Utah Board of Oil, Gas and Mining

Draft Bond Rule

Summary:

The existing rules are over two decades old, and the number of documented orphan wells is increasing, along with their plugging costs. The draft rule aims to provide operators with tools to manage their bond amounts based on operational risks and production, potentially reducing the state's financial liability. This involves a tiered bonding system and considers factors like production levels and well risk ratios, ultimately striving to better manage funds for plugging and abandoning wells better serving the state and industry.

Division Presentation to the Board:

Submit Public Comment

Public comment closes April 16th, 2025, end of business day.

How to send your comments during the open comment period:

Through the Utah Division of Oil, Gas and Mining online comment form

By mail to:
Division of Oil, Gas and Mining
P.O. Box 145801
Salt Lake City, Utah 84114-5801

If you are submitting a comment for inclusion in the record of a proceeding, all information you provide is subject to disclosure under Utah's Government Records Access and Management Act (GRAMA), and may be posted online, unless they contain private or protected information.