§ 78.308. Collateral bonds—negotiable bonds.
Negotiable bonds submitted and pledged as collateral for collateral bonds under section 215(a)(3) of the act (58 P. S. § 601.215(a)(3)) are subject to the following conditions:
(1) The Department will use the current market value of governmental securities, other than United States Treasury Zero Coupon Bonds, for the purpose of establishing the value of the securities for bond deposit.
(2) The current market value shall be at least equal to the amount of the required bond.
(3) The Department may periodically evaluate the securities and may require additional amounts if the current market value is insufficient to satisfy the bond amount requirements for the oil or gas well operations.
(4) The operator may request and receive the interest accruing on governmental securities filed with the Department as the interest becomes due and payable. An operator will not receive interest accruing on governmental securities until the full amount of the bond has been accumulated. No interest may be paid for postforfeiture interest accruing during appeals and after resolution of the appeals, when the forfeiture is adjudicated, decided or settled in favor of the Commonwealth.
Source The provisions of this § 78.308 adopted July 28, 1989, effective July 29, 1989, 19 Pa.B. 3229; amended December 16, 1994, effective December 17, 1994, 24 Pa.B. 6284. Immediately preceding text appears at serial pages (138867) to (138868).
Cross References This section cited in 25 Pa. Code § 78.303 (relating to form, terms and conditions of the bond).
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