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Oil and gas or geothermal exploration bond - Bureau of Land

Oil and gas or geothermal exploration bond - Bureau of Land 2025

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The document is Form 3000-4a, an Oil and Gas or Geothermal Exploration Bond issued by the United States Department of the Interior, Bureau of Land Management. It outlines the obligations of a principal and surety to secure financial responsibility for exploration activities on federal lands. The bond ensures compliance with exploration permits and conditions, detailing the responsibilities in case of default. It includes provisions for both surety and personal bonds, specifying coverage for various exploration operations.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What are the new BLM bonding requirements?

Increased minimum bond amounts The minimum statewide bond amount has increased to $500,000, while the minimum individual lease bond amount has increased to $150,000. To meet the phase-in for existing statewide bonds, all existing statewide bonds lower than $500,000 must be increased to $500,000 by June 22, 2026.

Is oil and gas exploration allowed on federal lands?

In most cases, the lessee is authorized to explore for and ultimately produce oil, natural gas, or coal on federal lands in exchange for lease and royalty payments to the U.S. government.

Do oil companies own the land they drill on?

Oil and gas producing companies do not always own the land they drill on. Often, the company (the lessee) leases the mineral rights from the owner (the lessor). Major points in a lease include the description of the property, the term (duration), and the payments to the lessor.

Who manages the awarding of oil and gas leases on public land?

The BLM manages the Federal governments onshore oil and gas program with the goals of facilitating safe and responsible energy development while providing a fair return for the American taxpayer. Learn more about the BLMs Oil and Gas Program or explore our oil and gas processes below: Leasing.

What is an oil and gas bond?

Oil and gas surety bonds are financial guarantees that must be purchased when an oil or gas company seeks to obtain a permit or license to drill.

What is the surety bond for oil and gas in Texas?

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

What percentage of US oil comes from federal land?

For fiscal year (FY) 2022, sales of oil, gas, and natural gas liquids produced from the Federal mineral estate accounted for approximately 11 percent of all oil and 9 percent of all natural gas produced in the United States.

What is the oil and gas rule for BLM?

The Oil and Gas Rule modernizes the BLMs oil and gas leasing program, ensuring a balanced approach to public lands management, and secures a fair return for American taxpayers, updating outdated fiscal terms and codifying new provisions from the Inflation Reduction Act (IRA) and Bipartisan Infrastructure Law (BIL).

Oil and gas or geothermal exploration bond - Bureau of Land 2025

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