27-255. Bonds

A. The commissioner, in the commissioner's discretion, may require the applicant for an exploration permit, in conjunction with issuing the exploration permit, to file with the commissioner a surety bond, in form and amount and with surety approved by the commissioner, conditioned on the prompt payment to the owner and lessee of the surface of state land to be covered by the permit, or across which the permittee exercises the right of ingress or egress, for any loss to such owner or lessee from damage or destruction caused by the permittee or his or its agents or employees to grasses, forage, crops and improvements on such state lands.

B. The commissioner may also require the permittee to furnish a bond, in a reasonable amount to be fixed by the commissioner, conditioned that the permittee will guarantee restoration of the surface of the state land described in the exploration permit to its former condition on any partial or total relinquishment of such state lands, or the cancellation or expiration of the permit other than by issuance of a lease.

C. On default, the commissioner may use the proceeds of the bond for the purposes described in subsection A or B of this section.