Standard Permit Conditions

The requirements below represent typical permit conditions that are attached to each ECL Article 23 Permit to Drill to ensure that the Division of Mineral Resources is notified of drilling status and progress, and to ensure that each well is appropriately identified with adequate signage.

EACH PERMITTEE MUST:

1. Prior to the start of any operation:
   1. Give notice by certified mail to:
      1. Any local government affected by the permitted operation (County, Town, City officials); and
      2. Any surface landowner affected by the permitted operation.
   2. Notify the appropriate Regional Mineral Resources Office (24-hour minimum required) of:
      1. Well name and number;
      2. API number;
      3. Date the well will be spud or date of commencement of other permitted operation;
      4. Name of the drilling contractor; and
      5. Rig number.
   3. Re-notify (24-hour minimum required) the appropriate Regional Mineral Resources Office when:
      1. Drilling equipment is moved onto a location that has been previously "top-holed."
   4. Conspicuously place a weatherproof sign where the principal lease road enters the lease.
      1. The sign must be displayed and maintained during all operations from construction of the access road, drilling and completion, through plugging and abandonment;
      2. The sign must be legible and of sufficient size to accommodate the required information described in this condition; and
      3. At a minimum, the sign must show the name of the lease owner or operator, the name of the lease and the lease location as to township and an emergency contact telephone number.
2. During permitted operations:
   1. Post and display this permit, or a copy signed by DEC, and all associated conditions such that they are publicly displayed, clearly visible, legible and protected from the elements at all times;
   2. If any archeological or structural remains are encountered during site construction operations, the permittee must immediately cease, or cause to cease, all work and notify the appropriate Regional Mineral Resources Office. Work shall not resume until written permission to do so has been received from DEC; and
   3. Notify the appropriate Regional Mineral Resources Office of all primary cementing operations on surface casing and intermediate casing, if any, at least 24 hours prior to commencement in order to facilitate witnessing of cementing operations.
3. When drilling, including any permitted deepening, has reached total depth:
   1. Notify (within 24-hours) the appropriate Regional Mineral Resources Office of:
      1. Well name and number;
      2. API Number;
      3. Date drilling ended;
      4. Name of drilling contractor;
      5. True Vertical Depth (TVD); and
      6. True Measured Depth (TMD).
4. Within thirty (30) days after reaching total depth ONLY if the well is not completed within these thirty (30) days:
   1. File with the appropriate Regional Mineral Resources Office:
      1. An interim Well Drilling and Completion Report form.
5. If the well will be stimulated:
   1. Notify the appropriate Regional Mineral Resources Office 24 hours prior to the commencement of any stimulation operation, including hydraulic fracturing. Stimulation may commence without the state inspector if the inspector is not on location at the time specified during the notification; and
   2. Notify the appropriate Regional Mineral Resources Office of any change in the fracturing products from those proposed and approved in well permit application materials. Fracturing products other than those identified in the well permit application materials may not be used without specific approval from the appropriate Regional Mineral Resources Office.
6. Within thirty (30) days after the well has been completed (after any stimulation and testing):
   1. File with the appropriate Regional Mineral Resources Office:
      1. A final Well Drilling and Completion Report form.
      2. If geophysical well logs are run, two copies of all logs run on the well, including a copy of each log in digital format on CD or flash drive; and
      3. If applicable, a directional drilling report.
   2. Conspicuously place a weatherproof sign on or near the wellhead or surface processing equipment of each well.
      1. The sign must be displayed and maintained through plugging and abandonment;
      2. The sign must be legible and of sufficient size to accommodate the required information described in this condition;
      3. The sign must show the Operator's name, well name and number, API number, and an emergency contact telephone number; and
      4. In the case of a multiple completion (e.g., dual) or a multi-well pad, each wellhead connection or wellhead must be appropriately identified, respectively.
   3. Send drill cutting samples, if required, to: NYS Museum, Empire State Plaza, Room 3140, Albany, NY 12230, Attn: Geological Survey.
7. Within forty-five (45) days after cessation of permitted operations:
   1. Properly dispose of tank and pit fluids; and
   2. Reclaim the pit(s) and reclaim and stabilize area(s) disturbed in support of drilling operations in order to prevent erosion, unless an extension of time beyond 45 days is given by DEC.
8. If the well is not completed, within ninety (90) days of any discontinuance of drilling or other permitted operation:
   1. File with the appropriate Regional Mineral Resources Office:
      1. Request for Shut-In or Temporary Abandonment form; or,
      2. If permanently abandoning the well, a Notice of Intention to Plug & Abandon form.
9. During the life of the permitted well, including but not limited to, access road and pad construction, drilling, stimulation, completion, flaring, temporary abandonment, production, shut-in, plugging and site reclamation, report any non-routine incident that may affect the environment or the health, safety, welfare or property of any person as follows:
   1. Within two (2) hours of discovery of the non-routine incident, orally in person or by telephone to the appropriate DEC Oil and Gas Regional Minerals Manager.
   2. Within twenty-four (24) hours of discovery of the non-routine incident, in writing to the same office using the Division of Mineral Resources' Non-Routine Incident Report ("NRIR") form ;
