← Back to the library

SD oil & gas bonding requirements (HB 1025, eff. 07/01/2020)

Record

p09-SD-rec-01

State

SD

Category

requirements · bonding_requirements_extract

Status

observed

Period

current

Quality

Unreviewed

Review state

Pending review

Native ID

danr-oilgas-lawsrules-hb1025

Fields

bond rule

Under the new law, all wells are subject to a $50,000 per well bond or a $100,000 statewide blanket bond.

bond statute

House Bill 1025 was signed into law on March 9, 2020.

governing law

The Oil and Gas Conservation Act, SDCL 45-9, contains the laws that apply to oil and gas development in the state.

idle well surety

In addition, HB 1025 gives the Department of Environment and Natural Resources and the Board of Minerals and Environment the authority to require an additional $20,000 in surety for each well that is idle or inactive for more than six months.

tier eliminated

HB 1025 eliminates tiered bonding based on well depth.

Evidence

1. bond statute: House Bill 1025 was signed into law on March 9, 2020.
   https://danr.sd.gov/Environment/MineralsMining/OilGas/LawsRules.aspx · Bonding revisions paragraph, sentence 1 · source sd-danr-lawsrules-src · visit vi-sd-02
2. tier eliminated: HB 1025 eliminates tiered bonding based on well depth.
   https://danr.sd.gov/Environment/MineralsMining/OilGas/LawsRules.aspx · Bonding revisions paragraph, sentence 2 · source sd-danr-lawsrules-src · visit vi-sd-02
3. bond rule: Under the new law, all wells are subject to a $50,000 per well bond or a $100,000 statewide blanket bond.
   https://danr.sd.gov/Environment/MineralsMining/OilGas/LawsRules.aspx · Bonding revisions paragraph, sentence 3 · source sd-danr-lawsrules-src · visit vi-sd-02
4. idle well surety: In addition, HB 1025 gives the Department of Environment and Natural Resources and the Board of Minerals and Environment the authority to require an additional $20,000 in surety for each well that is idle or inactive for more than six months.
   https://danr.sd.gov/Environment/MineralsMining/OilGas/LawsRules.aspx · Bonding revisions paragraph, sentence 5 · source sd-danr-lawsrules-src · visit vi-sd-02
5. governing law: The Oil and Gas Conservation Act, SDCL 45-9, contains the laws that apply to oil and gas development in the state.
   https://danr.sd.gov/Environment/MineralsMining/OilGas/LawsRules.aspx · Laws FAQ answer paragraph · source sd-danr-lawsrules-src · visit vi-sd-02

Provenance

Collected 2026-10-05 by agent p09-SD. Still missing: SDCL 45-9-15 full statutory text, ARSD 74:12 plugging rule text, current fee schedule.