Surety Bonds for a Missouri Water Well Driller Contractor License

The Missouri Department of Natural Resources, Geological Survey Program (the Program) regulates water well drilling, well monitoring, pump and heat pump contractor licenses. The Program issues contractor permits, conducts inspections for new wells, plugging of wells, collects and tracks information on water, energy and mineral resources, and provides a security element in the event an operator fails to perform or comply with the duties and obligations in the state statutes and regulations.

Obligee and Bond Conditions:

The obligee is the entity that requires the bond. The Missouri Department of Natural Resources, Geological Survey Program requires a form of security before a contractor is eligible to provide drilling, pump installation, heat pump installation or well monitoring services. The bond ensures compliance of regulations and state laws. Failure to comply or perform by the state laws and regulations may result in a claim filed against the bond by the Program. In the instance of a surety bond, if the Program files a claim against the surety bond, the contractor (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. Other forms of security will be forfeited when a valid claim has been made.

The Program allows for several options to meet the security requirement which includes a surety bond, a certificate of deposit, or an irrevocable letter of credit. The option of an irrevocable letter of credit requires that the letter is to be issued by a qualified financial institution.

Contractor applicants must pass the contractor and apprentice testing prior to submitting the contractor application. Permit fees are based on the month of the permit application.

Surety Bond Requirements:

A surety bond is required and the bond amount is determined by the Program. If one of the other security options is chosen, the security amount will be in an amount equal to the bond.

The application and the original bond will need to be mailed to the Department of Natural Resources, Missouri Geological Survey, Well Installation Section, PO Box 250, Rolla, MO 65402-0250.

Permit Requirements:

Complete the required testing and apprenticeship requirements.

Complete the permit application and pay the applicable fee.

Types of Permits:

• Non-Restricted: This permit requires the contractor to be responsible for the work performed in the drilling of a well and/or installation of pumps. Prior to applying for a non-restricted permit, a contractor must complete a mimimum of two years training in an apprenticeship position and complete the required number of installations.
• Restricted: The contractor performs work as a primary contractor or on-site supervisor and is responsible for the work performed by a non-restricted contractor.
• Apprentice: This permit is for the 2 year training period which allows the apprentice to work under the suprvision of a contractor. The apprentice must complete the required number of installations before applying for a non-restricted permit.

How Much Will This Bond Cost?

The premium that you pay for a Missouri Water Well Driller Contractor Surety Bond is dependent on the bond amount and your personal credit. Premium rates start as low as $100 or 1% of the bond amount.

Did You Know?

In the event the applicant does not provide accurate and truthful information when applying for a permit, the permit may be revoked.

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