What is a Mississippi Oil and Gas Well Performance Bond?
A quick guide on the oil and gas well surety bond in Mississippi!
Here’s why you need this surety bond:
- It is required by the Mississippi State Oil and Gas Board
- You will be helping the environment and prevent accidents by properly performing your duties
- It will help enhance your credibility as a driller
To prevent the following, the Mississippi State Oil and Gas Board obligates permitted drillers to secure a surety bond:
- Surface contamination from spills
- Water of different quality mixing with the aquifers
The surety bond will help ensure that the permitted drillers will properly plug and abandon the wells. If they go against the condition, the Mississippi State Oil and Gas Board will use the surety bond amount to plug and abandon the wells.
The permit prerequisite complies with Title 26 Rule 1.4 of the Statewide Rules and Regulations.
What is the Oil and Gas Well Performance Bond amount?
The bond amount will depend on the depth of the drilled well:
$20,000: 0 – 10,000 feet
$30,000: 10,001 – 16,000 feet
$60,000: more than 16,001 feet
If you have an excellent credit score, you will be eligible to pay for a low bond premium or as low as 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
What are the bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Mississippi
- The surety bond should be made payable to the Emergency Plugging Fund of the Mississippi State Oil and Gas Board
- The permitted driller is obligated to comply with Title 26 of the Statewide Rules and Regulations and all the other applicable rules
- If the permitted driller commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
- In case of cancellation, a 120-day notice is required
How can I get an Oil and Gas Performance Bond?
To secure this type of bond, the permitted driller must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the pre-qualification process is fulfilled, we will execute the bond and send it to you!
Ready to start on your bond? APPLY HERE!