Section 134.05. Issuance.

  Upon satisfactory completion of all conditions contained in this chapter, the department shall issue an exploration license to the explorer. Licenses shall be issued within 10 business days after the department receives a complete application unless the application is for the immediately forthcoming license year. If the application is for the immediately forthcoming license year, the license shall be issued either within 10 business days after the department receives a complete application or on the following July 1, whichever is later. The issuance of an exploration license is subject to the following conditions:

(1)  No oil and gas exploration drillhole may be constructed unless the explorer receives prior written approval from the department, pursuant to s. NR 134.09 .

(2)  Oil and gas exploration drillholes shall be abandoned as follows:

(a) Permanent abandonment.

1. All oil, gas, brine, and fresh water shall be confined to the strata in which they occur by the use of mud-laden fluid, cement, other suitable material, or combination thereof. The amount, type, and kind of material and the method of placement shall be approved by the department. If a drillhole penetrates an aquifer under artesian pressure such that groundwater flows at the ground surface, the explorer shall contact the department immediately to obtain approval to implement the approved method of containment of such flow.

2. No person may begin permanent abandonment of any drillhole before first notifying and receiving approval from the department's office in Rhinelander. The explorer's notification shall include the date abandonment is to be commenced, by whom the drillhole is to be abandoned, and the equipment to be used in abandoning the drillhole. It shall also include the present condition of the drillhole, such as the sizes and lengths of all casing strings, the depths to the top of all principal formations, the depths where oil, gas, and water were encountered, and the proposed method of abandonment. The proposed method of abandonment shall specify the type and amount of material to be used, the depths at which bridges are to be set, the depths and lengths of cement plugs, and any special requirements which may be necessary for the proper abandonment of the drillhole.

3. The department's office in Rhinelander shall respond within 5 days of receipt of explorer's notification either:

a. Granting approval for the proposed abandonment procedure,

b. Prescribing a modified abandonment procedure, or

c. Requesting additional pertinent information.

4. Surface or drive pipe may not be pulled at any location unless it is determined by the department to be necessary.

5. A surface pipe or drive pipe abandoned with the hole shall be cut off at a point 4 feet below ground level and a cement plug, welded plate, or other seal approved by the department shall be placed at or near the top of the pipe.

6. The explorer shall be allowed to recover uncemented casing below surface pipe, which does not directly protect ground waters.

(b) Temporary abandonment. If the explorer wants to retain a drillhole for further exploration and/or production, the casing shall be left in place, and the upper terminal of the casing shall be sealed by utilizing practices and methods approved by the department. The department may require temporary cement or bridge plugs in the drillhole, if necessary to protect aquifers or for safety reasons. All drillholes shall be permanently abandoned within 2 years after expiration of an exploration license.

(2m)  The fee for drilling the first 20 drillholes or less in any license year shall be $200 per drillhole and the fee for drilling each subsequent drillhole in that same license year shall be $100 per drillhole. All fees shall be paid to the department upon submission of the temporary abandonment report, if temporary abandonment occurs, or the permanent abandonment report, if temporary abandonment does not occur. For the purpose of determining the appropriate fee, drillholes shall be assigned to the license year in which drilling on that particular hole ceases and the drillhole is initially abandoned.

(3)  Other conditions which the department deems necessary to safeguard the natural resources of this state during and after exploration.

History: Cr. Register, October, 1985, No. 358 , eff. 11-1-85; correction made under s. 13.93 (2m) (b) 1., Stats., Register, October, 1999, No. 526 .