A change buried in Ohio's oil and gas bill removes a cheaper alternative to surety bonds—and it takes effect immediately.
Most Ohio construction and trades owners who operate oil and gas wells don't realize a recent state law has just eliminated their ability to use a sworn financial-responsibility statement in place of an expensive surety bond. If you're in this position, the change is immediate and mandatory.
What Changed
Senate Bill 219, which revises Ohio's oil and gas well regulations, struck an entire subsection from the state law governing financial responsibility for well owners. Specifically, the bill deletes division (B)(3) of Section 1509.07 of the Ohio Revised Code—the provision that previously allowed small well owners to file a sworn statement of financial responsibility as an alternative to posting a surety bond.
That option is now gone. As of the bill's enactment, every covered well owner must post one of these four forms of financial security instead:
Who This Affects
If you own or operate an oil or gas well in Ohio and were previously eligible to file a financial-responsibility statement instead of a bond, you are now required to post hard collateral. This is a direct, mandatory increase in upfront capital—money that will be tied up as security rather than available for operations or other business needs.
The change applies regardless of the size of your operation or your existing financial standing. There is no grandfather clause or transition period.
Why It Matters
For trades and construction owners operating wells, this represents a real cost increase. A surety bond, cash reserve, or letter of credit requires either an immediate outlay or an ongoing premium—expenses that didn't apply to those using the sworn statement option. The financial impact varies by operation size and the amount of security required, but the obligation is now uniform and non-negotiable.
The Timeline
SB219 became effective upon enactment. Section 2 of the bill repealed the prior provision immediately, with no phase-in period or deadline for compliance. If you currently hold a sworn financial-responsibility statement, you should verify your current standing with the Ohio Department of Natural Resources and determine which of the four approved forms of security you'll use going forward.
Next Steps
Review your current well permits and any existing financial-responsibility filings. Contact the Ohio Department of Natural Resources Division of Oil and Gas Resources Management to confirm your obligations and the timeline for posting new security if required. If you operate multiple wells, the requirement applies to each covered well.
The full text of SB219 and the amended Section 1509.07 are available through the Ohio Legislature's website. A plain-language summary specific to your operation is worth reviewing with your legal or financial advisor.
Source: Senate Bill 219, Section 1509.07, Page 21, Ohio Revised Code.