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Texas Oil and Gas Operations Blanket Performance Bond

How much does an oil and gas operations blanket bond cost in Texas?

The Railroad Commission of Texas requires individuals who operate oil and gas wells to post surety bonds in varying amounts prior to conducting business. The required bond amount is determined by the number of wells you operate within the state. If you operate less than 10 wells, the required bond amount is $25,000. If you operate 10 to 100 wells, the required bond amount is $50,000. If you operate more than 100 wells, the required bond amount is $250,000.

Because the required bond amount and price of this bond can vary so much, our experts recommend submitting a bond request to receive your free, no-obligation bond quote.

Bond Type Bond Amount Cost*
$25,000 Oil and Gas Operations Blanket Performance Bond 1-10 Wells $25,000 Starts at $250 Apply Now
$50,000 Oil and Gas Operations Blanket Performance Bond 11-99 Wells $50,000 Starts at $500 Apply Now
$250,000 Oil and Gas Operations Blanket Performance Bond 100+ Wells $250,000 Starts at $2,500 Apply Now

Call 1 (800) 308-4358 or click here to connect with our team of surety bond experts who will walk you through each step of our fast and easy bonding process.

Why do I need this bond?

By posting a Texas oil and gas operations blanket bond, principals (oil well operators) pledge to carry out all operations in compliance with all state laws and commission rules. Specifically, the principal agrees to plug and abandon all wells and control, abate and clean up pollution associated with its oil and gas operations and activities according to all laws and permit rules and regulations.

If the principal fails to adhere to these laws and the terms of the surety bond contract, the bond protects the state from financial loss up to the full bond amount.

We can typically provide you with a free bond quote within 1 business day of applying. Get started here!

What’s the fine print?

Texas oil and gas blanket bonds become effective 150 days after the principal’s P-5 effective date. These bonds expire 150 days after one of the annual P-5 expiration dates, but can be renewed if the surety sends a written renewal to the commission.

How to legally operate an oil or gas well in Texas

Prior to operating an oil or gas well, you must first acquire a permit. To obtain a permit, applications must be sent to the Oil and Gas Division Railroad Commission. Each application must be accompanied by a $200 application fee and a surety bond in the proper amount.

Take the first step toward obtaining a permit by purchasing your Texas surety bond quickly, easily and accurately!

Ready to get started?

Get a FREE Oil and Gas Operations Blanket Bond Quote Today!

Additional Resources

Railroad Commission of Texas Blanket Performance Bond form

Railroad Commission of Texas Oil and Gas Forms

Occupations Code Title 5. Regulation of Financial and Legal Services Subtitle B. Legal Services Chapter 953. Regulation of For-Profit Legal Service Contract Companies Subchapter A. General Provisions

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