§ 74-79. Bonds. - North Carolina Statutes

§74‑79.  Bonds.

Each applicant for anexploration permit shall file with the Department following approval of hisapplication and shall thereafter maintain in force a bond or other security infavor of the  State of North Carolina. The bond or other security shall beacceptable to the Department and shall be in an amount determined by theDepartment based upon a schedule established by the Commission. That scheduleshall provide for bond or other security at a level that will allow theDepartment, through whatever reasonable means it chooses, to perform theabandonment and other work required by this Article. The bond or other securityshall be continuous in nature and shall remain in force until cancelled by theguarantor. Cancellation shall be effectuated upon written notice thereof bycertified mail, return receipt requested, to the Department and to the permitholder, and shall be effective no sooner than 60 days following receipt by theDepartment and the operator.

The bond or other securityshall be conditioned upon the faithful performance of the requirements setforth in this Article and of the rules adopted pursuant to it. Liability underthe bond or other security shall remain in effect until completion ofabandonment or until substitution of a good and sufficient bond or othersecurity acceptable to the Department. In no event shall the liability of thesurety exceed the amount of the bond or other security required by thissection.

If notice of impendingcancellation is issued by the surety, or if for any reason, the bond or othersecurity provided is suspended or revoked or ceases to be effective, the permitholder shall, within 30  days of receipt of notice thereof, substitute a goodand sufficient bond or other security acceptable to the Department. Uponfailure of the permit holder to make the required substitution, his permitshall  automatically become void and of no effect. Any continuation ofexploration after the permit becomes void and ineffective shall make himsubject to all sanctions and remedies afforded by this Article. (1983,c. 279, s. 1.)