New York Well Plugging and Surface Restoration Bond

What is a New York Well Plugging and Surface Restoration Bond?

Individuals and business entities that have been approved by the Department of Environmental Conservation of the State of New York to drill wells within the State of New York for the following purposes are required to get this bond:

  • Brine
  • Disposal
  • Gas
  • Geothermal
  • Input
  • Observation
  • Oil
  • Solution mining
  • Storage in and upon lands within New York State
  • Test

As a financial guarantee, this bond will assure the Department of Environmental Conservation of the State of New York that the Principal (driller) will properly plug such wells and adequately restore the adjacent surface terrains.

If the Principal fails to perform the required obligations, the person who will be harmed by the noncompliance of the Principal will be eligible to file a claim against this bond.

How much does a New York Well Plugging and Surface Restoration Bond cost?

Bond premium ranges from 1% to 15% of the bond amount. Bond premiums are based on the applicants’ credit scores.

The bond amount will be determined by the Department of Environmental Conservation of the State of New York.

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How can I get a New York Well Plugging and Surface Restoration Bond?

You can get a Well Plugging and Surface Restoration Bond by applying for one HERE!

One of our surety bond agents will contact you once we have received your application. You will be asked to submit documents that will be used by our expert underwriter to assess the following:

  • Your financial strength
  • Your job/business performance history
  • Your credit score

Once the prequalification process is done, you will be asked to sign an indemnity agreement. Your bond will be issued immediately after the indemnity agreement is signed and the bond premium is paid.

How does a New York Well Plugging and Surface Restoration Bond work?

A  New York Well Plugging and Surface Restoration Bond is  a  legal  assurance  provided  by  two  parties  to  another  party.  The  two  parties  are  the  Principal  (contractor)  and  the  surety  bond  company  who  will  issue  the  bond.  The Department of Environmental Conservation of the State of New York is the party requiring the bond for the benefit of the Obligee. An Obligee can be any person or governmental agency within the State of New York.

The  Obligee  will  also  be  the  beneficiary  of  this  bond. No action will be taken against the bond as long as the Principal properly plugs the wells and restores the adjacent surface terrains. If  the Principal fails to do so, the  Obligee  will  file  a  bond  claim  to  recover  the  amount  necessary  to  complete  the  project or compensate the person who will be harmed by the Principal’s noncompliance. The Surety will pay the Obligee if the claim is valid. The Principal must reimburse the Surety for all payments paid after.

 

Let’s secure your project’s success! APPLY NOW!

New York Well Plugging and Surface Restoration Bond

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