New Mexico single well plugging bonds.
From $125.
New Mexico's Oil Conservation Division requires an operator to post financial assurance that a well will be properly plugged and abandoned when it stops producing (§70-2-14). The one-well bond amount is set to the cost of plugging that well. Pricing is 4% of the bond amount plus a $25 fee, $125 minimum.
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How much does a New Mexico single well plugging bond cost?
4% of the bond amount plus a $25 fee, from $125. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
Enter your amount, pay, and file with the Oil Conservation Division. Larger amounts may get a quick underwriting review. Here is the whole thing:
Apply online
Your operator details, the one-well plugging amount the OCD set, and the effective date — that is the application, plus a one-time consent to a soft credit pull.
Reviewed & approved
Smaller amounts may issue right away; larger plugging bonds get a quick review, and an underwriter reaches out within 48 hours if anything is needed. The soft pull never affects your score.
File with the Oil Conservation Division
Submit the executed bond to the OCD running to the benefit of the state. Wet-ink originals mailed whenever the Division insists.
What it is and who needs it.
What the plugging bond actually secures
When an oil, gas, or service well stops producing, it has to be plugged and abandoned so it doesn't contaminate groundwater or pose a hazard. New Mexico's Oil Conservation Division (OCD), part of the Energy, Minerals and Natural Resources Department, requires every operator to furnish financial assurance for that obligation under §70-2-14.
Operators can post blanket assurance covering all their wells, or one-well assurance for a single well — this bond. The one-well amount is set by the OCD in an amount determined sufficient to reasonably pay the cost of plugging the well, considering the well's depth, how long since it produced, the cost of plugging similar wells, and other factors.
The bond runs to the benefit of the state, conditioned that the well is plugged and abandoned in compliance with OCD rules. If the operator does not plug the well, the state can use the bond to do it. If the surety pays, you repay the surety — it is security, not insurance for you.
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
File with the Oil Conservation Division. Submit the executed bond to the OCD running to the benefit of the state. Wet-ink originals mailed whenever the Division insists.
What sets the price
The premium is 4% 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.
Submit the application with the one-well plugging amount the OCD set. A quick soft credit check may apply — never a hard inquiry. Smaller amounts issue quickly; larger plugging bonds get a fast underwriting review.
Start the application →Common questions.
Other New Mexico bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Plugging bond, issued fast.
Pricing from $125. Enter the amount the OCD set and file with the Oil Conservation Division.