Right of Way Permit Bond - Bureau of Land Management (BLM) in All States
Table of Contents
Brief Summary
BLM does not publish a standard right-of-way bond amount. It sets yours from a reclamation cost estimate for your project, and on solar and wind grants it will not go below the per acre or per turbine floor in the rule. A surety bond covers that figure for a premium so your capital stays in the project.
The Bureau of Land Management may require a holder of a right-of-way grant under 43 CFR part 2800 to post a performance and reclamation bond covering damage, environmental liabilities, removal of facilities and reclamation of the site. The amount is set from a reclamation cost estimate under 43 CFR 2805.20. Solar grants outside designated leasing areas carry a floor of $10,000 per disturbed acre, wind grants $10,000 or $20,000 per turbine, and short term testing grants $2,000 per met tower.
We can help with all All States bonds!
How to Apply for a Right of Way Permit Bond:
- Get the bond amount and posting deadline from the BLM field office or your grant decision.
- Have the right-of-way serial number and the holder's legal name exactly as on the grant.
- Provide the reclamation cost estimate if BLM asked you to prepare one.
- Complete the bond application with company financial statements and credit information.
- Execute the performance and reclamation bond with BLM as obligee.
- Submit the bond for BLM authorized officer approval before the Notice to Proceed or ground disturbance.
Detailed Information About the All States Right of Way Permit Bond:
The amount is built from your project
Under 43 CFR 2805.20(a)(3), BLM sets the bond amount from a reclamation cost estimate, or RCE, which it may ask you to prepare. The estimate includes BLM's own cost to administer a reclamation contract and must address hazardous materials and other environmental liabilities, decommissioning and removal of facilities, and interim and final reclamation including revegetation and soil stabilization. BLM can also weigh salvage value. It reviews the bond periodically and can require an increase, a decrease or a new bond at any point during the grant.
Energy project minimums
For grants outside designated leasing areas, the RCE result cannot fall below these floors:
- Solar energy development: $10,000 per acre to be disturbed.
- Wind energy development: $10,000 per authorized turbine under 1 MW nameplate capacity, or $20,000 per turbine of 1 MW or more.
- Short term energy site testing grants: $2,000 per meteorological tower or instrumentation location.
Solar and wind grants must post the bond before BLM issues a Notice to Proceed. Testing grants post it before written approval to begin ground disturbance. Solar and wind leases inside designated leasing areas are bonded under subpart 2809 instead.
Who posts it
Any holder of a BLM right-of-way grant or lease whom BLM directs to post one. Not every grant carries a bond. The requirement is set in the grant, and you must post the bond by the deadline BLM gives. If the project will use hazardous materials, the bond must cover damages from releases or discharges. If a state agency already holds a reclamation bond for part of the same work, BLM must be named on that bond and it must be redeemable by BLM.
Approval, replacement and release
The BLM authorized officer reviews and approves every bond before accepting it, and again at assignment, amendment or renewal of the grant. You can offer a replacement bond at any time, but the old surety stays liable for obligations that accrued on its watch unless the new bond picks them up. After reclamation, notify BLM and ask it to reevaluate. BLM may release all or part of the bond, though you remain liable under 43 CFR 2807.12 if the bond falls short. Confirm the bond form and filing steps with the BLM field office handling your grant.
Cost
The premium depends on the bond amount, the length of the grant, the scope of reclamation and the applicant's financial strength and credit.
Eligibility and Requirements for an All States Right of Way Permit Bond:
- Bond amount based on the BLM accepted reclamation cost estimate.
- Solar floor of $10,000 per disturbed acre outside designated leasing areas.
- Wind floor of $10,000 per turbine under 1 MW or $20,000 per turbine of 1 MW or more.
- Met tower or instrumentation floor of $2,000 per location on short term testing grants.
- Coverage for hazardous material releases when hazardous materials will be used.
- Approval by the BLM authorized officer before acceptance.
All States Right of Way Permit Bond FAQs:
BLM sets it from a reclamation cost estimate for your project. There is no flat amount, except for the minimum floors on solar, wind and testing grants.
No. 43 CFR 2805.20 says BLM may require one. Your grant will state whether a bond is required and by what date. Solar and wind grants outside designated leasing areas must have one before the Notice to Proceed.
Yes. BLM reviews the bond periodically and can require an increase, a decrease or a new bond during the term of the grant.
Notify BLM that reclamation is done and ask it to reevaluate the bond. If BLM agrees the work is complete it may release all or part of it.
It can cover the same liabilities if BLM is named on it, it is redeemable by BLM, and it provides at least the guarantee BLM requires for that portion. BLM must approve it first.
