349.040 Prohibited drilling activities -- Filing requirements for permit application - Appeal -- Waiver -- Filing of maps and plans -- Denial of permit.
(1)
(2)
It is unlawful for any person to drill, commence, operate, deepen, convert, or
stimulate any coalbed methane well, to conduct any horizontal drilling of a coalbed
methane well or to convert any existing oil or natural gas well to a coalbed methane
well, without first securing from the department a permit pursuant to this chapter.
Before any well, borehole, or facility initially used for a coal mining related
purpose, such as a vent hole, is converted for the purpose of recovering coalbed
methane for sale or use, the operator shall obtain a permit and comply with the
provisions of this chapter prior to the time that the well, borehole, or facility is
converted or used for the purpose of recovering coalbed methane for sale or use. It
is unlawful for any person to drill, deepen, convert, or reopen a coalbed methane
well for the production of oil or natural gas or for the injection of water, gas, or
other fluids into any oil or natural gas producing formation until the person has
obtained a permit from the department for a petroleum or natural gas well pursuant
to KRS 353.570. However, no additional permit fee shall be required if the original
permit for the coalbed methane well has not expired.
Every permit application filed under this section shall be verified and shall contain
the following:
(a) A statement that the applicant claims to have a valid real property interest in,
or the current legal right to produce coalbed methane from a person claiming a
valid real property interest in, the coalbed methane. The statement shall
identify with specificity the nature of the real property interest and the
document or instrument evidencing that interest or right, including recording
information of any recorded document or instrument;
(b) The names and addresses of the coalbed methane well operator and every
person or entity whom the applicant must notify under any section of this
chapter;
(c) The name and address of each coal interest holder of any workable coalbed
which is to be penetrated by a proposed coalbed methane well or within seven
hundred fifty (750) horizontal feet or fifty (50) vertical feet of any portion of
the proposed coalbed methane well;
(d) The name and addresses of each record oil and gas lessee of, the record oil
and gas lessor of, and the operator of all oil and gas formations from the
surface to one hundred (100) feet below the deepest penetration of the coalbed
methane well on the tract upon which the coalbed methane well is proposed to
be located;
(e) The coalbed methane well name or such other identification as the department
may require;
(f) The approximate depth to which the coalbed methane well is to be drilled,
deepened, or converted, the coal seams including the depth and thickness of
each seam that will be completed for production, and any other coal seams
which will be penetrated by the coalbed methane well;
(g)
(3)
A description of any means to be used to stimulate any of the workable
coalbeds penetrated by the coalbed methane well;
(h) If the proposed coalbed methane well will require casing or tubing, the entire
casing program for the coalbed methane well, including the size of each string
of pipe, the starting point and depth to which each string is to be set, and the
extent to which each string is to be cemented;
(i) If the proposed operation is to convert an existing petroleum or natural gas
well, as defined in KRS 353.010(19), or to convert a vertical borehole or
facility initially used for a coal mining related purpose, such as a vent hole, to
a coalbed methane well, all information required by this section, all
formations from which production is anticipated, and any plans to plug any
portion of the well;
(j) Except for a vent hole proposed to be converted to a coalbed methane well, if
the proposed coalbed methane well will be completed in some but not all coal
seams for production, a plan and design for the coalbed methane well which
will protect all workable coalbeds which will be penetrated by the coalbed
methane well;
(k) If the proposed operations will include horizontal drilling of a coalbed
methane well, a description of the operations, including both the vertical and
horizontal alignment and extent of the coalbed methane well from the surface
to total depth; and
(l) Other information as the department may require consistent with this chapter.
Each application for a coalbed methane well permit shall be accompanied by the
following:
(a) A permit application fee of three hundred dollars (0);
(b) A bond in an amount prescribed in KRS 349.120;
(c) A certificate that the applicant's notice requirements of KRS 349.015 have
been satisfied. Certification may be by affidavit of personal service, or the
return receipt card, or other postal receipt, for certified mailing;
(d) If the proposed coalbed methane well will be located within one-half (1/2) of a
mile, measuring horizontally, of a water supply well being used for residential
or domestic purposes, the applicant will submit the groundwater protection
plan required under KRS 224.70-110 and applicable administrative
regulations promulgated pursuant thereto for review by the department, or
demonstrate to the department that a plan is not required; and
(e) Proof that the applicant has public liability insurance coverage in an amount
not less than five hundred thousand dollars (0,000) in aggregate and three
hundred thousand dollars (0,000) per occurrence for damages to persons
and property caused by the applicant's operations or proof that the applicant
has satisfied self-insurance requirements as provided by administrative
regulations which shall be promulgated by the department.
(4)
(5)
(6)
Prior to the department's issuance of a permit to drill a coalbed methane well, a
copy of the written authorization from the mine licensee shall be filed with the
application under the following circumstances:
(a) If the proposed coalbed methane well is to penetrate a workable coalbed that
is within the permitted area of an existing permit or the proposed permitted
area of a permit pending before the division and if the applicant plans to
stimulate, complete, or horizontally drill the coalbed methane well in a
workable coalbed that is within the permitted area of an existing permit or the
proposed permitted area of a permit pending before the division;
(b) If the proposed coalbed methane well is to be located within a surface area
permitted under an existing permit, or the proposed permitted area of a permit
pending before the division for which no bond release has been obtained; or
(c) If the proposed coalbed methane well is to be located within a surface area
permitted under an existing permit by the division for which a partial bond
release has been obtained.
If a coalbed methane well permit is issued for a well site located within the
boundaries of any coal mine for which a permit has been issued or is pending
pursuant to KRS Chapter 350, the permit shall include a provision specifically
stating that the permitted coalbed methane well location is in an area for which a
coal mine permit has been issued or is pending pursuant to KRS Chapter 350 and is
subject to the mine-through rights set forth in KRS 349.030(1).
