Nevada Administrative Code Chapter 522 - Oil and Gas
🛢️ Overview of NAC Chapter 522 – Oil and Gas
NAC Chapter 522 establishes regulations governing the exploration, drilling, production, and abandonment of oil and gas wells in Nevada. It aims to ensure safe, efficient, and environmentally responsible oil and gas operations within the state.
📘 Key Provisions
1. General Provisions (NAC 522.010 – 522.195)
NAC 522.010: Prohibits the waste of oil and gas in Nevada, emphasizing conservation and efficient resource utilization.
NAC 522.040: Defines terms related to oil and gas operations, providing clarity for regulatory enforcement.
NAC 522.050: Establishes the authority of the Division of Minerals to enforce regulations and issue permits.
2. Drilling Regulations (NAC 522.210 – 522.280)
NAC 522.260: Requires operators to seal off strata bearing oil, gas, or water above the producing horizon to prevent contamination of other strata.
NAC 522.265: Mandates the installation of conductor and surface casing in wells, with specific depth and cementing requirements to ensure well integrity.
NAC 522.726: Specifies additional requirements for oil and gas wells, including casing and casing strings, and provides guidelines for exceptions.
3. Production Practices (NAC 522.300 – 522.365)
NAC 522.300: Outlines the responsibilities of operators to maintain well production and prevent waste.
NAC 522.365: Addresses the abandonment and plugging of wells, ensuring that they are properly sealed to prevent environmental contamination.
4. Hydraulic Fracturing (NAC 522.700 – 522.730)
NAC 522.730: Allows operators to request approval for hydraulic fracturing operations at wells drilled before October 24, 2014, by submitting a sundry notice with required documentation.
5. Reporting and Confidentiality (NAC 522.480 – 522.540)
NAC 522.540: Establishes guidelines for the confidentiality of well records, allowing operators to request confidentiality for up to one year after drilling operations are completed.
⚖️ Relevant Case Law
While specific case law directly interpreting NAC Chapter 522 is limited, the following general principles apply:
Enforcement Authority: Courts have upheld the authority of the Nevada Division of Minerals to regulate and enforce provisions related to oil and gas operations, including issuing permits and conducting inspections.
Environmental Protection: Regulations requiring the sealing of strata and proper casing installation have been enforced to prevent contamination of groundwater and other environmental harms.
Waste Prevention: Provisions prohibiting the waste of oil and gas have been upheld, with operators held accountable for inefficient practices.
✅ Compliance Tips
Permit Applications: Ensure all necessary permits are obtained before commencing drilling operations.
Well Integrity: Adhere to casing and cementing requirements to maintain well integrity and prevent environmental contamination.
Hydraulic Fracturing: For wells drilled before October 24, 2014, submit a sundry notice with required documentation to request approval for hydraulic fracturing operations.
Reporting: Maintain accurate records of operations and submit required reports to the Division of Minerals in a timely manner.
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