What is a Missouri Oil and Gas Well Operator Bond?
A Missouri Oil and Gas Well Operator Bond is a license requirement for all oil and gas operators in Missouri. Before the operators are allowed to drill or perform their tasks, they need to submit a surety bond with a sufficient amount to the state geologist.
The surety bond is a financial and performance guarantee of the licensed oil and gas operator to the Missouri Department of Natural Resources. If the said operator commits misconduct, the person harmed will be able to receive suitable compensation through the surety bond.
The requirement is in compliance with Chapter 259 of the Missouri Revised Statutes.
Surety bond benefits:
- You’ll be in good standing with the Missouri Department of Natural Resources
- You’ll be protecting the environment and preventing accidents by properly performing your duties such as plugging the wells
- It will help enhance your credibility as an operator
What is the Oil and Gas Well Operator Bond amount?
The bond amount will be determined by the State Oil and Gas Council.
MINIMUM SINGLE WELL BOND
$1,100 – 0-500 feet
$2,200 – 501 – 1000 feet
$3,300 – 1001 – 2000 feet
$4,400 – 2001 – 5000 feet
$5,500 – more than 5001 feet (additional $2 per foot beyond 5001)
MINIMUM BLANKET WELL BOND
$22,000 – 0 to 800 feet with a maximum of 40 unplugged wells
$25,000 – 801 to 1500 feet with a maximum of 10 unplugged wells
Those who have excellent credit scores will be eligible to pay for a very low bond premium or just 1% of the bond’s amount!
If you want to find out what you need to pay, GET YOUR FREE QUOTE HERE today!
How can I get an Oil and Gas Operator bond?
By following these simple steps!
STEP 1: Apply for the bond
You need to submit a bond application to us. If you’re ready to apply now, you may do so HERE!
STEP 2: Underwriting
We will ask you for a couple of relevant information needed for the bond. This will include your financial history, business performance history, and your credit score. An underwriter will carefully evaluate all those.
STEP 3: Bond execution
Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!
What are the bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Missouri
- The surety bond should be made payable to the State of Missouri
- The licensed oil and gas operator is obligated to comply with Chapter 259 of the Missouri Revised Statutes, the rules and regulations of the Missouri Department of Natural Resources, as well as the State Oil and Gas Council
- If the licensed oil and gas operator commits a valid violation, the aggrieved party will be eligible to file a claim on the surety bond
Ready to start? APPLY NOW!