Permitting
Montana
In Montana, as in Wyoming, there is a variety of regulations in place to oversee all phases of CBNG production with many state and federal agencies involved. The Montana Board of Oil and Gas Conservation (MBOGC) regulates the placement of wells with their own set of permits and issues permits for the pits or impoundments where CBNG water is discharged. If that produced water is to be utilized for irrigation, stock water, industrial use, etc., a beneficial use permit from the Montana Department of Natural Resources is required. If the CBNG-produced water is to be discharged into waters of the state, a National Pollutant Discharge Elimination System (NPDES) permit is required from Montana Department of Environmental Quality. Montana has recently adopted numeric standards for sodium and salinity for the Tongue River, Powder River and Rosebud Creek.

In addition, the Montana Department of Natural Resources, Army Corps of Engineers and more are involved in the process of producing coalbed natural gas.

Prior to initial drilling in Montana, a company needs to obtain these required permits:

• If spacing is greater than one well per 640 acres, an operator must go before the Montana Board of Oil and Gas Conservation Commission (MBOGC) and get special spacing rules.
• Upon the MBOGC’s approval of special spacing, the operator must submit to the MBOGC a Plan of Development (POD) covering the proposed area. Once the POD is approved, this allows the MBOGC to proceed with the Environmental Assessment (EA) per the Montana Environmental Policy Act (MEPA).
• Once the EA is completed, the MBOGC is allowed to issue approved applications for permits to drill (APDs) covering fee or private wells only.
• The Montana Department of Natural Resources (DNRC) also prepares an EA covering the state wells within the POD. Once the DNRC completes the EA, it will hold a hearing on the state wells which may be involved in the POD. Upon DNRC approval, the MBOGC is allowed to issue APDs for state wells.
• MBOGC pit construction permit
• If the lease is on federal lands, the company needs an APD from the BLM in addition to the APD from the MBOGC
• The U.S. Corps of Engineers requires a permit whenever wetlands or waters of the United States are disturbed or filled.
• National Pollutant Discharge Elimination System (NPDES) permit from Montana Department of Environmental Quality (MDEQ) if the produced water is to be discharged into waters of the state.
• MBOGC permit to vent any natural gas into the atmosphere
• An air quality permit from the MDEQ’s Air Quality Division must also be obtained prior to construction of any facilities related to the installation of internal combustion engines including compressors and generators.

View report detailing the filings required to drill a coalbed natural gas well in Montana.
Montana Permits