Fill Out Your 1004D Form

Filling out the 1004D form, a personal bond for the Alaska Oil and Gas Conservation Commission, requires careful attention to detail. One common mistake is omitting crucial information, such as the penal sum. Ensure that you clearly state the penal sum, as it is a vital component of the bond. Without this detail, your form may be rejected or delayed.

Another frequent error involves incorrect or incomplete identification of the bank issuing the Certificate of Deposit or Irrevocable Letter of Credit. It's essential to provide the full name of the bank and the relevant account information. An incomplete bank designation can hinder the process, making it essential to double-check all entries before submission.

Choosing the wrong type of bond can also create problems. Applicants often overlook the distinction between a single well bond and a blanket bond. Select the appropriate option based on your needs, as the requirements and penal sums differ significantly. Not aligning your choice with the specific operational plans can lead to complications or disapproval.

Additionally, many individuals fail to have the acknowledgment section completed correctly. This section must be signed by a notary public, and the details should be accurate, including the commission expiration date. An improperly executed acknowledgment may result in a rejection of the document.

Finally, forgetting to submit the form in duplicate can delay processing. The 1004D requires two copies for filing. Always check your submission to ensure you have prepared the correct number of duplicates. This oversight can lead to longer wait times for approval, impacting your operational timeline.

When completing the 1004D form, several other forms and documents are commonly required to ensure compliance with regulatory obligations. The following list highlights important accompanying documents:

• Certificate of Deposit: This financial document serves as a form of security for the bond, issued by a bank authorized to operate in Alaska. It guarantees funds are available for the Alaska Oil and Gas Conservation Commission in case of non-compliance.
• Irrevocable Letter of Credit: Similar to a certificate of deposit, this document is issued by a bank and guarantees payment to the Alaska Oil and Gas Conservation Commission. The 'irrevocable' aspect ensures that the letter cannot be canceled without the approval of the Commission.
• Bond Application Form: This form provides essential information about the operator, including their legal status, intended operations, and details regarding the bond's penal sum. Completing this form is usually a prerequisite for processing the 1004D form.
• Well Location Map: This document identifies and illustrates the geographical location of the well or wells being drilled or operated. It supports the information provided on the 1004D form and confirms the compliance with location regulations.
• Operational Plan: An operational plan outlines the intended procedures for drilling, operating, and abandoning the well. This guidance document helps ensure that all activities comply with state regulations and safety standards.

These forms and documents play a crucial role in the regulatory process surrounding oil and gas operations in Alaska. They enhance the understanding of the operator's compliance and commitments to the Alaska Oil and Gas Conservation Commission.

• Form 1004: Similar to the 1004D form, the 1004 form is a standard appraisal report used in real estate transactions. It relays valuable information about properties, including their condition and estimated value. Both forms ensure that obligations are clear and documented for parties involved.
• Form 1004MC: This form, known as the Market Conditions Addendum, complements the 1004 form by detailing the neighborhood economic trends. Like the 1004D, it aims to provide a comprehensive view of situational factors that could influence a property's value.
• Form 442-H: The Uniform Residential Appraisal Report (URAR) is akin to the 1004D as it also serves to estimate a property's worth. Both documents emphasize compliance and are crucial in financing decisions relating to properties.
• Form 1003: The Uniform Residential Loan Application form has similarities to the 1004D in that it collects pertinent information necessary for processing loans. Both documents serve to facilitate transparency and accuracy in the transactional process.

When filling out the 1004D form, it's essential to follow certain guidelines to ensure accuracy and compliance. Here are some dos and don'ts to keep in mind:

• Do double-check all information before submission.
• Do use clear and legible handwriting or type to avoid any misunderstandings.
• Do ensure that any required supporting documentation is attached.
• Do include your contact information in case the Commission needs to reach you.
• Don't leave any sections incomplete; every part of the form is important.
• Don't use correction fluid on the form; it can lead to confusion.
• Don't submit the form late; deadlines must be respected.
• Don't forget to sign and date the form—this is a crucial step in the process.

By adhering to these guidelines, you can help facilitate a smoother review process with the Alaska Oil and Gas Conservation Commission.

Understanding the 1004D form is critical for operators involved in the oil and gas industry in Alaska. However, there are several misconceptions that can lead to confusion. Here are some common myths clarified:

• 1. The 1004D form is only relevant for new operators. Many believe that this form only applies to newly established operators. In reality, any operator drilling or operating wells in Alaska must submit this form, regardless of their length of operation.
• 2. The bond amount is fixed and cannot be changed. Some think that the penal sum is set in stone. In truth, while there are minimums – $100,000 for a single well and $200,000 for a blanket bond – the Alaska Oil and Gas Conservation Commission can adjust these amounts based on specific circumstances.
• 3. The form is only a regulatory requirement. Many view the form merely as red tape. However, it serves to protect public interests and ensure that operators are financially accountable for their activities.
• 4. The bond must be cash only. It is a common misconception that the security must consist solely of cash. Other forms of security, such as irrevocable letters of credit or certificates of deposit, are also accepted.
• 5. Filing a 1004D form guarantees the release of the bond automatically. Some believe that submitting the form automatically releases them from liability. This is incorrect; the bond remains active until officially released by the Commission.
• 6. The penalties for non-compliance are insignificant. A misconception exists that any penalties for not complying with the bond requirements are minor. Failure to comply can result in significant financial repercussions, including fines and legal action.
• 7. Only financial institutions provide bond security. Often, there is an assumption that only banks can issue the required bond securities. However, other institutions authorized in Alaska may also provide valid forms of security.
• 8. The 1004D form needs to be submitted only once. Some operators mistakenly think that submitting the form is a one-time requirement. In reality, it must be maintained and resubmitted as necessary, especially when conditions change.
• 9. The eligibility for the bond is universal. There can be a belief that all operators will be eligible for bond approval. However, each application is subject to review, and the Commission has the discretion to deny or require additional terms based on past compliance history or other factors.

By clarifying these misconceptions, operators can better navigate the regulatory landscape and fulfill their obligations to both the state and the public. Understanding the nuances of the 1004D form is essential for responsible and compliant operation in Alaska’s oil and gas sector.

When it comes to filling out the 1004D form, here are some essential points to consider:

• Understand the purpose: The 1004D form is primarily a bond required by the Alaska Oil and Gas Conservation Commission for operators planning to drill or operate oil and gas wells in Alaska.
• Choose the right bond: You can opt for a Single Well Bond with a minimum penal sum of $100,000 or a Blanket Bond with a minimum penal sum of $200,000, depending on your needs.
• Identify your security: Specify the type of security backing your bond. This can be a Certificate of Deposit or an Irrevocable Letter of Credit, among other options.
• Provide location details: Accurately describe the well's location, including the Unit or Lease Name, Well Number, and coordinates in both legal land description and Alaska State Plane Coordinate System format.
• Stay compliant: Ensure you comply with all regulations, rules, and orders set by the Alaska Oil and Gas Conservation Commission regarding well operation and maintenance.
• File required notices: Keep in mind that all notices and records required by the Commission must be submitted in a timely manner to maintain the validity of your bond.
• Notarization is key: Don’t forget to have the form acknowledged by a notary public. This step is crucial for the validity of your submission.

By keeping these points in mind, you'll be better prepared to navigate the requirements of the 1004D form effectively. The process may seem daunting at first, but understanding each step will streamline your experience.