CHAPTER 4. PERMITS

IC 14-37-4
     Chapter 4. Permits

IC 14-37-4-1
Permit required for oil and gas activities; coal bed methane extraction prohibition
    
Sec. 1. (a) Subject to subsection (b), a person may not drill, deepen, operate, or convert a well for oil and gas purposes without a permit issued by the department.
    (b) Except as provided in subsection (c) and (d):
        (1) the extraction of coal bed methane from a well for oil and gas purposes on or after the effective date of this subsection and before July 1, 2012, is prohibited; and
        (2) the department may not issue a permit under this chapter for the extraction of coal bed methane from a well for oil and gas purposes before July 1, 2012, regardless of whether the application for the permit was made to the department before the effective date of this subsection.
    (c) Subsection (b) does not apply if the owner of the right to the coal from which the coal bed methane for which a permit is sought under this chapter is derived consents in an instrument binding on that owner to the extraction of the coal bed methane and to the issuance of the permit.
    (d) Subsection (b)(1) does not apply to a coal bed methane well that is operated under a permit issued by the department.
As added by P.L.1-1995, SEC.30. Amended by P.L.80-2005, SEC.2; P.L.78-2010, SEC.4.

IC 14-37-4-2
Duties of owner or operator
    
Sec. 2. (a) An owner or operator:
        (1) shall comply with the conditions of a permit as determined by the department;
        (2) may not raise as a defense to an enforcement action by the department that compliance with the conditions of the permit constitutes an economic hardship;
        (3) shall correct adverse environmental impact that results from noncompliance with a permit; and
        (4) shall provide proper operation and maintenance for facilities, systems of treatment, and control and related appurtenances that are installed or used by the owner or operator to comply with the permit conditions.
    (b) Proper operation and maintenance under subsection (a)(4) includes effective performance, adequate funding, adequate operator staffing and training, and adequate laboratory and process controls, including appropriate quality assurance procedures. Subsection (a)(4) requires the operation of backup or auxiliary facilities or similar systems only if necessary to comply with permit conditions.
As added by P.L.1-1995, SEC.30.
IC 14-37-4-3
Permit not property right or exclusive privilege
    
Sec. 3. A permit does not convey to the owner or operator a property right or an exclusive privilege.
As added by P.L.1-1995, SEC.30.

IC 14-37-4-4
Permit form
    
Sec. 4. A person must apply for a permit under this chapter on a form prescribed by the commission.
As added by P.L.1-1995, SEC.30.

IC 14-37-4-5
Document accompanying permit application
    
Sec. 5. An application for a permit must include the following:
        (1) A plat of the land or lease upon which the well is to be located, together with all property and lease lines and the acreage within the tract.
        (2) The location of the proposed well as certified by a land surveyor registered under IC 25-21.5.
        (3) The surface elevation of the proposed well and the method used for determining that elevation.
        (4) The depth of the proposed well.
        (5) The number and location of all other dry, abandoned, or producing wells located within one-fourth (1/4) mile of the proposed well.
        (6) The distance from the proposed well to the three (3) nearest boundary lines of the tract.
        (7) With respect to an application to drill within a city or town, a certified copy of the official consent by ordinance of the municipal legislative body.
        (8) Other information determined by the commission that is necessary to administer this article.
As added by P.L.1-1995, SEC.30.

IC 14-37-4-6
Bond and permit fee; expedited review
    
Sec. 6. (a) A person must submit the following with an application for a permit:
        (1) A bond under IC 14-37-6.
        (2) A permit fee of two hundred fifty dollars ($250) payable to the department. However, a person may apply for an expedited review of the application for a permit, except for a Class II or noncommercial well, by submitting a permit fee of seven hundred fifty dollars ($750).
    (b) Permit fees collected under this section must be deposited in the oil and gas fund established by IC 6-8-1-27.
As added by P.L.1-1995, SEC.30. Amended by P.L.48-2002, SEC.1; P.L.186-2003, SEC.77.
IC 14-37-4-7
Operator's signature on permit
    
Sec. 7. An application must be signed by:
        (1) the person; or
        (2) an authorized agent of the person;
who is the operator named in the proposed permit.
As added by P.L.1-1995, SEC.30.

