Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO: KRS 349.015, 349.105, 349.120, 349.130, 349.155,
353.180, 353.510, 353.520, 353.561 - 353.564, 353.590, 353.5901, 353.592,
353.595, 353.597, 353.651, 353.652, 353.6601 - 353.6606, 353.730, 353.737,
353.991
NECESSITY, FUNCTION, AND CONFORMITY: KRS 353.5901(1) requires
an oil or gas well operator to submit to the Department for Natural Resources
an operations and reclamation plan. KRS 349.130 requires an applicant for a
coal bed methane well permit submit to the Department for Natural Resources an
operations and reclamation proposal when applying for a permit. This
administrative regulation establishes the content of the operations and
reclamation plan, establishes the form on which that plan is to be filed, and
establishes the form on which well transfers are indicated.
Section 1.
(1) The operations and reclamation plan shall
be filed on a completed and notarized Operations and Reclamation Plan, Form
OG-10.
(2) In addition to the
requirements set out in KRS 353.5901 and KRS 349.130, the following information
shall be submitted on Form OG-10:
(a)
1. The operator's and surface owner's names,
addresses, and telephone numbers;
2. The county in which the well is proposed
to be drilled; and
3. The well
number;
(b)
1. A listing or description of fertilizers
and soil amendments to be used and seed mixes or trees to be planted as
established in the table in this subparagraph.
RECOMMENDED HERBACEOUS MIXTURES FOR
REVEGETATION
|
Note: A species enclosed in parenthesis may be
substituted for the species to the left. Its seeding rate is enclosed in
parentheses.
|
Species Mixture
|
Seeding Rate (Pounds/acre PLS)
|
Spring - February 15 to May 15
|
1. Orchardgrass
|
10
|
White or Ladino clover
|
2
|
Red clover
|
6
|
2. Orchardgrass
|
10
|
White or Ladino clover
|
1
|
Red clover
|
4
|
Kobe lespedeza
|
10
|
3. Orchardgrass
|
10
|
Birdsfoot trefoil (Alfalfa)
|
8 (15)
|
Red clover
|
6
|
4. 31 Tall fescue
|
20
|
5. Wheat (Spring oats)
|
25 (32)
|
Switchgrass
|
10
|
Indiangrass
|
10
|
Big bluestem
|
5
|
Little bluestem
|
5
|
Birdsfoot trefoil
|
6
|
Except for mixture 5, add one (1) of the following
quick cover species to the selected permanent spring seeding mixture:
|
Wheat (before April 15)
|
30
|
Spring oats (before April 15)
|
32
|
Balbo rye (before April 15)
|
30
|
Perennial ryegrass
|
10
|
Annual ryegrass
|
5
|
Weeping lovegrass (after April 1)
|
2
|
Summer - May 15 to August 1
|
Orchardgrass
|
10
|
Kobe lespedeza
|
15
|
Red clover
|
4
|
White clover (Birdsfoot trefoil)
|
1 (6)
|
Alfalfa
|
12
|
Add one (1) of the following quick cover species to
the permanent summer seeding mixture:
|
Sorghum
|
20
|
Foxtail (German) millet
|
12
|
Japanese millet
|
15
|
Soybeans
|
40
|
Cowpeas
|
40
|
Pearl millet
|
10
|
31 Tall fescue
|
20
|
Fall - August 1 to October 1
|
1. Orchardgrass
|
10
|
White or Ladino clover
|
2
|
Red clover
|
6
|
2. Orchardgrass
|
10
|
Alfalfa (Birdsfoot trefoil)
|
15 (8)
|
Red clover
|
6
|
3. 31 Tall fescue
|
20
|
4. Deertongue
|
12
|
Birdsfoot trefoil
|
8
|
Red clover
|
6
|
Add one (1) of the following quick cover species to
the selected permanent fall seeding mixture:
|
Winter wheat
|
30
|
Balbo rye or Winter rye
|
30
|
Winter oats
|
32
|
Perennial ryegrass
|
10
|
Annual ryegrass
|
5
|
Mixtures for Wet or Poorly Drained Areas and Pond
Borders
|
Spring - February 15 to May 15
|
Japanese millet
|
10
|
Redtop (Reed ca-narygrass)
|
3 (15)
|
Alsike clover
|
4
|
31 Tall fescue
|
20
|
Common annual lespedeza (quick cover species)
|
10
|
Fall - August 1 to October 1
|
Redtop
|
3
|
Reed canarygrass
|
15
|
Alsike clover
|
6
|
31 Tall fescue
|
20
|
Common annual lespedeza (quick cover species)
|
10
|
Mixture for Areas to be Stocked With Woody
Plants
|
Spring or Fall Seeding
|
Redtop
|
3
|
Perennial ryegrass
|
5
|
Birdsfoot trefoil (Ap-palow lespedeza)
|
10 (20)
|
Foxtail millet (quick cover species)
|
5
|
If both Appalow lespedeza and birdsfoot trefoil are
used, cut their seeding rates in half.
