New Mexico oil & gas well bonds.
From $100.
New Mexico's Oil Conservation Division requires every operator of an oil, gas, injection or service well to furnish financial assurance that the well will be plugged and abandoned and the location restored (NMSA 1978 § 70-2-14). A surety bond is one accepted form; premiums cost 5% of the bond amount, $100 minimum.
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How much does a New Mexico oil & gas well bond cost?
5% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
The financial assurance itself is simple to put in place once you know your amount. Enter it, consent to a soft pull, and file with the Division. Here is the whole thing:
Apply online
Your operator details, the well or lease the assurance covers, the amount your OCD filing requires, and the effective date — plus a one-time credit consent that authorizes a soft pull only.
Approved
Most financial assurance amounts in this range clear right away; the soft pull informs approval and never touches your score. Larger blanket amounts may get a brief underwriter review.
File with the Division
Your executed bond and power of attorney arrive by email, ready to file with the OCD Santa Fe office to satisfy your well-plugging financial assurance. Wet-ink originals mailed on request.
What it is and who needs it.
What the OCD financial assurance actually guarantees
New Mexico conditions the right to drill, acquire, or produce an oil, gas, injection, or other service well on financial assurance running to the state of New Mexico, held by the Oil Conservation Division (OCD) of the Energy, Minerals and Natural Resources Department. Under NMSA 1978 § 70-2-14, the assurance is conditioned that the well be plugged and abandoned, and the location restored and remediated, in compliance with Division rules — it is not a fund for surface damage, livestock, or crop claims.
A surety bond is one of several accepted forms — an irrevocable letter of credit, a well-specific plugging insurance policy, and a cash bond are the others. Under 19.15.8.9 NMAC, an individual active well runs $25,000 plus $2 per foot of depth; blanket bonds for active wells scale from $50,000 (1–10 wells) up to $250,000 (more than 100 wells), with higher blanket tiers for wells classified temporarily abandoned. The Division sets which category and amount apply to your wells.
The assurance stays in force until the Division releases it — generally once the covered wells are plugged, abandoned, and the location restored and remediated per 19.15.8.12 NMAC, or replaced with approved substitute assurance. Enter the amount your filing requires; we price the bond at 5% of that figure, $100 minimum, after a one-time credit consent that authorizes a soft pull only.
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.
Renewal falls on the statutory date, October 8, in the year your term ends.
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 Division. Your executed bond and power of attorney arrive by email, ready to file with the OCD Santa Fe office to satisfy your well-plugging financial assurance. 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.
Submit the application with the financial assurance amount your OCD filing requires and a one-time credit consent authorizing a soft pull only. Larger blanket amounts may get a brief underwriter review.
Start the application →Common questions.
Other New Mexico bonds.
Price and requirements checked on the carrier’s application, . Page updated .
File your OCD financial assurance today.
5% of the bond amount, $100 minimum, soft pull only. Enter your amount and see your exact price at application.