Commission would review oil and gas lease bids on state land

The commission reviews nominations and bids for oil and gas leases on state-controlled land. The process covers oil and gas leases for formations beneath parcels owned or controlled by state agencies. A nature preserve owned or controlled by a state agency cannot be nominated or leased for oil and gas exploration or development. The commission must decide on a nomination within 90 days and select a bidder within 60 days after approving it.

A landowner may apply to plug an orphaned well and receive payment for approved work. This applies to a landowner whose property has at least one orphaned well. The landowner must have discovered the well or received notice about it, submit a proposed contractor agreement, and get the chief's approval before work begins. The chief must find that the work meets legal requirements and the proposed cost is reasonable. Payment comes from the oil and gas well fund after compliant work is completed. The chief may set yearly limits or give other wells priority. The chief must decide within 30 days after receiving the application and proposed contract.

A person applying for a horizontal well permit must provide a road agreement or document a good-faith attempt to reach one. This applies to county, township, and city roads expected to be used to reach or leave a horizontal well site. The agreement must cover maintenance and safe use of the roads expected to serve the well. If no agreement is signed, the applicant may submit an affidavit describing a good-faith attempt to reach one.