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349.080 Authority of Coalbed Methane Well Review Board to issue pooling
orders.
(1)
(2)
(3)
(4)
Whenever an applicant proposes to drill, deepen, convert, or reopen a well for
purposes of production of coalbed methane and the ownership of the right to
produce coalbed methane is in dispute, the department shall refer the
application to the review board for its consideration and the issuance of
appropriate pooling orders, if any, in accordance with KRS 349.085. Upon the
issuance of a pooling order by the review board, and if all other provisions of
this chapter are complied with, the department shall issue a permit to drill,
deepen, convert, or reopen the well and require the development and operation
of all pooled tracts and interests as a single leasehold estate in accordance
with the pooling order.
No pooling as permitted by this section shall be ordered except:
(a) When an application has been filed to drill, deepen, or reopen a well
within the distance limitations prescribed in KRS 349.075; or
(b) A request for pooling has been made pursuant to this section or KRS
349.085.
No pooling, as permitted by this section, shall be ordered with respect to any
tract or portion thereof upon which a well is drilled, deepened, or converted or
reopened:
(a) Unless the pooling was requested prior to the commencement of the
drilling, deepening, converting, or reopening of the coalbed methane well;
and
(b) Unless the request, if made by the owner of an operating interest who
elects to participate in the risk and cost of the drilling, deepening,
converting, or reopening of the coalbed methane well, is accompanied by
a bond or other security satisfactory to and in an amount set by the review
board for the payment of such owner's share of the cost of drilling,
deepening, converting, or reopening the well.
Production from any well which is ordered pooled pursuant to this section shall
be deemed for all purposes to have been so produced from each tract or
portion thereof included in the pool in proportion to the amounts established in
the pooling order.
Effective:July 13, 2004
History: Created 2004 Ky. Acts ch. 65, sec. 16, effective July 13, 2004.
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