How much does an oil and gas well bond cost in Montana?
The Montana Board of Oil and Gas Conservation requires those who own or operate oil and/or gas wells to post a surety bond to legally work within the state. The required bond amounts vary depending on depth of the wells and how many wells are owned by the principal (well operator).
For operators who own a single existing or soon-to-be acquired well, the required bond amounts are:
- $1,500 if the depth of the well is 2,000 feet deep or less
- $5,000 if the depth of the well is 2,000-3,501 feet deep
- $10,000 if the depth of the well is more than 3,501 feet deep
For operators who own or operate multiple wells, the required bond amount is $50,000.
The Board can increase the required bond amount if it sees fit. Applicants should verify their required bond amount with the state prior to bonding.
These bonds are subject to underwriting, so the best way to find out exactly how much you’ll pay for your surety bond is to request a free surety bond quote now!
|Bond Type||Bond Amount||Cost*|
|$1,500 Oil and Gas Well Bond One well - depth of 2,000 feet or less||$1,500||Starts at $100||GET A QUOTE|
|$5,000 Oil and Gas Well Bond One well - depth of 2,001-3,501 feet||$5,000||Starts at $100||GET A QUOTE|
|$10,000 Oil and Gas Well Bond One well - depth of 3,501 feet or more||$10,000||Starts at $100||GET A QUOTE|
|$50,000 Oil and Gas Well Bond More than one well||$50,000||Starts at $1,000||GET A QUOTE|
Call 1 (800) 308-4358, or submit a bond request, to connect with our team of experts. We can typically provide you with a free, no-obligation surety bond quote within 1 business day of submitting your application.
Why do I need this bond?
Montana oil and gas well surety bonds ensure that principals (well operators) propose to drill a well or wells for oil, gas, underground injection or stratigraphic purposes and operate these wells in compliance with the provisions of the laws of the state and the rules, regulations and orders of the Board of Oil and Gas Conservation. The bond also covers the proper plugging of said well or wells, the restoration of the surfaces of the locations of said well or wells and the filing of all required notices and records with the board.
All rules, laws and regulations involving these bonds can be found in the Montana Administrative Rules and the Montana Code Annotated.
Don’t fall out of compliance with the laws of your state and industry! Begin the simple bonding process now.
What’s the fine print?
Montana oil and gas well bonds are released, upon request, after all liabilities are properly removed from the bond.
When filling out the bond form, it is imperative to understand which license/bond type you’re applying for. The following license/bond types are listed on the bond form:
- blanket bond to cover all wells drilled or acquired in the state
- limited bond to cover all wells drilled or acquired subject to limitations, if any
- individual well bond to cover one well
- UIC bond to cover salt water disposal or enhanced recovery injection wells
- replacement bond to supersede and assume all wells covered by the bond
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