Why do regulators want larger bonds from oil and gas?

Where: Iowa

Who are the regulators?

Department of Environment and Natural Resources, Minerals and Mining Program 

What sparked the increased bonding request?

Abandoned wells, specifically a failed 40-well natural gas project

What is the new bond requirement?

• $50,000 per well
• OR $100,000 blanket bond for an unlimited number of wells

Are there legal limitations on the use of abandoned well bonds? Yes, the bond proceeds cannot be moved between sights. So left over funds from a project cannot be used to clean up another well site

Rapid City Journal | Regulators want bigger bonds from oil and gas drillers