Illinois drilling-hole plugging bonds.
From $100.

Before you drill coal, structure, or groundwater test holes in Illinois, the Department of Natural Resources requires a plugging bond so every hole gets properly sealed. A blanket bond covers all of your permits at once. The price is 4% of the bond amount, $100 minimum.

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Required by the DNR Office of Oil & Gas Resource Management under the Illinois Oil and Gas Act

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A blanket bond covers all your test-hole permits instead of one bond per hole

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Soft credit pull only — never affects your score, priced at 4% of the bond amount, $100 minimum

4% rate$100 minimum premiumSoft pullnever affects your scoreFastissued the moment you pay

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How it works

Apply to filed in a couple of days.

Energy plugging bonds run one quick soft-pull review. Here is the whole process — no broker phone tag:

TODAY · ONLINE

Apply online

Your business details, the bond amount the DNR requires, and the effective date — plus a one-time consent to a soft credit pull.

RIGHT AWAY

Approved

Most are approved as soon as you apply. The credit check is a soft pull that never affects your score. If it needs a second look, one to two business days at most.

WHEN YOU PAY

E-sign & file with the DNR

Pay online and receive the executed blanket bond, ready to file with the Office of Oil & Gas Resource Management. Wet-ink originals mailed whenever the state insists.

About this bond

What it is and who needs it.

What the drilling-hole bond actually covers

The Illinois Oil and Gas Act (225 ILCS 725) reaches beyond oil and gas wells: it also governs geological, structure, coal, and other mineral test holes and monitoring wells. The Department of Natural Resources requires a plugging bond so that every hole is sealed and can't become a pathway for contamination once work is finished.

Under the Act, the test-hole bond is $2,500 for each permit, or a $25,000 blanket bond for all permits. The blanket bond is what most operators carry — one filing covers your whole program instead of a separate bond for every hole.

In lieu of a surety bond, the Act lets you post cash, a certificate of deposit, or an irrevocable letter of credit — but a surety bond is usually the cheapest, since you pay a small premium rather than tying up the full amount. If you don't plug a hole, the DNR can recover against the bond, and if the surety pays, you repay the surety.

225 ILCS 725/6 (Illinois Oil and Gas Act)Under the Illinois Oil and Gas Act (225 ILCS 725), test and monitoring holes — including geological, structure, coal, and groundwater holes — require a plugging bond of $2,500 per permit or a $25,000 blanket bond covering all permits, filed with the Department of Natural Resources. Cash, a certificate of deposit, or an irrevocable letter of credit may be posted in lieu of a surety bond. Confirm your required amount with the DNR.

You need this bond if you are

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Drilling coal-exploration or structure holes that the DNR permits under the Oil and Gas Act

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Installing groundwater monitoring wells that fall under the test-hole bonding rule

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Running a multi-permit program and want one blanket bond instead of many

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A geotechnical or environmental driller the DNR requires to bond before breaking ground

One application, then a quick review.

These are the actual underwriting fields, including a one-time consent to a soft credit pull. Submit once and your blanket bond is issued when you pay.

Start the application →

FAQ

Common questions.

How much is the Illinois drilling-hole bond?The price is 4% of the bond amount, $100 minimum — set by the amount you enter, not a credit tier. The amount itself is set by the Oil and Gas Act — $2,500 per test-hole permit, or a $25,000 blanket bond covering all of your permits. Enter the figure that applies and your exact price appears at the application.

What is the difference between a single and a blanket bond?A single bond ($2,500) covers one permit; the $25,000 blanket bond covers all of your test-hole permits at once. Operators with more than a handful of holes almost always file the blanket bond — one filing instead of many.

Is there a credit check?Yes — one soft credit pull, which never affects your score. It informs approval; the price itself is 4% of the bond amount, $100 minimum, set by the amount you enter, not your credit tier.

Can I post cash or a letter of credit instead?The Act allows cash, a certificate of deposit, or an irrevocable letter of credit in lieu of a surety bond. A surety bond is usually cheapest, since you pay a small premium rather than locking up the full amount as collateral.

Where do I file it?With the Illinois Department of Natural Resources, Office of Oil & Gas Resource Management. We issue the executed bond ready to file with your drilling permits.

Which A-rated carriers underwrite these bonds?Typically Arch Insurance Company (A.M. Best A+) or Nationwide Mutual Insurance Company (A.M. Best A). Which one writes your bond depends on the bond type and your state. The carrier's name and official signature are printed on the bond you receive.

How do I contact Light RFP about this bond?Email insurance@lightrfp.com. It reaches the bond team at Light RFP Risk Management Services LLC (NY DFS License # PC-1978982). Write to us about quotes, applications, bond forms or certificates. We will respond within 24 hours.

Related bonds

Other Illinois bonds.

Drilling-hole bond, in a couple of days.

4% of the bond amount, $100 minimum, soft pull only. Enter the amount the DNR required and file this week.

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