[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3134.1]



[Page 390-391]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 3130_OIL AND GAS LEASING: NATIONAL PETROLEUM RESERVE, ALASKA

--Table of Contents

 

                      Subpart 3134_Bonding: General

 

Sec.  3134.1  Bonding.





    (a) Prior to issuance of an oil and gas lease, the successful bidder 

shall furnish the authorized officer a surety or personal bond in 

accordance with the provisions of Sec.  3104.1 of this title in the sum 

of $100,000 conditioned on compliance with all the lease terms, 

including rentals and royalties, conditions and any stipulations. The 

bond shall not be required if the bidder already maintains or furnishes 

a bond in the sum of $300,000 conditioned on compliance with the terms, 

conditions and stipulations of all oil and gas leases held by the bidder 

within NPR-A, or maintains or furnishes a nationwide bond as set forth 

in Sec.  3104.3(b) of this title and furnishes a rider thereto 

sufficient to bring total coverage to $300,000 to cover all oil and gas 

leases held within NPR-A.

    (b) A bond in the sum of $100,000 or $300,000, or a nationwide bond 

as provided in Sec.  3104.3(b) of this title with a rider thereto 

sufficient to bring total coverage to $300,000 to cover all oil and gas 

leases within NPR-A, may be provided by an operating rights owner 

(sublessee) or operator in lieu of a bond



[[Page 391]]



furnished by the lessee, and shall assume the responsibilities and 

obligations of the lessee for the entire leasehold in the same manner 

and to the extent as though he/she were the lessee.

    (c) If as a result of a default, the surety on a bond makes payment 

to the United States of any indebtedness under a lease secured by the 

bond, the face amount of such bond and the surety's liability shall be 

reduced by the amount of such payment.

    (d) A new bond in the amount previously held or a larger amount as 

determined by the authorized officer shall be posted within 6 months or 

such shorter period as the authorized officer may direct after a 

default. In lieu thereof, separate or substitute bonds for each lease 

covered by the prior bond may be filed.The authorized officer may cancel 

a lease(s) covered by a deficient bond(s), in accordance with Sec.  

3136.3 of this title. Where a bond is furnished by an operator, suit may 

be brought thereon without joining the lessee when such lessee is not a 

party to the bond.

    (e) Except as provided in this subpart, the bonds required for NPR-A 

leases are in addition to any other bonds the successful bidder may have 

filed or be required to file under Sec.  Sec.  3104.2, 3104.3(a) and 

3154.1 and subparts 3206 and 3209 of this title.



[46 FR 55497, Nov. 9, 1981, as amended at 53 FR 17358, May 16, 1988; 53 

FR 22846, June 17, 1988]