Illinois oil & gas well bonds.
From $125.
The Illinois Department of Natural Resources requires a plugging bond before you drill, deepen, convert, or operate an oil or gas well, so every well is eventually sealed. A blanket bond covers all of your wells at once. The price is 5% of the bond amount plus a $25 fee, $125 minimum.
Trusted by industry leaders
How much does an Illinois oil & gas well bond cost?
5% of the bond amount plus a $25 fee, from $125. Enter your amount in the calculator for the exact price.
Apply to filed in a couple of days.
Well plugging bonds run one quick soft-pull review. Here is the whole process — no broker phone tag:
Apply online
Your operator details, the bond amount the DNR requires, and the effective date — plus a one-time consent to a soft credit pull.
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.
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 it is and who needs it.
What the well bond actually covers
The Illinois Oil and Gas Act (225 ILCS 725) requires an operator to file a plugging bond before drilling, deepening, converting, or operating any oil or gas well. The bond stands behind the operator's duty to properly plug and abandon every well at the end of its life, so an orphaned well doesn't become the state's problem.
Under the Act, you can file $10,000 for a single well, or a blanket bond of $25,000 for up to 10 wells, $50,000 for up to 50 and $100,000 for up to 100 (larger operators proportionally more) covering all of your wells. The blanket bond is what most operators carry — one filing for your whole field instead of a bond for every well.
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 well, the DNR can recover against the bond, and if the surety pays, you repay the surety.
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
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 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, 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 →Common questions.
Other Illinois bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Well plugging bond, in a couple of days.
5% of the bond amount plus a $25 fee, $125 minimum, soft pull only. Enter the amount the DNR required and file this week.