805 KAR 9:060. Operating or

deepening existing coal bed methane wells and drilling deeper than the

permitted depth.

 

      RELATES TO: KRS 349.015, 349.075,

349.120, 349.155

      STATUTORY AUTHORITY: KRS 349.110, 349.115

      NECESSITY, FUNCTION, AND CONFORMITY: KRS

349.115 authorizes the Department for Natural Resources to promulgate all

rules, administrative regulations, and amendments to implement the provisions

of KRS Chapter 349, governing coal bed methane wells. KRS 349.110 requires the

Department for Natural Resources to promulgate administrative regulations

concerning the drilling and operation of all coal bed methane wells. This

administrative regulation establishes the requirements to operate a well and

drill deeper than the permitted depth.

 

      Section 1. Definitions. The definitions

contained in KRS 349.010 and the following additional definitions shall apply

to this administrative regulation:

      (1) "Deepening" means the

drilling deeper of any existing well where new drilling is to proceed past the

depth at which the initial drilling of the well ceased.

      (2) "Operating a well" means to

reenter, reopen, deepen, drill, inject into, produce, attempt to produce, or

work over, any well.

 

      Section 2. New Permit Required. The

applicant shall obtain a permit to operate any well previously in violation of

KRS Chapter 349 or 805 KAR Chapter 9 and whose bond the department has forfeited

for noncompliance. The applicant shall comply with KRS Chapter 349 and 805 KAR

Chapter 9 before a new permit is granted.

 

      Section 3. New Permit Not Required. An

applicant may operate an existing well if he submits an acceptable well

transfer Form CBM-10 and bonding as required in KRS 349.015 if one (1) of the

following conditions exists:

      (1) The well is producing or capable of

producing, is not abandoned, and is not in violation of KRS Chapter 349 or 805

KAR Chapter 9; or

      (2) The well has been abandoned by the

previous operator, but the current applicant's sole intent is to reenter the

well for the purpose of properly plugging and abandoning it.

 

      Section 4. New Permit Required for

Deepening. The applicant shall obtain a new permit prior to deepening any well,

including a directional or horizontal well, if the original permit is more than

one (1) year old and the well was not deepened pursuant to that permit or the

original well was drilled prior to the permitting requirements of the

department, and shall not deepen the well until the permit is issued.

 

      Section 5. New Permit Not Required for

Deepening. The permitted operator may deepen an existing well if the permit is

not more than one (1) year old and the well has not been drilled past the permitted

and bonded depth. The operator shall not drill deeper than the permitted depth

if this drilling causes the well to be in noncompliance with the well spacing

standards set out in KRS 349.075 or the notice requirements contained in KRS

349.015.

 

      Section 6. Operator Noncompliance. An

operator in noncompliance with the requirements of this administrative

regulation is subject to the penalties established in KRS 349.155.

 

      Section 7. Material Incorporated by

Reference.

      (1) "Well Transfer," Form

CBM-10, Jan. 2005, Division of Oil and Gas Conservation, is incorporated by

reference.

      (2) This form may be inspected, copied,

or obtained, subject to applicable copyright law, at the Kentucky Department

for Natural Resources, Division of Oil and Gas Conservation, 1025 Capital Center

Drive, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.

(31 Ky.R. 1472; Am. 1966; eff. 6-8-2005.)