Oil & Gas Bonds

The Texas Railroad Commission requires all Oil and Gas Operators to provide financial assurance.

What are oil and gas bonds?

A type of surety bond, oil and gas bonds are a three-party agreement between a principal (oil and gas well operators), an obligee (the state), and a surety (the bonding company). These bonds are designed to ensure the completion of a project if the operator/contractor defaults. Oil and gas bonds are usually required as a prerequisite before operators are allowed to drill in a specific area.
Companies known as surety companies provide these types of bonds and are responsible for finding other oil and gas operators to complete the project or to compensate the state in the case of insolvency.
In Texas, the Railroad Commission requires the following Blanket Performance Bonds of Oil and Gas Operators:

  • 10 or fewer wells = $25,000 surety bond
  • More than 10 wells but fewer than 100 wells = $50,000 surety bond
  • More than 100 wells = $250,000 surety bond

Our variety of oil plugging bonds are designed to protect your business and ensure that all state and federal regulations are met.

Why work with InSource?

At Insource Insurance Group, we have contracts with many of the top bonding companies in the country. Our experienced team members will guide you through the application process, quickly secure your quote, and bind the most the competitive quote options. Once these bonds are secured, we will review your bonding needs on an annual basis upon renewal. Our bonding department is dedicated to providing each of our clients the best possible service and pricing.

With locations in Midland, TX, Odessa, TX, and Lubbock, TX, and with remote employees across Texas and the United States, we are equipped to provide your company with the service and assurance that you need.  Our team members are licensed to sell and service insurance products in almost every state in the United States.  If you are curious about which bonds we recommend for your company, or if you are ready to begin working with us, give us a call today to get started!

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