What’s the New Surety Bond Requirement?
In the state of Virginia, a new bill titled SB 1271 requires the blanket bond that may be furnished for oil and gas wells to be in an amount ranging from $25,000 to $200,000.
For individual wells, the law requires a surety bond or a cash bond for at least $10,000 per well, plus $2,000 per acre of disturbed land. The new law authorizes requiring additional bonding if the well would be drilled in Tidewater Virginia.
Under prior law, the bond had to be in an amount ranging from $25,000 to $100,000 based on the number of wells that the permittee operates. The new law adjusts the number of wells that may be covered by the blanket bond in connection with the increased bond amount.
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If you’re ready to get a free surety bond quote to meet this new surety bond requirement, you can simply apply online.
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