Southern Ute severance tax bonds.
2% of the bond amount.

What the severance tax security actually guarantees

The Southern Ute Indian Tribe imposes a 6.5% severance tax on oil, condensate, natural gas, methane gas, casinghead gas, and processed gas (and their associated liquid products) severed from tribal trust lands, tribally owned fee lands, and allotted or restricted lands within the boundaries of the Southern Ute Indian Reservation, under Title 21 of the Southern Ute Indian Tribal Code — the Severance Tax Code. Any working-interest owner, or a person claiming ownership of an interest in those substances, is generally liable for the tax; an operator commonly pays on behalf of the working-interest owners under an internal policy or agreement.

Under § 21-2-114 (Bonds and Other Security for Taxes), most working-interest owners and operators paying this tax must post security with the Tribe in an amount equal to the highest tax liability that previously accrued to that owner or operator during any two-month period. The security can take the form of a surety bond, a cash deposit held in suspense by the Tribe, an assignment of a certificate of deposit, or an irrevocable letter of credit. It is released once the taxpayer is no longer subject to the Code and the Tribe's Chief Financial Officer (or the designated Severance Tax Administrator) confirms no tax, penalty, or interest liability remains outstanding.

A working-interest owner or operator who has paid the tax for five consecutive years with a record of good standing and compliance can apply in writing to the Tribal Council (or its authorized representative) for a waiver of the security requirement. Everyone else posts security sized to their own two-month liability — enter that figure and we price the bond from a $100 minimum, after a soft credit pull that never affects your score.

You need this bond if you are