Utah 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 located on lands with fee or privately owned minerals. 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 — the same duties Utah Code 40-6-5(2)(f) directs the board to secure. Individual well amounts are at least $1,500 for a well of less than 1,000 feet, at least $15,000 for more than 1,000 but less than 3,000 feet, at least $30,000 for more than 3,000 but less than 10,000 feet, and at least $60,000 for more than 10,000 feet, for each such well; the blanket alternative is at least $15,000 or $120,000 by the same 1,000-foot line. Bond liability runs for the duration of drilling, operating and plugging and site restoration, and remains in full force until released by the division. Where the division finds coverage insufficient it may require a change in form or amount on written findings, appealable under R649-10, and a well in violation of R649-3-36 may be bonded at actual plugging and site restoration cost. A surety must be rated A- or better in A.M. Best's Key Rating Guide (or FPR 8 or better) and listed in U.S. Treasury Circular 570; surety bonds are noncancellable during their terms except for undrilled wells with the division's prior consent. An operator may petition the board for a variance on notice and hearing for good cause. Confirm your depth band and amount with the division before you buy.

What the individual well bond guarantees

You need this bond if you are

Your individual well bond is being issued. The executed bond and power of attorney arrive by email, and the original is mailed to the address on your application for filing with the division on Form 4.

5% of the bond amount plus a $25 fee, $125 minimum: the UT individual well bond filed with the Division of Oil, Gas and Mining under Utah Admin. Code R649-3-1, sized by depth.

Clear pricing.Instant issuance.