No person shall engage in oil or gas operations pursuant to Chapter 259, RSMo, and implementing regulations without first obtaining or renewing an operator license from the department, even if the well or storage facility is shut in or idle. A commercial operator license allows an individual to drill or operate an investor-funded oil or gas drilling site that produces enough oil or gas to sell.

The department's Missouri Geological Survey is responsible in part for activities associated with the exploration, production and subsurface storage of oil and gas in Missouri. Some of these responsibilities include reviewing, approving and maintaining applications to drill oil and/or gas production wells, and underground injection control wells (enhanced oil recovery, disposal and hydrocarbon storage wells). A complete review process to issue licenses and permits for oil and gas drilling ensures the environment and residents are protected while allowing responsible development of oil and gas resources. 

Length of Permit

One calendar year. This license expires on Jan. 1 of the year immediately following issuance of the license. If the operator receives the license June 16, 2023, the license will expire Jan. 1, 2024 and will need to be renewed.

Laws, Rules and Regulations

How to Apply

Timeline/ Process

The department will review the application for operator license and within in 15 business days, determine if the application is complete. The department will request additional information if the application is not complete, which will delay the review process. Once the completed information is received, the department will have another 15 business days to complete the determination. If the state geologist finds the application in good form and all requirements of the application have been met, the department will issue the operator license.

If the department has not received the missing or incomplete application information or fee within 30 days after notification, the application will be considered null and void and the applicant must reapply by submitting a new application for an operator license along with the associated fee. If the state geologist determines that the applicant is in violation of any state regulations, the department may deny the application. If the department has not taken action within the 15 business day review period, the application shall be considered denied.

Public Participation

Any person adversely affected by an order or denial of a permit, license or transfer issued by the department may appeal the order or denial to the State Oil and Gas Council within 30 calendar days of such order or denial. The appeal must be sent by registered or certified mail to the chairperson of the council. The council may decide to conduct a public hearing to decide the appeal. 

Requirements

Reporting

Spill Notification

Each operator, immediately upon discovery or knowledge of any spill or release, must take immediate action to report the incident to the department according to Hazardous Substance Emergency Response - sections 260.500 to 260.550, RSMo. (50 gallons or more to runs into waters of the state)

Drilling and Plugging Reports

Monthly Reports

Each operator shall prepare in following monthly reports no later than 45 calendar days after the end of each calendar month. 

Annual Reports

Each operator shall submit the following annual reports to the department.

Suspension or Revocation of Operator License

The department may issue an order to suspend or revoke an operator license if the state geologist determines the licensee has violated state regulations. The department will include the reason(s) for suspension or revocation in the order, the effective date and the conditions under which the suspension or revocation would be rescinded. The order will be sent registered or certified mail to the licensee’s last known address. The licensee may appeal the suspension or revocation.

Changes and Transfers

After any change occurs as to facts stated in the application as submitted and filed, a supplementary application shall be filed with the department within 30 calendar days after the effective date of change.

Any open well shall not be transferred from one operator to another without approval of the state geologist. The operator (transferor) shall submit a transfer form to the department no less than 30 calendar days prior to the planned transfer. Any such request may be denied if the state geologist determines the submitted information is incomplete. The department will review the completed transfer request and will approve or deny the request within 15 business days. Additional requirements may be found within the Code of State Regulations 10 CSR 50-2.010 Operator License.

Bonding Requirements

Bonding for each well is necessary before an operator commences oil or gas drilling or operations to insure compliance with state regulations. Bond amounts are determined by the Oil and Gas Council. The department may accept as financial assurance instruments surety bonds, certificates of deposit and irrevocable letters of credit. Visit the Code of State Regulations 10 CSR 50-2.20 to learn more about all bonding requirements.

•   Oil and Gas Confirmation of Out of State Irrevocable Letter of Credit MO 780-1136

Minimum Single Well Bond - Depth of Well
Both Commercial and Noncommercial

FromToAmount
0'500'$1,100
501'1,000'$2,200
1,001'2,000'$3,300
2,001'5,000'$4,400
5,001'+$5,500 plus $2 per foot beyond 5,001 feet

Bonds for horizontal wells shall be based on the total measured length of the wellbore from the surface to the depth of the deepest producing horizon.

Minimum Blanket Well Bond
Depth of Well

FromToAmount# of Open Wells/Bond
0'800'$22,00040 wells
801'1,00'$25,00010 wells
Wells greater than 1,500’ in depth must be bonded individually by a single well bond.

Renewal

An operator license expires on Jan. 1 each year. The operator must submit the Oil and Gas Commercial Operator's License Application MO 780-0209 on or before Jan. 1 to renew their license each year. A late fee will be assessed if the renewal is submitted after the expiration date. If the state geologist determines the licensee is in violation of any state regulations, the department may deny the operator license renewal.

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