Guidance for Filing Forms RRC CF-1 (Bond) and RRC CF-2 (Letter of Credit) Rule 78 (l): Financial Security for Commercial Facilities

Contacts: Kathy Keils at 512-463-7562 or David Cooney at 512-463-6977

FORM CF-1  
   
Type of Facility: Place an X in the box that identifies the type of facility (ies) the bond will cover.

   
Box Number 1: Fill in complete organization name exactly as it appears on Form P-5 (Organization Report). If the name on the Form P-5 is an assumed name, you must also state the full name of the organization for which the Form P-5 name is assumed. For example, if the name DC Drilling is on the Form P-5, but DC Drilling is actually a d/b/a or assumed name of Smith Exploration, Inc. the name in Box Number 1 would be DC Drilling (a d/b/a (or assumed name) of Smith Exploration, Inc.)

   
Box Number 2: Fill in Form P-5 number as shown on organization report. 

   
Box Number 3: Include the total number of injection/disposal wells, if applicable, associated with the commercial facility. For example, a collecting pit is associated with at least one injection/disposal well.

   
Box Number 4: Identify any other Commission-regulated operations. If none, may mark "NA" or leave blank.
   
1.1: Fill in the operator's name exactly as shown above in Box Number 1.
   
1.2: Fill in full name of Surety.
   
1.3: Use each line for information concerning one permit only. If there will be more than 4 permits covered by the instrument, the additional permits may be added on a separate sheet entitled "Exhibit A of RRC CF-1 Bond No. _____." 

Include only the pertinent information as described in instructions on form: facility name, RRC ID No., physical address, county, permit number.
   
2.1: Fill in the amount of financial security approved by the Commission.

   
Bond No.: Fill in the bond number.

   
2.8: Fill in the expiration date.

   
Dated: Fill in the effective date of the bond.

   
Surety Signature: The person signing for the surety must have authority to sign. Place a seal on the bond and attach a signed and dated power of attorney demonstrating that the person signing for the surety indeed has authority to sign.
   
Principal Signature: The person signing for the operator/principal must have authority to sign and may be asked to provide documentation demonstrating the person's authority to sign. Print or type the name of the person that signed and their title.
   
NOTE: If the Commission approved bond has a rider, the rider must be updated and included with any continuation certificate yearly, or upon renewal, a clause can be included in continuation certificate.
   
   

 

 

FORM CF-2  
   
Date: Fill in date.
   
Name of Issuing Bank: Fill in complete name of issuing bank.
   
Address of Issuing Bank: Fill in complete physical address of the issuing bank.
   
Type of Facility: Place an X in the box that identifies the type of facility (ies) the letter of credit will cover.
   
Letter of Credit No.: Fill in the letter of credit number. This number must match the number on the bottom right of this page "LOC No. ____," and on the Exhibit A, if an Exhibit A is needed.
   
Box Number 1: Fill in complete organization name exactly as it appears on Form P-5 (Organization Report). Form P-5 must be active. If the name on the Form P-5 is an assumed name, you must also state the full name of the organization for which the Form P-5 name is assumed. For example, if the name DC Drilling is on the Form P-5, but DC Drilling is actually a d/b/a or assumed name of Smith Exploration, Inc. the name in Box Number 1 would be DC Drilling (a d/b/a (or assumed name) of Smith Exploration, Inc.)
   
Box Number 2: Fill in Form P-5 number as shown on organization report.
   
Box Number 3: Include the total number of injection/disposal wells, if applicable, associated with the commercial facility. For example, a collecting pit is associated with at least one injection/disposal well.
   
Box Number 4: Identify any other Commission-regulated operations. If none, may mark "NA" or leave blank.
   
Lines (A) through (D): Use each line for information concerning one permit only. If there will be more than 4 permits covered by the instrument, the additional permits may be added on a separate sheet entitled "Exhibit A of RRC CF-2 Letter of Credit No. _____."

Include only the pertinent information as described in instructions on form: facility name, RRC ID No., physical address, county, permit number.
   
2nd Paragraph: Fill in the operator's name exactly as shown above in Box Number 1. Fill in the aggregate amount of financial security approved by the Commission, and the effective date of the letter of credit.
   
Authorized Signature 
and Countersignature:
Sign by officers of the financial institution, type their name and office under their signature. Send a certified copy of the financial institution's Corporate Resolution that is passed each fiscal year stating who has authority to sign and for how much. The authorized signature must be from a person whom the corporate resolution identifies as having authority. 
   
LOC No.: Fill in the letter of credit number.
   
NOTE: No additional wording of any nature may be added to the form.
   
   

Last Updated: 5/18/2016 4:01:01 PM