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Water Well Constructor’s Bond

Contracting for Services

Only Oregon licensed and bonded well constructors may advertise services or enter into a contract, either written or oral, to construct, alter, convert, or abandon well. All wells should be constructed under a bond or irrevocable letter of credit. The bond or letter of credit shall cover construction, alteration, conversion, or abandonment for each well under that bond for a period of three years from the date of the well report is filed with the commission. This applies whether or not the bond has been subsequently canceled.

What is a Surety Bond?

A surety bond is a three-party agreement that legally binds together a principal who needs the bond (well constructor), an obligee who requires the bond (Water Resource Department) and a surety company that sells the bond. The bond ensures that the water well constructor will act in accordance with Oregon rules and statutes.  If the well constructor fails to perform in this manner, the bond will cover resulting damages. For questions regarding irrevocable letters of credit, please contact the Department

Bond Requirements

  • WRD cannot accept copies of bonds.
  • The bond must be issued on an WRD bond form. No other bond form will be accepted. If your bond company does not have the WRD Well Constructors bond form, they should call the Licensing Specialist at 503-986-0856
  • The bond must be issued in the full legal name of the licensed well constructor.
  • The bond must NOT be issued in the company name.
  • The bond must have the original signature of the bond company’s attorney-in-fact.
  • If a power of attorney form is attached to the bond, do not remove it.
  • The bond is not valid until it is submitted to and is put into effect the WRD. The bond must be submitted to WRD no later than 60 days from the date the bond was signed by the bond company or it is no longer valid.
  • All bonds must be continuous until canceled.
For more information contact:
Buffy Madrigal-Adams 971-287-8305
Authority:
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