Oil And Gas Operators Insurance Dallas Fort Worth
If you are an owner or operator of an oil or gas business in the Dallas Fort Worth Texas area, and you are looking for rates on restaurant insurance and related policies, then be sure to contact us today.
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This link offers more information about oil & gas financial security requirements in the State of Texas: Click Here
Here are some snippets from that statute:
Financial Security And Insurance Information For Oil & Gas Businesses In Texas
(d) Financial security. Except for those operators exempted under subsection (g)(7) of this section, any person, including any firm, partnership, joint stock association, corporation, or other organization, required by Texas Natural Resources Code, §91.142, to file an organization report with the Commission must also file financial security in one of the following forms:
(1) an individual performance bond;
(2) a blanket performance bond; or
(3) a letter of credit or cash deposit in the same amount as required for an individual performance bond or blanket performance bond.
(e) Forms for financial security and insurance policies. Operators shall submit well-specific plugging insurance policies, bonds and letters of credit on forms prescribed by the Commission.
(f) Filing deadlines for financial security and insurance policies. Operators shall submit required financial security or well-specific plugging insurance policies at the time of filing an initial organization report, as a condition of the issuance of a permit to drill, recomplete or reenter, upon yearly renewal, or as otherwise required under this section.
(g) Amount of financial security. An operator required to file financial security under subsection (d) of this section shall file financial security described in this subsection.
(1) Types and amounts of financial security required.
(A) A person operating one or more wells may file an individual performance bond, letter of credit, or cash deposit in an amount equal to the sum of $2.00 for each foot of total well depth for each well operated, excluding any well bore included in a well-specific plugging insurance policy.
(B) A person operating one or more wells may file a blanket bond, letter of credit, or cash deposit to cover all wells for which a bond, letter of credit, or cash deposit is required in an amount equal to the sum of the base amount determined by the total number of wells operated excluding any well bores and/or permits issued to drill, recomplete, or reenter wells included in a well-specific plugging insurance policy. A person performing multiple operations shall be required to file only one blanket bond, letter of credit, or cash deposit unless the person is operating a commercial facility, in which case the person also shall comply with the financial security requirements of subsection (l) of this section. The financial security amount shall be at least the base amount determined by the total number of wells operated or $25,000, whichever is greater. After excluding any well bores and/or permits issued to drill, recomplete or reenter wells included in a well-specific plugging insurance policy, the base amount is determined as follows:
(i) The base amount for a person operating 10 or fewer wells or performs other operations shall be $25,000.
(ii) The base amount for a person operating more than 10 but fewer than 100 wells shall be $50,000.
(iii) The base amount for a person operating 100 or more wells shall be $250,000.