Georgia oil and gas laws can be found in Chapter 4, Title 12 of Official Code of Georgia.  Pursuant to O.C.G.A. § 12-4-41, the General Assembly finds and declares that its duty to protect the health, safety, and welfare of the citizens of the state of Georgia requires that adequate protection of underground fresh water supplies be assured in any drilling operation which may penetrate through any stratum which contains fresh water.

Powers and Jurisdiction of the Board

Pursuant to O.C.G.A. § 12-4-43, the board has the authority to make such inquiries as it may deem necessary into any matter over which it has jurisdiction.  Further, the board has the jurisdiction and authority over the drilling of and subsequent use of any well for the exploration or production of oil and gas.  The board also has the authority to regulate the spacing of wells and the production of all oil and gas and the production of any other minerals produced through a well or bore hole in liquid or slurry form to a depth greater than 1,800 feet or located in the environmentally sensitive area.

The board has the power to adopt and promulgate rules and regulations necessary to effectuate the purposes of this statute.  The board may delegate to the director the administrative duties and powers, including, without limitation, the power to consider and issue permits to drill wells and to establish drilling and operation units, created under the authority of this statute[i].

Regulation of Operation

Prior to the issuance of a permit to drill any well covered by this statute, the owner, operator, contractor, driller, or other person responsible for the conduct of the drilling operation should furnish the state a bond or undertaking in the form prescribed by the board and in an amount set by the board, executed by a bonding, surety, or insurance company authorized to do business in this state in the favor of the state[ii].  Alternatively, the board in its discretion may require a similar undertaking executed only by such person to ensure a faithful performance of the requirements of this part, of any rules or regulations adopted pursuant thereto, or of any condition of a permit. Such bond or undertaking is intended to protect the state or any citizen thereof from any injury which may result from improper drilling.

Civil Actions

Whenever the director has reason to believe that any person is violating the provisions of this statute or any rule or regulation adopted pursuant to this statute, the director may issue an administrative order to that person[iii].  The order should specify the provisions of this statute alleged to have been violated and should order that corrective action be taken within a reasonable period of time prescribed in the order.  Any such order becomes final and enforceable unless the person or persons named therein request in writing a hearing before an administrative law judge appointed by the board no later than 30 days after the issuance of the order.

Pursuant to O.C.G.A. § 12-4-53, the following activities are prohibited:

• The waste of oil or gas;
• The sale, purchase, or acquisition or the transportation, refining, processing, or handling of illegal minerals or illegal products;
• The sale, purchase, or acquisition or the transportation, refining, processing, or handling in any other way of any mineral, including oil and gas, or any mineral product without complying with this statute or any rule or regulation of the board promulgated pursuant to this statute;
• Intentionally or negligently permitting any gas or oil well to get out of control;
• The drilling of any well covered by the provisions of this statute by any person without a permit for such drilling; and
• Any other violation of any provision of this statute or any rule or regulation promulgated.

Penalties

Any person who willfully or negligently violates any provision of this statute, any rule or regulation adopted, or any permit or final or emergency order of the director is subject to a civil penalty of not less than $50.00, but in any event not to exceed $10,000.00 for each act of violation[iv].  Each day of continued violation will subject such person to a separate civil penalty.

[i] O.C.G.A. § 12-4-43.

[ii] O.C.G.A. § 12-4-47.

[iii] O.C.G.A. § 12-4-48.

[iv] O.C.G.A. § 12-4-48.