The P-5 bond is a license/permit surety bond required by the Railroad Commission of Texas. P-5 bonds are required to ensure different aspects of operating and abandoning oil or gas wells are managed and/or completed in accordance to Texas laws and regulations.
Some of the Oil and Gas well activities scrutinized for compliance with applicable laws and regulations are as follows:
There are several bond amounts associated with the P-5 bond. There are blanket bond amounts of $25,000, $50,000 and $250,000. There is also a calculation available to organizations that solely operate oil and gas wells, $2 for every foot of total well depth.
Oil and gas bonds can be difficult to place. Viking has markets that work with these types of bonds. We can typically obtain a P-5 bond quote the same day or within 24 hours of receiving the surety bond application and any required documentation.
Quotes are available for clients with low credit. In many cases, a bond is not out of reach simply due to bad credit.