Oil and Gas Plugging and Abandonment or P-5 Bond
What is a Oil and Gas Plugging and Abandonment or P-5 Bond?
An Oil and Gas Plugging and Abandonment or P-5 Bond is a type of License & Permit bond that ensures that oil and gas well operators properly plug and abandon wells in accordance with state and federal regulations, protecting the environment and public safety.
Protects the environment and public safety from potential harm caused by improperly plugged and abandoned oil and gas wells.
Required by state and federal governments to ensure responsible management and compliance by oil and gas well operators.
Applicant’s personal or business information, credit history, bond amount (determined by state or federal requirements), and well details.
Based on credit history and bond amount, usually 1-5% of the bond amount.
