Each operating company (see 20 AAC 25.990(46)) establishes a single-well bond or a statewide bond with Alaska Oil and Gas Conservation Commission (AOGCC) under Regulation 20 AAC 25.025 to drill, produce, and maintain oil and gas wells. An operator’s bond remains active from the time the operator applies for a Permit to Drill for its first well until all wells operated by that particular company are plugged and abandoned according to state regulations and all well sites are restored in conformance with Regulations 20 AAC 25.170 or 20 AAC 25.172. The AOGCC does not establish bonds solely for the purpose of dismantling, removing and restoring wells.
This link will take you to a web page that is titled “Oversight and Surveillance.” This is a long page, but it explains both processes and the imbedded hyperlinks will take you to all of the regulations and forms. Each of the headings on the page are hyperlinks. Clicking on them brings the text and descriptions into view. This web page is provided for your convenience; please be sure to review the Alaska State Statutes and the Alaska Administrative Code, which are the ultimate authorities.
Operators can choose to submit either a surety bond (Form 10-402A) or a personal bond (Form 10-402B), depending on the financial instrument used. AOGCC’s bond forms are available online through our website using the “Forms & Functions” hyperlink. Form 10-402A is required to establish a Surety Bond. A Personal Bond is established using Form 10-402B. If a surety bond is used, the insurer must be authorized in Alaska. You can check this online at:
Type in the insurance company name, click on the “Submit” button, then click on the hyperlink in the “Company Name” column, click on the “Line of Business” hyperlink, and scan down the “Line Name” list to find “Surety” and then across to find the effective date for that company’s license in the State of Alaska. If “Surety” is not in the list, then the company is not authorized to provide that service in Alaska.
If an operator chooses to use a Certificate of Deposit (CD) as the financial backing for the bond, then the operator must submit:
The CD must clearly state that the certificate of deposit is issued in the sole favor of the Alaska Oil and Gas Conservation Commission, and it must be obtained from a bank authorized to do business in the State of Alaska. If you chose to use an out-of-state bank or credit union, you can check whether or not that institution is authorized by going online to:
Please note that Powers of Attorney are required for every representative signing these forms. These Powers of Attorney must demonstrate that each person signing has the legal authority to bind the corporation to lease agreements. The bond cannot be processed until the AOGCC has Powers of Attorney for every representative signing these forms.
Ms. Jody Colombie coordinates all bonding activities for the AOGCC. She can be reached at email@example.com or 907-793-1221.