginia, conditioned on full compliance with all laws, rules relating to the drilling, redrilling, deepening, casing and stimulating of horizontal wells and to the plugging, abandonment and reclamation of horizontal wells and for furnishing reports and information required by the secretary. (c) When an operator makes or has made application for permits to drill or stimulate a number of horizontal wells, the operator may, in lieu of furnishing a separate bond, furnish a blanket West Virginia horizontal well permit bond in the sum of $250,000 payable to the State of West Virginia, and conditioned as provided in subsection (b) of this 22-6A-15. (d) The form of the bond required by this article shall be approved by the Secretary. (f) Any separate bond furnished for a particular well prior to the effective date of the Act continues to be valid for all work on the well permitted prior to the effective date of the same however but no permit may be issued on such a particular well without a bond complying with the new rules. Any blanket bond furnished prior to the effective date of this article shall be replaced with a new blanket West Virginia horizontal well bond conforming to the requirements of the Act, at which time the prior bond is discharged by operation of law. If the Secretary determines that any operator has not furnished a new blanket bond, the secretary shall notify the operator by registered mail or by any method of delivery that requires a receipt or signature confirmation of the requirement for a new blanket bond, and failure to submit a new blanket bond within sixty days after receipt of the notice from the secretary works a forfeiture of the blanket bond furnished prior to the effective date of this article. (g) The West Virginia horizontal well permit bond shall remain in force until released by the Secretary, and the Secretary shall release the same upon satisfaction that the conditions thereof have been fully performed. Although this is a new obligation with no “base line” for corporate sureties, West Virginia surety leader is THE resource for any operation requiring horizontal fracturing bonds. We offer reclamation bond capacity for oil, coal, uranium, metal mining, and hydraulic fracturing “fracking” operations in EVERY state. Visit us at www.ReclamationBonds.com, call (787) 333-0222 or (800)373-2804, or email Underwriting@SuretyOne.com for a West Virginia horizontal well permit bond application or further information regarding your surety needs.