|
2. The
requirements in subparagraph 1. of this paragraph shall apply for each affected
area requiring revegetation treatment; and
(c) A detailed map of the road, well
location, and proposed area of disturbance, which shall be in sufficient detail
to allow ready identification of surface features and which shall satisfy the
requirements established in subparagraphs 1. through 4. of this paragraph.
1.
a. The
surface owner's tract shall be identified on the map, with the name of the
surface owner if not listed on the legend.
b. The map shall indicate the acreage to be
disturbed.
2. The map may
be made over an enlarged section of the United States Geological Survey (USGS)
1:24000 topographic map, or an equivalent format, and shall be:
a. Enlarged to 1"=400'; and
b. Submitted on a minimum of an eight and
one-half (8 1/2) inch by fourteen (14) inches sheet, using the symbols
established on Form OG-10.
3. The map shall have a legend with the
operator's and surface owner's names not listed on the map, the scale of the
map, the well name and number, and the lease name. Within 500 feet of the
permitted wellsite boundary and 100 feet of the well site access road
centerline, the map shall show:
a. The
location of all features listed on the legend of form OG-10;
b. All water bodies; and
c. If reasonably ascertainable, public
utility infrastructure.
4. The map shall show the drainage pattern on
and away from the area to be affected, including the direction of flow,
proposed constructed drainways, natural drainways to be used for drainage, and
the streams or tributaries to receive discharges from the proposed
operation.
(3) A signature of the surface owner shall be
obtained in instances of a complete severance of the ownership of the oil, gas,
or coalbed methane from the ownership of the surface to be disturbed. Signatory
sections for the operator and surface owner shall be completed on Form OG-10
pursuant to paragraphs (a) and (b) of this subsection.
(a) The name and title, if any, of the
operator shall be indicated and his or her signature notarized.
1.
a. The
signature shall be either that of an officer of the company or of a person who
holds a duly recorded power of attorney to execute documents.
b. A copy of the power of attorney shall be
filed with the division.
2. If the prospective operator is an
individual, the signatory shall be in the same name as the applicant's. If
someone other than the applicant signs the form, the signatory shall hold a
duly recorded power of attorney.
(b) The surface owner's name shall be
indicated and his or her signature notarized if he or she approves of the
operations and reclamation plan, together with any attachments submitted with
it.
Section 2.
Unsigned Reclamation Forms. If the owner of the surface of the severed minerals
tract is unwilling or for some other reason has failed to sign Form OG-10, the
operator shall file:
(1) A written petition
for mediation; and
(2) The items
established in paragraphs (a) and (b) of this subsection.
(a) A copy of the certified mail receipt
verifying that the operations and reclamation plan, the statement required in
KRS 353.5901(4)(b), and the plat were mailed to and received by the surface
owner or, if not received, the original or a copy of the unclaimed envelope. A
copy of the operations and reclamation plan and the attachments enclosed in the
envelope mailed to the surface owner shall also be included.
(b) If the surface owner cannot be reached at
his last known address of record and certified mail is returned as
undeliverable or unknown, the operator shall publish a notice of intended
activity, together with a request for information on the whereabouts of the
surface owner.
1. The publication shall be
made two (2) consecutive times in a local newspaper in the county where the
proposed well is located and once in a newspaper of general
circulation.
