Mineral Leasing - Bonds

SURETY BOND

• Corporate Surety Bond
• Print the Bond Information/Forms Packet

Surety bonds are purchased from a bonding or insurance company authorized to do business in Idaho. The company issuing the bond must include their bond number and the lease/plan/permit number on the upper right-hand corner of the form. The bond must be made payable to the State of Idaho and carry the notarized signature of the surety and signature of the principal.

Collateral Bonds

• Certificate of Deposit - Time Deposit Receipt
• Print the Bond Information/Forms Packet

Certificates of deposit and time deposit receipts must be issued by a federally insured institution. Certificates and receipts will not be released for reissuance and should, therefore, be automatically renewable. The certificate or deposit receipt must be made out to the principal (first) or the Idaho Department of Lands (second), i.e., "John Doe, et. al or Idaho Department of Lands," in that order. The State retains physical possession of the document.

NOTE: Only original documents will be accepted in lieu of bond. If the issuing bank is not located in the State of Idaho or does not have a branch in Idaho, then a jurisdiction agreement must be executed by the bank and returned to the Department of Lands.

• Letters of Credit
• Print the Bond Information/Forms Packet

Letters of credit must be issued by an institution authorized to do business in the State of Idaho, or through a confirming bank authorized to do business in the State of Idaho, that engages it will itself honor the credit in full. As an alternative, a foreign bank may execute or consent to jurisdiction of Idaho courts on a form prescribed by the Idaho Department of Lands. Wording of the credit document must provide for presentation at a bank in the State of Idaho. The account party on all credits must be identical to the entity identified on the lease, permit or plan. The credit document must exactly follow the wording of a sample Letter of Credit which may be obtained from the Department upon request. A Certificate of Secretary must always accompany a Letter of Credit. If the issuing bank is not located in the State of Idaho, or does not have a branch in Idaho, then a jurisdiction agreement must be executed by the bank and returned to the Department of Lands.

• Cash
• Print the Bond Information/Forms Packet

An operator or lessee may submit a cash bond to be held by the Idaho Department of Lands. Interest does not accrue on cash bonds.

NOTE: Any bond submitted, regardless of type, requires a fully executed original Department-issued bond form. The bonding requirement is not satisfied until the bonding form has been submitted with the appropriate documentation attached thereto.