Nebraska oil and gas laws can be found in Article 9, Chapter 57 of Nebraska Revised Statutes. Pursuant to R.R.S. Neb. § 57-901, the purpose of the statute is to foster, encourage and promote the development, production and utilization of natural resources of oil and gas in the state.
Powers and Jurisdiction of the Commission
Pursuant to R.R.S. Neb. § 57-904, the oil and gas conservation commission consists of three members to be appointed by the Governor.
Pursuant to R.R.S. Neb. § 57-905, the commission has jurisdiction and authority over all persons and property, public and private, necessary to enforce effectively the provisions of the statute.
The commission has authority, and it is its duty, to make such investigations as it deems proper to determine whether waste exists or is imminent or whether other facts exist which justify action by the commission.
Pursuant to R.R.S. Neb. § 57-905, the commission has authority to require:
- identification of ownership of oil or gas wells, producing leases, tanks, plants, structures, and facilities for the production of oil and gas;
- the making and filing of directional surveys, and reports on well location, drilling, and production within six months after the completion or abandonment of the well;
- the drilling, casing, operating, and plugging of wells in such manner as to prevent the escape of oil or gas out of one stratum into another,
- the intrusion of water into oil or gas strata, the pollution of fresh water supplies by oil, gas, or salt water, and to prevent blowouts, cave-ins, seepages, and fires;
- the operation of wells with efficient gas-oil and water-oil ratios, and to fix these ratios.
Regulations
Pursuant to R.R.S. Neb. § 57-905, the commission has authority to promulgate and to enforce rules, regulations, and orders to effectuate the purposes of the statute.
The commission has authority, in order to prevent waste, to regulate:
- The drilling, producing and plugging of wells, or test holes, and all other operations for the production of oil or gas;
- the shooting and chemical treatment of wells;
- the spacing of wells;
- operations to increase ultimate recovery such as, but without limitation, the cycling of gas, the maintenance of pressure, and the introduction of gas, water, or other substances into producing formations; and
- disposal of oilfield wastes, including salt water.
Pursuant to R.R.S. Neb. § 57-905, the commission also has authority to:
- require that all wells drilled for oil and gas must be adequately logged with mechanical-electrical logging devices, and to require the filing of logs;
- regulate the drilling and plugging of seismic and stratigraphic tests in oil and gas exploration holes;
- act as the state jurisdictional agency pursuant to the Natural Gas Policy Act.
Civil Actions
Pursuant to R.R.S. Neb. § 57-916.01, if any person violates or threatens to violate any provision, or any rule, regulation or order of the commission, the commission brings suit against such person in the district court of any county where the violation occurs or is threatened. In any such suit, the court will have jurisdiction and authority to issue, without bond or other undertaking, such prohibitory and mandatory injunctions as the facts may warrant.
If the commission fails to bring suit to enjoin a violation or threatened violation of any provision, or any rule, regulation, or order of the commission, within ten days after receipt of written request to do so by any person, the person making such request may bring suit in his/her own behalf to restrain such violation.
The commission will be made a party defendant in such suit in addition to the person violating or threatening to violate a provision or a rule, regulation, or order of the commission and the action will proceed and injunctive relief may be granted in the same manner as if suit had been brought by the commission[i].
Penalties
Pursuant to R.R.S. Neb. § 57-915, any person who violates any provision, or any rule, regulation or order of the commission will be guilty of a Class II misdemeanor. Each day that such violation continues constitutes a separate offense.
If any person, for the purpose of evading the provisions of the statute, or any rule, regulation or order of the commission makes any false entry or statement in a report or makes any false entry in any record, account or memorandum or by any such rule, regulation or order, or removes from the state or destroy, mutilate, alter or falsify any such record, account or memorandum will be guilty of a Class II misdemeanor[ii].
The penalties provided in the statute are recoverable by suit filed by the Attorney General in the name and on behalf of the commission, in the district court. The payment of any such penalty will not operate to relieve a person on whom the penalty is imposed from liability to any other person for damages arising out of such violation[iii].
[i] R.R.S. Neb. § 57-916.01.
[ii] R.R.S. Neb. § 57-915.
[iii] Id.
