ADMINISTRATION OF REGULATIONS

211.111 Geological Survey to administer regulations. The administration of the regulations in this part shall be under the direction of the Geological Survey, Department of the Interior.*t [Sec. 114] PART 221-OIL AND GAS OPERATING REGULATIONS

**For statutory and source citations, see note to § 211.1.

Page 43

Bureau of Mines, Department of the Interior: See Chapter I.

Coal mining regulations relating to precautions used in bore-holes and approaching oil, gas, or water wells: See §§ 211.16 (b), 211.17.

Petroleum Conservation Division, Department of the Interior: See Chapter IV. Homesteads on oil and gas lands in Alaska: See Public Lands: Interior, 43 CFR Part 66.

Leasing of certain lands in Wind River Indian Reservation, Wyoming, for oil and gas mining: See Indians, 25 CFR Part 192.

Leasing of Osage reservation lands for oil and gas mining: See Indians, 25 CFR Part 180.

Oil and gas permits and leases on mineral lands in Alaska: See Public Lands: Interior, 43 CFR Part 71.

Oil and gas permits and leases under the General Land Office regulations: See Public Lands, 43 CFR Part 192.

Rights of way for oil and gas pipe lines: See Public Lands: Interior, 43 CFR Part 244.

Rights of way on Indian lands: See Indians, 25 CFR Part 256.

Section 221.1 Introduction. The operating regulations in this part are issued to govern oil and gas operations on public lands and naval petroleum reserves, and on restricted Indian lands. The regulations will govern the development and production of oil, gas, and casing-head or natural gasoline, including propane, butane, and other hydrocarbons, on reserved and unreserved public lands of the United States, including naval petroleum reserves, and on restricted Indian lands, tribal and allotted. The regulations in this part shall supersede all prior operating regulations applicable to oil and gas lands of the United States or to restricted Indian lands. They shall be administered under the Director of the Geological Survey, except that as to lands within naval petroleum reserves they shall be administered under such official as the Secretary of the Navy shall designate.*†

*§§ 221.1 to 221.56, inclusive, issued under the authority contained in the following statutes

Public Lands: Sec. 32, 41 Stat. 450, sec. 7, 42 Stat. 1450, sec. 6, 46 Stat. 374, 46 Stat. 1523, 47 Stat. 798, sec. 40 (a), 48 Stat. 977, 49 Stat. 674, 50 Stat. 842; 30 U.S.C. 189, 236, 184, 306, 226, 209, 229, (a), 30 U.S.C., Sup., 221, 223, 223a, 226, 236a, 221i.

Naval Petroleum Reserves: 41 Stat. 813, 45 Stat. 148; 34 U.S.C. 524, 524a. Restricted Indian Lands: Sec. 3, 26 Stat. 795, sec. 2, 35 Stat. 312, 35 Stat. 783, sec. 2, 39 Stat. 520, sec. 18, 41 Stat. 426, sec. 6, 41 Stat. 753, 43 Stat. 244, sec. 6, 44 Stat. 659, 46 Stat. 385; 25 U.S.C. 397, 396, 356, 398.

The source of §§ 221.1 to 221.56, inclusive, is Oil and gas operating regulations, applicable to lands of the United States and to all restricted tribal and allotted Indian Land (except Osage Indian Reservation), Secretary of the Interior, Nov. 1, 1936, 1 F.R. 1996-2003; 56 I.D. 415.

Page 45

221.2 Definitions. The following terms as used in the regulations in this part shall have the meanings here given:

(a) Supervisor. A representative of the Secretary of the Interior, under direction of the Director of the United States Geological Survey, authorized and empowered to supervise and direct operations under oil and gas leases and prospecting permits, to furnish scientific and technical information and advice, to ascertain and record the amount and value of production, and to determine and record rentals and royalties due and paid pursuant to the regulations in this part. As to lands in naval petroleum reserves within his district, a supervisor serves also as a representative of the Secretary of the Navy.

(b) Representative. Any employee of the Department of the Interior who is designated by a supervisor to perform any specified duties or to act for him in any specified part or all of the supervisor's district.

