Any person desiring to drill a hole for the purpose of obtaining information about or sampling of the offshore beds of ocean waters within the state of Washington shall make application to the state oil and gas supervisor for a permit authorizing such operation. The supervisor may issue such permits under the terms and conditions of this resolution.

Drilling permits for offshore sampling shall be issued upon the payment of a fee of $50.00. No permit shall be valid for a period longer than one year. As a condition of issuance, each permittee shall agree to pay to the supervisor, to defray the cost of observers required by this resolution;

(1) For each necessary observer, the sum of $407.00 monthly in advance for each month or portion of the month during which drilling operations are to be conducted; and

(2) Such additional sum as equals the amount by which actual costs for observers exceed the sums paid in advance, said additional sums to be paid to the supervisor upon receipt of a statement therefor from the supervisor.

Every boat, ship, or other water-borne vessel or other equipment outfitted with rotary drilling equipment for the purposes described in WAC 344-16-010 shall carry with it at all times during drilling operations:

(1) A valid drilling permit for offshore sampling;

(2) Mud, cement, and equipment which in accordance with good operating procedures would reasonably be deemed adequate to control and seal off any high pressure encountered; and

(3) An observer appointed and employed by the supervisor: Provided, That the supervisor for reasonable cause may waive compliance with this requirement for periods not to exceed twenty-one consecutive calendar days.

Each drilling permit for offshore sampling shall require that:

(1) Upon abandonment of any hole, all rigging and material used in drilling that would constitute a hazard to navigation shall be removed and the ocean floor shall be restored to substantially its original condition;

(2) Prompt notification shall be given to the observer or the supervisor upon any show of oil or gas encountered during drilling operations;

(3) Where a substantial amount of oil or gas is encountered during drilling operations, the hole shall be immediately plugged. Prompt notification shall be given to the supervisor of such plugging;

(4) Drilling operations shall be stopped at any time the observer determines that operations are not in accordance with the permit, this resolution, or the Oil and Gas Conservation Act;

(5) Determination by an observer shall be final unless request for review is made to the supervisor.

Drilling permits for offshore sampling shall authorize drilling to a maximum depth of 500 feet below the ocean floor: Provided, That drilling may be continued to such additional depth, not to exceed 1,000 feet below the ocean floor, as is required to obtain a sample of consolidated rock: Provided further, That notice of intent to drill beyond 500 feet shall first be given the observer or supervisor. No hole drilled more than 500 feet below the ocean floor shall be drilled more than 20 feet into consolidated rock.

Drilling permits for offshore sampling may authorize use of any type of logging devices or equipment (other than formation testing equipment) in holes drilled pursuant thereto.

Any substantial violation of the terms of a permit, this resolution, or the Oil and Gas Conservation Act shall be cause for the termination of all rights granted under any existing permit.