Missouri Senate

Introduced

STATE OIL AND GAS COUNCIL (Sections 259.010-259.030, 259.070) - Currently, the State Oil and Gas Council is composed of 8 members with 1 being from the Division of Geology and Land Survey. This act replaces this member with the State Geologist. This act also removes the requirement that one of the public members on the Council be a resident of a third or fourth class county. Additionally, this act removes the Division of Geology and Land Survey from the advisory committee to the Council and replaces it with the Department of Natural Resources.

Currently, the State Oil and Gas Council has certain authority, including entering property for inspecting oil and gas wells and initiating investigations by the Attorney General. This act also confers this authority to the Department of Natural Resources. Conversely, the State Oil and Gas Council is currently authorized to inspect or investigate property believed to be subject to regulation. This act transfers this authority from the Council to the Department of Natural Resources.

OIL AND GAS RESOURCES FUND & OIL AND GAS REMEDIAL FUND (Sections 259.052 & 259.190) - This act creates the Oil and Gas Resources Fund consisting of appropriated moneys as well as permit application fees, operating fees, closure fees, late fees, severance fees, and gifts. Such money shall be use to administer provisions of law relating to oil and gas.

Currently, the Oil and Gas Remedial Fund may be used to pay the expenses incurred by the State Oil and Gas Council. This act repeals this provision.

SURETY BONDS (Section 259.070 & 259.100) - Currently, the State Oil and Gas Council allows a personal bond secured by a certificate of deposit or irrevocable letter of credit to be furnished to the Council in lieu of a surety bond to govern the production of oil and gas on lands in Missouri. This act removes this allowance.

Currently, applicants seeking a permit for noncommercial gas wells are required to file a bond or other instrument of credit. This act removes the allowance to file any other instrument of credit.

PERMITS (Section 259.080) - This act requires that a permit be obtained from the State Geologist prior to commencing injection activities for enhanced recovery of oil or gas or for the disposal of fluid.

FEE STRUCTURE (Section 259.080) - Currently, the State Oil and Gas Council does not charge a fee for obtaining a permit for drilling operations. Under this act, the State Oil and Gas Council may authorize the Department of Natural Resources to file an order of rulemaking amending the fee structure for permit application fees, operating fees, closure fees, late fees, and extraction or severance fees after certain procedures are followed as set forth in this act. Such authority to revise the fee structure in this manner shall expire in 2025. If any applicant fails to pay the appropriate fee, a penalty may be assessed and relief may be sought by the Department of Natural Resources in the appropriate circuit court.

SPACING UNITS (Section 259.100) - Currently, orders regarding spacing units are entered by the State Geologist. This act instead requires that the Department of Natural Resources enter the order.

Currently, spacing units set by the Council do not apply to noncommercial gas wells. This act removes this exemption.

PENALTIES (Section 259.210) - Currently, the State Oil and Gas Council is required to bring suit against any person appearing to violate provisions of law relating to oil and gas. Under this act, the Department of Natural Resources or the Council may request that the Attorney General bring such suit.

This act is similar to SCS/SB 968 (2014).

KAYLA CRIDER