(c) Officer in charge. The supervisor or such other officer as the Secretary of the Interior may designate to supervise technical operations for the development and production of oil and gas on restricted Indian lands. Over such lands he shall exercise the authority and power and perform the duties of supervisor as provided in the regulations in this part.

(d) Superintendent. The superintendent of an Indian agency, or other officer authorized to act in matters of record, law, and collections with respect to oil or gas leases on restricted Indian lands.

(e) Lease. A prospecting permit, lease, or other agreement authorized by law for the development and production of oil or gas on lands of the United States or on restricted Indian lands.

(f) Leased lands; leasehold. Lands or interests in lands or deposits covered by a lease as defined in paragraph (e).

(g) Lessor. The party to a lease who holds title to the leased lands.

(h) Lessee. The party authorized by a lease to develop and produce oil or gas on the leased lands in accordance with the regulations in this part.

(i) Permittee. A lessee whose rights are defined by an oil and gas prospecting permit.**

221.3 Drilling and producing operations under jurisdiction of supervisor or his representative. Drilling and producing operations, handling and gaging of oil and the measurement of gas or other products, rental and royalty liability and payments, and technical operations generally are under the jurisdiction of the supervisor or his representative in the district where the leased lands are located. Upon request, the district oil and gas supervisor or the Director, United States Geological Survey, Washington, D. C., will advise any person concerning these or any other matters relative to oil and gas development and operation on lands subject to the regulations in this part.*+

221.4 Supervisor authorized to require compliance with lease terms, regulations, and applicable law. The supervisor is hereby authorized to require compliance with lease terms, with the regula

Page 46

**For statutory and source citations, see note to § 221.1.

tions in this part, and with applicable law to the end that all operations shall conform to the best practice and shall be conducted in such manner as to protect the deposits of the leased lands and result in the maximum ultimate recovery of oil and gas with minimum waste.

Inasmuch as conditions in one area may vary widely from conditions in another area, the regulations in this part are general, and detailed procedure thereunder in any particular area is subject to the judgment and discretion of the supervisor.*+

221.5 Powers and duties of supervisor. The supervisor directly or through his representatives shall have the authority and the obligation to perform the following duties:

(a) Supervision of operations. Inspect and supervise operations for the development and production of oil and gas or related products for the purpose of insuring compliance with the regulations in this part; prevent waste of oil and gas, damage to formations or deposits containing oil, gas, or water or to coal measures or other mineral deposits, injury to life or property, or economic waste; and issue instructions necessary, in his judgment, to accomplish these purposes. (b) Reports and recommendations. Make reports to his superior administrative officer as to the general condition of leased lands and the manner in which operations are being conducted and departmental orders are being obeyed, and submit from time to time information and recommendations for safeguarding and protecting surface property and underlying mineral-bearing formations.

(c) Lessees' reports and notices. Prescribe the manner and form in which records of all operations, reports, and notices shall be made by lessees.

(d) Required samples, tests, and surveys. Require that, in the manner prescribed or approved by him, adequate samples be taken and tests or surveys be made to determine (1) the identity and character of formations, (2) the presence or waste of oil, gas, or water, (3) the quantity and quality of oil, gas, or water, (4) the amount and direction of deviation of any well from the vertical, and (5) the proper conduct of operations with due regard to the interests of the lessor.

(e) Damage to mineral deposits; directional drilling; lease obligations; well abandonment. Require correction, in a manner to be prescribed or approved by him, of any condition which is causing or is likely to cause damage to any formation containing oil, gas, or water or to coal measures or other mineral deposits, or which is dangerous to life or property or wasteful of oil, gas, or water; require substantially vertical drilling when necessary to protect interests in other properties; demand drilling in accordance with the terms of the lease or of the regulations in this part; and require plugging and abandonment of any well or wells no longer used or useful in accordance with such plans as may be approved or prescribed, and, upon failure to comply with such requirement, perform the work at the expense of the lessee, expending available public funds, and submit such report as may be needed to furnish a basis for appropriate action to obtain reimbursement.

*For statutory and source citations, see note to § 221.1.

Page 47