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Texas P-5 Surety Bond

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:

  • Proper well operation and maintenance in order to prevent leakage and/or pollution of ground and surface water.
  • Inactive well maintenance to prevent leakage and pollution.
  • Proper well plugging and abandonment.
  • Surface restoration.
  • Proper clean up of pollution associated with the oil and gas operation.

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.

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More About Surety Bonds:
Bad Credit Surety Bond Program

Quotes are available for clients with low credit. In many cases, a bond is not out of reach simply due to bad credit.

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