SECTION 165:10-3-1. Required approval of notice of intent to drill, deepen, re-enter, or recomplete; Permit to Drill

(a)   Permit to Drill.

(1)   Except as provided in (1) of this Section, on emergency authorization to commence, the operator shall obtain for the well a Permit to Drill approved by the Conservation Division before:

(A)   Spudding a well for the exploration for and production of oil or gas.

(B)   Spudding a well for use as an injection, disposal, or service well.

(C)   Re-entry into a plugged well.

(D)   Recompletion of a well.

(E)   Deepening an existing well.

(2)   A Permit to Drill shall be valid only for each common source of supply listed on the permit.

(3)   Any operator who drills, deepens, reenters or recompletes a well without a permit to drill may be fined up to $1,000.00.

(4)   An operator requesting a Permit to Drill for a well shall submit a plat utilizing Commission records showing the location and total depth of each abandoned, plugged, producing or drilling well, and dryhole within one quarter (1/4) mile of the completion interval of the proposed well.

(b)   Amended or additional Form 1000 requirements.

(1)   When required. If the Conservation Division has issued a Permit to Drill for a well, the operator of the well shall submit an amended Form 1000 for the well and obtain an amended Permit to Drill before:

(A)   Completing the well in a common source of supply which is not listed on the current unexpired Permit to Drill for the well.

(B)   Recompleting the well in a common source of supply which is not listed on the current unexpired Permit to Drill for the well.

(C)   Installing less surface casing than the amount approved on the unexpired Permit to Drill for the well.

(D)   Deviating from an alternative casing and cementing procedure which the Conservation Division approved on the unexpired Permit to Drill for the well.

(E)   Completing a well in a common source of supply at a subsurface location which does not correspond with the surface location on the most recently issued Permit to Drill for the well.

(2)   Effect of amended or additional Permit to Drill on prior Permit to Drill. Each approved, amended, or additional Permit to Drill for a well cancels any previously issued Permit to Drill for the well.

(c)   Expired or revoked Permit to Drill. If a Permit to Drill for a well expires or is revoked, the operator shall be subject to the requirements of (a) of this Section.

(d)   Casing and cementing requirements. Each Permit to Drill shall list the minimum amount of surface casing to be used or an approved alternative casing and cementing program under 165:10-3-4.

(e)   Spud report and well spacing requirements. In addition to complying with the requirement of obtaining a Permit to Drill, the operator shall comply with the following:

(1)   The spud report requirement of 165:10-3-2.

(2)   Any well spacing requirements applicable by order or rule of the Commission. Well spacing requirements do not apply to injection or disposal wells.

(f)   Disposal of drilling fluids.

(1)   The operator shall indicate on Form 1000 the proposed method(s) for disposal of drilling fluids. These methods shall include, but not be limited to:

(A)   Evaporation/dewatering and leveling of the reserve pit.

(B)   Soil farming.

(C)   Recycling.

(D)   Commercial off-site earthen pit disposal.

(E)   Annular injection.

(F)   Hauling to a facility or location other than a commercial earthen pit.

(2)   If the method in (1)(F) in this subsection is used, the operator shall provide the location to which the drilling fluids are to be hauled.

(3)   Issuance of the Permit to Drill shall not be construed as constituting approval of the disposal method(s) indicated. An operator who desires to dispose of drilling fluids through either evaporation/dewatering and leveling of the reserve pit, soil farming, commercial earthen pit disposal, or annular injection must comply with 165:10-7-16, 165:10-7-19 or 165:10-9-2, 165:10-9-1, or 165:10-5-13 respectively.

(4)   If the proposed method for drilling fluid disposal is changed, the operator shall notify the appropriate Conservation Division District Office, either by telephone, facsimile or electronic mail, within twenty-four (24) hours after the change. An amended Form 1000 for the well shall not be required for a change in disposal method.

(g)   Notice to surface owners.

(1)   The operator shall include on each Form 1000 submitted to the Conservation Division, the name and address of each surface owner of record for the wellsite.

(2)   For each Permit to Drill other than a Permit to Drill for a recompletion, the Conservation Division shall mail by regular U.S. mail a copy of the Permit to Drill to each surface owner listed on the Form 1000.

(h)   Disapproval for noncompliance with Commission order. If an operator is not in compliance with an enforceable order of the Commission, the Conservation Division shall not issue any Permit to Drill for the operator, until the operator complies with the order.

(i)   Erroneous approval. Erroneous issuance of a Permit to Drill shall not excuse noncompliance with any order or rule of the Commission.

(j)   Expiration.

(1)   Eighteen-month period. Except as provided in (3) of this subsection for expiration after submission of a completion report, a permit to drill shall expire eighteen months from the date of issuance, unless drilling operations are commenced and thereafter continued with due diligence to completion.

(2)   Six-month extension. A six month extension may be granted without fee providing the Conservation Division staff determines that no material change of condition has occurred, if written request for such extension is received from the operator prior to the expiration of the original permit. Only one extension may be granted.

(3)   If Form 1002A is filed. If the operator of the well submits to the Conservation Division a Completion Report (Form 1002A) for the well, the Permit to Drill for the well shall expire on the date the Completion Report is approved by the Conservation Division.

(k)   Posting of Permit to Drill at the wellsite. During any activity subject to this Section, the operator shall maintain at the wellsite an original or legible copy of the Permit to Drill for inspection by Commission personnel.

(l)   Emergency authorization without approval of a Permit to Drill. In an emergency, the Manager of the Technical Services Department of the Conservation Division may temporarily authorize commencement of activities without a Permit to Drill for a period up to five business days.

(m)   Limits of authority. A Permit to Drill does not grant the operator authority to produce, inject or dispose without the required permits or allowable assignment.

[Source: Amended at 9 Ok Reg 2295, eff 6-25-92; Amended at 16 Ok Reg 2206, eff 7-1-99; Amended at 24 Ok Reg 1784, eff 7-1-07; Amended at 27 Ok Reg 2128, eff 7-11-10; Amended at 28 Ok Reg 1949, eff 7-11-11; Amended at 32 Ok Reg 768, eff 8-27-15; Amended at 33 Ok Reg 593, eff 8-25-16; Amended at 35 Ok Reg 973, eff 9-14-18; Amended at 36 Ok Reg 534, eff 8-1-19; Amended at 37 Ok Reg 1121, eff 10-1-20]