To complete the 10-402B form accurately, follow these steps:
Step1. Fill in Operator and Bond Information
Start by entering the name of the operator responsible for the wells. Include the operator’s full legal name, address, and the location of the business (city, state, and ZIP code).
Specify the bond number and the penal sum (the bond amount in U.S. dollars), which must correspond to the number of wells being managed.
Step 2. Describe the Security Type
Specify the type of security backing the bond. This could be an irrevocable letter of credit, a certificate of deposit, or another approved form of security.
Please include all necessary identifying details, such as the certificate number or issuing bank information, to ensure the financial institution is authorized to do business in Alaska.
Step 3. Provide Details of the Well Operations
List the number of wells or wellheads covered by the bond. Depending on the number, select the corresponding bond amount category, such as $400,000 per well or tiered amounts for multiple wells.
Double-check that the bond amount aligns with AOGCC requirements for the scale of operations.
Step 4. Include Acknowledgment Information
Complete the acknowledgment section by providing the state, judicial district or county, and date. This section should be notarized to validate the operator’s commitment to the bond agreement. Include the notary public's information and signature.
Step 5. Obtain Commissioner Approval
The form requires approval from two AOGCC commissioners. Leave space for their signatures and the date of approval.
Step 6. Submit to the AOGCC
After completing and notarizing the form, submit it to the Alaska Oil and Gas Conservation Commission. Retain a copy for your records, as the bond remains active until formally released by the AOGCC. If required, notify the commission 90 days before termination.
