Pennsylvania Oil & Gas Well Bond

Pennsylvania Oil & Gas Well Bond
Pennsylvania law makers have come up with new legislation affecting owner’s of oil and gas wells. The new law is titled HB 1950 and revamps the surety bond requirements for oil and gas wells. The previous law required a $2,500 bond per well or a $25,000 blanket bond that covers all wells that a permit holder manages within Pennsylvania. HB 1950 states that the bond amounts are calculated by the depth of the well and the amount of wells that the operator manages. The new legislation still allows the operator to obtain individual bonds for each well or a blanket bond to cover all of the operator’s wells. The bond amounts will range from $4K to as high as $500K.