NOTICE OF SUBSTANTIVE CHANGE
TYPE OF FILING: Amendment
1. Agency Information
Natural Resources; Oil, Gas and Mining; Oil and Gas
Department of Natural Resources
1594 W North Temple, Suite 1210
2. Contact Persons
Please address questions regarding information on this notice to the persons listed above.
3. General Information
A. Rule or section catchline:
R649-2-4a. Request for Change of Operator
B. Purpose of the new rule or reason for the change:
The Division of Oil, Gas and Mining (Division) is updating their bond requirements for Oil and Gas wells and has added a new form, Form 16 Operator Change Form.
C. Summary of the new rule or change:
This rule filing introduces a new form, Form 16 Operator Change Form, so the Division will know when a sale, assignment, transfer, conveyance, or other disposition is finalized.
5. Fiscal Information
Provide an estimate and written explanation of the aggregate anticipated cost or savings to:
There is a total of one state agency, the Division, that will be associated with this proposed rule change.
There will be no fiscal impact to the agency as these changes are purely administrative.
No local government fiscal impact is anticipated since this rule only impacts oil and gas operators, the Division, and the Board.
C. Small businesses ("small business" means a business employing 1-49 persons):
There are 303 small business oil and gas operators (for a complete listing of NAICS codes used in this analysis, please contact the agency) in the state of Utah.
There is no fiscal impact to small businesses as these changes are purely administrative.
D. Non-small businesses ("non-small business" means a business employing 50 or more persons):
There are a total of 4 non-small business oil and gas operators (for a complete listing of NAICS codes used in this analysis, please contact the agency) in the state of Utah.
There is no fiscal impact to non-small businesses as these changes are purely administrative.
E. Persons other than small businesses, non-small businesses, state, or local government entities ("person" means any individual, partnership, corporation, association, governmental entity, or public or private organization of any character other than an agency):
This rule change will not affect persons other than small businesses, businesses, or local governments as this rule only applies to small and non-small business operators and the Division.
F. Compliance costs for affected persons:
There will be no compliance costs as this rule change is purely administrative.
6. Regulatory Impact Summary Table
Enter the cost or savings in the relevant cell. If there is no cost or savings, enter, "$0." If a cost or savings is inestimable, enter, "inestimable."
7. Regulatory Impact Analysis Approval
The Commissioner of the Department of Natural Resources, Joel Ferry, has reviewed and approved this regulatory impact analysis.
8. Family Impact Information
A. The agency has considered this rule's impact on family health, stability, and formation:
9. Citation Information
Provide citations to the statutory authority for the rule. If there is also a federal requirement for the rule, provide a citation to that requirement:
11. Public Notice Information
The public may submit written or oral comments to the agency identified in box 1.
A. Comments will be accepted until:
12. Effective Date Information
This rule change MAY become effective on:
(NOTE: This is the date the agency anticipates making the filing effective. It is NOT the effective date)
13. Agency Authorization Information
Agency head or
designee and title:
R649. Natural Resources; Oil, Gas and Mining; Oil and Gas.
R649-2. General Rules.
R649-2-4a. Request for Change of Operator. (1) The operator of a well shall notify the division, in writing, on Form 16, Operator Change Form, of the sale, assignment, transfer, conveyance, exchange, or other disposition of the well by the operator of the well as soon as reasonably possible, but in no event no later than 90 days after the date that the sale, assignment, transfer, exchange, or other disposition becomes final. (2) The Operator Change form shall include the following: (a) the name and address of the person to whom the well was or will be sold, assigned, transferred, conveyed, exchanged, or otherwise disposed; (b) the well name, API number, and location as described by the section, township, range, and county; (c) a description of the well's current status; (d) the date that the sale, assignment, transfer, conveyance, exchange or other disposition was or becomes final; and (e) the proposed effective date for the operator change. (3) The Operator Change form shall be signed by the current operator and the new operator. In lieu of the signature of the current operator, the new operator may submit a court order or other legal document evidencing ownership of the well to be transferred if the current operator cannot be located or refuses to sign the Operator Change form. (4) Before the division approving the operator change, the new operator shall: (a) be authorized to do business within Utah; (b) be registered as an operator with the division; and(c) furnish a performance bond for the well or wells as required by Rule R649-13. (5) If the proposed operator refuses or cannot provide an acceptable performance bond for the well, the division shall deny the operator change and the original operator shall remain responsible for the well. (6) Except as set forth in Subsection (7), if the division determines that the requirements of this rule have been met and has approved the form and amount of the proposed operator's performance bonds, the division shall issue a notice of approval of the operator change. (7) The division's approval of an operator change is conditioned upon both operators' compliance with the Act, rules, and orders of the division and board. (8) Except as set forth in Subsection (8), the division may not approve an operator change where information available to the division indicates that either the current operator or proposed operator: (a) has an existing liability with the division; or (b) has an owner, officer, director, partner, member or manager of a limited liability company, or other person with a controlling interest in the entity, who has or previously had, a controlling interest in another entity with an existing liability with the division. (9) The division may approve an operator change for an operator with an existing liability if the operator provides proof that the existing liability has been resolved or is in the process of being resolved to the division's satisfaction. (10) The current operator may not be relieved of responsibility for the well and will be responsible for resolving all compliance issues until the division approves the operator change. (11) The denial of an operator change by the division may be appealed by filing a request for agency action with the division pursuant to Rule R649-10. (12) Upon request, the current and new operators shall provide the division copies of documents involving the sale, assignment, transfer, conveyance, exchange, or other disposition of the well. (13) The division's decision to approve or deny the operator change shall be made within 60 days of submittal of a complete Operator Change form, and to the extent possible, conform with approvals of operator changes made by federal agencies. An Operator Change form is determined to be complete once the division receives the information necessary to process and approve the request. KEY: consenting, nonconsenting, oil, pooling
Date of Last Change: 2026[July 27, 2020] Notice of Continuation: June 30, 2025
Authorizing, and Implemented or Interpreted Law: 40-6-1 et seq.
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