Landowner's Water Well Bond ($5,000) Bond - Statewide in Oregon

Brief Summary

Oregon lets you drill, alter, convert or abandon a well on your own land without a constructor's license, but only after the Water Resources Department has your landowner permit application, fee and bond. Getting the bond sorted first keeps the rig from sitting idle while the permit is pending.

An Oregon landowner who is not a licensed water well constructor must get a permit from the Water Resources Commission before constructing, altering, converting or abandoning a well on property the landowner owns. ORS 537.753(4) requires a bond or irrevocable letter of credit running to the State of Oregon with the application, and the statute as currently written sets that sum at $10,000. The bond guarantees the work will meet Oregon's well construction laws and the Commission's construction standards.

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How to Apply for a Landowner's Water Well Bond ($5,000) Bond:

• Confirm you are the owner of record and are not a licensed and bonded water supply well constructor.
• Prepare a well design plan on the OWRD approved form.
• Gather the well location: township, range, section, tax lot and street address, plus proposed water use and type of work.
• Confirm the required penal sum with OWRD, then obtain the executed Landowner's Water Well Bond naming the State of Oregon.
• File the Landowner's Well Permit Application, the bond and the permit fee with OWRD before any work starts.
• Give OWRD 10 days' written notice before sealing, and file the water well report within the 30 day deadline.

Detailed Information About the Oregon Landowner's Water Well Bond ($5,000) Bond:

Check the amount before the bond is issued

ORS 537.753(4), as amended through 2021, requires a bond or irrevocable letter of credit in the sum of $10,000 from a landowner doing their own well work. The Oregon Water Resources Department (OWRD) landowner constructed wells page states the same $10,000 figure. Confirm the penal sum OWRD will accept for your permit before the bond is written, so the bond matches the application.

Who has to post this bond

OAR 690-205-0175 requires a permit, permit fee and bond or irrevocable letter of credit for each water supply well constructed, altered, converted or abandoned by a landowner. It is one bond per well, not a blanket bond for the property. The only exemption in the rule is for a landowner who is already a licensed and bonded water supply well constructor. That person works under their constructor bond instead.

Only the owner of record, a member of the owner's immediate family, or a full time employee of the owner whose main duties are not well construction may operate the drilling machine under a landowner permit. Hiring a driller does not fit this permit. A driller for hire needs a constructor license and a constructor bond of its own.

What the bond guarantees

The bond runs to the State of Oregon and guarantees the landowner will comply with ORS 537.505 to 537.795 and 537.992, and with the Commission's well construction, alteration, abandonment and conversion standards. If the work falls short and the State has to act, the surety can be called on to pay, and the landowner then repays the surety.

Permit term and deadlines

The permit expires six months from the date of issuance. A water well report is due within 30 days of the permit expiring or within 30 days of completing the well, whichever comes first. Before sealing the well, you must give OWRD 10 days' written notice so staff can be present. After the notice period ends you may seal the well even if no one from the department came out. An expired permit can be renewed only by reapplying with a new application, fee and bond. OWRD's page currently lists a $550 permit fee.

How premium is set

The surety prices the bond from the landowner's personal credit and the scope of the planned work. A letter of credit from an insured institution is the statutory alternative if you would rather not use a surety.

Eligibility and Requirements for a Oregon Landowner's Water Well Bond ($5,000) Bond:

• Bond or irrevocable letter of credit running to the State of Oregon in the sum set by ORS 537.753(4).
• A separate permit and bond for each well.
• Only the owner, immediate family or a qualifying full time employee operating the rig.
• Surety company information listed on the permit application.
• Landowner credit review by the surety.

Oregon Landowner's Water Well Bond ($5,000) Bond FAQs:

Official and Additional Resources for the Oregon Landowner's Water Well Bond ($5,000) Bond: