Lease Bonding Information
- Lease bonds are required to be posted in between the time of lease acquisition and APD approval. There are two types of lease bonds, individual or blanket, please refer to the links below for more information on lease bonding.
Idle Well Bonding Information
- Idle well bonds are used to protect the financial liability of non-hydrocarbon producing wells or "idle wells". Below is more information regading idle well bonds.
Extension Performance Bonds
- Formerly known as "Liquidated Damages Bonds", Extension Performance Bonds are used to ensure the performance obligation during an extended term of an oil and gas lease. If performance obligations are met within the extended term, the bond is returned. If performance obligations are not met within the extended term, the bond is forfeited as liquidated damages. Extension performance bonds are required to be submitted as cash through wire transfer or corporate check. For more information regarding Extension Performance Bonds please refer to the links below.
Fresh Water Frac Pit Bonding Information
- Fresh Water Hydraulic Fracturing Pit (Frac Pit) bonds are accepted for frac pits that are permitted through the Wyoming Oil and Gas Conservation Commission (WOGCC) but may not be bonded through WOGCC. OSLI requires a reclamation bond for frac pits on Trust Land that are not bonded with OGCC. Below are links to more information regarding frac pit bonds.
Lease bonding is required for all producing hard rock leases. Lease bond must be posted after lease approval and before development of the lease. Wyoming Department of Environmental Quality also requires reclamation bonding for the mining permit. The WDEQ reclamation bond requirements are separate from OSLI lease bonding requirements. Lease bonding may be accepted as Surety, Letter of Credit, Certificate of Deposit, or Certified Corporate Check. Blanket surety bonds may be accepted in the amount of $100,000 to cover liabilities of multiple leases.
Individual Bond Document- Corporate Surety Bond Form
Blanket Bond- Corporate Surety Bond Form
Each lease type has specific rules and regulations pertaining to bonding for that lease type. Citations for rules and regulations for each lease type are as follows:
Coal:Rules and Regulations of SBLC Chapter 19, Section 13
Trona/Sodium:Rules and Regulations of SBLC Chapter 20, Section 12
Uranium:Rules and Regulations of SBLC Chapter 21, Section 12
Bentonite:Rules and Regulations of SBLC Chapter 22, Section 12
Zeolite:Rules and Regulations of SBLC Chapter 23, Section 12
General Metallic and Non-Metallic:Rules and Regulations of SBLC Chapter 24, Section 12
Sand and Gravel:Rules and Regulations of SBLC Chapter 25, Section 11
Wire and ACH Transfer Information
Please include lease number and bond type in the notes of the wire transfer.
Bond Release Request Form
Letter of Credit and Certificate of Deposit Guidelines