The department is herewith empowered to formulate and institute all rules and regulations and permit forms pertinent hereto. The department shall have power to refuse any prospecting or development permit, or to impose conditions upon any such permit, whenever it deems the same necessary, to prevent the explosion or loss of gas from areas leased for the production or storage of natural gas or to assure to the lessees of such areas the peaceful enjoyment of the rights conferred by their leases. The department may also exercise such power, wherever it deems the same necessary, to prevent damage to pipe lines and other facilities beneath the surface of the earth.