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Kentucky individual well plugging bonds.
From $125.

Before you drill or take over an oil or gas well in Kentucky, the Division of Oil and Gas requires a plugging and abandonment bond on file under KRS 353.590. This is the single-well (individual) bond — pricing is 5% of the bond amount plus a $25 fee, $125 minimum, calculated for you below. Enter the amount your permit calls for.

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Required under KRS 353.590 before a permit is issued or a well is transferred to you
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For permits issued after June 27, 2019, the department generally sets the amount at $2 per foot of true vertical well depth — verify the figure on your permit
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A quick soft credit check may apply — never a hard inquiry, no impact on your score — your price is 5% of the bond amount plus a $25 fee, $125 minimum
5% + $25of the bond amount, plus fee$125 minminimum premiumSoft pullnever affects your score
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

Three steps to bonded.

A single-well bond is straightforward — enter your amount, consent to a soft pull, and file with the Division. Here is the whole thing:

TODAY · ONLINE

Apply online

Your operator details, the well, the bond amount your permit 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

File with the Division of Oil and Gas

Pay online and receive the executed bond, ready to file with the Department for Natural Resources, Division of Oil and Gas. Wet-ink originals mailed whenever the Division insists.

About this bond

What it is and who needs it.

What the well plugging bond actually guarantees

Kentucky regulates oil and gas wells through the Department for Natural Resources, Division of Oil and Gas. Under KRS 353.590, a performance bond must be on file before a well is drilled or acquired from another operator — it guarantees that the well will be properly plugged and abandoned and that the required well records are filed.

This is the single-well (individual) bond, covering one specific well rather than a blanket bond covering all of an operator’s wells. For permits issued after June 27, 2019, the department generally requires $2 of bond for every foot of true vertical well depth — so the amount scales with how deep the well goes.

If an operator abandons a well without plugging it, the Commonwealth can forfeit the bond; forfeited sums go to the state oil and gas well plugging fund and are spent plugging abandoned wells. It is not insurance for you — if the surety pays, you repay the surety. Operators who plug their wells and file records treat the bond as a permit formality.

KRS 353.590 (Division of Oil and Gas)KRS 353.590 conditions an oil or gas well permit on a performance bond filed with the Department for Natural Resources, Division of Oil and Gas, guaranteeing proper plugging and abandonment and the filing of well records. For permits issued after June 27, 2019, the department generally requires $2 of bond per foot of true vertical well depth. A blanket bond and other forms of security (cash, letter of credit, CD) are also accepted — confirm your required amount on your permit.

You need this bond if you are

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Permitting a new oil or gas well in Kentucky and posting a single-well bond
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Acquiring a well from another operator that the Division ties to a bond on file
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An operator the Division asked to bond before issuing or renewing a permit
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Choosing a single-well bond instead of a blanket bond covering all your wells

One application, soft pull only.

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

Start the application →
FAQ

Common questions.

How much is the Kentucky individual well plugging bond?Pricing is 5% of the bond amount plus a $25 fee, with a $125 minimum. The bond amount itself is set by the Division of Oil and Gas — for permits issued after June 27, 2019, generally $2 per foot of true vertical well depth. Enter the figure on your permit and apply to see your exact price.
What is the difference between this and a blanket bond?This single-well (individual) bond covers one specific well. A blanket bond covers all of an operator’s wells under one bond. Many operators with several wells use a blanket bond instead — tell us which you need and we’ll issue it.
Is there a credit check?A quick soft credit check may apply as part of approval — never a hard inquiry, no impact on your score. Your price is set by the bond amount: 5% plus a $25 fee, $125 minimum.
What does the bond guarantee?That the well will be properly plugged and abandoned and the required records filed. If an operator abandons a well without plugging it, the Commonwealth can forfeit the bond — and if the surety pays, you repay the surety.
Where do I file it?With the Kentucky Department for Natural Resources, Division of Oil and Gas. We issue the executed bond ready to submit before your permit is issued or a well is transferred to you.
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 Kentucky bonds.

Well plugging bond, sorted today.

Priced at 5% of the bond amount plus a $25 fee, $125 minimum, one soft pull that never affects your score. Enter the amount your permit requires and file with the Division.

Your premiumfrom $125
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