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

Affected: IC 4-21.5; IC 14-37

Sec. 10. (a) This section establishes the requirements for the transfer of a permit issued by the division of reclamation for a well for oil and gas purposes.

(b) A person controlling a well for oil and gas purposes must provide advance notice to the division of reclamation of the intention to transfer a permit to another person. The application for a permit transfer shall be completed on a form prescribed by the division of reclamation.

(c) The following must be submitted with an application for a permit transfer:

1. (1) A bond of the transferee, if required under 312 IAC 29-12-3.
2. (2) A fee of fifteen dollars ($15) payable to the department for each of the first fifty (50) applications for permit transfer submitted simultaneously. However, if an applicant submits more than fifty (50) applications for permit transfer simultaneously, the application fee for each application in excess of fifty (50) is ten dollars ($10).

(d) The department shall grant approval of an application for permit transfer except upon a written finding that sets forth at least one (1) of the following factors with respect to the person who will control the well for oil and gas purposes following the transfer of the permit:

1. (1) The fee required by this section was not submitted.
2. (2) A bond of the transferee has not been submitted, if required in 312 IAC 29-12-3.
3. (3) The transferee is a person controlling a well for oil and gas purposes and the transferee has demonstrated a pattern of willful violations of IC 14-37 or this article that has resulted in damage to the environment.

4. (4) The transferee is a person controlling a well for oil and gas purposes against which there is a pending notice of violation or civil penalty under 312 IAC 29-34-3. If this finding is made, however, the transferee is not disqualified from receiving the transfer if:

   1. (A) the violation has been or is in the process of being corrected to the satisfaction of the division director; or
   2. (B) the transferee has filed and is presently pursuing administrative review of the violation under IC 4-21.5.
5. (5) The transferee has had a permit revoked under IC 14-37.

(e) If an application is filed to transfer a permit on which there is a pending notice of violation:

1. (1) the person controlling the well for oil and gas purposes against which the violation was issued, and its surety, are liable for performing the abatement of the violation and for satisfying any assessed penalty;
2. (2) the transferee of a permit may accept liability for performing abatement of the violation but is not liable for satisfying any existing assessed penalty; or
3. (3) a transferee of a permit is liable for abatement of any violation identified and for any penalty assessed after transfer of the permit.

The division director may, in writing, waive any penalty that would otherwise apply during a period of not more than ninety (90) days following the transfer of the permit if the division director determines that the transferee is acting in good faith to correct the violation.

(f) No transfer of a permit issued for oil and gas purposes is effective until the transfer is approved in writing by the division director.

(g) The division of reclamation shall issue notice of its decision to approve or deny an application to transfer a permit in accordance with 312 IAC 29-3-5.

(h) A decision to approve or deny an application for permit transfer under this section is subject to IC 4-21.5.

(Natural Resources Commission; 312 IAC 29-4-10; 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)