The Indiana Department of Natural Resources requires a permit for drilling, deepening, operating, or converting a well for oil and gas purposes. Permits are also needed for transferring a permit, drilling a test hold, or temporarily abandoning a well.
The Department requires a security from well operators to ensure compliance with respect to plugging of the well, filling in of all excavations, the removal of concrete bases, discarding machinery and materials, cutting off of the surface casing, and restoration of the surface as nearly as possible to its former condition prior to drilling. A security may be in the form of: cash bonds deposited by certified check, a certificate of deposit, a surety bond, or a personal surety bond (non-commercial gas wells only).
The "obligee" is the entity that requires the bond or other form of security. In Indiana, the obligee is the Indiana Department of Natural Resources. The Department requires surety bonds or another form of security from oil and gas drillers to help protect Indiana's oil and gas resources, the environment, land, and water resources.
A surety bond or other type of security is required for wells where:
Surety Bond Amounts:
The bond remains in effect until the Department of Natural Resources Commission determines the well has been:
An owner /operator is not required to post a bond if there:
The premium that you pay for an Indiana Oil and Gas Well Surety bond is dependent on credit and the number of wells. 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.
Indiana's oil and natural gas industry contributes more than $16 billion to the state's economy.
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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