2. A copy of the
notice of intended activity and request for surface owner information shall be
included with the operator's application for permit and shall include:
a. The name and address of the
operator;
b. A brief description of
the intended activity as established in the operations and reclamation plan;
and c.
c. A statement of where
interested persons may obtain additional information as to the operator's
intended activity.
3. The
surface owner shall respond to the notice established in this
paragraph.
Section 3. Mediation of Dispute.
(1) The surface owner may file with the
division a request for mediation after receiving from the operator the proposed
operations and reclamation plan, but only after the operator has filed his
request for mediation and not later than the time set forth in the Notice of
Request for Mediation provided by the department and mailed to the surface
owner. The surface owner's request to participate in mediation shall include
the mediation fee, in accordance with KRS 353.5901(6), or a request for waiver
of the fee.
(2) Contents of a
request for fee waiver. The request for waiver of the mediation fee shall
include:
(a) A brief statement of facts
underlying the request for a determination that the individual is financially
unable to pay the mediation fee required by KRS 353.5901(6); and
(b)
1.
Documentation that the individual is receiving or has been deemed eligible to
receive public assistance; or
2. An
affidavit, subject to penalties for perjury, establishing:
a. The applicant's individual
income;
b. The applicant's
household income;
c. Property
owned;
d. Outstanding
obligations;
e. The number and age
of dependents; and
f. A copy of
his or her most recent Kentucky and federal income tax
returns.
(3) Waiver determination.
(a) Within thirty (30) days of filing of the
petition, the mediator shall issue a determination accepting or denying the
request for fee waiver. If the fee waiver is denied, the applicant shall be
informed in writing and the applicant shall be given thirty (30) days from the
mailing of the mediator's waiver denial to submit the mediation fee to the
department, or the surface owner shall be deemed to have failed to satisfy the
statutory requirements applicable to mediation and a report shall be issued
pursuant to subsection (4) of this section.
(b) The mediator's waiver determination shall
not be subject to appeal.
(c) In
considering the request for fee waiver, the mediator shall consider the
statement and affidavit submitted by the surface owner and consult the Federal
Poverty Guidelines in effect upon the date the request is mailed.
(d) The mediator shall waive the mediation
fee for any surface owner whose household income is at or below 100 percent of
the Federal Poverty Guidelines.
(e)
The mediator shall waive the mediation fee for any surface owner whose
household income exceeds 100 percent of the Federal Poverty Guidelines if the
mediator determines that the surface owner has demonstrated financial inability
to pay the fee.
(f) It shall be
presumed that the surface owner has the financial ability to pay the mediation
fee if that person:
1. Is not receiving, or is
not eligible to receive, public assistance payments upon the date the affidavit
is submitted; or
2. Owns more than
one (1) motor vehicle.
(4) If the surface owner does not file the
mediation fee within the time and in the manner required in the Notice of
Request for Mediation, the surface owner shall be deemed to have failed to
satisfy the statutory requirements applicable to mediation. The mediator shall
file a report noting the failure and recommend the acceptance of the operator's
operations and reclamation plan.
(5)
(a) The
mediator shall not settle damage claims or make any determinations regarding
damage claims in the report.
(b)
Information presented by the operator or surface owner as to costs incurred by
either party as a result of the projected drilling and the loss of minerals or
surface damage may be utilized by the mediator in recommending the placement of
roads, pits, or other construction and reclamation activities in a manner that
has the least adverse surface impact.
(6) If the operator withdraws his or her
application for a permit to drill, deepen, or reopen a well after receipt by
the division of the surface owner's mediation fee, that fee shall be refunded
to the surface owner.
Section
4. Construction, Reclamation, and Maintenance.
(1) Pre-construction planning shall be
performed to design access roads, wellsite, and pits along existing topography
to minimize erosion and identify locations for sediment control practices and
devices in accordance with the operations and reclamation plan.
(2) Construction activities shall incorporate
BMPs for erosion and sedimentation control on all disturbed areas.
(a) All cuts and fills shall have side slopes
that are stable for the soil or fill material utilized.
(b) A wellsite shall be constructed on a
stable base.
