jQuery Accordion

Oil and Gas Bonding

Lease Bonding Information

Idle Well Bonding Information

Extension Performance Bonds

  • Formerly known as "Liquidated Damages Bonds", Extension Performance Bonds are used to ensure the performance obligation during an extended term of an oil and gas lease. If performance obligations are met within the extended term, the bond is returned. If performance obligations are not met within the extended term, the bond is forfeited as liquidated damages. Extension performance bonds are required to be submitted as cash through wire transfer or corporate check. For more information regarding Extension Performance Bonds please refer to the links below.

Fresh Water Frac Pit Bonding Information

Surface Leasing Bonding

SUL Bonding

  • Special Use Leases are bonded according to an engineer’s estimate for the reclamation of the site. This is done for all SUL’s with the exception of SUL’s that are held by governmental agencies. SUL bonds are accepted in the form of surety bonds and can be released when successful reclamation of the lease has taken place.

CBM Reservoir Bonding

  • CBM reservoirs are permitted under temporary use permits, regardless of reservoir type (on-channel or off-channel) or water type (on-lease, off-lease, or a combination of both). The reservoir is bonded at time of application for the amount of reclamation cost according to an engineer’s estimate. On-channel reservoirs are also bonded through DEQ. When DEQ has a bond in place for an on-channel reservoir, OSLI releases the existing bond on that reservoir. Off-channel reservoirs remain bonded with OSLI until the reservoir is reclaimed.

Hard Rock Bonding

Lease bonding is required for all producing hard rock leases. Lease bond must be posted after lease approval and before development of the lease. Wyoming Department of Environmental Quality also requires reclamation bonding for the mining permit. The WDEQ reclamation bond requirements are separate from OSLI lease bonding requirements. Lease bonding may be accepted as Surety, Letter of Credit, Certificate of Deposit, or Certified Corporate Check. Blanket surety bonds may be accepted in the amount of $100,000 to cover liabilities of multiple leases.

Individual Bond Document- Corporate Surety Bond Form

Blanket Bond- Corporate Surety Bond Form

Each lease type has specific rules and regulations pertaining to bonding for that lease type. Citations for rules and regulations for each lease type are as follows:

Coal:Rules and Regulations of SBLC Chapter 19, Section 13

Trona/Sodium:Rules and Regulations of SBLC Chapter 20, Section 12

Uranium:Rules and Regulations of SBLC Chapter 21, Section 12

Bentonite:Rules and Regulations of SBLC Chapter 22, Section 12

Zeolite:Rules and Regulations of SBLC Chapter 23, Section 12

General Metallic and Non-Metallic:Rules and Regulations of SBLC Chapter 24, Section 12

Sand and Gravel:Rules and Regulations of SBLC Chapter 25, Section 11

Antiquities/Fossil Permit Bonding

  • Exclusive Commercial Fossil Removal Permit
    • All Exclusive Commercial Fossil Removal Permits must be bonded at $600 per acre of the permitted area. Bonding must be posted to OSLI before the removal of any fossil specimens. The antiquities bonding requirement for Exclusive Commercial Fossil Removal Permits is used to ensure the reclamation of the permitted area is successfully completed post-quarrying operations.
  • Non-Exclusive Scientific Fossil Removal Permit
    • Non-Exclusive Scientific Fossil Removal Permits do not require antiquities bonding unless determined by the Board.

Bonding Resources

Wire and ACH Transfer Information

Please include lease number and bond type in the notes of the wire transfer.

Wire Information

Bond Release Request Form

Coming Soon!

Letter of Credit and Certificate of Deposit Guidelines

Coming Soon!