Authority: IC 14-10-2-4; IC 14-37-3

Affected: IC 14-37

Sec. 6. (a) Crude oil or crude oil tank bottoms shall not be applied to the surface of lease roads or county roads except as authorized under this section.

(b) Disposal of oil and gas NORM waste on lease road or county roads is prohibited.

(c) Before applying oil to any lease road or county road the owner or operator shall obtain authorization on a form prescribed by the division of reclamation that shall include the following information:

1. (1) The location of the lease or unit from which the crude oil or crude oil tank bottoms will originate.
2. (2) The location of the lease road or county road to which the crude oil or crude oil tank bottoms will be applied.
3. (3) The name and address of the permittee.
4. (4) The method to be used for application of the oil or bottom sediments.
5. (5) A map showing the lease roads to be oiled and the location of all ditches, streams, ponds, or other impoundments within one hundred (100) feet of the lease road.

6. (6) Written consent allowing the crude oil or bottom sediment application from:

   1. (A) the current surface owner if the application site is a lease road; or
   2. (B) the county board of commissioners if the application site is a county road.

(d) Upon receipt of written approval from the division of reclamation, crude oil or crude oil tank bottoms may be applied to lease roads or county roads as follows:

1. (1) The materials shall be applied to avoid runoff from the road surface during application.
2. (2) All applied liquids not absorbed into the road surface shall be incorporated or otherwise removed to eliminate freestanding liquids.
3. (3) A lease road or county road must not be oiled more than twice in a twelve (12) month period.

4. (4) Road oiling shall not be conducted:

   1. (A) when the ground is frozen;
   2. (B) during precipitation events; or
   3. (C) when the road surface is saturated.
5. (5) Crude oil tank bottoms used for road oiling shall not have a produced water content of greater than ten percent (10%) free water by volume.

(e) An authorization for road oiling under this section remains valid for as long as the lease or unit is active under the current permittee unless:

1. (1) withdrawn by the division of reclamation for cause; or
2. (2) the consent required under subsection (c)(6) is withdrawn by the surface owner or the board of county commissioners for any reason.

(f) An authorization for road oiling is not transferable to another owner or operator.

(g) An authorization for road oiling is terminated by a change in surface ownership unless the new surface owner provides written consent to the continued application of crude oil or crude oil tank bottoms to the lease road.

(h) The application of crude oil or crude oil tank bottoms to lease roads or county roads without prior written authorization from the division of reclamation or in a manner other than as provided in this section shall be considered a violation of this article and subject to enforcement action in accordance with 312 IAC 29-34. In addition to all other enforcement action the division of reclamation shall require crude oil and crude oil tank bottoms applied to lease roads or county roads in violation of this section be removed from and properly disposed of according to the requirements of section 4 of this rule.

(Natural Resources Commission; 312 IAC 29-25-6; filed Dec 1, 2017, 10:35 a.m.: 20171227-IR-312160230FRA; readopted filed Jan 17, 2023, 1:53 p.m.: 20230215-IR-312220328RFA; errata filed Mar 18, 2026, 9:59 a.m.: 20260325-IR-312260094ACA)