      1. The completed NRIR form must detail the non-routine incident, any corrective actions taken by the Operator and/or Operator's representative and include, as necessary, a proposed Corrective Action Plan for DEC review and approval. Provided the environment or the health, safety, welfare or property of any person would not be further endangered, any action or condition known or suspected to cause or contribute to the non-routine incident must cease immediately upon discovery of the non-routine incident, and appropriate initial remedial actions must be commenced. This verbal and written non-routine incident reporting requirement does not replace or supersede any other required local, state and/or federal reporting requirements; and
   3. As required by all applicable statues and regulations of DEC, including reporting to the DEC Spill Hotline.
10. Any orphaned/abandoned well discovered or otherwise known to exist within 500 feet of the permitted well location must be properly plugged in accordance with the applicable Permit to Plug and Abandon prior to commencement of the permitted drilling, deepening, plugging back, or conversion operations, as applicable. If a well within 500 feet of the permitted well is discovered after commencement of operations on the permitted well, operations must be immediately suspended and discovery of the well must be reported as a non-routine incident. Operations may not recommence without approval of the appropriate DEC Regional Minerals Manager (as listed on this approval or see DEC Oil and Gas Regional Minerals Manager).
11. All well drilling must be performed by a driller who is registered as such with DEC. A list of registered drillers can be found on the DEC website at Registered Drillers in New York.
12. The permittee must allow DEC staff to access the well site at all reasonable times for the purpose of conducting inspections and investigations in the regular course of their duties pursuant to the Environmental Conservation Law, notwithstanding signs or other notices purporting to limit access to the property.
13. The permittee is responsible for obtaining other permits, approvals, lands, easements and rights-of-way that may be required for activities associated with this permit.
14. All pits must be properly constructed, lined and maintained to ensure stability. Pits must fully contain all cuttings, drilling, cementing and stimulation fluids, plus any fluids which may accumulate resulting from natural precipitation. A synthetic pit liner must be installed with adequate excess material to accommodate the weight and volume of drill cuttings, and maintained in a leak-free condition. Use of these pits for anything other than approved operations is prohibited.
15. All drilling fluids, fluids displaced out of the well during cementing, stimulation fluids, and well water (collectively termed "fluid") must be contained on site and disposed of properly. Waste fluids must only be transported by a waste transporter with a valid New York State Part 364 Waste Transporter Permit.
16. A blowout preventer (BOP) is required, unless a BOP waiver has been granted by DEC. The BOP must be tested prior to drilling out the surface casing shoe. DEC must be notified 12 hours prior to the test to allow a DEC representative to be present during the test. If a DEC representative is not on location at the agreed time, the test may proceed with the results of the test and the name of a witness being noted in the driller's log.
17. If cement returns are observed but the top of cement dropped or is visible or tagged at a shallow depth, the surface casing/conductor annulus must be grouted from the top of cement to surface. If cement returns to surface are not observed but the top of cement is visible or tagged at a shallow depth, the surface casing/conductor annulus must be grouted from the top of cement to surface. If the top of the cement is not visible or can't be tagged, DEC must be consulted prior to performing any further work on the well. DEC may require a cement bond log to be run to determine the top of cement. Remedial work to ensure the surface casing is adequately cemented may be required as directed by DEC. If required, he grouting operations and/or remedial work must be performed prior to drilling out the surface casing shoe. A DEC representative must be present during any grouting operations, unless otherwise directed by DEC.
18. Records must be kept of all shows of oil, gas, and water. The appropriate Regional Minerals Resources office must be promptly notified of any unanticipated shows encountered while drilling that may warrant a change to the approved drilling plan.
19. A gamma ray and density log must be run from total depth to the surface, unless otherwise authorized by DEC in writing. A density log is not required in cased holes.
20. Only biocides with current registration for use in New Yok may be used for any operation at the well site. Products must be properly labeled, and the label must be kept on-site during application and storage.
21. Financial Security (FS) is required for this well in an amount specified by DEC. Such FS must be maintained for the life of the well until the well is properly plugged and abandoned and the site is reclaimed pursuant to a DEC-issued permit. DEC will not release FS until a) all plugging and reclamation requirements for this well are satisfied, including submittal of a Plugging Report on a DEC-approved form, or b) DEC has approved the transfer of this well to a subsequent Operator who is in compliance with all applicable requirements, including the submission to DEC of required FS.
22. Any deviation from these conditions must be approved in writing by DEC prior to implementing such deviation.

NOTE: Each failure to comply with any of the above conditions is a violation of Article 23 of the ECL and Regulations promulgated thereunder, and may result in enforcement and permit suspension, fines and/or other appropriate penalties.

Contact for this Page

Division of Mineral Resources
625 Broadway
Albany, NY 12233

Phone: 518-402-8056

[email protected]

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