(c) Pits shall comply
with the construction requirements in subparagraphs 1. through 7. of this
paragraph.
1.
a. Except as established in clause b. of this
subparagraph, pits shall be constructed on the cut or highwall side of well
sites in non-fill areas.
b. If site
conditions prevent compliance with clause a. of this subparagraph, then pits
may be constructed in fill areas if a division representative has determined
that the location is stable and will prevent failure of the
pit.
2. Pits shall be
located above the 100-year floodplain in order to maximize the distance from
surface waters of the Commonwealth.
3. Pits shall be of sufficient size and shape
to contain all drilling fluids, cuttings, well completion, and treatment fluids
from the well.
4.
a. Pits shall be lined with an impermeable
synthetic material having a minimum thickness of ten (10) mils to prevent
movement of pit fluids into the subsurface.
b.
(i) The
liner requirement may be waived by a division representative if the drilling
mud circulation system utilizes bentonite clay and the division representative
observes soil conditions confirming the presence of clay, which shall create an
impermeable barrier preventing infiltration of pit fluids into the underlying
soil and rock strata.
(ii) The
division representative shall not approve waivers to clause a. of this
subparagraph in areas as identified by Kentucky Geologic Survey mapping as
being underlain by bedrock with high or moderate potential for karst
development.
5.
Diversion ditches shall be constructed up slope of the pit to divert surface
runoff so that the pit has no additional drainage area.
6. Pits shall be constructed to maintain a
continuous freeboard of at least two (2) feet above ground level to prevent
overflow.
7. A steel tank, of
sufficient size and shape to contain all drilling fluids, cuttings, well
completion, and treatment fluids, may be used in lieu of an excavated
pit.
(d) A disturbed
area shall be graded and stabilized so that soil erosion, surface disturbances,
and stream sedimentation is minimized utilizing best management practices, in
accordance with the approved operations and reclamation plan.
(e) If practicable, all topsoil present in
the area to be disturbed shall be removed and segregated for redistribution
during reclamation.
(f) Temporary
erosion control measures shall be implemented during construction of the road
to minimize sedimentation and erosion until permanent control measures
including seeded and mulched road ditches can be established.
(3) If the well produces and the
site is kept open for long-term use for well servicing and for oil and gas
removal, the operator shall:
(a) Maintain
access roads in a manner as to:
1. Allow
access by the operator without causing unreasonable settlement of the roadbed
or slides of the cut slopes; and
2.
Provide that maintenance shall be in accordance with the operations and
reclamation plan;
(b)
Establish drainage:
1. To adequately accept
runoff from access roads, the well site, and other areas in a manner that shall
prevent unreasonable interference with the surface owner's property, roads,
farming operations, and buildings; and
2. In accordance with the operations and
reclamation plan;
(c)
1. Repair access roads, the well site area,
and pits damaged by events as floods, landslides, or excessive settlement of
the embankment as soon as practicable after the damage has occurred;
2. Not be responsible for damage attributable
to another party's use of the access road not relating to the drilling,
construction, or operation of the well by the operator; and
(d) Maintain and operate pits in
accordance with subparagraphs 1. through 5. of this paragraph.
1.
a. Pits
shall not remain open for more than thirty (30) days after drilling or well
completion, unless an extension is requested and approved by the
director.
b. A multi-well pad shall
be closed within thirty (30) days after drilling or well completion of the last
well on the well site.
c. Upon
written request, the director may, with good cause, extend the allowable life
of the pit to a maximum ninety (90) days after drilling or well
completion.
2. Pits shall
not be used to dispose of garbage.
3. The pit and applicable portion of the well
site not utilized for production purposes shall be closed in accordance with
Section 6(1)(b).
4. Discharge from
a pit or any activity associated with the drilling or completion of a well to
any surface or ground waters or in a location where it is likely to cause
pollution to any surface or groundwater shall be prohibited.
5. Pits shall be monitored for integrity and
slope stability until closure of the pit.
Section 5. Site closure.
