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Procedure for Obtaining Permit
PROCEDURE FOR OBTAINING A PERMIT TO DRILL OIL AND GAS WELLS, SERVICE WELL, AND DISPOSAL WELLS
- Oil or gas well means any well drilled in search of oil and gas but does not include shallow core holes, seismic shot holes, stratigraphic test hold or other shallow holes drilled solely for information. Service well mean any well drilled to be used for the purpose of underground natural gas storage or to monitor such underground storage. Disposal well means any well used for the purpose of disposing produced salt water and produced oil field waste.
- No drilling, deepening or reworking can be done in search of oil and gas until a permit is obtained from the Department of Geology and Mineral industries.
- Application is to be made on a form supplied by the Department, accompanied by a $250 filing fee and all the information indicated on the form. The information on the permit application shall be nonconfidential.
- The applicant must file a surety bond in the following amount before the department can issue a drilling permit:
- $10,000 individual surety bond for each well with a depth less than 2,000 feet;
- $15,000 individual surety bond for each well with a depth of 2,000 to 5,000 feet;
- $25,000 individual surety bond for each well with a depth greater than 5,000 feet.
A blanket bond in the minimum amount of $100,000 may be filed in lieu of individual bonds. The blanket bond amount is the sum of the applicable individual bond amounts. The Department may accept an irrevocable letter of credit or other form of financial security in lieu of a bond.
- New operators in the state must file an organization report (form provided) giving information on the individual, the partnership, or the corporation.
- Evidence of mineral rights or lease ownership or the right to drill, must be demonstrated by a lease plat, a document, or a statement.
- A plan of operation is to be submitted with the application to drill including information on logging, coring, testing, directional surveys, directional drilling, and any other planned procedures.
- A plat of the drilling pad is to be submitted with the application showing the slope of natural contours and the location of the mud sump with respect to cut/fill. Dimensions of these items should be indicated on the plat.
- Details of the mud systems are to be submitted at the time of application giving the mud pit capacity (dimensions) and type mud to be used.
- An emergency contingency plan is to be submitted with the application describing:
- Field supervisor’s name and how to contact him
- Blowout prevention equipment to be used.
- BOP drills planned. (Minimum of one per week)
- The permit, usually issued in 21 days, will be accompanied by additional stipulations to be followed by the operator.
- Operations must commence within one year issuance of the permit. An extension may be granted.
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