In 2012, the Oil and Gas Omnibus amendments changed the requirements for reclamation bonds.  Instead of the old $2,500 single/$25,000 blanket bond formula, the following shall apply:

(i)  For wells with a total well bore length less than 6,000 feet:

(A)  For operating up to 50 wells, $4,000 per well, but no bond may be required under this clause in excess of $35,000.

(B)  For operating 51 to 150 wells, $35,000 plus $4,000 per well for each well in excess of 50 wells, but no bond may be required under this clause in excess of $60,000.

(C)  For operating 151 to 250 wells, $60,000 plus $4,000 per well for each well in excess of 150 wells, but no bond may be required under this clause in excess of $100,000.

(D)  For operating more than 250 wells, $100,000 plus $4,000 per well for each well in excess of 250 wells, but no bond may be required under this clause in excess of $250,000.

(ii)  For wells with a total well bore length of at least 6,000 feet:

(A)  For operating up to 25 wells, $10,000 per well, but no bond may be required under this clause in excess of $140,000.

(B)  For operating 26 to 50 wells, $140,000 plus $10,000 per well for each well in excess of 25 wells, but no bond may be required under this clause in excess of $290,000.

(C)  For operating 51 to 150 wells, $290,000 plus $10,000 per well for each well in excess of 50 wells, but no bond may be required under this clause in excess of $430,000.

(D)  For operating more than 150 wells, $430,000 plus $10,000 per well for each well in excess of 150 wells, but no bond may be required under this clause in excess of $600,000.

The bonds are continuous in nature and will NOT be released by the State until the well or tap has been properly plugged in accordance with the law, and for a period of one year after filing of the certificate of plugging with the state’s environmental department.  Pennsylvania offers a publication for guidance in reclamation surety bonding for reclamation which you can access by clicking here.

Although these are tough, long term obligations Surety One, Inc., a leader in environmental surety bonding offers reclamation bond capacity for coal, uranium, metal mining, and hydraulic fracturing “fracking”.  We will write these for ALL state departments of environmental protection, Railroad Commission of Texas, federal Bureau of Land Management, and all other state agencies. Visit us at www.ReclamationBonds.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com.