Utah well operator blanket bonds.
From $125.

An operator with more than one well on fee or privately owned minerals in Utah can cover them all with one blanket bond filed with the Division of Oil, Gas and Mining under Utah Admin. Code R649-3-1: at least $15,000 for wells under 1,000 feet, at least $120,000 above that. Pricing is 5% of the bond amount plus a $25 fee, $125 minimum.

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

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

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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 pull onlynever a hard inquiry

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Price

How much does a Utah well operator blanket bond cost?

5% of the bond amount plus a $25 fee, from $125. Enter your amount in the calculator for the exact price.

How it works

Three steps. One sitting.

A blanket bond is a single filing that covers the whole fee-mineral program. 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

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

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

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

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

After you buy

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 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.

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, 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 you post, plus a $25 fee, with a $125 minimum. Enter the blanket figure your program 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?Yes: one soft credit pull, never a hard inquiry, and it never affects your score.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Utah bonds.

Price and requirements checked on the carrier’s application, 8 October 2026. Page updated 15 October 2026.

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

Utah well operator blanket bonds.From $125.