The Office of Geological Survey (OGS), within the Michigan Department of Environmental Quality (MDEQ), has responsibility for approving the transfer of oil or gas, brine disposal, secondary recovery, or hydrocarbon storage well permits 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 purposes of these permits are to prevent surface and underground waste and to protect correlative rights.

A. NAME OF PERMIT OR APPROVAL:

Request for Transfer of Permit

B. STATUTORY AUTHORITY:

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

C. APPLICABLE REGULATION:

Rules Administered by MDEQ, OGS

Oil and Gas Operations (R 324.206(6), (7), (8) and R 324.207)

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)

If a permittee of a well conveys their rights in the well as an owner to another person, then a request for the transfer of the permit to the acquiring person shall be submitted to the OGS.

 2.  Pre-Application Requirements

• The acquiring person is responsible for filing the request for transfer of permit. A permit for a well shall not be transferred to a person who has been determined to be in violation of the Act, promulgated rules, permit conditions, or Orders of the Supervisor or MDEQ. If the permittee of a well is under notice because of unsatisfactory conditions at the well site involved in a transfer, then the permit for the well shall not be transferred until the unsatisfactory conditions have been corrected

• Operation of a well may be suspended for failure to transfer a permit

 3.  Application Submission Requirements

• Request for Transfer of Permit signed by the permittee of record and the acquiring permittee

• Appropriate bond coverage (See Section 3.1 (D)(6))

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

• Applicant submits an original and three copies of Request for Transfer of Permit (Form EQP 7200-7) to the OGS Lansing Office. Applicant maintains or provides adequate bond coverage (See Section 3.1 (D)(6))

• The well site subject to the request for transfer is inspected by the area geologist to determine that there are no unsatisfactory conditions

• If any unsatisfactory conditions exist, they must be corrected or the acquiring person will have to agree to a written schedule for correcting the violations before the transfer can be approved

 5.  Operational Requirements

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

 6.  Fees

None, except providing proper bonding as described in Section 3.1 (D)(6)

 7.  Appeal Process

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

 8.  Public Input Opportunities

This is considered a modification of an existing permit (see Section 5.7.2.) The decision maker for this approval is the bonding specialist of the Permits and Bonding Unit, OGS. Individuals may get notice of applications to transfer by contacting the Permits and Bonding Unit of OGS. Current well permittees may be found on the oil and gas well database at: www.deq.state.mi.us/mir.  

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---,00.html

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

Creation/Revision Date:

October 2010