Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO: KRS 349.015, 349.035, 349.040(3), 349.075, 349.120,
349.155, 353.050, 353.060, 353.180, 353.510, 353.520, 353.561 - 353.564,
353.590, 353.5901, 353.592, 353.610, 353.651, 353.652, 353.6601 - 353.6606,
353.730, 353.737, 353.991, Chapter 424
NECESSITY, FUNCTION, AND CONFORMITY: KRS 353.540 authorizes the
department to promulgate administrative regulations to administer KRS 353.500
through 353.720. KRS 353.550 authorizes the department to regulate the drilling
and casing of all wells and filing of all downhole surveys. KRS 349.110
authorizes the department to exercise supervision over the drilling, casing,
plugging, and filling of all coalbed methane wells. This administrative
regulation establishes the requirements for permitting directional and
horizontal wells for the purpose of oil, gas, or coalbed methane
extraction.
Section 1. Information
Submittal.
(1) Prior to drilling a directional
or horizontal well, the operator shall submit:
(a)
1. A
completed Application for Permit, Form OG-1, incorporated by reference in 805 KAR 1:010 for oil or gas well; and
2. A cover letter from the operator making a
request for drilling the horizontal or directional well;
(b) Three (3) copies of a location plat in
compliance with 805 KAR 1:030 (plan view), in addition to:
1. The surface location and proposed target
formation with respective Carter Coordinates;
2. The proposed path of the wellbore;
and
3. The identification of the
intersection length of the proposed well and the proposed producing formation.
To avoid any conflicts with the spacing requirements, a dashed line shall be
drawn around the intersection length in feet with regard to the spacing
requirements in:
a.
KRS 353.610 for an oil or
gas well;
b.
KRS 349.075 for a coal
bed methane well; or
c.
805 KAR 1:100 and KRS 353.651 and 353.652 for deep wells;
(c) A bond as required in KRS 353.590(7) for oil or gas wells or KRS 349.120 for coalbed methane wells;
and
(d) An application fee pursuant
to the requirements in 805 KAR 1:010.
(2)
(a) In
addition to the plan view required in this section, the operator shall submit
three (3) copies of a plat that shows a vertical cross-section view of the area
to be drilled by the well.
(b) This
cross-section shall be prepared from the proposed "predrill hole" directional
survey compiled by the contractor responsible for the directional drilling of
the proposed wellbore.
(c) The
cross-section shall include the area from the well site to the target made
through the proposed course of the well.
(d) The surface location shall be designated
as zero in reference to the depth and the lateral distance from the well site
and true vertical depths shall be shown for:
1. The kick-off point or selected depth at
which the deviation is started;
2.
The known coal seams to be intersected;
3. The producing interval;
4. The proposed producing formation;
and
5. The proposed
target.
(3)
Upon permit issuance, the operator shall provide verbal or written notice to
the department field inspector at least forty-eight (48) hours in advance of
the commencement of drilling operations.
(4) Once the well has been drilled and
completed, the following shall be submitted within thirty (30) days from the
date of completion:
(a) Three (3) copies of an
amended plan view of the well location plat as established in subsection
(1)(b)1. through 3. of this section, with the actual course drilled, the
kick-off point, and the actual target superimposed on the proposed well
location plat. A correction in the target Carter Coordinates, if necessary,
shall then be issued by the department;
(b) Three (3) copies of the side or
cross-sectional view plat as established in subsection (2)(d)1. through 5. of
this section, amended for the actual path of the wellbore, showing the actual
formation, coal seams, target formations, and kick-off point; and
(c) Copies of all directional surveys
certified by the operator and the contractor responsible for the directional
survey.
1. This survey shall be submitted for
the entire well bore, and the operator shall be able to identify the path or
depth of the well bore at any given time during and after the drilling of the
directional or horizontal well.
2.
The survey points shall be made at a maximum of 200 foot intervals or at any
intervals more frequent.
(5) The operator shall comply with spacing
requirements for offset mineral boundary lines and between wells for the actual
drilled path of the wellbore and its end point and the intersection of the
wellbore and the producing formations in accordance with:
(a)
KRS 353.610 for oil or gas
wells;
(b)
KRS 349.075 for coalbed
methane wells; or
(c)
805 KAR 1:100 and KRS 353.651 and 353.652 for deep wells.
(6) A coal operator or owner affected by the
drilling of a directional or a horizontal well shall be provided a copy of the
predrill plat and cross-section plat established in subsections (1)(b) and
(2)(b) of this section as required by KRS 353.050 and 353.060 for oil and gas
wells or KRS 349.015 for coalbed methane wells. Within ten (10) days after the
well is drilled, the operator shall submit to the coal operator or owner the
revised plats and deviation survey log as established in subsection (4) of this
section.
(7) The requirements for a
deep directional or horizontal well shall comply with those requirements
established in 805 KAR 1:100 and KRS 353.651 and 353.652 regarding the
application process and spacing units. Prior to the deep directional or
horizontal well being drilled, a hearing shall be held pursuant to KRS Chapter
13B and 805 KAR 1:100 before the Kentucky Oil and Gas Conservation
Commission.
Section 2.
If an application for a directional or horizontal permit is submitted to the
department, the operator shall prepare a detailed drilling and casing plan on
Casing and Cementing Plan, Form OG-7, for the review by and the approval or
denial of the department. The items requested in 805 KAR 1:130, Section 3(1),
(2), and (3) shall be submitted with this plan.
Section 3. The operator shall install a
blow-out preventer with a minimum working pressure of 1,500 psi and a test
pressure of 3,000 psi or a minimum working pressure greater than the maximum
anticipated surface pressure, whichever is greater.
(1) A description of this device and its
installation shall be included with the drilling and casing plan as established
in Section 2 of this administrative regulation.
(2) This BOP equipment shall be tested at
intervals necessary to maintain its ability to operate at rated capacity. The
results of these tests shall be kept at the drill site and made available to
department personnel upon request.
Section 4. The requirements of 805 KAR 1:130,
Sections 5, 6, and 7 shall also apply to this administrative
regulation.
Section 5. An operator
noncompliant with the requirements of this administrative regulation shall be
subject to penalties pursuant to KRS 353.991 for oil and gas wells or KRS 349.155 for coalbed methane wells.
Section
6. Incorporation by Reference.
(1) "Casing and Cementing Plan", OG-7, June
2019, is incorporated by reference.
(2) This material may be inspected, copied,
or obtained, subject to applicable copyright law, at the Division of Oil and
Gas, 300 Sower Boulevard, Frankfort, Kentucky 40601, Monday through Friday, 8
a.m. to 4:30 p.m., Eastern Prevailing Time.
STATUTORY AUTHORITY: KRS 349.115, 353.540,
353.550
