The Georgia Department of Natural Resources, Environmental Protection Division (Division) regulates drilling, explorations, and production of oil and gas wells, is responsible for the issuing of permits and operator compliance, drilling, production and well completion. The Department conducts inspections for new well permitting, plugging and restoration of well sites; compiles and provides a process in the event an operator fails to perform the duties to meet the surety bond requirement.
The obligee is the entity that requires the bond. The Georgia Department of Natural Resources, Environmental Protection Division requires a surety bond before any drilling of wells, pluging, or deepening of an existing well. The bond ensures compliance of regulations and state laws, and protects the state and public from injury due to improper drilling. Failure to comply or perform the regulations and state laws may result in a claim filed against the bond by the Division. In the instance of a surety bond, if the Division files a claim against the surety bond, the owner and/or operator (named as the principal on the bond form) will be responsible for repayment of the claimed amount if the claim is paid out by the surety.
The surety bond must be in place from the time of the initial permit up to completion of the well and cannot be canceled. The premium will renew on the bond yearly for the life of the well. If the well transfers to new owners, a new bond is required to fulfill the permit conditions. Failure to maintain a bond will result in a claim against the bond by the Division.
The surety bond also ensures the well is properly plugged and the surface restored to its natural space. The plugged well must pass through an inspection process and the surface restored to meet state standards. The Division will release the bond after two years of the well inspection. After the surety is in receipt of the release, the premium for the bond will no longer be required.
Up to a $100,000 surety bond is required.
The premium that you pay for an Georgia Oil and Natural Gas Well Surety Bond is dependent on credit and business and personal financial statements. Contact SuretyGroup.com for a free quote based on your specific situation.
House Bill 205 was passed by the House and Senate in 2018 which amends Article 2 of Chapter 4 of Title 12 of the Code of Georgia annotated.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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