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Division of Financial Responsibility

Oil and Gas

The Oil and Gas Program of the Division of Water Resources issues permits for persons or businesses who drill, deepen or reopen oil and gas wells in the state of Tennessee. As part of the permitting process, applicants are required to submit financial assurance for plugging and reclamation in an amount that is based on the number of wells and their depth. Permit application packages are available from the Oil and Gas Program and include examples of the language required by the oil and gas regulations. For more information on permitting or to obtain an application package, please contact Mike Burton in the Oil and Gas Program at Michael.K.Burton@tn.gov or 615-687-7120.

The following financial assurance mechanisms are allowed by the Oil and Gas Program. Please click on the links below for the language required by the program. The financial institution/surety should use the language in the files to issue an original instrument on the institution's letterhead or in its standard instrument format.

The Oil and Gas Program also allows the use of cash/certified check to satisfy the financial responsibility requirement.

Note: The instrument langauge is provided here as a convenience. Please consult with your legal counsel and the TDEC Division of Financial Responsibility before submitting a financial instrument.