ENTITLED, An Act to revise the provisions regarding plugging and performance bonds for oil and
gas wells and to repeal the supplemental restoration bond requirement.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. That § 45-9-15 be amended to read as follows:
45-9-15. Without limiting its general authority, the Board of Minerals and Environment may
require, or may delegate to the secretary of environment and natural resources, specific authority to
require the furnishing of a plugging and performance bond in the amount as follows:
(1) For wells at or less than fifty-five hundred feet in depth, an individual bond of ten
thousand dollars per well drilled or a thirty thousand dollar blanket; or
(2) For wells more than fifty-five hundred feet in depth, an individual bond of fifty thousand
dollars per well drilled, or one hundred thousand dollars blanket,
with good and sufficient surety, conditioned for the performance of the duty to plug each dry or
abandoned well, to restore the premises, insofar as possible, to the condition that existed before the
filing of the application to drill; and conditioned on the proper performance of all of the requirements
of §§ 45-9-5 to 45-9-18, inclusive. The condition of the bond insofar as it relates to restoration of
the surface is deemed to have been complied with if the landowner or lessee and the producer or
driller adopt a different plan as approved by the board. The board may require additional bond if the
Section 2. That § 45-9-15.1 be repealed.
Section 3. The bond requirements in section 1 of this Act do not apply to any wells permitted or
drilled prior to July 1, 2013, unless the well is sold or transferred after July 1, 2013.
An Act to revise the provisions regarding plugging and performance bonds for oil and gas wells and
to repeal the supplemental restoration bond requirement.
I certify that the attached Act
originated in the
SENATE as Bill No. 1
Secretary of the Senate
President of the Senate
Secretary of the Senate
Speaker of the House
Senate Bill No. 1
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State