The changes are effective November 1, 2000. While W-1X extensions are still available, now an operator can only obtain two such extensions before he is required to produce, plug, or obtain a bond for the well. The bond can either be an organizational bond or an individual well bond.
Organizational bonds cover all wells, both active and inactive, held by the bond holder.
Individual well bonds cover only a specific, single well. In most cases, organizational bonds will be much more economical. Here are some factors to consider. Operators with organizational bonds do not. Operators may choose between two types of organizational bonds.