Illinois Oil & Gas Bond

Illinois requires operators to post an oil and gas bond to ensure well plugging and site restoration compliance. Bond amounts depend on well depth or you can choose a blanket bond. Premiums typically range from 1–5% of the bond amount. Apply online with Lance Surety for fast approvals, simple renewal, and bad‑credit options.

An oil and gas bond is a three‑party promise guaranteeing an operator will comply with Illinois drilling, operation, and plugging/restoration rules. If an operator fails to meet obligations, the obligee can claim against the bond to cover compliance costs. In plain terms, it’s financial assurance that protects the state and public when wells aren’t properly managed—see surety bond basics here.

You don’t pay the full bond amount—you pay a premium, typically 1–5% of the bond size, based on credit and underwriting. For example, a $1,500 well bond could cost roughly $15–$75 per year. A $25,000 blanket bond might run about $250–$1,250 annually, while a $100,000 blanket could be $1,000–$5,000. Lance Surety shops multiple markets to secure competitive rates and transparent terms.

Getting bonded is straightforward and fast. Start online, submit basic business info, and receive a no‑obligation quote. After approval and payment, your bond form is issued for filing with the state. Steps:

• Complete the online application in minutes.
• Underwriting review → instant or same‑day decisions in most cases.
• Pay the premium and receive the executed bond form.
• File with the Illinois Department of Natural Resources (IDNR) Office of Oil & Gas Resource Management.

Lance Surety sends reminders, streamlines payments, and keeps coverage continuous so permits stay in good standing.

Yes. Lance Surety offers flexible underwriting for challenged credit, including options for prior issues or limited financials. We emphasize transparency—clear pricing, no surprises, and guidance on documents that strengthen your file. Many applicants qualify within the same day. If you were declined elsewhere, our team can often find a solution through specialty programs and experienced markets.

These quick answers summarize Illinois specifics so you can file correctly the first time. Always confirm current rules before drilling or transferring wells. For more fundamentals, see our Illinois surety bonds hub and surety bonds questions for more information.

What bond amounts does Illinois require?

Illinois sets bond amounts by well depth or allows blanket coverage. Per 62 Ill. Adm. Code §240.1500, individual well bonds are $1,500 for wells under 2,000 feet and $3,000 for wells at or beyond 2,000 feet. Blanket options are $25,000, $50,000, or $100,000. Some operators handling fluids may also need a separate $10,000 liquid oilfield waste system bond under Illinois law.

Who is the obligee and where do I file?

The obligee is the Illinois Department of Natural Resources, Office of Oil & Gas Resource Management. After you receive your executed bond form, file it with IDNR consistent with your permit application or transfer documents. Bond release typically follows compliance with plugging and restoration conditions verified by the agency.

Can the surety cancel the bond?

Yes, but Illinois requires advance written notice to the state before cancellation takes effect. Under the 90-day cancellation notice, the surety must provide 90 days’ notice, giving IDNR time to ensure continuous financial assurance. Operators should maintain uninterrupted coverage to avoid enforcement actions or permit issues.

Illinois Department of Natural Resources. (n.d.). 62 Ill. Adm. Code §240.1500.
https://dnr.illinois.gov/content/dam/soi/en/web/dnr/adrules/documents/62-240.pdf

Legal Information Institute. (n.d.). 62 Ill. Adm. Code §240.1520 — 90-day cancellation notice.
https://www.law.cornell.edu/regulations/illinois/Ill-Admin-Code-tit-62-SS-240.1520

Illinois Department of Natural Resources. (n.d.). OGF—Surety Bond form.
https://dnr.illinois.gov/content/dam/soi/en/web/dnr/oilandgas/documents/oilandgasfillableforms/ogf-suretybondform.pdf

Lance Surety. (n.d.). Illinois surety bonds.
https://www.lancesuretybonds.com/bonds-by-state/illinois

Lance Surety. (n.d.). Online application. 
https://www.lancesuretybonds.com/surety-bond-quote

Lance Surety. (n.d.). What is a surety bond? 
https://www.lancesuretybonds.com/learn/what-is-a-surety-bond

Lance Surety. (n.d.). Surety bonds questions. 
https://www.lancesuretybonds.com/learn/faqs