Operator License

PURPOSE: This rule provides for the filing of information that identifies those responsible for oil and gas exploration, production, or related industry activities regulated by the council. The operator license is necessary in order to properly process bonding, well permitting, producing, plugging, and other council regulated activities and to make sure that the person making application is, in fact, authorized to represent a person, firm, or corporation. (1) 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. (2) Application for an operator license. (A) An application for an operator license shall be completed in full on a form provided by the department and submitted, along with the applicable fee pursuant to 10 CSR 501.050, to the state geologist for approval. (B) The state geologist will review the application for operator license and, within fifteen (15) business days, determine if the application is in proper form and if the requirements of Chapter 259, RSMo, and implementing regulations are met. If the application is incomplete or lacking information, forms, or fees, the state geologist will notify the applicant and suspend the application process. When the missing form, information, or fee is submitted by the applicant and received by the state geologist, the fifteen (15) business day review period will begin anew. If the state geologist has not received the missing or incomplete application information or fee within thirty (30) days after notification of the applicant, 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. 1. If the state geologist finds that the application is in good form, that all requirements of the application have been met, and that Chapter 259, RSMo, and implementing regulations are being met, the state geologist will issue the operator license. 2. If the state geologist determines either that the application is not in proper form, that the applicant failed to submit the applicable fees, or that Chapter 259, RSMo, and implementing regulations are not being met, the application will be denied. 3. If the state geologist determines that the applicant is in violation of any provision of Chapter 259, RSMo, or implementing regulations, the state geologist may deny the application. 4. If the state geologist has not taken action by the prescribed fifteen (15) business day review period, the application shall be considered denied. (3) License Renewal. (A) An operator license issued pursuant to this section expires on January 1 of the year immediately following issuance of the license. An operator may apply to renew the operator’s license by submitting an application to the state geologist for approval. This application shall be completed in full and submitted on a form provided by the department, along with the fee pursuant to 10 CSR 50-1.050, on or before January 1 each year. (B) A late fee pursuant to 10 CSR 501.050 will be assessed if the renewal is submitted after the expiration date. (C) If the state geologist determines that the licensee is in violation of any provision of Chapter 259, RSMo, or implementing regulations, the state geologist may deny the operator license renewal. (4) Suspension or revocation of operator license. (A) The state geologist may issue an order to suspend or revoke an operator license if the state geologist determines that the licensee has violated any provision of Chapter 259, RSMo, or implementing regulations. (B) The order of suspension or revocation shall state the reason(s) for suspension or revocation, the effective date of the suspension or revocation, 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 as provided in 10 CSR 501.040(3). (5) After any change occurs as to facts stated in the application as submitted and filed, except change of ownership, a supplementary application shall be filed with the state geologist with respect to the change within thirty (30) calendar days after the effective date of change. (6) Any open well shall not be transferred from one (1) operator to another operator without approval of the state geologist. No less than thirty (30) calendar days prior to the planned transfer, an operator (transferor) shall submit to the state geologist, on a form provided by the department, a request to transfer any open well(s). Any such request may be denied if the state geologist determines that the submitted information is incomplete. (A) The state geologist will review the completed transfer request and, within fifteen (15) business days, approve or deny the request based upon the following requirements: 1. The transfer of the well(s) is agreed upon by both the transferor and by the transferee; 2. The transferee holds a current operator license issued by the state geologist; 3. The transferee has bonding pursuant to 10 CSR 50-2.020 in place; 4. A list of American Petroleum Institute (API) numbers for all open wells on the lease, spacing unit, production unit, or gas storage facility submitted with the request to transfer; and 5. The transferor may be required by the state geologist to conduct a mechanical integrity test as a condition of the transfer. (B) If the request to transfer is incomplete, the state geologist will notify the operator and suspend the review process. When all necessary information is received by the state geologist, the fifteen (15) business day review period will begin anew. If the state geologist has not received the necessary information within thirty (30) days after notification of the operator, the request will be considered null and void and the operator must submit a new transfer request. (C) If the state geologist has not taken action by the prescribed fifteen (15) business day review period, the transfer shall be considered denied. AUTHORITY: section 259.070, RSMo 2016.* Original rule filed Oct. 11, 1966, effective Oct. 21, 1966. Amended: Filed Sept. 12, 1973, effective Sept. 22, 1973. Amended: Filed Sept. 10, 1979, effective Feb. 1, 1980. Amended: Filed Sept. 15, 2015, effective March 30, 2016. Amended: Filed June 27, 2018, effective Feb. 28, 2019. *Original authority: 259.070, RSMo 1965, amended 1972, 1983, 1987, 1993, 1995, 2012, 2015.