Senate Bill Addresses Bonding Requirements for Wells
By Craig H. Hedin
Mineral Law,
March 2025
Senate Bill 2463 was introduced on February 7, 2025, to amend 225 ILCS 725/6 of the Illinois Oil and Gas Act as to the amounts required as a bond for plugging obligations and other matters. The current Act provides that permittees who have not paid well fees for two consecutive years shall submit to the Department a bond to cover the costs of plugging a well and restoring the well site in an amount not to exceed $5,000.00 or as determined by the Department by rule or submit a blanket bond not to exceed $100,000.00 for all wells. In the alternative to a surety bond, an applicant may provide cash, a certificate of deposit, or an irrevocable letter of credit. Once the applicant has paid well fees for two consecutive years, the bond or letter of credit is released, or the certificate of deposit funds is returned.
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