Re: Oil and Gas Rules, LSA Document No. 16-230

On behalf of the Natural Resources Commission (the "Commission"), I am submitting this notice in compliance with IC 4-22-2-25. Pursuant to IC 14-10-2-4, the Commission adopts rules, other than Emergency Rules, for the Department of Natural Resources (the "DNR"). The notice is sought because the Commission has determined that the promulgation of the captioned rule may not be completed within one year after publication of the Notice of Intent to Adopt a Rule.

On May 12, 2016, the Commission preliminarily adopted rule language to add 312 IAC 29 and repeal 312 IAC 16. The proposed addition and repeal would effectively recodify the Commission's administrative rules authorized and required for the implementation of IC 14-37. The Commission caused the posting of its Notice of Intent to Adopt a Rule for the captioned document on June 15, 2016 (DIN: 20160615-IR-312160230NIA). Subsequent to the posting of the Notice of Intent to Adopt a Rule, on June 17, 2016, the Proposed Rule was submitted to the Office of Management and Budget (the "OMB") and the Legislative Council. Since June 17, 2016, the DNR and the OMB have actively engaged in discussions regarding the potential fiscal impacts of the Proposed Rule. It is believed that the Commission will either receive formal approval from the OMB or comments, with suggested alternatives to the Proposed Rule, in the near future.

The Commission will expeditiously complete the rulemaking upon approval by the OMB, if approval is forthcoming. The Commission expects the rule will be approved or deemed approved by the Governor or withdrawn under IC 4-22-2-41 by February 9, 2018.

The 250th day after publication of the Notice of Intent to Adopt a Rule is February 20, 2017. This notice is submitted in a timely manner.

Sincerely,

Bryan W. Poynter, Chair

Natural Resources Commission