On June 10, 2014, Nebraska’s Gov. Pete Ricketts signed revised regulations pertaining to oil and gas drilling into law. The revised regulations, proposed by the Nebraska Oil and Gas Conservation Commission, increase surety bonding amounts for the drilling of oil and gas wells.
Past regulations required the posting of a $5,000 bond for each well or hole to be drilled. The newly-passed regulations increase said bond amount to $10,000 per well or hole. This bonding requirement is set to guarantee the well owner’s compliance with all of the rules and regulations enforced by the Commission regarding drilling in the state. The bond remains in effect until either the well is plugged, a new bond is filed by a well’s successor or the bond is released by the Director of the Commission.
In addition to the individual well bonding option, the Nebraska Oil and Gas Conservation Commission allows for a blanket bond option for those wishing to bond multiple wells at once. An excerpt from the Rules and Regulations of the Nebraska Oil and Gas Conservation Commission regarding blanket bonds can be found below:
“It is provided, however, that any owner in lieu of such bond may file with the Director a good and sufficient blanket bond in the principal sum of not less than one hundred thousand dollars ($100,000) covering all wells or holes drilling or to be drilled in the State of Nebraska by the principal in said bond; and upon acceptance and approval by the Director of such blanket bond, said bond shall be considered as compliance with the foregoing provisions requiring an individual well or hole bond. The Director may refuse to accept a bond or add wells to a blanket bond if the operator or surety company has failed in the past to comply with statutes, rules or orders relating to the operation of wells; or for other good cause.”
The experts at SuretyBonds.com are familiar with these updated requirements in Nebraska and are ready to assist you with all your oil and natural gas bonding needs. If you have questions or are ready to purchase your bond, give us a call at 1 (800) 308-4358 Monday through Friday between 7 a.m. and 7 p.m. CST. Or, you can submit an instant online bond request 24/7. Our expert surety specialists will you walk you through each step of our fast, easy and accurate bonding process.
