Freestone County says it will not release road bonds after XCO Energy notice; staff to seek replacement coverage

Freestone County staff told commissioners they had received notices that several performance bonds securing road‑use obligations were canceled after a change in operating companies. Staff identified affected roads and said Liberty Mutual and other carriers issued notices; one example referenced a bond on County Road 111.

Commissioners discussed the county’s obligation and concluded they should not release access or road bonds until a replacement bond is secured. Staff were instructed to contact the insurer (referred to in the meeting as Hillcourt/Hill Court) and the new operator to ensure replacement coverage is obtained before allowing operations that use county roads.

One commissioner noted the county could hold the bonds and that responsibility for replacement should fall on the operator. Staff said cancellation notices typically become effective 30 days after receipt and that county approval would be required to release a bond. The court did not release any bonds at the meeting and recorded direction to follow up with the insurer and operator.