Md. Code Regs. 26.19.01.14

Current through Register Vol. 51, No. 21, October 18, 2024

Section 26.19.01.14 - Modification, Termination, or Transfer of Drilling and Operating Permits

A. A person holding a valid drilling and operating permit, and who proposes to conduct any of the following operations in an effort to obtain or increase the production of oil or gas within the State, shall obtain a modification of the drilling and operating permit from the Department before the person:

(1) Recompletes a well in a different reservoir or formation;

(2) Recompletes a well to commingle production from two or more reservoirs within the same formation;

(3) Stimulates a zone that has been in production;

(4) Deepens a well;

(5) Skids a drill rig 75 feet or less; or

(6) Converts from one type of well to another.

B. A drilling and operating permit terminates 18 months after the date of issuance, if the proposed drilling has not started.

C. A drilling and operating permit may be transferred or assigned with prior written approval by the Department, and the posting by the acquiring party of a performance bond and insurance which meets the requirements of Regulation .06C(4) and (5) of this chapter.

D. The transfer or assignment of a drilling and operating permit shall be on a form provided by the Department, signed by both the transferor and the recipient, which contains provisions that the recipient acknowledges:

(1) Full awareness of the obligations, costs, and liabilities in performing reclamation, plugging, and other requirements of the drilling and operating permit and any other permit associated with the well; and

(2) The obligation to fulfill all requirements of the permit and this chapter regardless of whether the transferor or assignor started the activity, or failed to properly perform the requirements before the transfer or assignment.

Md. Code Regs. 26.19.01.14

Regulation .14A amended effective February 15, 1993 (20:3 Md. R. 258)