R 299.2325 Modification of permits; deepening permits; change of ownership.

Rule 2325.

            (1) A permittee of a well who has not initiated drilling of a well shall not change the well location by more than 165 feet, the method of drilling, casing, and sealing programs, or other conditions of the permit without the approval of the supervisor of mineral wells or authorized representative of the supervisor of mineral wells. To receive approval, the permittee shall return the permit to the Lansing office of the supervisor of mineral wells together with a revised application with corrected attachments and supplements. If the permittee only requests a modification of the existing permit conditions, then an additional fee is not required. Drilling shall not begin until the revised permit has been approved by the supervisor of mineral wells or authorized representative of the supervisor of mineral wells and posted at the drilling site.

            (2) A permittee of a well who begins the drilling of a well and encounters drilling problems or other drilling conditions that necessitate a change shall not change the method of drilling, casing, and sealing programs, or other conditions of the permit without the approval of the supervisor of mineral wells or authorized representative of the supervisor of mineral wells. To receive approval to modify an existing permit condition only, the permittee shall contact the supervisor of mineral wells or authorized representative of the supervisor of mineral wells by letter, telephone, or visit and explain the drilling circumstances and request the necessary changes to the permit. The supervisor of mineral wells or authorized representative of the supervisor of mineral wells may give verbal approval to modify the permit with conditions for additional reporting requirements by the permittee. If approval to modify an existing permit is granted, then the revised application and corrected attachments and supplements shall be filed, within 5 business days, at the offices of the Michigan Department of Environmental Quality, Office of Geological Survey, P.O. Box 30256, Lansing, Michigan 48909. An additional permit fee is not required.

            (3) If a permittee of a well conveys his or her rights as an owner of a well to another person, or ceases to be the authorized representative of the owner of a well, before final completion, then a request for the transfer of the permit to the acquiring person shall be submitted by the acquiring person to the supervisor of mineral wells at the offices of the Michigan Department of Environmental Quality, Office of Geological Survey, P.O. Box 30256, Lansing, Michigan 48909, on forms as prescribed by the supervisor of mineral wells. The transfer of the permit may be approved upon receipt of a properly completed request, including the signatures of the permittee of record and the acquiring person, and upon the filing by the acquiring person of the conformance bond as required by R 299.2330. Pending the transfer of the existing permit, the acquiring person shall not operate the well. The acquiring person shall be required to file an organization report under R 299.2311(2)(j). (4) A permit for a well shall not be transferred to a person who is in violation of any of the following, until the person has corrected the violation or the supervisor of mineral wells has accepted a compliance schedule and a written agreement has been reached to correct the violations:

                        (a) This part.

                        (b) These rules.

                        (c) Permit conditions.

                        (d) Instructions of the supervisor of mineral wells.

                        (e) Orders of the supervisor of mineral wells.

                        (f) An order of the department.

An additional conformance bond covering the period of the compliance schedule may be required. The conformance bond shall be in addition to the conformance bonds filed under R 299.2330.

            (5) Before transfer of a permit, the supervisor of mineral wells or authorized representative of the supervisor of mineral wells shall inspect the well and associated surface facilities. If unsatisfactory conditions exist at the well site involved in the transfer, then the permit for a well shall not be transferred to a person until the current permittee has completed the necessary corrective actions or the acquiring person has entered into a written agreement to correct all of the unsatisfactory conditions.