2017 Arizona Revised Statutes
Title 27 - Minerals, Oil and Gas
§ 27-255 Bonds
27-255. Bonds
A. The commissioner, in his discretion, may require the applicant for a mineral exploration permit, prior to issuance of such permit, to file with the commissioner a surety bond, in form and amount and with surety approved by the commissioner, conditioned upon the prompt payment to the owner and lessee of the surface of state land to be covered by the permit, or across which the permittee exercises the right of ingress or egress, for any loss to such owner or lessee from damage or destruction caused by the permittee or his or its agents or employees to grasses, forage, crops and improvements upon such state lands.
B. The commissioner may also require the permittee to furnish a bond, in a reasonable amount to be fixed by the commissioner, conditioned that the permittee will guarantee restoration of the surface of the land described in the mineral exploration permit to its former condition upon any partial or total relinquishment of such lands, or the cancellation or expiration of the permit other than by issuance of a mineral lease.
C. On default, the commissioner may use the proceeds of the bond for the purposes described in subsection A or B.
