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Illinois oil & gas well bonds.
From $125.

The Illinois Department of Natural Resources requires a plugging bond before you drill, deepen, convert, or operate an oil or gas well, so every well is eventually sealed. A blanket bond covers all of your wells at once. The price is 5% of the bond amount plus a $25 fee, $125 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 every well you operate instead of a separate bond per well
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Soft credit pull only — never affects your score, priced at 5% of the bond amount plus a $25 fee, $125 minimum
5% + $25$125 minimum premiumSoft pullnever affects your scoreFastissued the moment you pay
Trusted by industry leaders
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
New York City Economic Development Corporation (NYCEDC)
Blumenfeld Development Group (BDG)
Capital Development Partners
McKinney Properties
Terra Capital
JLL (Jones Lang LaSalle)
Triple Five Group
The Georgetown Company
How it works

Apply to filed in a couple of days.

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

TODAY · ONLINE

Apply online

Your operator 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 well bond actually covers

The Illinois Oil and Gas Act (225 ILCS 725) requires an operator to file a plugging bond before drilling, deepening, converting, or operating any oil or gas well. The bond stands behind the operator's duty to properly plug and abandon every well at the end of its life, so an orphaned well doesn't become the state's problem.

Under the Act, you can file $10,000 for a single well, or a blanket bond of $25,000 for up to 10 wells, $50,000 for up to 50 and $100,000 for up to 100 (larger operators proportionally more) covering all of your wells. The blanket bond is what most operators carry — one filing for your whole field instead of a bond for every well.

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 well, the DNR can recover against the bond, and if the surety pays, you repay the surety.

225 ILCS 725/6(2.5) (Illinois Oil and Gas Act)Under the Illinois Oil and Gas Act (225 ILCS 725), an operator must file a plugging bond before drilling, deepening, converting, or operating an oil or gas well — $10,000 for a single well, or a blanket bond of $25,000 for up to 10 wells, $50,000 for up to 50 and $100,000 for up to 100 (larger operators proportionally more), 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 a new oil or gas well that the DNR permits under the Oil and Gas Act
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Operating producing wells and must keep a plugging bond on file for them
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Running multiple wells and want one blanket bond instead of many
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Deepening or converting a well that triggers the bonding requirement

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 oil and gas well bond?The price is 5% of the bond amount plus a $25 fee, $125 minimum — set by the amount you enter, not a credit tier. The amount itself is set by the Oil and Gas Act — $10,000 for a single well, or a blanket bond of $25,000 for up to 10 wells, $50,000 for up to 50 and $100,000 for up to 100 (larger operators proportionally more). Enter the figure that applies and your exact price appears at the application.
Should I get a single-well or a blanket bond?A single-well bond is $10,000; a blanket bond covers all of your wells at once — $25,000 for up to 10, $50,000 for up to 50, $100,000 for up to 100. Operators with more than a couple of wells almost always file the blanket bond.
Is there a credit check?Yes — one soft credit pull, which never affects your score. It informs approval; the price itself is 5% of the bond amount plus a $25 fee, $125 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.
Does the bond ever cancel?No — the plugging bond must stay in place for the life of the wells it covers and generally cannot be canceled. The premium renews annually until the wells are plugged and the DNR releases the bond. We track renewals and notify you ahead of time.
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.
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Well plugging bond, in a couple of days.

5% of the bond amount plus a $25 fee, $125 minimum, soft pull only. Enter the amount the DNR required and file this week.

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Your premiumfrom $125
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