Tennessee Code 60-1-705 – Failure to perform – Forfeiture of bond – Securing performance
Terms Used In Tennessee Code 60-1-705
- Board: means the Tennessee board of water quality, oil and gas created by §. See Tennessee Code 60-1-101
- Contract: A legal written agreement that becomes binding when signed.
- Operator: means any person who owns or is directly responsible for a business involved in some phase of the production, manufacture, refining or distribution of petroleum oil or natural gas. See Tennessee Code 60-1-101
- Person: means any natural person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, fiduciary or representative of any kind. See Tennessee Code 60-1-101
- Supervisor: means the commissioner of environment and conservation or the commissioner's designee. See Tennessee Code 60-1-101
Upon failure of any operator to perform site protection or reclamation activities, as required by this chapter, and notice of default, if the default is not cured within a reasonable time by the operator or the surety, if any, on the operator’s bond, the board shall declare the bond forfeited, collect the bond and use the proceeds for the required site protection or reclamation work. The supervisor may contract with any person or public agency to perform the reclamation work. Any portion of the bond not thus expended shall be refunded to the operator or the operator’s surety if the conditions of the bond are fully satisfied. If the conditions of the bond are not fully satisfied, because the bond is a blanket bond or otherwise, the unexpended proceeds shall be held or applied in a manner to secure the performance of the remaining obligations secured by the bond. If the bond is a blanket bond and the unexpended portion is less than is required for the remaining wells covered by the bond, a supplementary bond shall be required.