Annual Report for Fiscal Year ... 2004

Cover Annual Report for Fiscal Year ... 2004
Annual Report for Fiscal Year ... 2004
Montana.Dept. of Natural Resources And Conservation
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The quasi-judicial Board of Oil and Gas Conservation (BOGC) and itstechnical and administrative staff in theOil and Gas Conservation Division are attached to the Departnnent of Natural Resources and Conservation for administrative pur- poses The board consists of seven members appointed to four-year terms by the governor Members of BOGC during 2003 were: David Ballard, Chair Billings Petroleum G eologlst and G eophyslclst Denzil Young, V Baker A ttorney Ice Chair Allen Kolstad Ledger Farmer Jerr...y Kennedy Shelby OII Producer Elaine Mitchell Cut Bank Accountant Jack King Billings Landman Gary Willis Helena G overnmental A ffairs R epresentatlve The board's primary responsibilities are conservation of resources and prevention of waste through regulation of oil and gas exploration and production, In regulat- ing these activities, theboard reliesheavilyon itsOil and Gas Conservation Divi- sion staff, The division is headquartered in Billings, with field InspectorsinGlendive, Plentywood, Roundup, and Shelby and an administrative office in Helena, The board has a website at; www.bogc.dnrc.state.mt.us The board's regulatory actions have four primary goals; • Prevention of waste of oil and gas reserves • Conservation of oil and gas through encouragement of maximum efficient recovery of those resources • Protection of thecorrelativerightsof the mineral owners, i,e,, the right of each owner to recover itsfair share of the oil and gas underlying itslands • Prevention of harm to nearby surface or underground resources from oil and gas operations It accomplishesthesegoalsby issuing ordersand deficiency reports, adopting rules, establishing spacing units, classifying wells, issuing drilling permits, and adminis- tering bonds (required to guarantee the eventual proper plugging of well sand sur- face restoration), BOGC also plugsandrestoresthesurfaceof orphaned, abandoned.

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