UT well operator blanket bonds.
5% of the bond amount plus a $25 fee.

An operator drilling or operating more than one well on fee or privately owned minerals in Utah can cover the whole programme with a single blanket bond filed with the Division of Oil, Gas and Mining — at least $15,000 for wells under 1,000 feet, at least $120,000 above that, under Utah Admin. Code R649-3-1. Pricing is 5% of the bond amount plus a $25 fee, $125 minimum, and the bond issues the moment you pay. The application includes a credit consent, but it authorizes a soft credit pull only — a soft inquiry that never affects your score.

✓

Filed with the Utah Division of Oil, Gas and Mining on Form 4, payable to the division

✓

Covers any wells you drill or operate on fee or privately owned minerals statewide

✓

5% of the bond amount plus a $25 fee, $125 minimum — enter your amount and the exact price appears at the application

5% rate$125 minimumInstantissued the moment you paySoft pullnever a hard inquiry

Trusted by industry leaders

How it works

Apply to filed in one sitting.

A blanket bond is a single filing that covers the whole fee-mineral programme. Enter your amount, pay, and get it to the division:

TODAY · ONLINE

Apply online

Operator details, years in business, the blanket amount, a term, an effective date, and the mailing address for the wet-ink original. The credit consent on the form authorizes a soft inquiry only.

INSTANTLY

Pay & e-sign

The premium is 5% of the bond amount plus a $25 fee with a $125 minimum, priced at checkout, so the bond issues the moment you pay. Your executed bond and power of attorney generate on the spot.

THEN · BY MAIL

File with the division

The division takes the bond on Form 4 for fee and private-mineral wells. The original is mailed to the address you give us — the application asks for it up front for exactly this reason.

About this bond

What it is and who needs it.

What the blanket well bond actually guarantees

Utah's Oil and Gas Conservation Act makes the Board of Oil, Gas and Mining responsible for rules requiring an operator to furnish a reasonable performance bond, and Utah Code 40-6-5(2)(f) spells out what that bond has to cover: the duty to plug each dry or abandoned well, repair each well causing waste or pollution, maintain and restore the well site, and protect a surface land owner against unreasonable crop loss, loss of value in existing improvements, and permanent damage to surface land.

R649-3-1 turns that into numbers. Bond first, permit second: an owner or operator furnishes the bond to the division before approval of a permit to drill a new well, re-enter an abandoned well, or assume responsibility as operator of existing wells. On lands with fee or privately owned minerals the bond goes to the division on Form 4; on state, federal or Indian leases you instead furnish evidence that a bond has been filed and approved by the appropriate agency. A blanket bond covers any wells the operator may drill or operate on fee or private-mineral lands in the state.

One detail is worth real money to an operator choosing between instruments. A new blanket bond made up wholly or partly of a collateral bond has to be qualified by the division, which reviews two years of audited financials for a current ratio of 1.20 or better and a total-liabilities-to-equity ratio of 2.50 or less. An operator who elects a surety bond as the blanket bond does not require that qualification. The surety must be rated A- or better by A.M. Best (or FPR 8+) and listed in Treasury Circular 570, and the bond is noncancellable during its term except for undrilled wells with the division's prior consent.

Utah Admin. Code R649-3-1 · Utah Code 40-6-5Utah Admin. Code R649-3-1 requires an owner or operator to furnish a bond to the Division of Oil, Gas and Mining before approval of a permit to drill a new well, re-enter an abandoned well, or assume responsibility as operator of existing wells — on Form 4 for wells on lands with fee or privately owned minerals, and by evidence of an agency-approved bond for wells on state, federal or Indian leases. The bond is payable to the division and conditioned on the operator's faithful performance of the duty to plug each dry or abandoned well, repair each well causing waste or pollution, and maintain and restore the well site, mirroring Utah Code 40-6-5(2)(f). Blanket amounts are at least $15,000 for wells of less than 1,000 feet in depth and at least $120,000 for wells of more than 1,000 feet; individual well amounts run $1,500, $15,000, $30,000 and $60,000 by depth band. A new blanket bond consisting fully or partly of a collateral bond must be qualified by the division against a current ratio of 1.20 or greater and a total-liabilities-to-stockholder's-equity ratio of 2.50 or less, evidenced by two years of audited financials plus the most recent quarterly report; an operator electing a surety bond as the blanket bond does not require qualification. A surety must be rated A- or better in A.M. Best's Key Rating Guide (or an FPR of 8 or better) and be listed in U.S. Treasury Circular 570. Surety bonds are noncancellable during their terms except that coverage for undrilled wells may be canceled with the division's prior consent. An operator may petition the board for a variance to a lesser amount on notice and hearing for good cause. Confirm the amount on your division correspondence before you buy.

You need this bond if you are

✓

An operator with multiple wells on fee or private minerals consolidating individual well bonds into one blanket

✓

Applying for permits to drill where the division requires bonding before permit approval

✓

Assuming operatorship of existing wells through an acquisition or a change of operator filing

✓

Replacing a collateral bond or letter of credit to free up cash without a division qualification review

One application, issued at checkout.

These are the actual issuing fields. The credit consent on the form authorizes a soft inquiry only, and it never affects your score.

Start the application →

FAQ

Common questions.

How much is the Utah blanket well operator bond?The premium is 5% of the bond amount plus a $25 fee you post, with a $125 minimum. Enter the blanket figure your programme requires and the exact price appears at the application — no quote round-trip.

What amount should I enter?R649-3-1 sets the blanket at a minimum of $15,000 where all your wells are less than 1,000 feet deep, and a minimum of $120,000 once any well is deeper than that. The division can require more if it finds the standard amount will not cover plugging and site restoration, so use the figure on your division correspondence if you have one.

Do I pay the full bond amount?No. You pay the premium — 5% of the bond amount plus a $25 fee, $125 minimum. The bond amount is the surety's maximum exposure if the division has to plug and restore behind you; nobody holds your money, which is the whole advantage over posting cash or a certificate of deposit.

Where do I file it?With the Division of Oil, Gas and Mining, on Form 4, for wells on lands with fee or privately owned minerals. For wells on state, federal or Indian leases you furnish the division evidence that a bond has been filed with and approved by the appropriate agency instead. We mail the wet-ink original to the address you give us in the application.

Is there a credit check?The application includes a credit consent, but it authorizes a soft credit pull only — a soft inquiry that never affects your score. No hard inquiry ever runs on this bond.

Related bonds

Other Utah bonds.

Get the blanket on file before the permit.

Enter your amount, see the exact price, and get the original to the division. Free until issued.

Start application

Your premiumfrom $125

Apply now →

UT well operator blanket bonds.5% of the bond amount plus a $25 fee.