PURPOSE: This rule provides for the filing of information that identifies those responsible for oil and gas exploration, production, or related industry activities regulated by the council. The operator license is required in order to properly process bonding, well permitting, producing, plugging, and other council regulated activities and to make sure that the person making application is, in fact, authorized to represent a person, firm, or corporation.

1. (1) No person shall engage in oil or gas operations pursuant to Chapter 259, RSMo, and implementing regulations without first obtaining or renewing an operator license from the department. Each operator of a well or gas storage facility shall maintain a current operator license even if the well or storage facility is shut in or idle.

2. (2) Application for an operator license.

   1. (A) An application for an operator license shall be submitted to the state geologist for approval. This application shall be submitted on a form provided by the department along with the fee required pursuant to 10 CSR 50- 1.050 and shall be completed in full.
   2. (B) The state geologist shall review the application for operator license and, within fifteen (15) business days, determine if the application is in proper form and if the requirements of Chapter 259, RSMo, and implementing regulations are met. If the application is incomplete or lacking required information, forms, or fees, the state geologist shall notify the applicant and suspend the application process. When the required form, information, or fee is submitted by the applicant and received by the state geologist, the fifteen (15) business day review period will begin anew. If the state geologist has not received the missing or incomplete required application information or fee within thirty

3. (30) days after notification of the applicant, the application shall be considered null and void and the applicant must reapply by submitting a new application for an operator license along with the required fee.

   1. 1. If the state geologist finds that the

application is in good form, that all requirements of the application have been met, and that Chapter 259, RSMo, and implementing regulations are being met, the state geologist shall issue the operator license.

1. 2. If the state geologist determines either

that the application is not in proper form, that the applicant failed to submit the applicable fees, or that Chapter 259, RSMo, and implementing regulations are not being met, the state geologist shall deny the application.

1. 3. If the state geologist determines that

the applicant is in violation of any provision of Chapter 259, RSMo, or implementing regulations, the state geologist may deny the application.

1. 4. If the state geologist has not taken

action by the prescribed fifteen (15) business day review period, the application shall be considered denied.

1. (3) License Renewal.

   1. (A) An operator license issued pursuant to this section shall expire on January 1 of the year immediately following issuance of the license. An operator may apply to renew the operator’s license by submitting an application to the state geologist for approval. This application shall be submitted on a form provided by the department, along with the fee required pursuant to 10 CSR 50-1.050, on or before January 1 each year and shall be completed in full.
   2. (B) A late fee pursuant to 10 CSR 50- 1.050 shall be paid if the renewal is submitted within thirty (30) calendar days following the expiration date. If a license has been expired more than thirty (30) calendar days, the licensee must reapply by submitting a new application for an operator license along with the required fee.
   3. (C) If the state geologist determines that the licensee is in violation of any provision of Chapter 259, RSMo, or implementing regulations, the state geologist may deny the operator license renewal.

2. (4) Suspension or revocation of operator license.

   1. (A) The state geologist may issue an order to suspend or revoke an operator license if the state geologist determines that the licensee has violated any provision of Chapter 259, RSMo, or implementing regulations.
   2. (B) The order of suspension or revocation shall state the reason(s) for suspension or revocation, the effective date of the suspension or revocation, and the conditions under which the suspension or revocation would be rescinded. The order shall be sent registered or certified mail to the licensee’s last known address. The licensee may appeal the suspension or revocation as provided in 10 CSR 50- 1.040(3). 10 CSR 50-2
3. (5) After any change occurs as to facts stated in the application as submitted and filed, except change of ownership, a supplementary application shall be filed with the state geologist with respect to the change within thirty
4. (30) calendar days after the effective date of change.
5. (6) The operator of any open well shall comply with Chapter 259, RSMo, and implementing regulations. Any open well shall not be transferred from one (1) operator to another operator without approval of the state geologist. An operator (transferor) shall submit to the state geologist a request to transfer any open well(s) to a new operator (transferee). The request shall be submitted on a form provided by the department no less than thirty

6. (30) calendar days prior to the planned transfer. Any such request may be denied if the state geologist determines that the operator has not submitted all the required information.

   1. (A) The state geologist shall review the completed transfer request and, within fifteen

7. (15) business days, approve or deny the request based upon the following conditions:

   1. 1. The transfer of the well(s) must be

agreed upon by both the transferor and by the transferee;

1. 2. The transferee must have a current

operator license issued by the state geologist;

1. 3. The transferee must have bonding as

required in 10 CSR 50-2.020 in place prior to transfer;

1. 4. The transferor shall provide a list of

American Petroleum Institute (API) numbers for all open wells on the lease, spacing unit, production unit, or gas storage facility with the notice of transfer;

1. 5. Transfers shall not be made to any

person who has not complied with the provisions of 10 CSR 50-2.010;

1. 6. The transferor may be required by the

state geologist to conduct a mechanical integrity test as a condition of the transfer; and

1. 7. Within ninety (90) days of any trans-

fer, the transferee shall change the tank battery identification sign provided for in 10 CSR 50-2.065(1) to include the new operator information.

1. (B) If the form is incomplete or lacking required information, the state geologist shall notify the operator and suspend the review process. When the completed form or required information is submitted by the operator and received by the state geologist, the fifteen (15) business day review period will begin anew. If the state geologist has not received the missing or incomplete required information within thirty (30) days after notification of the operator, the request shall be considered null and void and the operator must submit a new transfer request.
2. (C) If the state geologist has not taken action by the prescribed fifteen (15) business day review period, the transfer shall be considered denied.

AUTHORITY: section 259.070, RSMo Supp. 2015.* Original rule filed Oct. 11, 1966, effective Oct. 21, 1966. Amended: Filed Sept. 12, 1973, effective Sept. 22, 1973. Amended: Filed Sept. 10, 1979, effective Feb. 1, 1980. Amended: Filed Sept. 15, 2015, effective March 30, 2016. *Original authority: 259.070, RSMo 1965, amended 1972, 1983, 1987, 1993, 1995, 2012, 2015.