(1) Every applicant for a storage permit shall, at the time of application, file with the Department a surety bond in the amount of $1,000, payable to the Comptroller of the State on a form approved by the Department and executed by a responsible surety company authorized to do business in the State. The bond is intended to assure that necessary safety measures are maintained, and that any well or other opening used in connection with the storage project is properly sealed after abandonment of the project if this action is considered necessary by the Department to protect one or more of the natural resources of the State. Any transferee shall file a similar bond.

(2) A permeable sand or stratum containing gas, or into which gas or a liquefied petroleum derivative has been forced under pressure, may not be drilled or left open in a manner permitting an avoidable escape of gas to occur. A well connected with a storage reservoir containing either natural gas or a petroleum derivative stored under pressure, may not be situated within 50 yards of any existing building used as a residence or office.

(3) All freshwater sands penetrated in drilling to a storage reservoir shall be fully protected by cement grout placed to provide an effective seal to the nearest thick clay bed above the gas storage stratum having a thickness of at least 25 feet. In order to provide an effective seal in the nearest thick clay bed above the gas storage stratum, the clay bed shall have a thickness and other geologic properties adequate, in the opinion of the Department, to constitute sufficient protection to the potable freshwater supplies existing in any aquifers.