For Current or New Operators
Companies doing business in the state must register with the Montana Secretary of States' office. Registration information is available at sosmt.gov. An organization report (Form 1) must be filed with the Board of Oil and Gas Conservation Office, 2535 St. Johns Avenue, Billings, Montana 59102. This form is also available under the Forms section of the site.
A plugging and reclamation bond must be acquired before a drilling permit can be issued or wells can be acquired if the wells are located on private (fee) or state lands.
Additional information about bonding, permitting, or acquiring existing wells through a change of operator request can be found under the appropriate sections of this page.
The Montana Department of Revenue collects production taxes. For additional information about taxation see its website at mtrevenue.gov.
Producing wells may require registration with the Montana Department of Environmental Quality (DEQ). Oil & Gas Well Facilities with potential emissions greater than 25 tons per year require a Montana Air Quality Permit or Registration in lieu of a permit. More information can be found at the following link: https://deq.mt.gov/Air/BI/airforms.
Bond amounts are established under ARM
Fee or state wells must be covered by a plugging and reclamation bond before an application for permit to drill or a change of operator request can be approved.
Bonds are available as single or multiple well bonds. Single well bond amounts are based upon drilled depth for new wells or plug-back depth for existing wells. Bond amounts can be doubled or the number of wells on a multiple well bond may be limited if the Board determines that additional surety is required to assure the performance of the operator to properly plug each well when it can no longer be used for the purpose for which it was drilled.
Plugging and reclamation bonds must remain in effect until all wells covered by the bond have been plugged and the locations restored or the wells have been transferred to another operator. Bonds that no longer cover wells will be released upon receipt of a written request from the bonded operator.
A completed application for permit to drill form (Form 22) must be submitted before a drilling permit can be issued. All information requested on the front and back of the form are necessary, including the identification of any additional permits that might be required by state or federal agencies. Other permits could include those listed on the form. If access to the proposed well site requires creek or drainage crossings, or the location is adjacent to a stream or drainage, the county conservation district should be contacted to see if a 310 Permit is required.
Important information reviewed during permit approval process includes compliance with notice requirements, surface casing depth and proposed well construction, reserve pit design, blow-out prevention, and proposed completion method. The requirements may be site-specific and any questions should be directed the Billings office. A detailed permit check list is available here.
An application for permit to drill may require review by the Montana Sage Grouse Habitat Conservation Program (Program) if the proposed well is located in general or core sage grouse habitat. A utility available at sagegrouse.mt.gov can be used to determine whether a submission to the sage grouse program is required prior to the issuance of the APD. It is the operator's responsibility to request review by the sage grouse program.
Oil or gas wells must be drilled at a location that complies with applicable spacing regulations. Spacing and setbacks from spacing unit boundaries may be determined by field rules if a spacing order has been issued for the target formation at the proposed location, or by the statewide spacing rules.
Montana has no confidentiality period for well drilling and completion data. For wells drilled outside of delineated field boundaries, completion reports, logs, surveys, geological or other reports, and analyses must be submitted within six months of the completion or abandonment of a well. Data from wells drilled within delineated fields are due within 30 days of completion, reworking, or abandonment. Directional surveys for horizontally drilled wells must be submitted with 30 days after well completion (ARM 36.22.703). See ARM