Oil and Gas Bonds
The Texas Railroad Commission requires all oil and gas operators to provide financial assurance.
Keep your project on track with oil and gas bonds, which make sure the job gets done no matter the circumstances. InSource can help you find the right bond for the job.
What Are Oil and Gas Bonds?
A type of surety bond, oil and gas bonds are an 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 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
Why Work With InSource?
InSource Insurance Group contracts with many of the top bonding companies in the country. Our experienced team guides you through the application process, quickly secures your quote, and binds the most the competitive quote options. Once these bonds are secured, we review your bonding needs on an annual basis. Our bonding department is dedicated to providing each of our clients the best possible service and pricing.
With locations in Midland, Odessa, and Lubbock, TX, and with remote employees across the state and the country, we provide your company with the service and assurance you need. Our team members are licensed to sell and service insurance products in almost every state in the U.S.
Bond Professionals
Our oil plugging bonds are designed to protect your business and ensure all state and federal regulations are met.
Insurance Experts
Protect your business with the right insurance through InSource Insurance Group.
