Permits

Oil and Gas Operating Permits

No person shall engage in any oil and gas activity within the Nation without first obtaining and maintaining in good standing an oil and gas operating permit.  JANC Title 18 - Oil and Gas defines "Oil and Gas Activity" on the Nation lands as follows;

  1. The exploration for, development, production, treatment, processing, refining, transportation or sale of oil, natural gas, or other hydrocarbon minerals;
  2. The manufacture of any product using oil, natural gas, natural gas liquids, hydrocarbon products, or other hydrocarbons as a raw material or component; or
  3. Any activity authorized by a lease issued under the Indian Mineral Leasing Act of 1938, 25 U.S.C. Sections 396 a - 396 g or by contract entered into by the Nation under the Indian Mineral Development Act of 1982, 25 U.S.C. Sections 2101 - 2108.

There are two types of Operating Permits; a Designated Operator Permit and a Service Vendor Operating Permit.

  1. Designated Operator Permit - applies to those entities that satisy either of the following conditions;
    1. The entity holds a leasehold interest pursuant to the Indian Mineral Leasing Act of 1938, 25 U.S.C. Sections 396 a - 396 g or is engaged in oil and gas activity pursuant to a contract entered into by the Nation under the Indian Mineral Development Act of 1982, 25 U.S.C. Sections 2101 - 2108; or
    2. The entity holds either a record title interest or operating right interest that is subject to the requirement that it may only be transferred with the Legislative Council's approval, as provided in JANC Title 18 - Oil and Gas, Ch. 11.
  2. Service Vendor Operator Permit - applies to those entities that do not constitute Designated Operators that are nonetheless engaged in oil and gas activities

The application process instructions and requirements, along with the application form, can be found in the documents tab under Permits.  You can also contact Eugenia Otole at [email protected]  or by calling 575-759-3485.

Cost

A $1,000 annual fee is required for an Operating Permit. 

Additionally, a vehicle sticker is required for each vehicle that will travel on the Nation's lands.  This include graders, backhoes, ATVs, etc.  The fee for stickers is $20.00 each for the first 20 stickers, then $10.00 each for the next 80 stickers, and $5.00 each for those permit holders obtaining more than 100 stickers.

Off-Site Gas Measurement Permit

APPLICABILITY

This applies to the measurement of all natural gas produced from an oil or gas well that is located within the exterior boundaries of the Nation and is subject to an oil and gas lease issued pursuant to the 1938 Indian Mineral Leasing Act or a minerals development agreement negotiated pursuant to the 1982 Indian Mineral Development Act.

OFF-SITE GAS MEASUREMENT PERMIT

(A) Measurement of natural gas production for purposes of calculating royalty or any applicable tax of the Nation shall take place at the wellhead unless the operator of the well first obtains an off-site gas measurement permit as provided in this Chapter.

(B) An application for an Off-Site Gas Measurement Permit may be approved by the Director only if all of the following requirements are established by the applicant:

(1) Off-site gas measurement will take place at a location within the boundaries of the lease or minerals development agreement on which all of the affected wells are located;

(2) Estimates of reduced operating costs or other economic data to show that off-site measurement is likely to extend the economic life of the well and increase total recovery of gas from the well;

(3) Off-site measurement will take place before the gas is commingled with gas from any other well that is subject to a different royalty rate, unless the gas from such other well has been separately measured as provided in this Chapter before commingling;

(4) Each well affected by the permit will be tested for BTU content, at least once each calendar year, before gas from the well is commingled with gas from any other well;

(5) The proposed off-site measurement will not result in economic loss to the Nation.

APPLICATION PROCEDURE FOR OFF-SITE GAS MEASUREMENT PERMIT

(A) An application for an Off-Site Gas Measurement Permit shall be on a form approved by the Nation and shall be accompanied by any supporting information required by the application form.

(B) The application shall be submitted to the OGA in triplicate. The OGA shall forward one copy of the application to the Revenue and Taxation Department.

(C) The OGA or the Revenue and Taxation Department may request such additional information as is necessary for a determination whether the permit should be granted.

(D) The OGA and the Revenue and Taxation Department shall act on the application within sixty (60) days after receipt of the application by the OGA, unless within that time either Department notifies the applicant that more than sixty (60) days is necessary to review the application. If final action has not been taken on the application within one-hundred twenty (120) days after the application was received by the OGA, the application will be deemed denied. The OGA shall promptly notify the applicant of the action taken on the application.

(E) If approved, the Off-Site Gas Measurement Permit will be issued by the OGA.

(F) The denial of an application for an Off-Site Gas Measurement Permit may be appealed pursuant to Chapter 14 of this Title.

CONTENT OF OFF-SITE GAS MEASUREMENT PERMIT

A permit issued under this Chapter shall include the following:

(A) Identity of the permit holder;

(B) Identification of the well or wells affected by the permit;

(Attachment A: OSMG Permit Application)

(C) Location of approved off-site measurement;

(D) Method of approved off-site measurement;

(E) Method of allocation to individual wells;

(F) Any special compliance requirements imposed as a condition of approval of the permit;

(G) Schematic diagram and maps showing the location of each affected well, each meter, the gathering system and all surface equipment related to the affected wells.

REPORTING REQUIREMENTS

(A) Each year by March 1st, each permit holder shall submit to the OGA the following information concerning operations to be conducted under the permit during that calendar year:

(1) Copies of all gas analysis test results, including BTU content, for each well affected by the permit;

(2) Any other information required by the OGA and the Revenue and Taxation Department.

(B) Each permit holder shall notify the OGA in writing within thirty (30) days if there are any changes in well status or production affecting the eligibility of the well for off-site metering under this Chapter.

(1) Production from any well affected by the permit exceeds 15 mcf per day on a monthly basis;

(2) Any change in well status or production affecting the eligibility of the well for off-site meter under J.A.N.C. § 18-12-2 are no longer satisfied.