The Office of Geological Survey (OGS), within the Michigan Department of Environmental Quality (MDEQ), has responsibility for issuing permits for drilling oil and gas, secondary recovery, brine disposal, and hydrocarbon storage wells under the authority of Part 615, Supervisor of Wells (formerly Public Act 61 of 1939, as amended), of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (NREPA). The purpose of these permits is to regulate these activities for environmental protection and resource conservation and to protect correlative rights.

A. NAME OF PERMIT OR APPROVAL:

Permit to Drill and Operate

B. STATUTORY AUTHORITY:

Part 615 (MCL 324.61501-324.61527), Supervisor of Wells, Natural Resources and Environmental Protection Act, Public Act 451 of 1994, as amended

C. APPLICABLE REGULATION:

Michigan Administrative Code, Rules Administered by MDEQ, OGS

Oil and Gas Operations (R 324.201 - R 324.216)

D. MICHIGAN BUSINESS ONE STOP:

The Michigan Business One Stop (One Stop) www.michigan.gov/business is a tool designed to allow businesses to interact with the State of Michigan. The tool offers:

• a set of screening questions based upon your business sector to identify permits, licenses and registrations that may be required to do business in Michigan.
• an option to pay fees online. For many programs, you can pay your business license fee in One Stop through use of an online form and shopping cart.
• many online permit applications and renewals. When starting a new business and registering in One Stop, you will need to identify a business sector (also known as a NAICS Code). You can find your code at www.naics.com, select "Code Search."  After entering this code in One Stop and answering some screening questions, links to relevant permit applications will automatically be available in your newly created workspace. One benefit of accessing applications through One Stop is that you will receive status messages throughout the application process.

Using the One Stop provides many benefits to businesses in Michigan. By conducting your business through One Stop you can organize your State of Michigan transactions in one place. If you ever need assistance with One Stop, then you can contact the Customer Assistance Center at 877-766-1779; they are open from 7 am to 6 pm. One Stop is a valuable tool that offers many benefits to business. We hope you give it a try.

E. SUMMARY OF PERMIT/APPROVAL PROCESS:

 1.  Applicability (activities that require the permit)

Drilling of oil, gas, brine disposal, secondary recovery, or hydrocarbon storage wells

 2.  Pre-Application Requirements

• A permit to drill is required from the OGS

• Other permits (e.g., wetlands, stream crossings) may be required if the project impacts regulated features

 3.  Application Submission Requirements

An administratively complete permit application packet consists of the following:

• Form EQP 7200-1 Application for Permit to Drill and Operate a Well

• Form EQP 7200-2 Survey Record of Well Location

• A surveyors expanded plat of the proposed well site

• A bond for conformance (Form EQP 7200-3 or other acceptable financial instrument)

• Form EQP 7200-4 Wellhead Blowout Control Systems

• Form EQP 7200-13 Well Permittee Organizational Chart

• Form EQP 7200-14 Injection Well Data (only for injection wells)

• Form EQP 7200-18 Soil Erosion and Sedimentation Control Plan

• Form EQP 7200-19 Environmental Impact Assessment (EIA)

• Form EQC 7200-2 Requesting an Exception to S.O. 2-73 (if applicable)

• H2S Contingency Plans (if needed)

• Notification to Surface Owner and to the county clerk

• Permit fee

Refer to Permit Application Preparation Instructions (EQC 7200) for more detailed instructions.

 4.  Procedures and Time-Frame for Obtaining Permit or Approval

• Applicant submits application to Lansing Office of OGS

• Each application is reviewed to verify it is administratively complete and technically accurate. In addition, each proposed well site is inspected to verify the EIA is accurate

• Other divisions of the MDEQ or Michigan Department of Natural Resources may be involved in the review process if the proposed drilling operation is likely to impact natural resources

• 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 30-day application period is tolled (suspended) 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. If the applicant does not correct the deficiency by the 45th day since the application was received (not counting any days the application was tolled) it will be denied as being technically deficient

• A permit decision is made within 50 calendar days from receipt, minus any period that the application was tolled

 5.  Operational Requirements

Applicant must comply with all applicable statutes, rules, permit conditions, and stipulations set forth in the application.

 6.  Fees

Permit fee is $300 (is refundable if permit is not issued).

Bond

Single well bonds based on depth:

• $10,000: Less than or equal to 2,000 feet deep
• $20,000: 2,000 feet to 4,000 feet deep
• $25,000: 4,001 feet to 7,500 feet deep
• $30,000: 7,501 feet and deeper

Blanket well bonds based on depth for up to 100 wells:

• $100,000: Less than or equal to 2,000 feet deep
• $200,000: 2,001 feet to 4,000 feet deep
• $250,000: For unlimited number of wells in any range of depths

 7.  Appeal Process

Public hearing before the Supervisor of Wells, then to Circuit Court

 8.  Public Input Opportunities

The decision maker is the Director of MDEQ (also the Supervisor of Wells) and the decision making authority has been delegated to the Assistant Supervisor of Wells. Notice of the application is provided to the surface owner of the land where the well is to be located and to the county clerk. Applications to drill oil and gas wells may be found on the oil and gas well database at: http://www.deq.state.mi.us/mir/. In addition, individuals may subscribe to the oils and gas permit list by contacting the Permits and Bonding Unit of OGS. Individuals may contact the Permits and Bonding Unit of OGS or the district supervisor of OGS where the application is located to obtain information or make comments about the proposed well. The best opportunity for public input is as soon as an individual learns that an application is pending. Permitting decisions for oil and gas wells must be made within 50 days of application receipt but may be made in a shorter time.

F. ADMINISTERING AGENCY:

Office of Geological Survey, Permits and Bonding Unit, Michigan Department of Environmental Quality, P.O. Box 30256, Lansing, Michigan 48909-7756

• Program Phone: 517-241-1528

• Program Webpage: http://www.michigan.gov/deq/0,1607,7-135-3311_4111_4231-40301--,00.html

• Environmental Assistance Center: 1-800-662-9278, e-mail: deq-ead-env-assist@michigan.gov

 

Creation/Revision Date:

October 2010