Utah oil and gas laws can be found in Chapter 6, Title 40 of Utah Code.  Pursuant to Utah Code Ann. § 40-6-3, the waste of oil and gas is prohibited.  Pursuant to Utah Code Ann. § 40-6-4, the Board of Oil, Gas and Mining is created within the Department of Natural Resources.  The board will be the policy making body for the Division of Oil, Gas, and Mining.  The board shall consist of seven members appointed by the governor with the consent of the Senate.

Powers and Jurisdiction of the Board

Pursuant to Utah Code Ann. § 40-6-5, the board has jurisdiction over all persons and property necessary to enforce the statute.  The board will enact rules in accordance with the Utah Administrative Rulemaking Act.

The board has exclusive jurisdiction over[i]:

• class II injection wells, as defined by the federal Environmental Protection Agency or any successor agency; and
• pits and ponds in relation to these injection wells.

Pursuant to Utah Code Ann. § 40-6-5(6), the board also has jurisdiction:

• to hear any questions regarding multiple mineral development conflicts with oil and gas operations if there:
• is potential injury to other mineral deposits on the same lands; or
• are simultaneous or concurrent operations conducted by other mineral owners or lessees affecting the same lands; and
• to enter its order or rule with respect to those questions.

The board will adopt rules and make orders as necessary to administer the following provisions[ii]:

• Ownership of all facilities for the production, storage, treatment, transportation, refining, or processing of oil and gas shall be identified.
• Well logs, directional surveys, and reports on well location, drilling, and production must be made and filed with the division.
• Wells shall be drilled, cased, operated, and plugged in such manner as to prevent:
• the escape of oil, gas, or water out of the reservoir in which they are found into another formation;
• the detrimental intrusion of water into an oil or gas reservoir;
• the pollution of fresh water supplies by oil, gas, or salt water;
• blowouts; cavings; seepages; and fires.

Regulation of Production

Pursuant to Utah Code Ann. § 40-6-5(3), the board has the authority to regulate all operations for and related to the production.  The Board has power to do the following:

• drilling, testing, equipping, completing, operating, producing, and plugging of wells; and reclamation of sites;
• the spacing and location of wells;
• operations to increase ultimate recovery, such as cycling of gas; the maintenance of pressure; and the introduction of gas, water, or other substances into a reservoir;
• the disposal of salt water and oil-field wastes;
• the underground and surface storage of oil, gas, or products; and
• the flaring of gas from an oil well.

Civil Actions

Pursuant to Utah Code Ann. § 40-6-11, any person damaged by any violation may sue for and recover whatever damages that s/he otherwise may be entitled to receive.

Penalties

• Pursuant to Utah Code Ann. § 40-6-11, the court may punish the person for contempt if s/he disobeyed a subpoena issued by the court, or if s/he refused to testify in a court.
• Whenever it appears that any person is violating any provision of this chapter or any rule or order made under the authority of this chapter, the board may issue an order requiring compliance within a period not to exceed 30 days[iii].
• If the board determines, after an adjudicative proceeding, that any person has violated any provision, or any permit, rule, or order, that person is subject, in a civil proceeding, to a penalty upto $ 5,000 per day for each day of violation.
• If the board determines that the violation is willful, that person may be fined up to $ 10,000 for each day of violation.

Utah Oil and Gas Laws

[i] Utah Code Ann. § 40-6-5(5).

[ii] Utah Code Ann. § 40-6-5.

[iii] Utah Code Ann. § 40-6-11.