Current through Register Vol. 48, No. 12, March 22, 2024
a) Oil
Wells
1) The Department shall not issue a
permit for the drilling or deepening of a well for the production of oil within
the State of Illinois unless the proposed well location and spacing are within
10 acres of surface area lying within the
quarter-quarter-quarter section of land (as established by the official United
States Public Land Survey). The location of the well shall not be less than 330
feet from the nearest lease boundary line except any lease boundary line
located within a pooled unit. The location shall be no less than 330 feet from
the nearest location of a producing well, a well being drilled, or a well for
which a permit has previously been issued, but not yet drilled, for a well to
the same individual reservoir. The location shall be no less than 10 feet from
the nearest drilling unit boundary line; or
2) A permittee shall not be obligated to
drill any further wells pursuant to provisions in a lease existing prior to
April 22, 2016. Any obligation shall be determined, to the extent relevant and
applicable, by regulations in effect as of the date of the lease.
b) Gas Wells
The Department shall not issue a permit for the drilling or
deepening of a well for the production of gas within the State of Illinois
unless the proposed well location and spacing conform to the following drilling
units:
1) 10 acres of surface area
lying within the quarter-quarter-quarter section of land (as established by the
official United States Public Land Survey) for wells drilled or deepened for
the production of gas from a reservoir other than limestone/dolomite, the top
of which lies less than 2,000 feet beneath the surface. The location of the
well shall not be less than 330 feet from the nearest lease external boundary
line except any lease boundary line located within a pooled unit. The location
shall be no less than 330 feet from the nearest location of a producing well, a
well being drilled, or a well for which a permit has previously been issued,
but not yet drilled, for a well to the same individual reservoir. The location
shall be no less than 10 feet from the nearest drilling unit boundary line;
or
2) 20 acres of surface area
lying within the east-west or north-south one-half of a quarter-quarter section
of land (as established by the official United States Public Land Survey) for
wells drilled or deepened for the production of gas from a limestone/dolomite
reservoir, the top of which lies less than 2,000 feet beneath the surface. The
location of the well shall not be less than 330 feet from the nearest lease
boundary line except any lease boundary line located within a pooled unit. The
location shall be no less than 330 feet from the nearest location of a
producing well, a well being drilled, or a well for which a permit has
previously been issued, but not yet drilled, for a well to the same individual
reservoir. The location shall be no less than 10 feet from the nearest drilling
unit boundary line; or
3) 40 acres
of surface area lying within a quarter-quarter section of land (as established
by the official United States Public Land Survey) for wells drilled or deepened
for the production of gas from a reservoir, the top of which lies between 2,000
feet below the surface and 5,000 feet or the top of the Galena Group, whichever
depth is greater. The location of the well shall not be less than 330 feet from
the nearest lease boundary line except any lease boundary line located within a
pooled unit. The location shall be no less than 330 feet from the nearest
location of a producing well or well being drilled or for which a permit has
previously been issued, but not yet drilled, for a well to the same individual
reservoir. The location shall be no less than 10 feet from the nearest drilling
unit boundary line.
4)
Establishment of Drilling Units for Deep Gas
A) In the case of wells drilled or deepened
for the production of gas from a reservoir lying below 5,000 feet or the top of
the Galena Group formation, whichever depth is greater, no permit shall be
issued for an exploratory well unless the proposed spacing and well location
provide for a minimum of 160 acres of surface area lying within a quarter
section of land (as established by the official United States Public Land
Survey). The well location shall not be less than 660 feet from the nearest
lease boundary line except any lease boundary line located within a pooled
unit. The location shall be no less than 10 feet from the nearest drilling unit
boundary line.
B) After completion
of the exploratory well or wells, but prior to commencement of production
activities, application shall be made to the Department for the adoption of
rules establishing spacing and well location requirements for the reservoir or
reservoirs completed. The application shall identify the lands underlying the
reservoir or reservoirs for which spacing and well location rules are
requested, and shall include any geological, engineering or economic data,
studies or reports upon which the requested spacing and well location rules are
based.
C) Within 20 days after
receipt of the application, the Department shall submit proposed spacing and
well location rules for the reservoir or reservoirs in accordance with Section
5-40 of the Illinois Administrative Procedure Act, which shall include notice
of a public hearing to be commenced no later than 20 days after publication of
the notice of proposed rulemaking in the Illinois Register. In addition to the
notice requirements of the Illinois Administrative Procedure Act, the applicant
shall give notice of public hearing, at least 10 days prior to the date of the
hearing, to all permittees of record and leaseholders whose wells or leases are
within 1/4 mile of the area described in the proposed rules by first class
mail, postage pre-paid, and by publication in a newspaper of general
circulation in each county in which any portion of the area described in
proposed rules is located.
D) The
public hearing shall be conducted in accordance with the provisions of Section
240.370(d)(4) and
(d)(5). The Department shall fully consider
the record from the public hearing and any other public comment received during
the first notice period and, prior to commencement of the second notice period,
shall make such changes to the proposed rules as may be necessary to prevent
waste, protect correlative rights and prevent the unnecessary drilling of
wells.
c)
Coalbed Gas Wells
The Department shall not issue a permit for the drilling or
deepening of a well for the production of coalbed gas from unmined seams of
coal unless the proposed well location and spacing conform to drilling unit
requirements of 10 acres of surface area lying within a quarter-quarter-quarter
section of land (as established by the official United States Public Land
Survey). The location of the well shall be not less than 330 feet from the
nearest lease boundary line except any lease boundary line located within a
pooled unit. The location shall be no less than 330 feet from the nearest
location of a producing well or well being drilled or for which a permit has
previously been issued, but not yet drilled, for a well to the same individual
reservoir. The location shall be no less than 10 feet from the nearest drilling
unit boundary line.
d) Coal
Mine Gas Wells
A well drilled into a mine void or a pillar within the mined
out area for the production of gas from an abandoned coal mine is exempt from
the spacing requirements of this Subpart.
e) Other Wells
Class II UIC wells, coal, mineral and structure test holes,
observation wells, water supply wells used in relation to oil or gas
production, and gas storage wells are exempt from the requirements of this
Section.
f) All new well
locations shall not be less than 200 feet from the nearest occupied dwelling
existing at the time the permit application is filed with the Department,
unless the permittee obtains a written agreement with the surface owner upon
which the dwelling is located specifically allowing for a closer well
location.