Quick question.... Does the state or the Feds issue oil drilling permits on private land?

The state (via the OCC) issues an intent to drill permit on all lands, private or public.

The federal government (via the BLM among other agencies) issue a permit when the well is located on public land, or in the case of horizontal wells, the wellbore goes through public land. In a state like Oklahoma where the vast majority of public land is Indian Trust allottments, the BIA may sign off on permits as well.

Thanks