IC 14-37-4-8
Permit issuance upon compliance with article and rules
    
Sec. 8. Except as provided in section 9 of this chapter, if an applicant for a permit complies with:
        (1) this article; and
        (2) the rules adopted under this article;
the commission shall issue a permit.
As added by P.L.1-1995, SEC.30.

IC 14-37-4-9
Denial of permit
    
Sec. 9. The department may refuse to issue a permit if an applicant or an officer, a partner, or a director of the applicant:
        (1) is in violation of this article or would be in violation if the permit were issued; or
        (2) controls or has controlled a well for oil and gas purposes and has demonstrated a pattern of willful violations of:
            (A) this article; or
            (B) IC 13-8 (before its repeal);
        that have resulted in substantial damage to the environment indicating an intention not to comply with this article or IC 13-8 (before its repeal).
As added by P.L.1-1995, SEC.30.

IC 14-37-4-10
Permit continuance for non-Class II wells
    
Sec. 10. A permit for a well for oil and gas purposes, other than a permit for a Class II well, continues until:
        (1) the well is plugged and abandoned;
        (2) the well is converted to another type of well for oil and gas purposes; or
        (3) the permit is revoked.
As added by P.L.1-1995, SEC.30. Amended by P.L.80-2005, SEC.3.

IC 14-37-4-11
Expiration of permit
    
Sec. 11. A permit for a well for oil and gas purposes expires one (1) year from the date of issuance unless the drilling of the well has commenced.
As added by P.L.1-1995, SEC.30. Amended by P.L.80-2005, SEC.4.

IC 14-37-4-12 Permit continuance for Class II wells
    
Sec. 12. A permit for a Class II well continues until the well is plugged and abandoned, unless the permit is revoked, expired, or otherwise terminated.
As added by P.L.1-1995, SEC.30.

IC 14-37-4-13
Emergency permits
    
Sec. 13. (a) The director may issue an emergency permit for a well for oil and gas purposes if an imminent and substantial danger to the health of persons will result unless an emergency permit is granted. An emergency permit under this subsection is effective no longer than necessary to remove the danger.
    (b) If a substantial and irretrievable loss of oil or natural gas resources will occur unless an emergency permit is granted, the director may issue an emergency permit for a well for oil and gas purposes if the following conditions exist:
        (1) Timely application for a permit could not practicably have been made.
        (2) Issuance of the permit does not violate a term of primary enforcement authority for Class II wells.
    (c) An emergency permit under subsection (b) is effective not longer than ninety (90) days from issuance. However, if a permit application is submitted before expiration of the ninety (90) day period, the director may, subject to IC 4-21.5, extend the emergency permit until final agency action on the application.
    (d) The director may issue an emergency permit for a well for oil and gas purposes if:
        (1) a substantial delay in the production of oil or natural gas resources will occur unless an emergency permit is issued for a new injection well; and
        (2) the permit will not violate a term of primary enforcement authority for Class II wells.
An emergency permit under this subsection may be issued only after a completed permit application has been submitted and is effective only until a final determination is made by the department on that application.
As added by P.L.1-1995, SEC.30.

IC 14-37-4-14
Transfer permits
    
Sec. 14. To transfer the ownership of a permit for a well for oil or gas purposes, a person must submit the following:
        (1) A transfer fee of fifteen dollars ($15) payable to the department for each well. However, if an applicant submits more than fifty (50) applications simultaneously, the transfer fee for each application in excess of fifty (50) is ten dollars ($10).
        (2) The name and mailing address of the seller and buyer on a form prescribed by the commission. As added by P.L.186-2003, SEC.78.