Administrative Rules of Montana
Department 36 - NATURAL RESOURCES AND CONSERVATION
Chapter 36.22 - OIL AND GAS CONSERVATION
Subchapter 36.22.6 - Permit to Drill
Rule 36.22.606 - NOTICE AND ELIGIBILITY STATEMENT FOR DRILLING OR RECOMPLETION IN UNIT OPERATIONS

(1) If the applicant desires a statement from the petroleum engineer to be filed with another state or federal agency relating to the need for an additional well or recompletion operation, and further, if either the notice applies to a gas well to be drilled or recompleted at a location and to a formation, zone, or depth which is unitized under a unit agreement approved by the board of oil and gas conservation pursuant to 82-11-204 through 82-11-216, MCA, and as to which all applicable well spacing rules and orders, excepting well location rules and orders applicable to exterior boundaries shall have been removed or the notice applies to a recompletion within an established spacing unit in the same reservoir, the applicant shall file the notice and an eligibility statement acceptable to the petroleum engineer.

(2) Such eligibility statement shall justify the need for the drilling of the new well or the performance of the recompletion operation and shall include geologic and engineering evidence as may be necessary for the petroleum engineer to determine that the new well or the recompletion operation is needed.

(3) The petroleum engineer shall make a written finding as to the sufficiency of the eligibility statement, including the need for the new well or the recompletion operation.

(4) Should the petroleum engineer fail to issue a drilling or recompletion permit within 10 days of filing the notice and eligibility statement, the applicant may apply to the board for a determination for the need for the new well or the recompletion operation, and a hearing on such application shall be held at the next regularly scheduled meeting of the board.