Illinois well transfer bonds.
From $100.
When wells change hands in Illinois, the new operator must put a plugging bond in place before the Department of Natural Resources approves the transfer. A blanket bond covers all the transferred wells at once. The price is 5% of the bond amount, $100 minimum.
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How much does an Illinois well transfer bond cost?
5% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Apply to filed in a couple of days.
A change of operator can't close until the new bond is on file. Here is the whole process:
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 transfer
Pay online and receive the executed blanket bond, ready to file with your change-of-operator paperwork at the Office of Oil & Gas Resource Management. Wet-ink originals mailed on request.
What it is and who needs it.
What the transfer bond actually covers
Under the Illinois Oil and Gas Act (225 ILCS 725), a well's plugging obligation follows the well. When an operator sells or transfers wells to a new operator, the Department of Natural Resources requires the incoming operator to post a plugging bond before approving the change of operator — so the wells are never left uncovered.
The transfer bond works like the standard well bond: the incoming operator files $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) for all the wells being taken over. The blanket bond is what most acquirers post — one filing for the whole package of wells.
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. Once the transfer is approved and your bond is on file, the prior operator's bond can be released. If you don't plug a transferred well, the DNR can recover against your 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 transfer. Pay online and receive the executed blanket bond, ready to file with your change-of-operator paperwork at the Office of Oil & Gas Resource Management. Wet-ink originals mailed on request.
What sets the price
The premium is 5% 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 →Common questions.
Other Illinois bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Well transfer bond, in a couple of days.
5% of the bond amount, $100 minimum, soft pull only. Enter the amount the DNR required and close the transfer.