Section 85-06-01-14 - Request for shut-in status for oil or gas1. A lessee requesting shut-in status of an oil or gas well, without canceling the lease, shall submit a written request to the department utilizing the form available on the department's website. The request must contain the following information:a. The name and well file number assigned by the North Dakota department of mineral resources oil and gas division;b. The township, range, and section of the surface location of the well;c. The board's oil and gas lease number for the subject lease, the date of the oil and gas lease, the acreage covered by the oil and gas lease, and the current lessee;d. The name and address of the operator of the well;e. The cumulative production and the number of days of production for the three months immediately preceding the request;f. The written approval of the request from the operator;g. The grounds for the request and the anticipated length of time the well will be shut-in; andh. Any additional information requested by the department.2. An application fee, in an amount set by the department, must be submitted with the application. Upon approval of the shut-in request, the applicant shall promptly submit to the department a shut-in well payment. The shut-in well payment must be the same amount for oil or gas wells and must be calculated on a per-lease, per-well basis.3. An application is deemed filed when the department receives the application form, application fee, shut-in well payment, and any additional information requested by the department.4. Within fifteen days of receipt of an application, the commissioner shall notify the applicant in writing, as follows:a. The application is approved and the terms of the shut-in approval;b. The application is denied;c. An additional fifteen day period is necessary to consider the application; ord. The application requires board approval.5. If an application is denied, a lessee may file with the department a written request for commissioner review, specifying the grounds for the request.6. A shut-in approval is effective for one year from the date of approval unless the commissioner determines a shorter amount of time is appropriate.7. The commissioner may revoke a shut-in approval if the commissioner determines the action is in the best interests of the trusts. If a shut-in approval is revoked prior to its expiration, the department shall provide notice to the lessee by certified mail. Within sixty days from the date of receipt of the notice, the lessee shall re-establish production. If the lessee fails to re-establish production, the oil and gas lease is subject to cancellation under section 85-06-01-10.N.D. Admin Code 85-06-01-14
Adopted by Administrative Rules Supplement 375, January 2020, effective 1/1/2020.Amended by Administrative Rules Supplement 2024-392, April 2024, effective 4/1/2024.General Authority: NDCC 15-05-09, 15-05-10, 15-07-20, 15-08.1-06, 61-33-06
Law Implemented: N.D. Constitution article IX, § 5; NDCC 15-01-02, 15-02-05, 15-05-09, 15-05-10