Oil & Gas Permit Transfers

Agency: Environment, Great Lakes, and Energy

The Oil, Gas, & Minerals Division (OGMD), within the Michigan Department of Environment, Great Lakes, and Energy (EGLE), 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 EGLE, OGMD

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

D.  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 OGMD.

 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 EGLE. 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 OGMD 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, OGMD. Individuals may get notice of applications to transfer by contacting the Permits and Bonding Unit of OGMD. Current well permittees may be found on the oil and gas well database at: http://www.deq.state.mi.us/geowebface/.

E. ADMINISTERING AGENCY:

EGLE; Oil, Gas, & Minerals Division; Permits and Bonding Unit; P.O. Box 30256; Lansing, Michigan 48909-7756

  • Program Phone: 517-241-1528

 

Revision Date:

August 2019