349.005 Legislative findings, purpose, and public policy.
(1)
(2)
(3)
(4)
The General Assembly hereby declares:
(a) The venting of coalbed methane and degasification of coal seams is approved
by the Commonwealth for the purpose of ensuring the safe recovery of coal;
(b) The positive economic impact of coal mining to the Commonwealth is
currently greater than that of coalbed methane production;
(c) Coalbed methane is not found in conventional gas reservoirs;
(d) Any development of coalbed methane should be undertaken in a way to
protect and preserve the environment and protect and preserve the coal for
future safe mining and the maximum recovery of coal;
(e) Commercial recovery and marketing of coalbed methane should be facilitated
whenever appropriate to meet the energy needs of both the Commonwealth
and the United States;
(f) The extraction of methane from mineable coal enhances mine safety,
promotes environmental goals and objectives, and conserves an important
energy resource; and
(g) The Energy Policy Act of 1992 was enacted, in part, to encourage coalbed
methane development and the Commonwealth should enact legislation to
carry out the purpose of that act.
Therefore, in order to encourage and ensure the fullest practical safe recovery of
both coal and coalbed methane, consistent with the above declarations and findings,
this chapter is established to:
(a) Authorize coalbed methane well permits;
(b) Regulate the design of coalbed methane wells and recovery techniques;
(c) Authorize coalbed methane well drilling units and pooling interests therein;
(d) Establish field rules; and
(e) Provide a process to enable coalbed methane well operators and coalbed
methane owners to proceed with the orderly development and production of
coalbed methane pending the judicial resolution of issues relating to coalbed
methane ownership.
Notwithstanding subsections (1) and (2) of this section, the General Assembly
expressly finds that establishing an orderly process to permit and produce coalbed
methane shall in no way be construed to create an inference or presumption as to the
ownership of coalbed methane in any judicial or administrative proceeding, or be
construed to or be used or interpreted to apply to any well otherwise permitted,
approved, or regulated under KRS Chapter 353, except for any wells that are to be
permitted, converted to, or operated as coalbed methane wells.
It is hereby declared to be the public policy of this Commonwealth and in the public
interest to:
(a) Safeguard, preserve, and protect coal seams for safe mining; facilitate the
expeditious, safe evacuation of coalbed methane from the coalbeds of this
(b)
(c)
(d)
(e)
state; and maintain the ability and right of coal operators at all times to vent
coalbed methane from mine areas for the safe recovery of coal;
Foster, encourage, and promote the commercial development of the
Commonwealth's coalbed methane by establishing procedures for issuing
permits and forming drilling units for coalbed methane wells without
adversely affecting the safety of mining or the mineability of coal seams;
Safeguard, protect, and enforce the correlative rights of coalbed methane
operators and coalbed methane owners in a pool of coalbed methane so that
each operator and owner may obtain his or her just and equitable share of
production from coalbed methane;
Create a state permitting procedure and authority to provide for and facilitate
coalbed methane development as encouraged by the Energy Policy Act of
1992; and
Seek the deletion of the Commonwealth of Kentucky from the list of affected
states by the Secretary of the United States Department of Interior as provided
for in the Energy Policy Act of 1992.
Effective: July 13, 2004
History: Created 2004 Ky. Acts ch. 65, sec. 1, effective July 13, 2004.
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