The Texas Oil and Gas Railroad Commission known as the RRC, is responsible for the permitting, compliance, enforcement and environmental cleanup programs for the state. Operators of wells are required to obtain either an Individual Performance Surety Bond or a Blanket Performance Surety Bond or other form of financial assurance or financial guarantee depending on the number of wells the operator has.
The P-5 Performance Surety Bond ensures that the operator will maintain the wells in compliance with the state standards which includes the plugging of wells, restoring wells for beneficial use and prevention of fluids leaking into ground or surface water.
The Performance Surety Bond (Texas form P-5 PB-1 or P-5 PB-2) or financial assurance will need to be in the amount of:
$25,000 for 1 to 10 wells;
$50,000 for 11 to 99 wells; or
$250,000 for 100 or more wells.
Bond terms may be more than 12 months based on the RCC's discretion or run mulitple years. The bond premium will be adjusted based on the number of months of the term.
The oil and gas well drilling, recomplete, or re-enter permits requirements include:
The premium that you pay for a Texas RRC Oil and Gas Well Performance Surety Bond is dependent on credit and the bond amount required based on the number of wells. We would be glad to refer you to a surety agency that will write these bonds.
The financial assurance must be filed with the initial application or acquisition of any well and the financial guarantee must remain in force until either replaced by another form of financial guarantee or is released by the Commission.
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.