Alabama Oil and Gas Single Well Permit Surety Bonds

The State Oil and Gas Board of Alabama, is a regulatory agency that promotes protection and conservation of the environment. The board enforces the state rules and regulations through oversight of oil and gas drilling, operation, exploration, and production, Class II injection wells, and underground storage of gas in reservoirs in Alabama. The Oil and Gas Board of Alabama Administrative Code 400-1-1-.01 thru 400-7-1-.23 defines the regulations process for oil and gas permits. Operators need to obtain a Oil and Gas Single Well permit to competing, drilling, opertating, converting, or producing any gas, oil or Class II injection wells, including injection facilities, underground storage facilities in reservoirs, production facilities, processing facilities, plants, pipelines, and other equipment associated with such well as well as other regulations found in the Alabam Code (400-1-2-.03).

Surety Bond and Permit Requirements:

1. Complete the permit application.
2. Submit with the permit application a “Certified Plat” (in triplicate). The certified plat must meet the conditions and requirements for the applicable operation (offshore, onshore, CBM, etc).
3. Complete an affidavit of ownership or control (Form OGB-2).
4. Complete an organization report (Form OG-5).
5. Illustrations or details of the proposed operations plan.
6. A unique API number will be assigned to each well for the purpose of data tracking.
7. Obtain a surety bond in the amount as follows for a single well (surety bond form OGB-3):
   
   

   Measured Depth (ft)	Amount of Bond Required
   0 - 5,000	$5,000
   5,001 – 10,000	$10,000
   10,001 – 15,000	$15,000
   15,001 – 20,000	$30,000
   Greater than 20,000	$50,000

How Much Will This Bond Cost?

The premium that you pay for an Alabama Oil and Gas Single Well Permit Surety Bond is dependent on credit and bond amount required. Our rates start at $100 for bond amounts $10,000 and under with good credit. Bond amounts over $10,000 start at 1% of the bond amount with good credit. Contact our Surety Bond Specialists for a free quote.

Did You Know?

Tax revenue made from oil and gas in Alabama is used for education and other state programs.

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