Ohio Oil and Gas Well Driller Bond

Ohio Oil and Gas Well Driller Bond

Oil and gas well permit holders and well owners must file an Oil and Gas Well Driller Bond (also known as an Oil and Gas Well Permit Bond) with the Ohio Department of Natural Resources as a permit requirement. The bond is used as a safety measure to ensure funds are available to plug the well and reclaim the land should the well owner or permittee fail, neglect, or refuse to do so. The $5,000 bond will cover the cost of one well, but for two or more wells a $15,000 bond is needed.


As a direct insurance company, Jet eliminates lengthy processes and broker fees that occur when a middleman is involved.

What Is the Price for the Oil and Gas Well Permit Bond?

The cost of an Oil and Gas Well Driller Bond is based on a few factors: the bond limit and a personal credit check of the permit holder. The lifespan of the well may also be taken into account. After Jet completes a quick review of your application, you will receive an approved rate. With Jet, the cost of the bond is only a small percentage of the bond limit.

Jet offers annual and multi-year payments, so you can purchase the term that works best for you during the time your well is active.

Why Is the Oil and Gas Well Drilling Bond Required?

Within the Department of Natural Resources, the Division of Oil and Gas is charged with regulating the harvest of Ohio’s natural resources in a responsible manner and protecting the environment and the citizens of Ohio from the dangers that could be caused by these processes. The bond contributes to this mission by ensuring the well(s) will be plugged, lowering the danger of citizens being hurt. It also promises that the land will be restored, preventing sedimentation and soil erosion. 

The Department of Natural Resources requires this bond as a guarantee that financial recourse is readily available if the well owner or permit holder fails to close the well according to permit obligations, the Ohio Administrative Code 1501:9-1, and the Ohio Revised Code 1509.

How to Apply for the Oil and Gas Well Driller Bond With Jet

When you click the “View Your Price” button above, you will be taken to our online application that only takes a few minutes to complete. We only ask for the information needed to verify your rate (such as your social security number for the soft credit check) and your application will be submitted for review by a Jet underwriter. If any additional information is needed, it will be requested at this time. After a short review, you will receive an email with your approved rate that can be purchased right away. An emailed receipt and copy of your bond will be sent to you following payment.

How Does the Oil and Gas Permit Bond Get Filed to the Department of Natural Resources?

After the payment has been processed, Jet will prepare your Oil and Gas Well Driller Bond form, attaching a power of attorney and a certificate of authority, and mail it to you. When you receive the bond, you will need to provide a notarized signature before filing the bond.

Once you have signed the bond before a notary, you must submit the original bond form (with the attached power of attorney and certificate) to:

Ohio Department of Natural Resources
Division of Oil and Gas Resources Management
Attn: Surety Section
2045 Morse Rd, Building F-2
Columbus, OH 43229-6693

Can I Cancel My Oil and Gas Well Permit Bond With Jet and Get a Refund?

Yes, you can with Jet. If you need to cancel your bond, just let us know by sending an email to bonddept@jetsurety.com or written notice by mail. Our office will notify the Department of Natural Resources, where the bond is held for an additional 30 days for a replacement bond to be filed (unless you have completed work on the well) — don’t forget, a bond must be active during the course of your oil and gas well permit. 

Once the Department releases Jet from liability on the bond, our team will calculate the time remaining into a refund.

How to Renew the Oil and Gas Well Drilling Bond

When the term you have chosen is nearing its end, Jet will send a renewal notice through mail and email. The quickest way to renew is to click the link in the email, choose your new term, and pay the renewal premium. Renewing through the mailed notice is just as easy, though not as quick; simply fill out the notice and mail it back.

How Does a Principal Avoid Oil and Gas Permit Bond Claims?

In its essence, the bond makes sure that once the well is done being utilized, the well is plugged according to the standards found in Chapter 1509 of the Ohio Revised Code (ORC). It is the well owner’s or permittee’s responsibility to follow permit guidelines and complete the plugging of the well and restoration of the land by the deadline given which is within three months in an urban area (population of more than 5,000) and six months in a non-urban area. To close the well, the owner or permittee must complete the following tasks according to the legislature: 

If the permittee or well owner does not fulfill their obligations, the Chief of the Department of Natural Resources will send a written notice with details of the violation, the action to be taken to remedy the situation, and a deadline by which it must be done. If the well owner or permittee still does not complete plugging the well or restoring the land, the Chief will seek payment from the bond to complete the work. 

There are two chances to close the well down properly before action is taken on the bond. It is in your best interest to take restorative action when you receive a written warning from the Chief to avoid a claim on the bond that you will still be held financially liable for.

What Happens if I Get a Claim on My Oil and Gas Well Driller Bond?

If you receive a claim on your bond, it is likely that you had an opportunity to fix the situation before there was a claim filing. The Chief will provide notice of the claim to you and to Jet. Under the Ohio Administrative Code 1501:9-1-03, it is within Jet’s rights to pay out the full amount of the bond to the Department of Natural Resources within 30 days of the notice. 

Unlike an insurance policy that protects you, a surety bond serves as protection to the public from your actions. Since you failed to close the oil or gas well as needed, you are ultimately responsible for your conduct.

If a claim leads to the bond being paid out, the Chief of the Division of Oil and Gas may request a new higher limit bond to be filed in the following amounts:

Ohio Oil and Gas Well Driller Bond Form