Natural Resources

Oil, Gas and Mining; Oil and Gas

Rule 3: Drilling and Operating Practices

Effective Date: 07/08/2026

Admin. Code Reference: R649-3

Rule Type: Superseded Rule

NOTICE OF SUBSTANTIVE CHANGE

TYPE OF FILING: Amendment

Rule or section number:

R649-3-36

Filing ID: 57831

Agency Information

1. Title catchline:

Natural Resources; Oil, Gas and Mining; Oil and Gas

Building:

Department of Natural Resources

Street address:

1594 W North Temple, Suite 1210

City, state:

Salt Lake City, UT 84116

Contact persons:

Name:

Phone:

Email:

Natasha Ballif

801-589-5486

natashaballif@utah.gov

Please address questions regarding information on this notice to the persons listed above.

General Information

2. Rule or section catchline:

R649-3-36. Shut-in and Temporarily Abandoned Wells

4. Purpose of the new rule or reason for the change:

The Division of Oil, Gas and Mining (Division) is updating their performance bond requirements for Oil and Gas wells.

5. Summary of the new rule or change:

This rule filing adds the word "inactive" within the "shut-in and temporarily abandoned wells" to clarify drilling operations suspended.

Fiscal Information

6. Provide an estimate and written explanation of the aggregate anticipated cost or savings to:

A. State budget:

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.

B. Local governments:

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 will be a fiscal impact to operators 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 will be a fiscal impact to operators 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 a fiscal impact to operators as these changes are purely administrative.

G. Regulatory Impact Summary Table (This table includes only fiscal impacts the agency was able to measure. If the agency could not estimate an impact, it is excluded from this table but described in boxes A through F.)

Regulatory Impact Summary Table

Fiscal Cost

FY2026

FY2027

FY2028

FY2029

FY2030

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Cost

Fiscal Benefits

FY2026

FY2027

FY2028

FY2029

FY2030

State Budget

Local Governments

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Benefits

Net Fiscal Benefits

H. Department head comments on fiscal impact and approval of regulatory impact analysis:

The Executive Director of the Department of Natural Resources, Joel Ferry, has reviewed and approved this regulatory impact analysis.

Citation Information

7. 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:

Section 40-6-1 et seq.

Public Notice Information

9. The public may submit written or oral comments to the agency identified in box 1.

A. Comments will be accepted until:

05/01/2026

10. This rule change MAY become effective on:

06/01/2026

NOTE: The date above is the date the agency anticipates making the rule or its changes effective. It is NOT the effective date.

Agency Authorization Information

Agency head or

designee and title:

Mick Thomas, Director

Date:

03/01/2026

R649. Natural Resources; Oil, Gas and Mining; Oil and Gas.

R649-3. Drilling and Operating Practices.

R649-3-36. Shut-in, Inactive, and Temporarily Abandoned Wells.

(1)[1.] Wells may be initially shut-in, inactive, or temporarily abandoned for a period of [twelve (]12[)] consecutive months. If a well is to

be shut-in or temporarily abandoned for a period exceeding [twelve (]12[)] consecutive months, the operator shall file a Sundry Notice providing the

following information:

(a)[1.1.] Reasons for shut-in, inactive, or temporarily abandonment of the well[,];

(b)[1.2.] The length of time the well is expected to be shut-in, inactive, or temporarily abandoned[,]; and

(c)[1.3.] An explanation and supporting data, for showing the well has integrity, meaning that the casing, cement, equipment condition,

static fluid level, pressure, existence or absence of Underground Sources of Drinking Water and other factors do not make the well a risk to public health and safety or the environment.

(2)[2.] After review the division will either approve the continued shut-in, inactive, or temporarily abandoned status or require remedial

action to be taken to establish and maintain the well's integrity.

(3)[3.] After five[ (5)] years of nonactivity or nonproductivity, the well shall be plugged in accordance with S[ubs]ection R649-3-24,

unless approval for extended shut-in time is given by the division upon a showing of good cause by the operator.

(4)[4.] If after a five[ (5)] year period the well is ordered plugged by the division, and the operator does not comply, the operator shall

forfeit the drilling and reclamation bond and the well shall be properly plugged and abandoned under the direction of the division.

KEY: oil and gas law

Date of Last Change: 2026[December 3, 2025]

Notice of Continuation: June 30, 2025

Authorizing, and Implemented or Interpreted Law: 40-6-1 et seq.; 40-6-5; 40-6-20; 40-6-21

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