Illinois Oil & Gas Well / Operator Bond

The bond amount depends on whether you choose an individual well bond or blanket bond. Individual well bonds are $1,500 for wells less than 2,000 feet deep and $3,000 for wells 2,000 feet or deeper. Blanket bonds covering multiple wells are $25,000 (1-25 wells), $50,000 (26-50 wells), or $100,000 (51+ wells). Geological test holes and monitoring wells require $2,500 individual or $25,000 blanket bonds.

Illinois DNR accepts three types of financial assurance: surety bonds from corporate sureties authorized to do business in Illinois, irrevocable letters of credit issued by banks organized or authorized to do business in Illinois, and certificates of deposit. Surety bonds must include a 90-day cancellation notice provision with written notice sent to the DNR Springfield office by registered or certified mail.

The bond must be filed with the Illinois Department of Natural Resources before you begin drilling, deepening, converting, operating, or transferring ownership of any oil or gas well. The bond must remain in effect until the well is properly plugged and the site is restored according to the Illinois Oil and Gas Act regulations.