Permits for crude oil production -- Application -- Bond requirement -- Closure of facilities -- Availability of records.

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  • (1) The division may issue permits authorizing construction, operation, maintenance, and cessation of treating facilities and operations covered by Subsection 40-6-5(2)(h) and to approve, as part of that permit, post-cessation reclamation of the site.
  • (2)
    • (a) An owner and operator of a facility described in Subsection 40-6-5(2)(h) or planning to construct, operate, or maintain a facility described in Subsection 40-6-5(2)(h) shall submit to the division an application stating in detail:
      • (i) the location, type, and capacity of the facility contemplated;
      • (ii) the extent and location of area disturbed or to be disturbed including any pits, ponds, or lands associated with the facility;
      • (iii) a plan for reclamation of the site; and
      • (iv) other materials required by the division.
    • (b) Existing facilities described in Subsection 40-6-5(2)(h) shall submit plans by July 28, 1985.
    • (c) Application for all planned facilities must be approved and a permit issued before any ground clearing or construction may occur.
  • (3)
    • (a) As a condition for approval of a permit, the owner and operator shall post a bond in an amount determined by the division to cover reclamation costs for the site consistent with rules made to implement Subsection 40-6-5(2)(f).
    • (b) Approval of a permit is also conditioned upon compliance with the laws, rules, and orders of the board.
    • (c) Failure to post the bond is considered sufficient grounds to deny a permit.
  • (4) The board may order the closure of a facility described in Subsection 40-6-5(2)(h) if:
    • (a) an application is not forthcoming in the time allowed in Subsection (2);
    • (b) a bond is not posted;
    • (c) a violation of the rules and regulations of other state or federal agencies exists; or
    • (d) for other material and substantial cause.
  • (5) The owner and operator are subject to applicable state, federal, and local rules and regulations.
  • (6) The records required to be kept by Subsection 40-6-5(2)(i) shall be available for inspection and audit by the board or the board's agents during reasonable working hours.




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