Arizona Laws 27-570. Bond and penalties; waiver
A. If the department requires a bond to guarantee performance by the buyer, the amount shall be based on the average price of royalty oil sold in this state during the preceding month. If no royalty oil was sold in this state during the preceding month, the amount of the bond shall be established by the commissioner based upon the prevailing market price for refinery charge stocks of similar composition sold in Arizona or in a surrounding state or states, or upon the national average sales price for such refinery charge stocks, whichever is greater.
Terms Used In Arizona Laws 27-570
- Department: means the state land department. See Arizona Laws 27-551
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Refinery charge stocks: means crude oil, liquid petroleum or gas condensate and blends of such products and all other products charged or chargeable to petroleum refinery facilities. See Arizona Laws 27-551
- Royalty oil: means crude oil, liquid petroleum products or gas condensates from wells or lease plants or a mixture of such products. See Arizona Laws 27-551
B. The department may execute on the bond for all unpaid department costs and losses.
C. The department may waive the requirement for a bond on assurances made by the applicant satisfactory to the department.