The Water Management Board and the Board of Minerals and Environment shall establish, by rules promulgated pursuant to chapter 1-26 : (1) Criteria to determine the amount of security required and other terms as necessary to define the respective obligation of the parties; (2) The procedure to follow and the circumstances under which the state or applicant may obtain board approval for the release of the security; and (3) Conditions under which the security may be held by the state after the expiration of the permit or license.
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