Who needs a Texas Railroad Commission – Individual Performance Surety Bond?
The Texas Railroad – Individual Performance Surety Bond is required by the Texas Natural Resource Code for individuals who operate oil and gas wells. Better known within the oil and gas industry as plug and abandonment bonds, the individual performance surety bond seeks to ensure the well operators will clean up, abate, and control all pollution resulting from their oil and gas operations. The bond must be effective on the date of the principal’s initial P-5 effective date the first year and 150 days after the P-5 effective date in the years thereafter. Unlike the Texas Railroad Commission – Blanket Performance Surety Bond, the individual performance surety bond covers only one well at time. This means each well will need to be bonded separately.
What is the current market for the Texas Railroad Commission – Individual Performance Surety Bond?
Texas Railroad Individual Performance Bonds are underwritten based on the amount of the bond and overall risk. These surety bonds are considered very high risk and are only available to companies with exceptional financial and credit history. The amount of the bond should be equal to $2 for each foot of well depth.
How do I apply for a Texas Railroad Commission - Individual Performance Surety Bond?
- Complete our online Texas Railroad Commission - Individual Performance Surety Bond application, or
- Download and complete our printable Texas Railroad Commission - Individual Performance Surety Bond application, and
- Receive your surety bond quote in minutes!