What is an Alabama Natural Gas Public Seller Bond?

Alabama Natural Gas Public Seller BondFor natural gas public sellers or fleet producers of compressed natural gas (CNG) and liquefied natural gas (LNG) in Alabama, new regulations were set following House Bill 333. The bill outlines the requirements of a state license along with a surety bond that natural gas operators have to meet to ensure the quality of their services. The bill, which also introduces a plan for a taxation system for natural gas, will take effect on October 1, 2018.

The Alabama Natural Gas Public Seller Bond is part of the licensing requirement and must be filed with the Alabama Department of Revenue. It also serves as a guarantee that excise taxes (taxes paid when purchases of natural gas are made) will be paid accordingly and in full.

The bond requirement also ensures that natural gas public sellers and fleet producers will comply with all applicable state laws, ordinances, and regulations that govern their trade. As of January 2023, the Department will review each natural gas public seller and fleet producer’s surety bond to ensure it is conditioned in the proper amount.


What is the role of a natural gas public seller and fleet producer?

Providing natural gas to the public is in a day’s work for natural gas public sellers and fleet producers. Public sellers supply natural gas for purchase and operate service stations that sell CNG or LNG to the public for use in vehicles, such as natural gas-powered vehicles and public buses. Fleet producers are companies or individuals that produce compressed or liquefied natural gas (CNG or LNG) that is used in commercial vehicles.

Personal producers of natural gas are also required to apply and obtain their licenses but are not required to purchase a surety bond.


What are the bond conditions?

  • The surety bond should be issued by a surety bond provider or company that is authorized to conduct business in Alabama.
  • The surety bond should be made payable to the State Department of Revenue
  • The natural gas public seller and fleet producer licensee must comply with the provisions of the HB333 draft (to be updated). The bill would establish “a standardized motor fuel and enforcement system for the collection of excise tax on compressed natural gas and liquefied natural gas and would provide civil and criminal penalties for violations.”
  • If the natural gas public seller and fleet producer commits a proven violation, the aggrieved party will be eligible to file a claim on the surety bond


How much does an Alabama Natural Gas Public Seller Bond cost?

The bond amount is based on the average monthly tax liability and twice its amount. It also must be greater than $25,000.

The bond cost (bond premium) is the percentage of your bond amount. The cost may vary according to your financial strength and personal and business capability. However, the amount of a bond claim can face up to the full amount you have obtained.

Know what you need to pay today by getting your FREE SURETY BOND QUOTE HERE!


How do I obtain an Alabama Natural Gas Public Seller Bond?

The initial step is to find a certified surety bond company that can provide you this type of surety bond.

You can easily obtain this surety bond by following these simple steps:

STEP 1: Apply

If you are ready to submit your application for this type of bond, you may easily do it HERE!

Don’t worry! We will guide you through the whole process.

STEP 2: Underwriting

Once we have received your application, we will ask you for a couple of important details needed for the underwriting process. This will include your financial history, your job performance history, and your credit score. A licensed and expert underwriter will evaluate all the information you have provided.

STEP 3: Bond Execution

After you have satisfied the underwriter’s checklist, the bond will immediately be issued and sent to you!

Ready to apply? START HERE!

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