A new law was presented in Ohio State relating to oil wells. The new law is titled SB 165 and provides procedures for acquiring a momentary inactive status for an oil or gas well. Upon the third renewal of this status, a surety bond of no more than $10,000 for every inactive well is necessary. The new law provides for an additional surety bond to be required in relation to the forfeiture of bonds required under present law for oil and gas wells. Surety bonds are subject to forfeiture under present legislation for failures to properly refurbish or plug wells according to the law’s stipulations, or for failure to satisfy the conditions of the permit. Should the surety bond be forfeited, SB 165 states that the individual forfeiting the bond may be required to attain a new surety bond in the quantity of $15,000 for a single well, $30,000 for two wells and for $50,000 for three or more wells.
Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.