(1) The department shall consider a wellsite
closed after:
(a) All surface production
facilities have been removed;
(b)
Pits have been closed in accordance with subparagraphs 1. through 4. of this
paragraph:
1. All standing fluids in the pit
shall be removed and disposed of in accordance with 805 KAR 1:110;
2. The operator shall ensure solidification
of drill cuttings by mixing earthen material within the pit;
3. Pit solids shall be encapsulated in the
liner and buried prior to surface restoration and reclamation; and
4. The pit shall be back-filled with earthen
material to establish natural grade with the surrounding wellsite;
(c) The well has been plugged
under direction of the department;
(d) Written notice has been provided by the
operator to the division that final reclamation and site closure has been
completed pursuant to the operations and reclamation plan; and
(e) The cabinet has verified that the
reclamation work complies with the operations and reclamation plan in the
approved permit package.
(2) The bond required in KRS 353.590(7), (8), (9) or KRS 349.120 shall not be released until a division inspector has:
(a) Made an inspection of the well site one
(1) year after the date of the letter of notification from the operator of
final reclamation and plugging; and
(b) Filed a report to the director
documenting that the following have occurred:
1. All areas disturbed by the operator have
been secured in a manner to prevent runoff, sedimentation, settlement of the
roadway, or sliding of cut slopes or any fill material;
2. A diverse and effective permanent
vegetative cover has been established; and
3. Any matters relating to settlement,
inadequate vegetative cover, or erosion have been corrected.
Section 6.
Transfer of Wells having Existing Reclamation Plans.
(1) Prior to transferring a well for which an
approved operations and reclamation plan is on file with the division, the
operator shall:
(a) Provide the successor
operator a copy of the approved reclamation forms and attachments on file with
the division before signing Well Transfer Form OG-13;
(b) Advise the successor operator of any
reclamation responsibility the transferring operator had with regard to the
well and related surface disturbance;
(c) Secure from the successor operator a
letter indicating that the operator has received from the transferring operator
a copy of Form OG-10 and that he or she is willing to accept responsibility for
the reclamation of the well site and other surface disturbances related to the
operation of the well;
(d) Submit
to the division the completed and notarized Well Transfer, Form OG-13,
applicable fee, and the letter of the successor operator's agreement to accept
responsibility for reclamation in the manner established on Form OG-10;
and
(e) Provide the surface owner
of record with a copy of form OG-13 upon submission to the division.
(2) The division shall not
transfer the well until the requirements of this section are satisfied and
shall advise the transferring and successor operators in writing upon transfer
of the well.
(3) The transferee of
a well shall assume all obligations in accordance with the terms of the permit,
this section, and KRS 353.590(23) upon transfer.
Section 7.
(1) If a well is to be drilled and completed
on federal lands, the director shall accept a copy of a surface use reclamation
agreement between the well operator and the federal agency in lieu of the
operations and reclamation plan.
(2) If the operator elects to submit this
agreement, it shall be submitted with the application for permit to drill a
well.
Section 8.
(1) If a field inspection indicates there is
noncompliance with the approved operations and reclamation plan or the
requirements of Section 5 of this administrative regulation, a written notice
of violation describing the noncompliance shall be given to the operator,
together with a statement of the action required to correct the
noncompliance.
(2) The written
notice of violation shall allow the operator up to forty-five (45) days to
correct the violation.
(3) An
operator may file for an extension of time to correct a violation. A request
for an extension of time shall be submitted via a letter to the director
describing the need for that extension. If the director concludes that the
reasons for the request are beyond the operator's control and that an extension
of time will not violate the requirements of this administrative regulation or
applicable statutes, the director shall grant the request for extension of
time.
(4) The operator's bond shall
be forfeited to the department's oil and gas well plugging fund, pursuant to
KRS 353.590(27), if the operator fails to make required corrections.
(5) An operator who, after a hearing, is
determined by the department to be in noncompliance with any section of this
administrative regulation, or who fails to abate any noncompliance of the
approved operations and reclamation plan, shall be subject to the penalties
described in KRS 353.991.
Section
9. Incorporation by Reference.
(1) The following material is incorporated by
reference:
(a) "Operations and Reclamation
Plan", OG-10, October 2019; and
(b)
"Well Transfer", OG-13, June 2019.
(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 349.130, 353.540, 353.550, 353.5901,
353.670