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Illinois drilling-hole plugging bonds.
From $100.

Before you drill coal, structure, or groundwater test holes in Illinois, the Department of Natural Resources requires a plugging bond so every hole gets properly sealed. A blanket bond covers all of your permits at once. The price is 4% of the bond amount, $100 minimum.

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Required by the DNR Office of Oil & Gas Resource Management under the Illinois Oil and Gas Act
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A blanket bond covers all your test-hole permits instead of one bond per hole
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One soft credit pull — never a hard inquiry, and it never affects your score
4% rate$100 minimum premiumSoft pull onlynever a hard inquiryFastissued the moment you pay
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
Price

How much does an Illinois drilling-hole plugging bond cost?

4% of the bond amount, from $100. Enter your amount in the calculator for the exact price.

How it works

Apply to filed in a couple of days.

Energy plugging bonds run one quick soft-pull review. Here is the whole process — no broker phone tag:

TODAY · ONLINE

Apply online

Your business details, the bond amount the DNR requires, and the effective date — plus a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. One soft credit pull, never a hard inquiry, and it never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

E-sign & file with the DNR

Pay online and receive the executed blanket bond, ready to file with the Office of Oil & Gas Resource Management. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the drilling-hole bond actually covers

The Illinois Oil and Gas Act (225 ILCS 725) reaches beyond oil and gas wells: it also governs geological, structure, coal, and other mineral test holes and monitoring wells. The Department of Natural Resources requires a plugging bond so that every hole is sealed and can't become a pathway for contamination once work is finished.

Under the Act, the test-hole bond is $2,500 for each permit, or a $25,000 blanket bond for all permits. The blanket bond is what most operators carry — one filing covers your whole program instead of a separate bond for every hole.

In lieu of a surety bond, the Act lets you post cash, a certificate of deposit, or an irrevocable letter of credit — but a surety bond is usually the cheapest, since you pay a small premium rather than tying up the full amount. If you don't plug a hole, the DNR can recover against the bond, and if the surety pays, you repay the surety.

225 ILCS 725/6 (Illinois Oil and Gas Act)Under the Illinois Oil and Gas Act (225 ILCS 725), test and monitoring holes — including geological, structure, coal, and groundwater holes — require a plugging bond of $2,500 per permit or a $25,000 blanket bond covering all permits, filed with the Department of Natural Resources. Cash, a certificate of deposit, or an irrevocable letter of credit may be posted in lieu of a surety bond. Confirm your required amount with the DNR.

You need this bond if you are

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Drilling coal-exploration or structure holes that the DNR permits under the Oil and Gas Act
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Installing groundwater monitoring wells that fall under the test-hole bonding rule
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Running a multi-permit program and want one blanket bond instead of many
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A geotechnical or environmental driller the DNR requires to bond before breaking ground
After you buy

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

E-sign & file with the DNR. Pay online and receive the executed blanket bond, ready to file with the Office of Oil & Gas Resource Management. Wet-ink originals mailed whenever the state insists.

What sets the price

The premium is 4% of the bond amount, $100 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, then a quick review.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your blanket bond is issued when you pay.

Start the application →
FAQ

Common questions.

How much is the Illinois drilling-hole bond?The price is 4% of the bond amount, $100 minimum — set by the amount you enter, not a credit tier. The amount itself is set by the Oil and Gas Act — $2,500 per test-hole permit, or a $25,000 blanket bond covering all of your permits. Enter the figure that applies and your exact price appears at the application.
What is the difference between a single and a blanket bond?A single bond ($2,500) covers one permit; the $25,000 blanket bond covers all of your test-hole permits at once. Operators with more than a handful of holes almost always file the blanket bond — one filing instead of many.
Is there a credit check?Yes: one soft credit pull, never a hard inquiry, and it never affects your score. It informs approval; the price itself is 4% of the bond amount, $100 minimum, set by the amount you enter, not your credit tier.
Can I post cash or a letter of credit instead?The Act allows cash, a certificate of deposit, or an irrevocable letter of credit in lieu of a surety bond. A surety bond is usually cheapest, since you pay a small premium rather than locking up the full amount as collateral.
Where do I file it?With the Illinois Department of Natural Resources, Office of Oil & Gas Resource Management. We issue the executed bond ready to file with your drilling permits.
Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.
How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.
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Drilling-hole bond, in a couple of days.

4% of the bond amount, $100 minimum, soft pull only. Enter the amount the DNR required and file this week.

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