R649-2-4a. Request for Change of Operator

(1) The operator of a well shall notify the division, in writing, on Form 16, Operator Change Form, of the sale, assignment, transfer, conveyance, exchange, or other disposition of the well by the operator of the well as soon as reasonably possible, but in no event no later than 90 days after the date that the sale, assignment, transfer, exchange, or other disposition becomes final. (2) The Operator Change form shall include the following: (a) the name and address of the person to whom the well was or will be sold, assigned, transferred, conveyed, exchanged, or otherwise disposed; (b) the well name, API number, and location as described by the section, township, range, and county; (c) a description of the well's current status; (d) the date that the sale, assignment, transfer, conveyance, exchange or other disposition was or becomes final; and (e) the proposed effective date for the operator change. (3) The Operator Change form shall be signed by the current operator and the new operator. In lieu of the signature of the current operator, the new operator may submit a court order or other legal document evidencing ownership of the well to be transferred if the current operator cannot be located or refuses to sign the Operator Change form. (4) Before the division approving the operator change, the new operator shall: (a) be authorized to do business within Utah; (b) be registered as an operator with the division; and (c) furnish a performance bond for the well or wells as required by Rule R649-13. (5) If the proposed operator refuses or cannot provide an acceptable performance bond for the well, the division shall deny the operator change and the original operator shall remain responsible for the well. (6) Except as set forth in Subsection (7), if the division determines that the requirements of this rule have been met and has approved the form and amount of the proposed operator's performance bonds, the division shall issue a notice of approval of the operator change. (7) The division's approval of an operator change is conditioned upon both operators' compliance with the Act, rules, and orders of the division and board. (8) Except as set forth in Subsection (8), the division may not approve an operator change where information available to the division indicates that either the current operator or proposed operator: (a) has an existing liability with the division; or (b) has an owner, officer, director, partner, member or manager of a limited liability company, or other person with a controlling interest in the entity, who has or previously had, a controlling interest in another entity with an existing liability with the division. (9) The division may approve an operator change for an operator with an existing liability if the operator provides proof that the existing liability has been resolved or is in the process of being resolved to the division's satisfaction. (10) The current operator may not be relieved of responsibility for the well and will be responsible for resolving all compliance issues until the division approves the operator change. (11) The denial of an operator change by the division may be appealed by filing a request for agency action with the division pursuant to Rule R649-10. (12) Upon request, the current and new operators shall provide the division copies of documents involving the sale, assignment, transfer, conveyance, exchange, or other disposition of the well. (13) The division's decision to approve or deny the operator change shall be made within 60 days of submittal of a complete Operator Change form, and to the extent possible, conform with approvals of operator changes made by federal agencies. An Operator Change form is determined to be complete once the division receives the information necessary to process and approve the request.