Beginning July 1, 2015, all individuals who conduct seismic operations in the state of Mississippi are required to post a surety bond introduced by Senate Bill 2317. Prior to this introduction, anyone who provided seismic operation services was not required to have a form of financial security. This new obligation is put in place to ensure satisfactory performance of any person conducting seismic operations and to temporarily cover any damages resulting from said operations.
Those required to post this permit bond include anyone who uses weight drop equipment, thumpers, hydropulses or vibrators during the exploration of oil, gas and other minerals as well as drilling seismography test holes.
By posting this bond, seismic operations conductors (principals) promise to perform their operations in a professional and ethical manner. If surface owners suffer damages due to misconduct during seismic operations, they have the option to file a claim to the Board. Principals will then be responsible for reimbursing the surety company.
This bond must be posted in an amount ranging anywhere from $50,000 to $250,000 and will be determined by the Mississippi Oil and Gas Board on a case-by-case basis. Each individual operation requires its own surety bond and must be held throughout the entire process until the job is complete. More details on this particular bond can be accessed here.
In addition to posting a surety bond, the Board also requires seismic operations conductors to obtain a permit allowing them to legally conduct operations in the state of Mississippi. Applications for permits must be submitted on forms previously prescribed by the Board.
If you find that you need to post this surety bond in order to continue performing lawful operations in Mississippi, contact our bonding experts at SuretyBonds.com. Our specialists are very familiar with this type of bond and are more than happy to work with you one-on-one to get the bond you need quickly and accurately. Call today at 1 (800) 308-4358 or request a quote now.
