§ 4-209. Performance bond.
A. Unless waived in writing by the Osage Nation Congress in accordance with this Act, lessee shall obtain a satisfactory performance bond in an amount sufficient to secure the contractual obligations of the lease. Such bond shall be for the purpose of securing lessee’s contractual obligations under the lease and may guarantee:
1. The annual rental payment under the lease;
2. The estimated development cost of improvements; and
3. Any additional amount necessary to ensure compliance with the lease and restoration/reclamation of the leased premises.
B. The Osage Nation Congress may waive the bond requirement, or reduce the amount, if doing so is in the best interest of the Nation. The Director shall maintain written records of waivers and reductions.
C. The performance bond may be in one of the following forms:
1. Certificate of deposit issued by a federally insured financial institution authorized to do business in the United States;
2. Irrevocable letter of credit issued by a federally insured financial institution authorized to do business in the United States;
3. Negotiable security issued by the U.S. Department of the Treasury; or
4. Surety bond issued by a company approved by the U.S. Department of the Treasury.
D. If a certificate of deposit, letter of credit, negotiable security, or any combination thereof is used to ensure performance, lessee must enter into a written surety agreement with the Osage Nation, which agreement shall establish the written procedures to be followed if lessee defaults in any payment or performance requirements under the lease. ONCA 17-01, eff. Dec. 9, 2016.