259.070. Powers and duties of council--rulemaking, procedure.
Powers and duties of council--rulemaking, procedure.
259.070. 1. The council has the duty of administering the provisions ofthis chapter. The council has the duty and authority to make suchinvestigations as it deems proper to determine whether waste exists or isimminent or whether other facts exist which justify action. The councilacting through the office of the state geologist has the authority:
(1) To require:
(a) Identification of ownership of oil or gas wells, producing leases,tanks, plants, structures, and facilities for the refining or intrastatetransportation of oil and gas;
(b) The making and filing of all mechanical well logs and the filing ofdirectional surveys if taken, and the filing of reports on well location,drilling and production, and the filing free of charge of samples and corechips and of complete cores less tested sections, when requested in the officeof the state geologist within six months after the completion or abandonmentof the well;
(c) The drilling, casing, operation, and plugging of wells in suchmanner as to prevent the escape of oil or gas out of one stratum into another;the intrusion of water into oil or gas stratum; the pollution of fresh watersupplies by oil, gas, or highly mineralized water; to prevent blowouts,cavings, seepages, and fires; and to prevent the escape of oil, gas, or waterinto workable coal or other mineral deposits;
(d) The furnishing of a reasonable bond with good and sufficient surety,conditioned upon the full compliance with the provisions of this chapter, andthe rules and regulations of the council prescribed to govern the productionof oil and gas on state and private lands within the state of Missouri;provided that, in lieu of a bond with a surety, an applicant may furnish tothe council his own personal bond, on conditions as described in thisparagraph *, secured by a certificate of deposit or an irrevocable letter ofcredit in an amount equal to that of the required surety bond or secured bysome other financial instrument on conditions as above described or asprovided by council regulations;
(e) That the production from wells be separated into gaseous and liquidhydrocarbons, and that each be accurately measured by such means and upon suchstandards as may be prescribed by the council;
(f) The operation of wells with efficient gas-oil and water-oil ratios,and to fix these ratios;
(g) Certificates of clearance in connection with the transportation ordelivery of any native and indigenous Missouri produced crude oil, gas, or anyproduct;
(h) Metering or other measuring of any native and indigenousMissouri-produced crude oil, gas, or product in pipelines, gathering systems,barge terminals, loading racks, refineries, or other places; and
(i) That every person who produces, sells, purchases, acquires, stores,transports, refines, or processes native and indigenous Missouri-producedcrude oil or gas in this state shall keep and maintain within this statecomplete and accurate records of the quantities thereof, which records shallbe available for examination by the council or its agents at all reasonabletimes and that every such person file with the council such reports as it mayprescribe with respect to such oil or gas or the products thereof;
(2) To regulate pursuant to rules adopted by the council:
(a) The drilling, producing, and plugging of wells, and all otheroperations for the production of oil or gas;
(b) The shooting and chemical treatment of wells;
(c) The spacing of wells;
(d) Operations to increase ultimate recovery such as cycling of gas, themaintenance of pressure, and the introduction of gas, water, or othersubstances into producing formations; and
(e) Disposal of highly mineralized water and oil field wastes;
(3) To limit and to allocate the production of oil and gas from anyfield, pool, or area;
(4) To classify wells as oil or gas wells for purposes material to theinterpretation or enforcement of this chapter;
(5) To promulgate and to enforce rules, regulations, and orders toeffectuate the purposes and the intent of this chapter;
(6) To make rules, regulations, or orders for the classification ofwells as oil wells or dry natural gas wells; or wells drilled, or to bedrilled, for geological information; or as wells for secondary recoveryprojects; or wells for the disposal of highly mineralized water, brine, orother oil field wastes; or wells for the storage of dry natural gas, orcasinghead gas; or wells for the development of reservoirs for the storage ofliquid petroleum gas;
(7) To detail such personnel and equipment or enter into such contractsas it may deem necessary for carrying out the plugging of or other remedialmeasures on wells which have been abandoned and not plugged according to thestandards for plugging set out in the rules and regulations promulgated by thecouncil pursuant to this chapter. Members of the council or authorizedrepresentatives may, with the consent of the owner or person in possession,enter any property for the purpose of investigating, plugging, or performingremedial measures on any well, or to supervise the investigation, plugging, orperformance of remedial measures on any well. A reasonable effort to contactthe owner or the person in possession of the property to seek his permissionshall be made before members of the council or authorized representativesenter the property for the purposes described in this paragraph *. If theowner or person in possession of the property cannot be found or refuses entryor access to any member of the council or to any authorized representativepresenting appropriate credentials, the council may request the attorneygeneral to initiate in any court of competent jurisdiction an action forinjunctive relief to restrain any interference with the exercise of powers andduties described in this subdivision. Any entry authorized under thissubdivision shall be construed as an exercise of the police power for theprotection of public health, safety and general welfare and shall not beconstrued as an act of condemnation of property nor of trespass thereon.Members of the council and authorized representatives shall not be liable forany damages necessarily resulting from the entry upon land for purposes ofinvestigating, plugging, or performing remedial measures or the supervision ofsuch activity. However, if growing crops are present, arrangements for timingof such remedial work may be agreed upon between the state and landowner inorder to minimize damages;
(8) To develop such facts and make such investigations or inspections asare consistent with the purposes of this chapter. Members of the council orauthorized representatives may, with the consent of the owner or person inpossession, enter upon any property for the purposes of inspecting orinvestigating any condition which the council shall have probable cause tobelieve is subject to regulation under this chapter, the rules and regulationspromulgated pursuant thereto or any permit issued by the council. If theowner or person in possession of the property refuses entry or access forpurposes of the inspections or investigations described, the council orauthorized representatives shall make application for a search warrant. Upon ashowing of probable cause in writing and under oath, a suitable restrictedsearch warrant shall be issued by any judge having jurisdiction for purposesof enabling inspections authorized under this subdivision. The results of anyinspection or investigation pursuant to this subdivision shall be reduced towriting with a copy furnished to the owner, person in possession, or operator;
(9) To cooperate with landowners with respect to the conversion of wellsdrilled for oil and gas to alternative use as water wells as follows: Thestate geologist shall determine the feasibility of the conversion of a welldrilled under a permit for oil and gas for use as a water well and shalladvise the landowner of modifications required for conversion of the well in amanner that is consistent with the requirements of this chapter. If suchconversion is carried out, release of the operator from legal liability orother responsibility shall be required and the expense of the conversion shallbe borne by the landowner.
2. No rule or portion of a rule promulgated under the authority of thischapter shall become effective unless it has been promulgated pursuant to theprovisions of section 536.024, RSMo.
(L. 1965 2d Ex. Sess. p. 917 § 7, A.L. 1972 H.B. 1176, A.L. 1983 H.B. 37, A.L. 1987 S.B. 353, A.L. 1993 S.B. 52, A.L. 1995 S.B. 3)*Word "above" appears in original rolls.
CROSS REFERENCE:
Oil and gas council transferred to department of natural resources, RSMo 640.010