Tennessee Oil and Gas Laws can be found in Chapter 1, Title 60 of the Tennessee Code.  Pursuant to Tenn. Code Ann. § 60-1-102, the production or handling of crude petroleum oil or natural gas in such manner or under such conditions as to constitute or result in waste is prohibited.

Powers and Jurisdiction of the Board

Pursuant to Tenn. Code Ann. § 60-1-202, the board has jurisdiction and authority:

• To make such inquiries as necessary to determine whether or not waste exists or is imminent;
• To collect data; to make investigations and inspections; to examine properties, leases, papers, books, and records including drilling records and logs; to examine, check, test, and gauge oil and gas wells, tanks, refineries, and modes of transportation; to hold hearings; to provide for the keeping of records and making of reports;
• To make rules, regulations, and orders for drilling, filing of logs, to prevent wells from being drilled, operated, and produced in such manner as to cause injury to neighboring leases or property; structures, and all storage and transportation equipment and facilities.

Appeals

Pursuant to Tenn. Code Ann. § 60-1-401, if the operator files an appeal of such citation or assessment of a penalty, the proceedings on such appeal will be conducted in accordance with the provisions of the Uniform Administrative Procedures Act, and the rules of procedure of the oil and gas board, governing the conduct of contested cases.  The board affords the operator an opportunity for a hearing, after reasonable notice. The board thereafter render a final order affirming, modifying, or vacating the supervisor’s citation or assessment of a penalty.

A petition for reconsideration of a final order may be filed under the statute.  Further, judicial review of a final order may be sought by filing a petition for review under the statute[i].

Civil Actions

Pursuant to Tenn. Code Ann. § 60-1-403, no suit by or against the board and no penalties imposed or claimed against any person for violating any provision, rule, regulation or order issued, and no forfeiture will impair or abridge or delay any cause of action for damages which any person may have or assert against any person violating any provisions or rule, regulation or order issued.  Any person so damaged by the violation may sue for and recover such damages as the person may show that the person is entitled to receive.

Penalties

• The oil and gas board through the supervisor has the authority to assess monetary penalties for any violation of rules and regulations, or any order adopted by the board[ii].
• Pursuant to Tenn. Code Ann. § 60-1-401, any operator who violates rules and regulations or order of the board and has failed to correct such violation within the period of correction of this citation will be assessed a penalty of up to one thousand dollars for each day the violation exists.
• Any operator who willfully or repeatedly violates the requirements, or rules and regulations, or order of the board promulgated pursuant to the statute may be assessed a penalty of up to ten thousand dollars for each violation.

[i] Tenn. Code Ann. § 60-1-401(h).

[ii] Tenn. Code Ann. § 60-1-401.