Alabama oil & gas single well bonds.
From $125.
Before drilling, operating, or producing a well, the State Oil and Gas Board of Alabama requires a permit bond. The single-well bond covers one permitted well, and the amount scales with measured depth. 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.
Trusted by industry leaders
How much does an Alabama oil & gas single 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.
Your permit is waiting on this bond. Here is the entire process:
Apply online
Operator details, the bond amount your depth tier requires, and the effective date — plus a one-time consent to a soft credit pull.
Approved
Most are approved as soon as you apply. The soft pull never affects your score. If it needs a second look, one to two business days at most.
File with the Board
Receive the executed bond, payable to the State Oil and Gas Board of Alabama, ready to file with your permit. Wet-ink original on request.
What it is and who needs it.
What the single-well bond actually guarantees
The State Oil and Gas Board of Alabama regulates the drilling and production of oil, gas, and Class II injection wells under its Administrative Code (the 400-series rules). Before you complete, drill, operate, convert, or produce a permitted well, the Board requires a bond — the single-well bond covers one specific permitted well.
The bond is a plugging-and-restoration guarantee: it stands behind your obligation to properly plug and abandon the well and restore the site under the Board's rules, so the cost does not fall on the state if you default. It is a three-party arrangement — you (the operator/principal), the surety carrier, and the Board (the obligee).
The amount is tied to measured depth: surety-market guidance based on the Board's schedule runs $5,000 at 5,000 feet or less, $10,000 to 10,000 feet, $15,000 to 15,000 feet, $30,000 to 20,000 feet, and $50,000 above that. If you operate more than one well, a blanket bond is usually cheaper — confirm your figure on the Board's permit instructions.
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 bond, payable to the State Oil and Gas Board of Alabama, ready to file with your permit. 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, issued instantly.
These are the actual underwriting fields, including a one-time soft credit pull. The executed 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 .
The Board is waiting on one document.
From $125, soft pull only — your exact price appears at the application. Enter the amount your depth tier requires and file the same day.