Okla. Stat. tit. 52, § 52-318.4

This is the official text of Okla. Stat. tit. 52, § 52-318.4, part of Oklahoma’s Stat. tit. 52, — part of the compiled statutory law of Oklahoma, published by the state as "Stat. tit. 52,." Browse the sections below, each linked to its official government source.

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Undertakings which may be posted as damage deposit

Official statutory text

A. Every operator doing business in this state shall file a

corporate surety bond, letter of credit from a banking institution,

cash, or a certificate of deposit with the Secretary of State in the

sum of Twenty-five Thousand Dollars ($25,000.00) conditioned upon

compliance with Sections 318.2 through 318.9 of this title for

payment of any location damages due which the operator cannot

otherwise pay. The Secretary of State shall hold such corporate

surety bond, letter of credit from a banking institution, cash or

certificate of deposit for the benefit of the surface owners of this

state and shall ensure that such security is in a form readily

payable to a surface owner awarded damages in an action brought

pursuant to this act. Each corporate surety bond, letter of credit,

cash, or certificate of deposit filed with the Secretary of State

shall be accompanied by a filing fee of Ten Dollars ($10.00).

B. The bonding company or banking institution shall file, for

such fee as is provided for by law, a certificate that said bond or

letter of credit is in effect or has been canceled, or that a claim

has been made against it in the office of the court clerk in each

county in which the operator is drilling or planning to drill. Said

bond or letter of credit must remain in full force and effect as

long as the operator continues drilling operations in this state.

Each such filing shall be accompanied by a filing fee of Ten Dollars

($10.00).

C. Upon deposit of the bond, letter of credit, cash, or

certificate of deposit, the operator shall be permitted entry upon

the property and shall be permitted to commence drilling of a well

in accordance with the terms and conditions of any lease or other

existing contractual or lawful right.

D. If the damages agreed to by the parties or awarded by the

court are greater than the bond, letter of credit, cash, or

certificate of deposit posted, the operator shall pay the damages

immediately or post an additional bond, letter of credit, cash, or

certificate of deposit sufficient to cover the damages. Said

Oklahoma Statutes - Title 52. Oil and Gas Page 168

increase in bond, letter of credit, cash, or certificate of deposit

shall comply with the requirements of this section.

Status: in_force · Read it on the official government site

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