Current through Register Vol. 48, No. 12, March 22, 2024
a) Whenever the conditions of a drilling unit
render it impractical to drill an oil or gas well at a location conforming to
the requirements of Section
240.410, an oil or gas
well may be drilled at a nonconforming location as follows:
1) If the proposed location is less than 330
feet (or other applicable setback) from the nearest lease boundary line, the
application shall be accompanied by a written agreement or agreements between
the applicant and any leaseholders or mineral rights owners (if no leaseholder
exist) whose leases or mineral rights are adjacent to and less than 330 feet
(or other applicable setback) from the proposed location. In lieu of the
submission of a written agreement or agreements, the applicant shall give
notice by certified mail, return receipt requested, to any leaseholders or
mineral rights owners (if no leaseholders exist) whose leases or mineral rights
are adjacent to and less than 330 feet (or other applicable setback) from the
proposed location. The notice shall include the proposed location of the well
and the reason the location is requested, and shall inform the leaseholders or
mineral rights owners that they may file written objections with the Department
within 15 days after service of the notice. If a written objection is received,
the matter shall be set for hearing, which shall be conducted in accordance
with the provisions of Section
240.370(d)
of this Part.
2) In determining
whether to approve a proposed nonconforming location, the Department will
consider the feasibility and expense of drilling on location, any hazard or
damage to persons or property or to the environment, and whether the proposed
location would adversely affect the correlative rights of any of the owners of
the reservoir or result in waste or the drilling of unnecessary
wells.
b) If at the time
of application, a lease immediately adjacent to a proposed drilling unit has
producing wells located less than 330 feet from the common boundary line, then
a well on the proposed drilling unit may be located at a distance closer than
330 feet but no closer than the distance to the common boundary line of the
immediately offsetting well.
c) If
a drilling unit is located over an active mine, the mined-out or inaccessible
portion of an active mine, an abandoned mine, or the undeveloped limits of a
mine, the proposed well can be located so that it will be drilled into an
existing or proposed mine pillar subject to the conditions and limitations set
forth in subsections (a) and (b) above.
