Defined term

Drilling Permit

State approval an operator must obtain before drilling a well, naming the location, depth, and target formation. A public early signal.

A drilling permit is the regulatory approval an operator must hold before a rig can move in. The application names the operator, the surface and bottomhole locations, the planned depth, and the target formation. Each state issues them: the Texas Railroad Commission (RRC) calls it a W-1, Oklahoma's Corporation Commission (OCC), New Mexico's Oil Conservation Division (OCD), and North Dakota's Industrial Commission (NDIC) each run their own systems.

For buyers, permits are one of the earliest public signals of intent. A new permit on or near a tract often precedes a spud by weeks to months and can mean a lease is about to be held or a well is coming. Permitting data is a core layer in Mineral Eagle.

A permit is approval to drill, not a guarantee — many permits expire unused. Treat it as a lead, then confirm with spud and completion records.

For buyers · investors · landmen

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