Oil and Gas Lease (Statewide) Bond - BLM in All States
Table of Contents
Brief Summary
If your statewide BLM bond is still at the old $25,000 level, it has to reach $500,000 by June 22, 2027. A surety bond gets you there for an annual premium instead of tying up half a million dollars in a certificate of deposit or letter of credit.
A BLM statewide oil and gas bond covers all of a principal's federal leases and operations in one state, in place of separate lease bonds, under 43 CFR 3104.30. The minimum is $500,000 under 43 CFR 3104.1. It is filed on BLM Form 3000-4 with the BLM State office having jurisdiction, and it must be in place before surface disturbing activity related to drilling begins.
We can help with all All States bonds!
How to Apply for an Oil and Gas Lease (Statewide) Bond:
- Confirm the state the bond will cover and which BLM State office has jurisdiction.
- Gather recent company financial statements and a list of federal leases and wells in the state.
- Complete the bond application for underwriting.
- Execute BLM Form 3000-4 with the surety for at least $500,000.
- For an existing bond, file a bond increase rider or a replacement bond with an assumption of liability rider.
- File the original bond and the surety's power of attorney with the BLM State office before June 22, 2027 if raising an older bond.
Detailed Information About the All States Oil and Gas Lease (Statewide) Bond:
The minimum jumped from $25,000 to $500,000
BLM's Fluid Mineral Leases and Leasing Process rule, effective June 22, 2024, raised the statewide bond minimum from $25,000 to $500,000. BLM no longer accepts a new statewide bond below $500,000. Existing statewide bonds under that figure must be increased or replaced by June 22, 2027. BLM moved that deadline back one year so it lines up with the individual lease bond phase-in. Until the deadline, operators can keep working and filing APDs under their existing bond amount.
Missing the deadline is serious. 43 CFR 3104.1(d) allows BLM to shut down all wells covered by the bond, cancel the covered leases and refer the principal to the Interior suspension and debarment program.
Nationwide bonds are gone
BLM stopped accepting nationwide and unit operator bonds after June 22, 2024, and those older bonds had to be replaced with statewide or individual lease bonds by June 22, 2025 under 43 CFR 3104.90. An operator active in several states now needs a separate statewide bond in each state, or individual lease bonds.
Who posts it and what it guarantees
A lessee, an owner of operating rights or an operator can furnish a statewide bond. It is conditioned on compliance with the terms of all covered leases, including complete and timely plugging of wells, reclamation of lease areas and restoration of lands or surface waters affected by operations, as set out in 43 CFR 3104.10.
The $500,000 figure is a floor. Under 43 CFR 3104.50 the authorized officer can require more when an operator has a violation history, owes royalties to ONRR, or carries plugging and reclamation costs that exceed the bond.
Filing
Use the current BLM Form 3000-4, Oil and Gas or Geothermal Lease Bond. The surety must be on Treasury Circular 570. File the original bond, and the surety's power of attorney, with the BLM State office that has jurisdiction over the state named on the bond. An increase on an existing bond can be done with a bond increase rider, or with a replacement bond carrying an assumption of liability rider.
What it costs
You pay the surety an annual premium based on the company's financial statements, credit, well count and plugging exposure. At this bond size the surety will look closely at financials before quoting.
Eligibility and Requirements for an All States Oil and Gas Lease (Statewide) Bond:
- A surety listed on Treasury Circular 570.
- Minimum penal sum of $500,000 per state.
- Bureau of Land Management, U.S. Department of the Interior as obligee.
- Current BLM Form 3000-4.
- One statewide bond for each state where you hold or operate federal leases.
- Possible higher amount set by the authorized officer under 43 CFR 3104.50.
All States Oil and Gas Lease (Statewide) Bond FAQs:
By June 22, 2027. BLM extended the original 2026 deadline by one year. Until then you can keep operating and submitting APDs under the existing amount.
No. BLM stopped accepting new nationwide and unit operator bonds after June 22, 2024, and existing ones had to be replaced with statewide or lease bonds by June 22, 2025.
A statewide bond covers every federal lease you hold or operate in that state. Individual lease bonds are at least $150,000 each, so the statewide bond makes sense once you have enough leases in one state.
Yes. The authorized officer can raise the amount based on violations, unpaid royalties or plugging and reclamation estimates that exceed the bond.
The surety prices the bond after reviewing company financials, credit, well inventory and plugging liability. You pay the annual premium, not the $500,000 face amount.
