34-53-13. Pipeline company to furnish surety bond.
A pipeline company shall furnish a surety bond to the Department of Revenue written by a company authorized by the Division of Insurance to write surety bonds, in an amount of one million dollars for every ten miles affected by a project, but not in excess of twenty million dollars for each project. The surety bond furnished under this section is due to the Department of Revenue twenty days after the project commencement date. The surety bond shall name the state as the assured and shall be deposited with, and in a form and on terms approved by, the secretary of the Department of Revenue.
A pipeline company shall increase the surety bond above the initial surety bond amount by increments of twenty-five percent of the initial surety bond amount within ten days following each instance in which the department issues written notice that the incremental amount of all disputed and properly preserved claims under §34-53-9 equals twenty-five percent of the initial surety bond amount.
A political subdivision does not have standing to make a claim against the surety on a surety bond under this section. The state may file a claim against the surety if a pipeline company is in violation of this chapter. (This section is repealed effective June 30, 2025 pursuant to SL 2019, ch 157, §19.)
Source: SL 2019, ch 157, §13, eff. Mar. 27, 2019.