How much does an oil or gas well bond cost in West Virginia?
The West Virginia Department of Environmental Protection requires surety bonds from operators of oil or gas wells, liquid injection wells, and waste disposal wells.
Bond amounts for a single oil or gas well, liquid injection well or waste disposal well are typically $5,000. Blanket bonds to cover multiple wells are usually $50,000.
Due to the nature of the work guaranteed by these bonds, applicants will be subject to underwriter to review prior to receiving a quote. However, individual well bonds and blanket well bonds can be issued for as little as 1-3% of the total bond amount.
If you’re ready to become bonded quickly, easily and accurately, call SuretyBonds.com at 1 (800) 308-4358 or click here to fill out an online bond request form. Our experts can provide your free surety bond quote within 1 business day of submitting your application!
Why do I need this bond?
Oil and gas well bonds in West Virginia are put in place to ensure that principals (oil and gas well operators) perform all duties in accordance with all laws of the state. Under this bond, well workers must:
- plug and abandon wells after the work has been completed in full in accordance with Chapter 22, Article 6 of the West Virginia Code
- commence the reclamation of the area of land disturbed in siting, drilling, completing or producing the well
- clear all waste and excess materials from the site after completion of the project
If the principal violates the terms of his or her bond agreement and the state or individual is harmed as a result, the bond will cover all financial losses up to the full penal sum of the bond. The principal must reimburse the surety for all damages paid out.
What’s the fine print?
West Virginia oil, gas or waste disposal well bonds run continuously unless otherwise canceled.
The applicant must indicate on the bond form if he or she is an individual, a partnership, a corporation or a limited liability company. A notary public must acknowledge the surety bond contract.