312 IAC 29-13-7 - Approval of alternate drilling units
Authority: IC 14-10-2-4; IC 14-37-3
Affected: IC 14-37
Sec. 7.
(a) If an
area larger than a drilling unit as specified in sections 3 through 5 of this
rule is under common ownership or control, the division director may approve
the drilling of wells at a greater density than would otherwise be permissible
under this rule provided the operator demonstrates the following:
(1) The proposed drilling pattern within the
area of common ownership or control is reasonably necessary for more efficient
recovery of oil, gas, or coal bed methane.
(2) Waste will not occur.
(3) Unnecessary wells will not be
drilled.
(4) The wells maintain the
required distance from the nearest external drilling unit boundary line not
under common ownership or control as specified in sections 3 through 5 of this
rule.
(5) The wells maintain the
required distance from other wells on adjacent drilling units outside the area
of common ownership or control producing from the same formation.
(b) Any person with an interest in
oil or gas in a lease or drilling unit, including a pool-wide unit, may
petition the division director for the establishment of alternative drilling
units not otherwise provided in subsection (a) based on geologic or engineering
characteristics of the reservoir relative to the land survey system specified
for standard drilling units under sections 3 through 5 of this rule. The
petition shall include:
(1) the name and
address of the petitioner and all owners of record of oil and gas interests
within the petition area;
(2) the
name and address of each permittee of record of active wells located in and
within one-fourth (ΒΌ) mile of the boundary of the petition
area;
(3) the geologic or
engineering basis for requesting the alternative drilling unit;
(4) an isopach and structure map of the
reservoir showing the productive limits of the reservoir;
(5) a legal land description of the drilling
unit sought; and
(6) a
demonstration that the alternate drilling unit will not result in:
(A) waste;
(B) unreasonable drainage of oil, gas, or
coal bed methane from adjacent drilling units; or
(C) the drilling of unnecessary
wells.
(c) Upon
acceptance of a complete petition under subsection (b), the division director
shall schedule an informal hearing under
312 IAC 29-3-4 to consider the
request.
Notes
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