Alabama oil & gas blanket well bonds.
From $125.
A blanket bond lets an operator cover all of their Alabama wells under one bond with the State Oil and Gas Board of Alabama, instead of bonding each well separately. The premium is 5% of the bond amount plus a $25 fee, $125 minimum, and your exact price appears at the application. One soft credit pull.
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How much does an Alabama oil & gas blanket well bond cost?
5% of the bond amount plus a $25 fee, from $125. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
One bond for the whole operation. Here is the entire process:
Apply online
Operator details, the blanket bond amount the Board set, and the effective date — plus a one-time consent to a soft credit pull.
Reviewed & approved
Blanket amounts may get a closer look; if underwriting needs anything, an underwriter reaches out within 48 hours. The soft pull never affects your score.
File with the Board
Receive the executed blanket bond, payable to the State Oil and Gas Board of Alabama, ready to file. Wet-ink original on request.
What it is and who needs it.
What the blanket bond actually guarantees
The State Oil and Gas Board of Alabama requires a permit bond on every oil, gas, or Class II injection well it regulates under its Administrative Code (400-series rules). A blanket bond satisfies that requirement for all of an operator's wells at once, rather than filing a separate single-well bond for each.
Like the single-well bond, it is a plugging-and-restoration guarantee: it stands behind your obligation to properly plug, abandon, and restore every covered well site under the Board's rules. It is a three-party arrangement — you (the operator/principal), the surety carrier, and the Board (the obligee).
The blanket amount is set by the Board for your operation rather than by a single well's depth. Once you run more than a handful of wells, the blanket is typically cheaper than bonding each one — but the controlling figure is the one the Board names on your permit instructions, so confirm it and we will issue it — premiums start at $125, with your exact price at the application.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Board. Receive the executed blanket bond, payable to the State Oil and Gas Board of Alabama, ready to file. Wet-ink original on request.
What sets the price
The premium is 5% of the bond amount plus a $25 fee, $125 minimum: the amount the obligee sets moves the price, not your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application: approved instantly, or after a quick credit check.
These are the actual underwriting fields, including a one-time soft credit pull. The executed blanket bond is payable to the State Oil and Gas Board, ready to file.
Start the application →Common questions.
Other Alabama bonds.
Price and requirements checked on the carrier’s application, . Page updated .
One bond for the whole operation.
From $125, soft pull only — your exact price appears at the application. Enter the blanket amount the Board set and file in 1–2 business days.