Montana oil & gas well bonds.
From $100.

Before the Montana Board of Oil and Gas Conservation issues a drilling permit, it requires a surety bond conditioned on plugging your well and reclaiming the site. The amount is set by well depth for a single well, or you can blanket-bond every well you operate. Premiums run 5% of the bond amount, with a $100 minimum, and your exact price appears at the application.

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Required by the Board of Oil and Gas Conservation under MCA Title 82, Chapter 11, before a drilling or operating permit

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Single-well amount is set by depth — $1,500 to 2,000 ft, $5,000 to 3,500 ft, $10,000 deeper, or $50,000 to blanket all your wells

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A quick soft credit check may apply — never a hard inquiry, no impact on your score, and pricing is 5% of the bond amount, with a $100 minimum

From $100minimum premium5%of bond amount, $100 minSoft pullnever a hard inquiry

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How it works

Three steps to a bonded permit.

Your drilling or operating permit is waiting on this bond. Here is the whole process — no broker phone tag:

TODAY · ONLINE

Apply online

Operator details, the bond amount the Board requires, and an effective date — plus a one-time consent to a soft credit pull. That is the application.

RIGHT AWAY

Approved

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

WHEN YOU PAY

E-sign & file (Form 3)

Pay online and receive the executed bond on the Board’s Form 3, ready to file with your permit application. Wet-ink originals mailed whenever the Board insists.

About this bond

What it is and who needs it.

What the well bond actually guarantees

Montana regulates oil and gas operations through the Board of Oil and Gas Conservation under MCA Title 82, Chapter 11. Before drilling, the operator must post a surety bond conditioned on plugging the well and reclaiming the surface when production ends — so the state is never left holding the cleanup cost on an abandoned well.

The amount is graduated by single-well depth: roughly $1,500 for a well 2,000 feet or shallower, $5,000 for 2,001–3,500 feet, and $10,000 for wells deeper than 3,500 feet. Operators with multiple wells generally post a $50,000 blanket bond covering all of them, and the Board can require a larger amount when it finds one warranted.

It is a three-party guarantee — you (the principal), the surety, and the State of Montana (the obligee). If you fail to plug or reclaim and the state has to, it can recover against the bond, and you repay the surety. We confirm the exact amount on your permit; premiums start from $100 and your exact price is set at application.

MCA Title 82, Ch. 11 (Board of Oil and Gas Conservation)Montana oil and gas operators are regulated by the Board of Oil and Gas Conservation under MCA Title 82, Chapter 11, which conditions a drilling/operating permit on a surety bond for plugging and reclamation. Single-well amounts are graduated by depth ($1,500 / $5,000 / $10,000), with a $50,000 blanket option for multiple wells; the Board may require more. A separate landowner’s bond on a noncommercial well (MCA 82-11-163) uses different figures — confirm the amount and form on your permit.

You need this bond if you are

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Drilling a new oil or gas well the Board requires bonded before a permit issues

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Acquiring or assuming an existing well and taking over the operator bond

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Operating multiple wells and posting a single $50,000 blanket bond instead of per-well bonds

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Re-permitting after a transfer that requires a fresh bond filing with the Board

One application, issued instantly.

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

Start the application →

FAQ

Common questions.

How much is the Montana oil & gas well bond?Premiums run 5% of the bond amount, with a $100 minimum. The amount itself is set by the Board: $1,500 / $5,000 / $10,000 per single well by depth, or $50,000 to blanket-bond every well you operate. Your exact price appears at the application.

What does the bond guarantee?That you plug the well and reclaim the site when production ends, as required under MCA Title 82, Chapter 11. If you don’t and the state has to, it can recover against the bond — and if the surety pays, you repay the surety.

Should I bond per well or blanket?If you operate more than one well, the $50,000 blanket bond usually covers all of them and is simpler than separate per-well bonds. For a single well, the depth-based amount is cheaper. Send us your permit and we’ll confirm which the Board requires.

Is there a credit check?A quick soft credit check may apply — never a hard inquiry, no impact on your score. Pricing is 5% of the bond amount, with a $100 minimum.

Which form do I file?The Board of Oil and Gas Conservation’s individual well bond, Form 3. We issue the executed bond on that form, ready to file with your permit application.

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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