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New Jersey Oil and Gas Laws

New Jersey oil and gas laws can be found in Chapter 1M, Title 13 of New Jersey Statutes.  Pursuant to N.J. Stat. § 13:1M-1, the production of oil and natural gas from sources within the State can provide substantial economic benefits to the public and private sectors of the State of New Jersey.

Notwithstanding such potential, the exploratory, drilling, and extraction operations incident to such production pose significant risks to the public health, safety and welfare, as well as the natural resources of the State.

Thus, a strict regulatory framework is necessary to minimize the potentially adverse impact of oil and natural gas production operations without jeopardizing the benefits.

Powers of the Department

Pursuant to N.J. Stat. § 13:1M-11, no person should plug and abandon an oil or gas well except in accordance with a permit issued therefor by the Department of Environmental Protection.  An application for this permit should be made on forms prescribed and supplied by the department.  Subsequent to the plugging and abandonment of each well, the holder of a permit therefor should make a written report to the department[i].

Regulation of Operation

Pursuant to N.J. Stat. § 13:1M-2, no person should commence operations incident to the exploration and drilling of wells for oil or natural gas without having received a permit from the Department of Environmental Protection.

Civil Actions

If any person violates any of the provisions of this act or any rule, regulation, or order promulgated or issued pursuant to the provisions of this act, the department may institute a civil action in a court of competent jurisdiction for injunctive or any other appropriate relief to prohibit and prevent this violation and the court may proceed in the action in a summary manner[ii].

Penalties

Any person who violates the provisions of this act or any rule, regulation or order promulgated pursuant to this act is liable to a civil administrative penalty of not more than $ 10,000.00 for the first offense, not more than $ 20,000.00 for the second offense, and up to $ 50,000.00 for the third and each subsequent offense[iii].

If the violation is of a continuing nature, each day during which it continues subsequent to receipt of an order to cease the violation constitutes an additional, separate, and distinct offense.

Any person who violates this act or an administrative order issued or a court order issued or who fails to pay a civil administrative penalty in full is subject, upon order of the court, to a civil penalty not to exceed $ 10,000.00 per day of the violation, and each day’s continuance of the violation constitutes a separate and distinct violation[iv].

New Jersey Oil and Gas Laws

[i] N.J. Stat. § 13:1M-12.

[ii] N.J. Stat. § 13:1M-17 (a).

[iii] N.J. Stat. § 13:1M-17 (b).

[iv] N.J. Stat. § 13:1M-17 (d).


Inside New Jersey Oil and Gas Laws