CHAPTER 4. PERMITS
IC 14-37-4
Chapter 4. Permits
IC 14-37-4-1
Permit required for oil and gas activities; coal bed methaneextraction prohibition
Sec. 1. (a) Subject to subsection (b), a person may not drill,deepen, operate, or convert a well for oil and gas purposes withouta permit issued by the department.
(b) Except as provided in subsection (c) and (d):
(1) the extraction of coal bed methane from a well for oil andgas purposes on or after the effective date of this subsection andbefore July 1, 2012, is prohibited; and
(2) the department may not issue a permit under this chapter forthe extraction of coal bed methane from a well for oil and gaspurposes before July 1, 2012, regardless of whether theapplication for the permit was made to the department beforethe effective date of this subsection.
(c) Subsection (b) does not apply if the owner of the right to thecoal from which the coal bed methane for which a permit is soughtunder this chapter is derived consents in an instrument binding onthat owner to the extraction of the coal bed methane and to theissuance of the permit.
(d) Subsection (b)(1) does not apply to a coal bed methane wellthat is operated under a permit issued by the department.
As added by P.L.1-1995, SEC.30. Amended by P.L.80-2005, SEC.2;P.L.78-2010, SEC.4.
IC 14-37-4-2
Duties of owner or operator
Sec. 2. (a) An owner or operator:
(1) shall comply with the conditions of a permit as determinedby the department;
(2) may not raise as a defense to an enforcement action by thedepartment that compliance with the conditions of the permitconstitutes an economic hardship;
(3) shall correct adverse environmental impact that results fromnoncompliance with a permit; and
(4) shall provide proper operation and maintenance forfacilities, systems of treatment, and control and relatedappurtenances that are installed or used by the owner oroperator to comply with the permit conditions.
(b) Proper operation and maintenance under subsection (a)(4)includes effective performance, adequate funding, adequate operatorstaffing and training, and adequate laboratory and process controls,including appropriate quality assurance procedures. Subsection (a)(4)requires the operation of backup or auxiliary facilities or similarsystems only if necessary to comply with permit conditions.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-3
Permit not property right or exclusive privilege
Sec. 3. A permit does not convey to the owner or operator aproperty right or an exclusive privilege.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-4
Permit form
Sec. 4. A person must apply for a permit under this chapter on aform prescribed by the commission.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-5
Document accompanying permit application
Sec. 5. An application for a permit must include the following:
(1) A plat of the land or lease upon which the well is to belocated, together with all property and lease lines and theacreage within the tract.
(2) The location of the proposed well as certified by a landsurveyor registered under IC 25-21.5.
(3) The surface elevation of the proposed well and the methodused for determining that elevation.
(4) The depth of the proposed well.
(5) The number and location of all other dry, abandoned, orproducing wells located within one-fourth (1/4) mile of theproposed well.
(6) The distance from the proposed well to the three (3) nearestboundary lines of the tract.
(7) With respect to an application to drill within a city or town,a certified copy of the official consent by ordinance of themunicipal legislative body.
(8) Other information determined by the commission that isnecessary to administer this article.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-6
Bond and permit fee; expedited review
Sec. 6. (a) A person must submit the following with an applicationfor a permit:
(1) A bond under IC 14-37-6.
(2) A permit fee of two hundred fifty dollars ($250) payable tothe department. However, a person may apply for an expeditedreview of the application for a permit, except for a Class II ornoncommercial well, by submitting a permit fee of sevenhundred fifty dollars ($750).
(b) Permit fees collected under this section must be deposited inthe oil and gas fund established by IC 6-8-1-27.
As added by P.L.1-1995, SEC.30. Amended by P.L.48-2002, SEC.1;P.L.186-2003, SEC.77.
IC 14-37-4-7
Operator's signature on permit
Sec. 7. An application must be signed by:
(1) the person; or
(2) an authorized agent of the person;
who is the operator named in the proposed permit.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-8
Permit issuance upon compliance with article and rules
Sec. 8. Except as provided in section 9 of this chapter, if anapplicant for a permit complies with:
(1) this article; and
(2) the rules adopted under this article;
the commission shall issue a permit.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-9
Denial of permit
Sec. 9. The department may refuse to issue a permit if anapplicant or an officer, a partner, or a director of the applicant:
(1) is in violation of this article or would be in violation if thepermit were issued; or
(2) controls or has controlled a well for oil and gas purposesand has demonstrated a pattern of willful violations of:
(A) this article; or
(B) IC 13-8 (before its repeal);
that have resulted in substantial damage to the environmentindicating an intention not to comply with this article or IC 13-8(before its repeal).
As added by P.L.1-1995, SEC.30.
IC 14-37-4-10
Permit continuance for non-Class II wells
Sec. 10. A permit for a well for oil and gas purposes, other thana permit for a Class II well, continues until:
(1) the well is plugged and abandoned;
(2) the well is converted to another type of well for oil and gaspurposes; or
(3) the permit is revoked.
As added by P.L.1-1995, SEC.30. Amended by P.L.80-2005, SEC.3.
IC 14-37-4-11
Expiration of permit
Sec. 11. A permit for a well for oil and gas purposes expires one(1) year from the date of issuance unless the drilling of the well hascommenced.
As added by P.L.1-1995, SEC.30. Amended by P.L.80-2005, SEC.4.
IC 14-37-4-12 Permit continuance for Class II wells
Sec. 12. A permit for a Class II well continues until the well isplugged and abandoned, unless the permit is revoked, expired, orotherwise terminated.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-13
Emergency permits
Sec. 13. (a) The director may issue an emergency permit for awell for oil and gas purposes if an imminent and substantial dangerto the health of persons will result unless an emergency permit isgranted. An emergency permit under this subsection is effective nolonger than necessary to remove the danger.
(b) If a substantial and irretrievable loss of oil or natural gasresources will occur unless an emergency permit is granted, thedirector may issue an emergency permit for a well for oil and gaspurposes if the following conditions exist:
(1) Timely application for a permit could not practicably havebeen made.
(2) Issuance of the permit does not violate a term of primaryenforcement authority for Class II wells.
(c) An emergency permit under subsection (b) is effective notlonger than ninety (90) days from issuance. However, if a permitapplication is submitted before expiration of the ninety (90) dayperiod, the director may, subject to IC 4-21.5, extend the emergencypermit until final agency action on the application.
(d) The director may issue an emergency permit for a well for oiland gas purposes if:
(1) a substantial delay in the production of oil or natural gasresources will occur unless an emergency permit is issued fora new injection well; and
(2) the permit will not violate a term of primary enforcementauthority for Class II wells.
An emergency permit under this subsection may be issued only aftera completed permit application has been submitted and is effectiveonly until a final determination is made by the department on thatapplication.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-14
Transfer permits
Sec. 14. To transfer the ownership of a permit for a well for oil orgas purposes, a person must submit the following:
(1) A transfer fee of fifteen dollars ($15) payable to thedepartment for each well. However, if an applicant submitsmore than fifty (50) applications simultaneously, the transferfee for each application in excess of fifty (50) is ten dollars($10).
(2) The name and mailing address of the seller and buyer on aform prescribed by the commission.As added by P.L.186-2003, SEC.78.