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Goals & Objectives for 2009 Biennium*
Fiscal Years 2008 and 2009
Oil & Gas Conservation Division
Mission: Prevent waste and provide for the conservation of crude oil and natural gas through regulation of exploration and production.
Issue 800 drilling permits per year, conduct Montana Environmental Policy Act (MEPA) compliance review and prepare documentation for each requested permit.
In 2005, 1306 drilling permits were issued: 315 for oil, 413 for gas, and 577 for coal bed natural gas.
Identify non-conforming drilling permit requests that require approval by the Board of Oil and Gas Conservation (BOGC) and prepare MEPA compliance documentation for permits on non-federally supervised lands.
57 non-conforming drilling exception locations were granted by the BOGC in 2005.
Regulate the development of oil and gas fields to ensure compliance with BOGC rules and accepted industry practice, and maximize the efficient recovery of Montana oil and gas resources.
Conduct public hearings (7 hearings and 300 applications per year) to promote conservation, prevent waste and protect correlative rights for oil and gas operations; review and approve or reject approximately 600 notices per year pertaining to well work-overs, re-completions, abandonments, etc.; to maintain records on approximately 600 operator bonds and approve approximately 100 new bonds per year; and to propose and adopt rules pursuant to the Montana Administrative Procedures Act.
Eight public hearings were held in 2005 due to increases in industry activity. There were 522 applications for public hearing in 2005 and the BOGC issued 457 orders as a result of its public hearings. Over 860 Sundry Notice requests for well work were reviewed and processed in 2005. Staff maintained records on over 1100 active bonds in 2005, which included changes to 19 existing bonds and approval of 62 new and 15 replacement bonds. The Board amended its administrative rules in 2006 (ARM 36.22.1242), to reduce its privilege and license tax distribution from 0.018 percent to 0.009 percent of the market value of oil and gas produced, saved, and marketed or stored with the state or exported therefrom.
Collect, catalog, and maintain oil and gas well information and production data, associated geological data, well logs statistical information, and summary data for use by the public and the industry.
Maintain database and well files on approximately 38,000 oil and gas wells; process new data on approximately 800 wells per year; process production reports (72,000 per year), publish the Montana Oil and Gas Annual Review and distribute via Internet and direct mail to 800 subscribers; maintain a core chip catalog on 12,000 wells and add approximately 150 wells each year; and maintain regional and field maps by adding new wells and status changes (approximately 900 entries).
Progress: Information on 640 new wells was added to the database in 2005. Production reports were received and processed on over 7000 wells per month. Interactive website continues to allow direct public access to well and production information.
Operate a field inspection program to ensure compliance with BOGC rules, resolve complaints, and gather accurate field information for use by the board and staff in making decisions.
Conduct inspections on 700 drilling wells, 2,100 producing wells, 300 plugged and abandoned wells, and 10 seismic exploration crews; respond to complaints and provide emergency response for spills, leaks, and other environmental problems; and provide recommendations for enforcement actions and reports and data in support of the regulatory program.
BOGC field staff performed 3197 inspections in 2005, which included 888 routine/periodic inspections of producing wells, 583 compliance inspections, 326 abandonment and well site reclamation inspections, 156 pit inspections, 122 drilling inspections, 32 complaint investigations, and 8 emergency responses.
Establish and administer the Underground Injection Control Program delegated by the U.S. Environmental Protection Agency (EPA) for the protection of groundwater through regulation of waste disposal and enhanced recovery injection wells.
Regulate the operations of 900 existing injection wells and issue approximately 30 to 50 new injection well permits per year; and conduct 1,000 well inspections and witness 280 pressure tests per year; and, maintain statistics and enforcement records per memorandum of understanding with the EPA.
The BOGC continues to regulate approximately 900 active injection wells. In 2005, field staff witnessed 294 mechanical inspection tests on injections wells and performed 266 regularly scheduled injection well inspections. Form 7520 was submitted timely to U.S. EPA outlining program results and statistics.
*Based on most recent annual information - Calendar year 2005
