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Texas Oil and Gas Operations Blanket Performance Bond

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How much does an oil and gas operations blanket bond cost in Texas?

The Railroad Commission of Texas requires individuals who operate oil and gas wells to post surety bonds in varying amounts before conducting business. The required bond amount is determined by the number of wells you operate within the state. If you operate fewer than 10 wells, the required bond amount is $25,000. If you operate 10 to 99 wells, the required bond amount is $50,000. If you operate 100 wells or more, the required bond amount is $250,000.

Because the required bond amount and price of this bond can vary so much, our experts recommend submitting a bond request to receive your free quote.

Bond Type
$25,000Oil and Gas Operations Blanket Performance Bond1-10 wells
$50,000Oil and Gas Operations Blanket Performance Bond11-99 wells
$250,000Oil and Gas Operations Blanket Performance Bond100+ wells

Why do I need this bond?

By posting a Texas oil and gas operations blanket bond, principals (oil well operators) pledge to carry out all operations in compliance with all state laws and commission rules. Specifically, the principal agrees to plug and abandon all wells and control, abate, and clean up pollution associated with its oil and gas operations and activities according to all laws and permit rules and regulations.

If the principal fails to adhere to these laws and the terms of the surety bond contract, the bond protects the state from financial loss up to the full bond amount.

What’s the fine print?

Texas oil and gas blanket bonds become effective 150 days after the principal’s P-5 effective date. These bonds expire 150 days after one of the annual P-5 expiration dates, but can be renewed if the surety sends a written renewal to the commission.

How to legally operate an oil or gas well in Texas

Prior to operating an oil or gas well, you must first acquire a permit. To obtain a permit, applications must be sent to the Oil and Gas Division Railroad Commission. Each application must be accompanied by a $200 application fee and a surety bond in the proper amount.

Take the first step toward obtaining a permit by purchasing the Texas surety bond you need.

Ready to get started?

Call 1 (800) 308-4358 to talk with a Surety Expert