Regulated Well Financial Security Calculator

Calculating Required Financial Security

Wells with Depths Less Than or Equal to 6,000 feet

Per 6 NYCRR 551.5, financial security is required for wells for which DEC issued a drilling permit on or after October 1, 1963 or for which DEC issued an acknowledgment of a Notice of Intention to Drill on or after June 5, 1973. Each well less than 2,500 feet in depth requires $2,500 in financial security, and each well between 2,500 feet and 6,000 feet in depth requires $5,000 in financial security, with blanket options available for both depth categories.

The calculator below will determine required amounts of financial security. Enter the number of wells from each depth category (depth less than 2,500 feet and depth from 2,500 feet to 6,000 feet) in the appropriate boxes and then click the "Calculate" button.

If you input a number of wells from both depth categories, the calculator will show two filing options:

  • Option A requires a separate financial security instrument for each depth category, which is calculated next to the entered number of wells.
  • Option B requires one type of financial security instrument. The number of wells from both depth categories are summed. Then, a financial security amount is calculated for the summed wells using only the depth category from 2,500 feet to 6,000 feet.

Regulated Well Financial Security Calculator

Input Wells
Your Results

Required Financial Security wells less then 2,500 feet deep:

Required Financial Security for wells from 2,500 and 6,000 feet deep:

If your wells are in both depth categories, choose Option A or Option B below.

Option A: - Two separate financial security documents totaling:

Option B: - One financial security document for:

Wells with Depths Greater than 6,000 feet

For wells with depths greater than 6,000 feet, financial security is required in amounts based upon the anticipated costs of plugging and abandoning each individual well. To document the anticipated costs, an Authorization for Expenditure (AFE) is required per well. Contact the Division of Mineral Resources in the appropriate regional office for more information.