Section 312IAC16-3-8. Permit transfer

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

  (b) An owner or operator must provide notice, in advance, to the division of the intention to transfer a permit to another person. The notification shall be completed on a division form.

  (c) A person must submit the following with an application for a permit transfer:

(1) A bond required in 312 IAC 16-4-1.

(2) A fee of fifteen dollars ($15) payable to the department for each well. However, if an applicant submits more than fifty (50) applications simultaneously, the transfer for each application in excess of fifty (50) is ten dollars ($10).

  (d) The department shall grant approval of a permit transfer except upon a written finding that sets forth at least one (1) of the following factors with respect to the person who seeks to receive transfer of the permit (or an officer, partner, or director of the person, if other than an individual):

(1) The fee required by this section was not submitted.

(2) A bond has not been submitted by the person as required in 312 IAC 16-4-1.

(3) The person is the owner or operator of a well for oil and gas purposes at which the person has demonstrated a pattern of willful violations of IC 14-37 or this article that has resulted in substantial damage to the environment indicating an intention not to comply with IC 14-37 or this article.

(4) The person is the owner or operator of a well for oil and gas purposes against which there is a pending notice of violation under 312 IAC 16-5-21. If this finding is made, however, the person is not disqualified from receiving the transfer if the person establishes either of the following:

(A) The violation has been or is in the process of being corrected to the satisfaction of the deputy director.

(B) The person has filed and is presently pursuing, in good faith, a direct administrative review or judicial review to contest the validity of the violation. A request for review under this clause must conform with IC 4-21.5 and 312 IAC 3-1.

  (e) If an application is filed to transfer a well on which there is a pending notice of violation, the owner or operator against which the violation was issued, and its surety, continue to be liable for performing the abatement and for satisfying any resulting penalty. A person who receives transfer of a permit is also liable for abatement and for any penalty attributable to the period following transfer. However, 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 if the division director determines that the new permit holder 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. (Natural Resources Commission; 312 IAC 16-3-8; filed Feb 23, 1998, 11:30 a.m.: 21 IR 2335; readopted filed Nov 17, 2004, 11:00 a.m.: 28 IR 1315; filed Jan 7, 2005, 2:00 p.m.: 28 IR 1684; readopted filed Mar 25, 2010, 2:57 p.m.: 20100421-IR-312100033RFA; readopted filed Sep 30, 2015, 12:13 p.m.: 20151028-IR-312150224RFA)