Surety Bond News

The state of Oklahoma set forth a new law referred to as SB 1765. The new law was enacted regarding the geologic storage of carbon dioxide. The carbon dioxide law states that the State Regulatory Agency must promulgate regulations that would institute requirements for “appropriate and sufficient financial sureties as may be necessary.” The rules set forth are for the function of regulating the operation, drilling, well plugging, desertion and confiscation of surface buildings and gear of the storage facility; this is done to keep the facility safe from pollution, infiltration, and the escape/migration of carbon dioxide. SB 1765 also states that upon the issuance of the Certificate of Completion of Injection Operations, any performance bonds that the operator had in place shall be cancelled.