California Code of Regulations
Title 14 - Natural Resources
Division 2 - Department of Conservation
Chapter 4 - Development, Regulation, and Conservation of Oil and Gas Resources
Subchapter 1 - Onshore Well Regulations
Article 2.1 - Well Spacing Patterns-New Pools
Section 1721.2 - Well Spacing Initiated by Supervisor

(a) Whenever a new pool is discovered, the Supervisor may issue a notice of intent to establish a well-spacing plan for the pool the notice shall specify the well-spacing plan proposed by the Supervisor. The notice shall be delivered or mailed to all operators in the pool and any other affected persons whose identity is known to or can readily be ascertained by the Division, and shall be published in a newspaper of general circulation in the county in which the pool is located.

(b) The notice shall provide that the well spacing plan proposed by the Supervisor shall take effect as an order of the Supervisor on the 31st day after the date of the notice unless within 30 days after the date of the notice the Supervisor receives a written objection to the proposed well spacing plan from any affected person, submitting a written objection is a prerequisite to any challenge to the implementation of a well spacing plan initiated by the Supervisor. If a written objection is timely received, the Supervisor shall set a hearing on the well spacing proposal and shall give notice of that hearing in the manner provided above, within 10 days of receipt of the written objection. The hearing shall be held at a time not less than 15 days nor more than 60 days from the date of the notice and at a place within the oil and gas district where the new pool is located. The hearing may be continued for a period not to exceed 60 days with the consent of all those affected persons having informed the Division of their intent to participate in the hearing.

(c) Within 45 days following the hearing, the Supervisor shall issue an order in the form of a written decision either providing no well spacing plan or specifying a well spacing plan for the pool. If a well spacing plan is adopted, the plan shall describe the pool to which it applies and set forth the surface and subsurface well spacing pattern for all wells to be drilled or redrilled into the pool.

(d) The Supervisor shall mail or deliver the written decision to all operators in the pool and all other previously identified affected persons.

(e) The Supervisor may request at any time from any operator in the pool any or all of the data listed in Section 1721.3 for use in making the well spacing determination. If such data are neither supplied nor otherwise available to the Supervisor, the Supervisor nevertheless may make a well spacing determination using methods found in petroleum industry literature or by analogy to similar pools.