South Dakota Reclamation Bond

A new South Dakota bill that was recently enacted will require a surety bond of oil and gas well operators.

Details on the New Requirement

The new bill, titled SD H 1025, and effective 07/01/2020, amends existing law to eliminate the variance in bond amounts for wells depending on their depth, and would allow authorities to require the furnishing of a “plugging and performance bond” in the amount of $50,000 or an amount sufficient to guarantee the costs of well site reclamation, or $100,000 blanket, irrespective of well depth (currently, wells less than 5,500 feet in depth require $35,000 bonding; deeper wells already require the amended amounts).

The amendment would also add new authority to require the furnishing of a supplemental plugging and performance bond in the amount of $25,000 or an amount sufficient to guarantee the costs of well site reclamation for any oil and gas well that does not produce or otherwise remains unused for more than six months.

How to Apply for a Surety Bond

If you find that you must obtain this surety bond, you’ll need to contact a bond provider who is licensed to to business in South Dakota. JW Surety Bonds is licensed nationwide, so please apply for a free quote online, or feel free to reach out to us if you’d like assistance with obtaining this bond.


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.

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