Explanation of the Oil and Gas Permitting Process

Act 325 of 2004 changed the permitting process for oil and gas wells in several ways:

    • Requires determination of an administratively complete permit within 30 days

    • Provides for ‘tolling’ the application period until the application is complete

    • Provides an addition 20 days processing period, so that a permit decision is made within 50 calendar days from receipt, minus any period while the application was tolled

    • If the Department of Environmental Quality (DEQ) fails to process an application within these timeframes, 15 percent of the permit fee shall be refunded to the applicant

When an application to drill an oil and gas well is received by the Office of Geological Survey (OGS), it is first logged into the oil and gas well database. This establishes the date the permit was received. The application is scanned and the file placed on a network drive so that it is immediately available to all OGS staff for use in their review.

The Permit Coordinator reviews the application within the first 5 days to determine if it is administratively complete. In essence, it must be a viable application, in all respects, to be considered administratively complete. In addition to the permit fee, bond, and all relevant forms and notifications identified on the Permit Application Instructions (form EQC 7200), the application must be properly spaced for its location and intended formation. The applicant must also have the necessary mineral and surface rights, at the time of the application, to allow a well to be drilled at the proposed location.

The Area Geologist inspects the staked location on-site to verify the survey, environmental impact assessment, and all other aspects of the application are administratively complete and technically accurate. The Area Geologist may contact the applicant directly if there are minor technical deficiencies that may be corrected in a few days or if there are additional conditions or changes needed to recommend issuance. If the applicant moves the staked well location, it is considered a new permit application and resets the 30-day application period.

If the well site is located on state-owned surface, near threatened or endangered species, or within a state-managed area, staffs from the Department of Natural Resources may also review the application to conduct a resource evaluation and recommend possible mitigation of impacts.

   • If the application is found to be administratively incomplete within the first 30 days, a written or email notice will be sent to the applicant specifying the information necessary to make the application complete. The application period is tolled pending receipt of the specified information.

   • If the application is found to have a technical deficiency or error, a written notice or email will be sent to the applicant specifying the information needed to correct the application. The applicant will have until the 45th day since the application was received to correct any deficiencies or it will be denied as being technically deficient.

The District Supervisor for OGS is notified by email when the Area Geologist has completed their review and made their recommendations. The application may be recommended for approval to issue, denial based on the potential to cause waste as defined in Part 615, or recommended for approval after the correction of a technical deficiency.

The District Supervisor forwards their recommendation to the Permit Coordinator by e-mail that the field review is completed. The Permit Coordinator reconciles all of the recommendations and proceeds to either issue the permit with conditions determined through the review process, forwards the application to the Technical Services Section Supervisor for denial based on waste, or notifies the applicant of any remaining technical deficiencies, which need correction.