Who needs a Texas Railroad Commission – Blanket Performance Surety Bond?
The Texas Natural Resource Code requires all persons performing oil and gas operations in the State of Texas to file a Texas Railroad – Blanket Performance Surety Bond. These bonds are commonly referred to as Plug and Abandonment Surety Bonds and cover the cost of plugging and abandoning all wells, controlling, abating, and cleaning up all pollution associated with the principal’s oil and gas operations should the principal fail to do so. The Texas Railroad – Blanket Performance Bond covers all operations of the principal listed on the Texas Railroad Commissions P-5 Organization Report, wells listed on the Commission’s Oil and Gas Proration Schedules, and any new wells acquired by the bond principal during the term of the surety bond. 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.
What is the current market for the Texas Railroad Commission – Blanket Performance Surety Bond?
Texas Railroad Blanket Performance Bonds are underwritten by only a few select surety companies. These surety bonds are considered very high risk and are only available to companies with exceptional financial and credit history. The Texas Railroad Commission Blanket Performance Bonds are as follows:
- 10 or fewer wells = $25,000 surety bond
- More than 10 but fewer than 100 wells = $50,000 surety bond
- More than 100 wells = $250,000 surety bond
How do I apply for a Texas Railroad Commission – Blanket Performance Surety Bond?
- Complete our online Texas Railroad Commission – Blanket Performance Surety Bond application, or
- Download and complete our printable Texas Railroad Commission – Blanket Performance Surety Bond application, and
- Receive your surety bond quote in minutes!