California Blanket Oil and Gas Well Indemnity Bond for Onshore and Offshore Wells
The financial guarantee you need! Fast approval!
What is a California Blanket Oil and Gas Well Indemnity Bond?
It is security required of every oil and gas operator engaged in the drilling, redrilling, deepening, or any operation that permanently alters the casing of onshore or offshore wells.
Oil and gas operators may opt to get this bond instead of obtaining a bond for each operation.
This bond is intended for several reasons; some of which are listed below:
- To ensure the compliance of the oil and gas operator to the provisions of Division 3 of the California Public Resources Code.
- Obey all orders of the State Oil and Gas Supervisor and district deputy.
- Pay all the expenses incurred by the State Oil and Gas Supervisor and district deputy regarding the operator’s well and attendant facilities.
This surety bond requirement is mandated by Section 3205 of the California Public Resources Code and enforced by the California Department of Conservation.
How does the California Blanket Oil and Gas Well Indemnity Bond work?
A bond is composed of three parties:
Principal – oil and gas operator
Obligee – State of California
Surety – surety bond provider
The Surety will partner with the Principal to assure the Obligee that the Principal will commit to the obligations. The Surety will also assure the Obligee that if the Principal fails to perform any of the obligations covered by the bond, the Obligee will be indemnified.
If such occurs, the Principal is expected to settle the claim. The Surety will take over if the Principal failed to settle the claim. An independent investigation will be conducted by the Surety before any payment is made to the Obligee. The Surety will check if the violation is committed by the Principal and if the violation is covered by the bond. If the claim is valid, the Surety will pay the Obligee; however, once the payment is made, the Principal must reimburse the Surety as part of the bond agreement.
How much does a California Blanket Oil and Gas Well Indemnity Bond cost?
The bond premium will depend on the oil and gas operator’s credit score.
Those with excellent credit scores will pay as little as 0.5% of the bond amount.
$200,000 – 50 or fewer onshore wells
$400,000 – 51 to 500 onshore wells
$2,000,000 – 501 to 10,000 onshore wells
$3,000,000 – 10,001 or more onshore wells
$1,000,000 – 1 or more offshore wells
Check out what you need to pay by claiming your FREE SURETY BOND QUOTE HERE!
How can I get a California Blanket Oil and Gas Well Indemnity Bond?
- Apply for this bond. If you are ready to do that now, you may APPLY HERE!
- We’ll ask you to submit the necessary information needed for the underwriting process. These are the following:
- Your financial capability
- Your business or job performance history
- Your credit score
An expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
- Once the indemnity agreement is signed, your surety bond will be issued and sent to you!