All well owners are responsible for securing and maintaining appropriate levels of financial security to ensure ultimate well plugging and surface restoration prior to commencing any regulated activity, including preparatory work on the well site.
For wells drilled after June 5, 1973, the law requires $2,500 in financial security for each well less than 2,500 feet deep and $5,000 for each well between 2,500 and 6,000 feet deep, with blanket amounts available. Use our Regulated Well Financial Security Calculator to help determine your required financial security.
Download the Financial Security Worksheet (PDF) (25 KB) for details. For wells deeper than 6,000 feet, contact the Division of Mineral Resources Albany office to determine the required amounts.
Download the paperwork for filing financial security:
Well Plugging and Surface Restoration Bond (PDF) form - (51 KB)
The Adobe Acrobat version of the Well Plugging and Surface Restoration Bond can be filled in on-line and then printed for signing and submitted.
Irrevocable Letter of Credit - (Sample Letter)
A letter of credit may be used to satisfy the financial security requirement if the credit is dedicated to DEC.
Certificate of Deposit - (Sample Letter)
A certificate of deposit may be used to satisfy the financial security requirement if it is assigned to DEC using the proper form.
The certificate must be held by the bank and a copy of the assignment letter attached to it. Any interest or dividends are the property of the principal (permittee).
- An Adobe Acrobat version of the Certificate of Deposit (PDF) is available. (15 KB)
Regulated Well Financial Security Calculator
The calculator below will determine required amounts of financial security for wells less than 6,000 feet in depth. Enter the number of wells in each depth category in the appropriate boxes and click the "Calculate" button.
If you have wells in both depth categories, the calculator shows two filing options. Option A requires separate financial security documents for each depth category. Option B requires one type of financial security document assuming all wells are in the 2,500 to 6,000 feet category; in some situations this will result in a lower total required amount.
For wells greater than 6,000 feet deep, contact the appropriate Division regional office to determine the required amounts. Please contact the Division's Albany office with any other questions regarding financial security requirements.