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
- Federal Law: N/A
- State Law: Oil and Gas Production - Chapter 259, RSMo
- Code of State Regulations: Division 50 Oil and Gas Council, 10 CSR 50 Chapters 1-5
- Commission, Board, Council: State Oil and Gas Council
How to Apply
Applications
- Oil and Gas Commercial Operator's License Application MO 780-0209
- Oil and Gas Transfer of Well(s) or Transfer of Injection Permit - MO 780-2634
- Oil and Gas Well Financial Assurance Instrument Certification MO 780-1778
- Oil and Gas Well Completion or Recompletion Report and Well Log MO 780-0215
- Oil and Gas Confirmation of Out of State Irrevocable Letter of Credit MO 780-1136
- Oil and Gas Notice to Cancel Well Permit MO 780-2227
- Oil and Gas Notice of Intention to Plug MO 780-0214
- Oil and Gas Well Conversion to a Water Well Application MO 780-0218
Fact Sheets
- Oil and Gas in Missouri – PUB652
- Classes of Underground Injection Control Wells - PUB2883
- Monitoring Wells - PUB2898
Fees
- $250 Application fee for Operator License
- $100 per month/ report or form* late fee if the complete renewal application is not submitted on or before Jan. 1 each year.
- Late fees shall not exceed $1,200 per violation for each well. Late fees are also applicable to submission of operator license renewal application after the expiration date.
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
- Oil and Gas Well Completion or Recompletion Report and Well Log MO 780-0215 - operators are required to submit this form when a new well is drilled.
- Oil and Gas Well Conversion to a Water Well Application MO 780-0218 - if the operator drills and hits water instead of oil or gas, complete this form.
- Oil and Gas Notice of Intention to Plug MO 780-0214 - operators are required to submit this form for approval if they do not intend to use cement to plug the well.
- Oil and Gas Notice to Cancel Well Permit MO 780-2227 - operators are required to submit this form if they need to cancel a well permit because they no longer plan to drill the well.
Monthly Reports
Each operator shall prepare in following monthly reports no later than 45 calendar days after the end of each calendar month.
- Oil and Gas Monthly Well Status Production and Disposal Report MO 780-0219 – well status and production of each open well in a unit. Disposal of produced water including the amount, type and method of disposal of all fluids produced from oil and gas wells or underground gas storage reservoirs. (commercial only)
Annual Reports
Each operator shall submit the following annual reports to the department.
- Oil and Gas Annual Injection Well Monitoring Report MO 780-0208 – for the previous calendar year, which should be submitted on or before March 1 of the following year.
- Oil and Gas Annual Well Inventory Report MO 780-0213 – a complete inventory of all open wells as of Dec. 31, submitted to the department on or before Jan. 31.
- Oil and Gas Annual Bonding Report MO 780-2699 – documentation of sufficient financial assurance for all open wells submitted to the department on or before Jan. 31 of each year. This report shall also include a signed and notarized statement from any applicable surety or issuer of a letter of credit or certificate of deposit document that the reference instruments are valid and in full force.
- Oil and Gas Well Plugging Report MO 780-0217 – submit 30 days after completing plugging activities.
- Oil and Gas First Purchaser Fee Report MO 780-0221 – Individuals or businesses that are purchasing oil or gas are required to submit this form and pay a fee per barrel.
- Oil and Gas Mechanical Integrity Test Report MO 780-2635 – operators are required to submit this report for each of their injection wells. This report is completed every five years, if the well as not been in use for more than five years, or if the well fails and the operator tests the casing to ensure there are no holes in the lines.
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 Well Bond MO 780-1777 - complete this form when you become a new operator
- Oil and Gas Annual Bonding Report MO 780-2699
- Oil and Gas Well Financial Assurance Instrument Certification MO 780-1778
- Types of bonds include the following:
- Irrevocable surety bond
- Irrevocable letter of credit
- Certificate of Deposit
• Oil and Gas Confirmation of Out of State Irrevocable Letter of Credit MO 780-1136
Minimum Single Well Bond - Depth of Well | ||
From | To | Amount |
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 | |||
From | To | Amount | # of Open Wells/Bond |
0' | 800' | $22,000 | 40 wells |
801' | 1,00' | $25,000 | 10 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.
Resources
- Oil and Gas Operators and Service Companies in Missouri
- Annual Oil Production Figures
- Oil and Gas Wells Excel Spreadsheet
- Oil and Gas Production, March 27, 2024
- Locate permitted oil and gas wells, access stratigraphic and geophysical logs and more using GeoSTRAT
- 2023 Oil and Gas Annual Oil Production Figures
Popular Links
Contact Information
Geological Survey Program
Missouri Geological Survey
P.O. Box 250
Rolla, MO 65402-0250
United States