Nevada Oil, Gas, and Geothermal Well Drilling Bond

Nevada Oil, Gas, and Geothermal Well Drilling Bond

The Nevada Commission on Mineral Resources requires oil, gas, and geothermal drilling operators to obtain the appropriate permit and to file either an Oil and Gas Drilling Surety Bond or Geothermal Drilling Surety Bond with the Division of Minerals. The same form is used for each type of surety bond, which is often referred to as the Oil, Gas, and Geothermal Drilling Bond.

APPLY FOR YOUR BOND

Jet Insurance Company provides the Oil, Gas, and Geothermal Drilling Bond as an assurance to the Nevada Division of Minerals that the operator will perform all drilling, redrilling, or deepening of a mineral well site up to permit standards. In cases where a violation goes unresolved or the permittee abandons the project, the surety bond acts as restitution for the Division of Minerals so they can complete the job properly.

How Much Is the Nevada Oil, Gas, and Geothermal Drilling Bond at Jet?

A soft credit check and the bond limit will determine your price, which is only a small percentage of the bond amount. A quick evaluation of your business financials may be necessary. Once you have submitted your application and a review has been completed, Jet will send you approved rates at annual and multi-year options that are ready for immediate purchase. 

How Is the Nevada Oil, Gas, and Geothermal Well Drilling Bond Limit Determined?

The amount for the Oil, Gas, and Geothermal Drilling Bond is based on the type and number of wells that are being performed on per single operator permit; the Nevada Division of Minerals must approve the limit and may require a higher amount to reflect the cost and risk associated with the operation. The Nevada Division of Minerals qualifications for minimum bond amounts can be found listed below:

Permitted geothermal operators with various types of wells and multiple wells in a project area may request the Oil, Gas, and Geothermal Bond to act as a blanket surety bond. If approved, the bond amount must be no less than a $100,000 limit. 

Why Is the Nevada Oil, Gas, and Geothermal Drilling Bond Required?

The Nevada Commission on Mineral Resources is in charge of overseeing the drilling of geothermal, oil, and gas wells, and has designated the Division of Minerals to manage operator permits and regulation standards. The purpose of this is to ensure the safety of the public and the surrounding environment. The mandated permit helps hold operators accountable for their actions, while the Oil, Gas, and Geothermal Drilling Bond provides financial assurance to the Division of Minerals if violations are committed. For example, if an operator abandons a drilling job in the middle of the operation, the Division of Minerals can utilize the surety bond to cover the costs of hiring a new operator to complete the project up to regulation and safety standards.

How to Apply for the Nevada Oil, Gas, and Geothermal Drilling Permit Bond With Jet

Jet’s application for the Oil, Gas, and Geothermal Drilling Bond is directly online and can be completed in just a few minutes. Required information includes your contact details, the bond amount, and your social security number?a soft credit check (which doesn’t affect your score) is run to get you an approved rate. Once you have submitted your application, a Jet underwriter will review your information. We’ll give you a call right away if further details regarding your business are needed. Otherwise, approved rates at annual and multi-year options will be sent to your email. All we need is payment and you’ll instantly receive a copy of your bond and receipt. 

Can Jet File the Well Drilling Permit Bond for Me?

Yes! We can file your bond for you free of charge. However, if you would prefer to handle this step yourself, the option to do so can be selected at checkout. The original signed and sealed Oil, Gas, and Geothermal Drilling Bond is to be filed with the Nevada Division of Minerals and must remain on file for the entire duration of your permit.

Nevada Commission on Mineral Resources
Division of Minerals
400 W. King Street, Suite 106
Carson City, NV 89703

If you have still not applied for your permit, the applications and required forms can be found on the Nevada Commission on Minerals website; direct links can be found below:

What Is the Oil, Gas, and Geothermal Drilling Permit Bond Cancellation and Renewal Process?

According to the Nevada Division of Minerals, the Oil, Gas, and Geothermal Bond is continuous and may not be cancelled by the operator or the surety provider (Jet). The bond will be released by the Division once the permitted project has been finished and officially approved for completion status.

Luckily, renewals with Jet are quick and easy. We will send you a renewal invoice in advance of your bond term expiration date. All we need from you is standard payment and your bond will be all set with the Division of Minerals for another term.

If you have any questions or concerns, please feel free to shoot us an email at [email protected] and a Jet team member will help you out right away.

How Does a Permit Operator Avoid Well Drilling Bond Claims?

Drilling operators of geothermal, gas, and oil wells are expected to follow all regulations pursuant to Chapters 522 and 534A of the Nevada Administrative Codes and Chapters 522 and 534A of the Nevada Revised Code, as well as any specific obligations of their permit and regulations of the Division of Minerals. Failure to meet these standards may result in the termination of your permit, large fines, and/or a bond claim.

The Nevada Division of Minerals may file a claim on the Oil, Gas, and Geothermal Drilling Bond for a number of violations, but typically such reasons include the operator willfully violating permit regulations, refusing to resolve issues after orders from the Division to do so, failure to plug the well after the completion of the job, or abandoning the project without a valid reason. 

If any of these violations are committed and the operator refuses to resolve the issue, the Nevada Division of Minerals will file a claim on the bond to cover the costs of hiring a new operator to complete the permit project up to code.

It is in your best interest to avoid all of the scenarios listed above and try to fix any problems with the Division regarding your project. An omission to do so will lead to a loss of your permit and a pricey claim on your surety bond. Your reputation with the Division will likely be compromised as well, making it difficult to obtain any permits or bonds in the future.

What Happens if I Get a Nevada Oil, Gas, and Geothermal Drilling Permit Bond Claim?

If you receive a claim notice from the Nevada Division of Minerals, immediately contact Jet. We will ask that you provide us with all available information and documentation regarding the claim. The Jet team will utilize these resources for our own investigation of the accused permit violation to ensure the Division’s claim is valid and no malfeasance has been committed.

According to the Oil, Gas, and Geothermal Drilling Bond form, Jet is obligated to make payment up to the limit for justified claims?payouts will never exceed your bond amount. You, the permitted operator, are responsible for your actions and ultimately are required to reimburse Jet for the claim payment made on your behalf.

Nevada Oil, Gas, and Geothermal Well Drilling Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: