27-570. Bond and penalties; waiver

A. If the department requires a bond to guarantee performance by the buyer, the amount shall be based on the average price of royalty oil sold in this state during the preceding month. If no royalty oil was sold in this state during the preceding month, the amount of the bond shall be established by the commissioner based upon the prevailing market price for refinery charge stocks of similar composition sold in Arizona or in a surrounding state or states, or upon the national average sales price for such refinery charge stocks, whichever is greater.

B. The department may execute on the bond for all unpaid department costs and losses.

C. The department may waive the requirement for a bond on assurances made by the applicant satisfactory to the department.