An Operator proposing to drill a well for which a permit is required must file a bond with the Alaska Oil and Gas Conservation Commission (Commission). Our bonding regulations are available online at Bonding 20 AAC 25.025
. (Please be patient: sometimes this web page takes up to a minute to display completely.)
The Operator can choose to submit either a surety bond (Form 10-402A
) or a personal bond (Form 10-402B
), depending on the financial instrument used. If a surety bond is used (Form 10-402A
), the insurer must
be authorized in Alaska. You can check this online at http://www.dced.state.ak.us/ins/apps/companysearch/InsCompanyStart.cfm
. Type in the insurance company name, click on the “Query” button, then click on the “AKID#” hyperlink in the left-hand column, and scan down the lines of insurance list to find “Surety” and the date issued. If “Surety” is not in the list, then the company is not authorized to provide that service in Alaska and the bond will not be approved.
If you chose to use a Certificate of Deposit (CD) as the financial backing for a personal bond, then you must submit 1) the personal bond form (Form 10-402B
), 2) the CD documentation or receipt, and 3) the attached Assignment of CD form
. The CD must clearly state that the certificate of deposit is issued in the sole favor
of the Alaska Oil and Gas Conservation Commission, and it must
be obtained from a bank authorized to do business in the State of Alaska. If you chose to use an out-of-state bank or credit union, you can check whether or not that institution is authorized by going online to “Banks registered under the Model Foreign Bank Loan Act
.” If the bank is an out-of-state bank and it is not on this list, the bank is not authorized, the CD will not be accepted, and the bond will not be approved.
Please note that Powers of Attorney are required for every representative signing these forms. These Powers of Attorney must demonstrate that each person signing has the legal authority to bind the corporation to lease agreements. The Commission requires original signatures on every submitted bond form or bond-related document.
If you have any questions, please call Steve Davies, Sr. Petroleum Geologist, at 907-793-1224 or email him at email@example.com