If a partial bond release for the surface area on which the proposed coalbed methane
well is located has been obtained from the division and the applicant is denied
written authorization from the mine licensee, the applicant may file an appeal with
the review board requesting approval to drill the proposed coalbed methane well.
When requesting an appeal, the applicant shall submit a verified statement including
the following:
(a) The applicant has met and conferred with or offered to meet and confer with
the mine licensee concerning the authorization;
(b) The mine licensee has refused to provide written authorization to disturb the
permitted area;
(c) The physical area to be disturbed by the proposed well location and the use of
area, including ingress and egress thereto, qualifies as a commercial or
industrial postmining land use entitling the mine licensee to a complete bond
release for the area to be disturbed by the coalbed methane well operator in
accordance with KRS Chapter 350; and
(d) The applicant has agreed to pay the reasonable and actual costs of the permit
revision required by the division to affect the incremental bond release for the
proposed area to be disturbed by the coalbed methane well operator, not to
exceed five thousand dollars (,000).
Prior to the issuance of a permit to drill a coalbed methane well, the applicant shall
grant assignable subsidence waivers to any mine licensee if requested in an
objection filed pursuant to KRS 349.060 and, if required, to allow present or future
(7)
mining with planned subsidence under KRS Chapter 350. However, this subsection
and any subsidence waivers shall in no way waive, affect, or impair the ability of
the applicant or the applicant's successors or assigns to pursue any remedies for
damages to persons, or to improved or tangible property, suffered or incurred as a
result of any subsidence caused by the mine licensee or the mine licensee's
successors or assigns. The mine licensee, its successors or assigns, shall be liable
for any and all damages to persons or to improved or tangible property proximately
caused by the mine licensee.
If the mine licensee is mining in a coal seam that is not being produced by the
coalbed methane well operator and has not exercised his or her mine-through rights,
as set forth in KRS 349.030(1) or (2), in any coal mine before removing any coal or
other material or driving any entry or passageway within five hundred (500)
horizontal feet of the vertical segment of a coalbed methane well or within fifty (50)
vertical feet of the horizontal segment of a coalbed methane well, the mine licensee
shall forward simultaneously to the well operator and to the department, by certified
mail, return receipt requested, or by registered mail, a copy of the maps and plans
required by law to be filed and kept up to date. Maps or plans shall show the mine
workings and projected mine workings within five hundred (500) horizontal feet of
the coalbed methane well. However, the issuance of any coalbed methane well
permit shall not preclude or prevent coal mining outside two hundred (200) feet, but
not closer than fifty (50) feet, of the vertical segment of a coalbed methane well or
outside of the workable coalbed in which the horizontal segment of a coalbed
methane well is located, unless specified by the department for reasons of mine or
well safety. The mine licensee shall not mine within fifty (50) feet of the vertical
segment of a coalbed methane well without the written authorization of the coalbed
methane well operator. A mine licensee may file a request with the department to
mine closer than two hundred (200) feet of the vertical segment of the coalbed
methane well. The mine licensee shall forward simultaneously to the well operator
and the department, by certified mail, return receipt requested, or by registered mail,
a request to mine closer than two hundred (200) feet, but not closer than fifty (50)
feet, of the vertical segment of the coalbed methane well, which shall be
accompanied by the following:
(a) A copy of the maps and plans required by law to be filed and kept up to date,
showing on the copy of the map or plan its mine plan workings and projected
mine workings beneath the tract of land and within two hundred (200) feet,
but not closer than fifty (50) feet, of the vertical segment of the coalbed
methane well; and
(b) A statement that the applicant has met and conferred with, or offered to meet
and confer with, the well operator concerning the mine licensee's plan to mine
closer than two hundred (200) feet, but not closer than fifty (50) feet, of the
vertical segment of the coalbed methane well.
The well operator may, within twenty (20) days of receipt of the documents listed in
paragraphs (a) and (b) of this subsection, file specific objections in writing with the
department. When objections are filed, the department shall provide a copy of the
(8)
objections to the mine licensee and fix a time and place for an informal hearing. The
hearing shall be held not more than ten (10) days from the end of the twenty (20)
day period. At the hearing, the mine licensee and the well operator, in person or by
representative, shall consider the objections and seek agreement on the character
and the extent of operations to be conducted within less than two hundred (200)
feet, but not closer than fifty (50) feet, of the vertical segment of the coalbed
methane well. If no agreement can be reached, the department, after administrative
hearing conducted in accordance with KRS Chapter 13B, shall make a decision
defining what coal, if any, is necessary to be left for the safe protection, use, and
operation of the well. The department's decision shall be subject to appeal by either
party as provided in this chapter. The department shall keep a complete record of all
hearings. The mine licensee shall, every six (6) months, while mining within two
hundred (200) feet, but not closer than fifty (50) feet, of the vertical segment of the
coalbed methane well, file up-to-date maps and plans required by this section, or
file new maps and plans complete to date.
The department may deny the issuance of a permit if it determines that the applicant
has a documented pattern or practice of substantial violations of the provisions of
this chapter and has failed to abate or seek review of the violations. If the
department finds that a substantial violation has occurred with respect to existing
operations and that the operator has failed to abate or seek review of the violation in
the time prescribed, the department may suspend the permit. After a suspension, the
operator shall forthwith cease all work being conducted under the permit until the
department reinstates the permit. The department shall make a written finding of its
determination and may enforce the determination in Circuit Court pursuant to KRS
349.145.
Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 79, sec. 9, effective June 25, 2009. -- Amended
2005 Ky. Acts ch. 123, sec. 47, effective June 20, 2005. -- Created 2004 Ky. Acts
ch. 65, sec. 8, effective July 13, 2004.
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