Oil Well Bond. These bonds ensure that when the well is no longer producing it will be capped off in a way that does not impact the surrounding area. While most companies can be counted on to fulfill their requirements regarding these surety bonds, sometimes this requirement slips past even the most careful watchdog. That was the case in Utah recently.
Injection Wells SitedIt turns out that Newfield Exploration out of Texas did not post the required surety bonds when they were operating injection wells within the jurisdiction of the Ute Indian Reservation. The bonds would ensure that when these wells were closed off they would not impact the drinking water on the reservation. Since the passage of the Safe Water Drinking Act, all wells are required to post a surety bond for this very reason.
EPA Filing Moves ForwardThe Environmental Protection Agency (EPA) filed a complaint against the company when they failed to provide two of the five requirements of the act. This included an inability to provide proof of financial responsibility with either an Oil Well Surety Bond or other form of financial responsibility. Newfield has been fined $600,000 and has agreed to pay it. Although the complaint did not include any problems with spills, this penalty is a good reason to be sure that any company that is involved with the extraction industry researches thoroughly all of the requirements for the venture. This definitely includes any legislated requirements for surety bond coverage.
BuySurety Provides BondingIf you are in a business that may have surety bond requirements, don’t take a chance. You may find yourself liable for fines because of the wrong kind or amount of surety bond coverage. BuySurety has been providing surety bonds to a wide variety of industries for decades. We have the background and expertise to provide the right kind of low cost coverage your business requires. We know the surety bond business thoroughly and can work with you to ensure you have the coverage you need at a price that suits your company budget.
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Arizona Car Dealer RequirementsThere are three different situations where an auto dealer bond will be required as part of doing business. You can get a free quote for any of these Arizona Auto Dealer Surety Bonds. For all three situations, the bond must come from a company that is authorized to do business in Arizona. Lucky for you, BuySurety fits that bill just fine. If you have more than one location, you will need to have a separate surety bond for each county that you do business in. The one exception to this is the title service company which can run under multiple locations and they will be covered by the same car dealer bond.
- For New and Used Motor Vehicle Sales – $100,000 New and Used Motor Vehicle Dealer Bond
- For a Title Service Company – $25,000 Auto Dealer Bond
- For a Wholesale Auto Auction Dealer – $25,000 Wholesale Auto Dealer Bond
- For a Wholesale Motor Vehicle Dealer – $25,000 Motor Vehicle Dealer Bond
- For an Automotive Recycler – $20,000 Auto Dealer Bond
Nevada Car Dealer RequirementsThe Silver State separates out their auto dealer licenses, and the bonds that go with them, according to use. So if all you are planning to sell at your lot are new and used cars, this only needs one type of surety bond. But being the west, horse trailers, utility trailers and motorcycles are designated for a different kind of surety bond requirement. All of these types of Car Dealer Surety Bonds are available directly. Outside of these qualifications, the designations are fairly simple in Nevada for any kind of auto dealer bond.
- For selling new or used motor vehicles – $100,000 Car Dealer Surety Bond
- For selling motorcycles, horse trailers that do not have an area for living or utility trailers with unloaded weight of at least 3,501 pounds – $50,000 Motor Vehicle Dealer Surety Bond
- For selling utility or boat trailers with unloaded weight under 3,500 pounds – $10,000 Surety Bond
Utah Car Dealer Bond RequirementsThe Motor Vehicle Dealer (MVD) Surety Bonds for Utah motor vehicle dealers simply break down into cars versus bikes and trailers. This makes it fairly easy for Utah car dealerships to have their surety bond coverage taken care of with little fuss.
- Dealers of new and used vehicles as well as sellers of large trailers – $75,000 MVD Bond
- Dealers of motorcycles or small trailers – $10,000 MVD Bond
Idaho State MVD Bond RequirementsIf you have ever driven through Idaho and seen the sheer amount of rock and gravel, you would understand why it is called The Gem State. But this combination of mountain and desert makes Idaho a place where having a solid truck is essential, so auto dealerships are a good investment. As it is in Nevada, the auto dealer bond requirements are broken down into two camps: cars and trucks versus the smaller recreational vehicles and trailers. Both types of MVD Bonds are available directly from BuySurety.
- For New and Used Motor Vehicle Sales – $20,000 MVD Bond
- For Motorcycle, ATV, Utility Vehicles, Campers and Snow Machine Sales – $10,000 MVD Bond
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License & Permit Bond will be $50,000. The bond is posted for liability protection for third persons. It must be continuous and run concurrently with the provider’s license period. In addition, the Utah Capital Preservation Board has proposed a ruling to change requirements for private caterers. It would eliminate the requirement currently for private caterers hired for capital events to provide performance bonds. Both of these regulations are being considered as of March 2013 and look likely to be passed. You may want to check with your local authority in Utah regarding these if they may affect your current requirements regarding the posting of a surety bond.
