Whenever the Agency finds that a default has occurred in the performance of any requirement or condition of these regulations, written notice thereof shall be given by the Agency to the principal and the surety on the bond. The notice shall specify the work to be done or the conditions and requirements to be fulfilled, the estimated cost thereof and the period of time deemed by the Agency to be reasonably necessary for the completion of such work. After receipt of such notice, the surety shall, within the time specified therein, either cause or require the work to be performed or the conditions and requirements to be fulfilled, or failing therein, shall pay to the Agency the estimated cost of doing the work as set forth in the notice, plus an additional amount equal to 25% of the estimated cost. Upon receipt of such moneys, the Agency shall proceed in such manner as is deemed necessary to cause the required work to be performed and completed, or the conditions and requirements fulfilled, but no liability shall be incurred therein except for the expenditure of the sum in hand. In the event a well has not been properly abandoned under the regulations of the State Division of Oil and Gas, such additional money as is necessary to restore the drill site in conformity with these regulations may be demanded from the surety.
(`78 Code, § 14.12.050.)