Wisconsin oil and gas laws can be found in Subchapter II, Chapter 295 of Wisconsin Statutes.  Oil and gas exploration and production of Wisconsin is controlled by the Department of Natural Resources.

Powers and Duties of the Department

The department establishes a licensing procedure for oil and gas exploration and production.  However, the department may not issue a license for oil or gas exploration or production under some specific circumstances[i].

Pursuant to Wis. Stat. § 295.35(2), the department promulgates rules to protect the waters of the state, air, soil, plants, fish and wildlife from the adverse effects of oil and gas exploration and production, including rules relating to all of the following:

• Location, construction, operation and maintenance of wells and ancillary facilities to provide the greatest practicable protection to the environment.
• Disposal of waste liquids encountered or produced in oil and gas exploration and production.
• Plugging of wells and abandonment and reclamation of well sites and mud pits and all other ancillary facilities to provide long-term environmental protection.
• Reclamation of affected land when exploration and production are completed.
• Competence of an applicant to conduct oil and gas exploration, production and site reclamation.

Pursuant to Wis. Stat. § 295.35(3), the department promulgates rules to prevent waste in the exploration for or the production of oil and gas, including rules related to all of the following:

• Prevention of the escape of oil or gas from one stratum to another, and water or brine into oil and gas strata.
• Prevention of the premature or irregular encroachment of water that reduces the total recovery of oil and gas.
• Prevention of fires, explosions, blowouts, seepage or caving.
• Secondary recovery methods of oil or gas.
• Spacing of wells.
• Regulation of well production, including the allocation of allowable production in any field or pool.
• Operation of wells with efficient ratios of gas to oil.

Regulation of Production and Exploration

Pursuant to Wis. Stat. § 295.33, there are certain regulations that control production and exploration of oil and gas.  They are as follows:

• No person may engage in the exploration for oil or gas without a license from the department.
• No person may engage in the production of oil or gas without a license from the department.
• No person may commit waste in the exploration for or in the production of oil or gas.
• No person may conduct drilling operations for the exploration for or production of oil or gas if the drilling extends beneath the beds of the Great Lakes or bays or harbors that are adjacent to the Great Lakes.
• No person holding an oil or gas exploration or production license may engage a general contractor or affiliate to operate an oil or gas exploration or production site if the general contractor or affiliate has two or more felony convictions arising out of the operation of an oil or gas exploration or production site in the U.S. within ten years before the issuance of the license generally.

Penalties

• Pursuant to Wis. Stat. § 295.37(1), any person who makes a statement known to the person to be false or misleading in any material respect or who refuses to submit information required by the department may be fined not less than 1,000 nor more than 5,000.
• Any person who violates any order issued or rule promulgated under the statute may be required to forfeit not less than 1,000 nor more than 10,000 for each violation. Each day of violation is a separate offense[ii].
• Pursuant to Wis. Stat. § 295.37(3), if a person makes a statement known to the person to be false or misleading and that statement is material to the issuance of an exploration or production license, the department may revoke the license.  If a person holding an exploration or production license repeatedly makes a statement known to the person to be false or misleading in any material respect or refuses to submit information required by the department under the statute, the department may revoke the license.
• If a person holding an exploration or production license continues to violate the statute after the department has issued an order to cease those violations, the department revokes the license[iii].
• Pursuant to Wis. Stat. § 295.37(4), any oil or gas produced in violation or any order issued or rule promulgated, or any product manufactured from that oil or gas, is subject to confiscation.  The department may seize that oil, gas or products and request the department of justice to commence an action to confiscate the oil, gas, or products.

Wisconsin Oil and Gas Laws

[i] Wis. Stat. § 295.35(5).

[ii] Wis. Stat. § 295.37(2).

[iii] Wis. Stat. § 295.37(3).