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Utah Senate Bill 150 – Surety Bond Law RepealThe passage of Utah Senate Bill 150 would eliminate the Savings and Loan Association Act completely. The current law requires the chair of the association and the directors, officers and all employees to either establish an escrow account or post a surety bond. The elimination of the Act would also eliminate the need for a surety bond. The Senate Bill was introduced February 04, 2013 and passed the Senate. It is currently in the House and as of March 09, 2013 has passed all three readings. To access the complete text of Utah Senate Bill 150 as it now stands please follow the link here.
Utah Senate Bill 153 – Site Improvement BondsThe current requirements for the posting of a surety bond that a land use authority may require of a developer to ensure infrastructure improvement or landscaping is being considered for revision in Senate Bill 153. The Site Improvement Bonds are currently required for the duration of the warranty period for each improvement. The changes include an increased cost on those surety bonds. This cost could increase to as much as 10% of the engineer’s original estimated project completion cost. It can also be based on the applicant’s reasonable proven cost of completion, whichever of the estimates proves to be less. Utah Senate Bill 153 was first introduced to the Senate on January 30, 2013 and passed the Senate on February 6, 2013. It then went to the House. It passed the House on February 20 and returned to the Senate for signing on February 22, 2013. For a view of the entire bill as it now stands, please follow our link provided here.
Utah House Bill 245 – Immigration Consultant BondsThe passage of Utah House Bill 245 will see the requirements of the bond for licensing of immigration consultants extend from a one-year surety bond to a two year bond. This does not change any of the other current requirements for licensing of an immigration consultant. Utah House Bill 245 was introduced into the House on January 15, 2013 and is currently in review. For a full reading of the entire consumer protection bill, please follow the link we provide to you in this legislative summary.
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House Bill No. 503: Payment BondsHouse Bill 503 changes the type of contractors that will no longer be exempt from requirements for a preliminary notice regarding payment bond claims. The new types of contractors that will no longer be exempt include temporary labor services, professional employer companies or organizations or any entity that provides labor either temporarily or as a full-time contract. This bill was enacted on March 22, 2012 and went into law July 8, 2012. For a reading of the complete text to please follow the link provide in this summary.
Senate Bill No. 77: Permit Bonds—Oil & Gas WellsUtah Senate Bill 77 will extend the current requirements of a performance or surety bond by gas and oil well operators to surface landowners to now apply to additional losses. These losses can include unreasonable loss of crops or the value of the existing improvements or permanent damage to the surface land owned by the surface landowner of the property. However, if the surface landowner is a successor or party to a lease of the oil and gas, has signed an agreement of surface use or fulfilled a contract or waiver releasing the operator from liability regarding the use of the surface land, that surface landowner will not be covered by this bond. This bill was enacted on March 22, 2012 and went into law on July 8, 2012. Anyone wishing to read the entire text of Utah Senate Bill 77 can do so by following the link provided in this bill summary.
Senate Bill No. 144: License Bond—Immigration ConsultantsWith the passage of Utah’s Senate Bill 144 immigration consultants will be required to post a $50,000 immigration consultant bond when they register with the Division of Consumer Protection unless they are employees of a nonprofit tax-exempt corporation. The registration and bond posting is to protect against fraud, misstatement, misrepresentation or any unlawful acts or omissions or the failure to provide the service of an immigration consultant. Should the consultant’s registration be revoked the bond will be forfeited. This bill was enacted on March 23, 2012 and went into law on July 8, 2012. For a review of the full text of Utah Senate Bill 144 please follow the link provided in this legislative summary.
Senate Bill No. 153/Senate Bill No. 114: Protest BondsThe Utah Senate has passed a set of bills, SB153 and SB114 that will create the requirement of a surety bond posting under the following circumstances:
- To protest the award of a contract, with bond placed as security of the award decision
- To protest the procurement or appeal of a debarment, with the bond requirement of $1,000
- To protest an award for a bid or RFP, bond to be equal to 5% of lowest bid
House Bill No. 191: License Bond—Real Estate Appraisal Management CompaniesWith the enactment and passing of Utah House Bill 191 all real estate appraisal management companies will be required to post a license bond for a minimum of $25,000. The bond amount will be determined by the Division of Real Estate of the Department of Commerce. The bond must be issued by a company that is authorized to do business in the state of Utah. The bill was enacted on March 19, 2012 and went into law on May 8, 2012. To see the full text to Utah House Bill 191 please follow the links to the legislative information provided in this summary.
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