Montana Department of Natural Resources and Conservation, Montana Board of Oil and Gas Conservation records, 1915-2003

"Helping to ensure that Montana's land and water resources provide benefits for present and future generations" is the mission of the Montana Department of Natural Resources and Conservation (DNRC). First established in 1971 as a result of the Executive Reorganization Act of 1971, the DNRC provides leadership in managing the state's natural resources. It is presently responsible for promoting the stewardship of Montana's water, soil, forest, and rangeland resources; for regulating forest practices and oil and gas exploration and production.

The MBOGC is a quasi-judicial body that is attached to the DNRC for administrative purposes only. It maintains its principle office in Billings and has an administrative office in Helena and a field office in Shelby. Board Field inpectors work from their homes at several locations throughout the oil producing areas of Eastern Montana.

All members are appointed to four-year terms by the governor - four (the majority) when he or she takes office; the others, two years later. The board's regulatory action serve three primary purposes: (1) to prevent waste of oil and gas resources, (2) to conserve oil and gas by encouraging maximum efficient recovery of the resource, and (3) to protect the correlative rights of the mineral owners, i.e., the right of each owner to recover its fair share of the oil and gas underlying its lands. The board also seeks to prevent oil and gas operations from harming nearby land or underground resources. It accomplishes these goals by establishing spacing units, issuing drilling permits, administering bonds (required to guarantee the eventual proper plugging of wells and restoration of the surface), classifying wells, and adopting rules. MBOGC also repairs old, abandoned, problem wells. It maintains a library of well cutting samples and core samples in Billings. Since 1993, the board has performed the certification required for companies to receive tax incentives available for horizontal wells and enhanced recovery projects. The MBOGC has primary regulatory jurisdiction over the Underground Injection Control (UIC) Program for Class II injection or disposal wells. The purpose of this program is to protect underground sources of drinking water (USDWs). The board's jurisdiction applies statewide to all but Indian lands.