KRS 349.020: Filing of objections to drilling -- Filing of real property interest claims --

Issuance of drilling permit -- Department to notify Division of Mine Permits of

applications to drill -- Appeal to review board.

(1) If the drilling of a coalbed methane we ll could adversely affect the present or future

use or operation of a workable coalbed, any coal interest holder may object to a

proposed coalbed methane well, the well's location, the proposed stimulation in the

workable coalbed, or the proposed completio n in the workable coalbed. Any coal

interest holder, within twenty (20) days of receipt of the plat by him or her and by

the department, may file specific objections in writing with the department. The

filed objections shall provide sufficient detail for the applicant to identify the nature

and substance of the objection. The department shall notify the applicant of the

objections and fix a time and place for a hearing before the review board to be

conducted in accordance with KRS Chapter 13B and this chapter.

(2) If any coal interest holder, notified pursuant to KRS 349.015, or any other person,

claims to have a valid real property interest in, or the current legal right to produce,

coalbed methane, the person claiming the real property interest or right sh all notify

the applicant and the department, in writing, within twenty (20) days from the

receipt of the plat by him or her and by the department. The person also shall

request that a pooling order be entered pursuant to KRS 349.080(1).

(3) If the record o il and gas lessor, lessee, or well operator notified pursuant to KRS

349.015, or any other person, claims to have a valid real property interest in, or the

current legal right to produce, coalbed methane, the person claiming the real

property interest or r ight shall notify the applicant and the department, in writing,

within twenty (20) days from the receipt of the plat by him. The person shall request

that a pooling order be entered pursuant to KRS 349.080(1).

(4) If no objections are filed within the twen ty (20) day period, the department shall

immediately issue a drilling permit to the well operator approving the location of

the well and authorizing the well operator to proceed to drill at that location,

provided all other preconditions to issuance of a permit, as contained in this chapter,

have been met.

(5) Upon receipt of an application to drill a coalbed methane well, the department shall

provide a copy of the required plat and permit application to the division. Within

fifteen (15) days of receipt by the division, notification shall be sent to the

department by the division as to whether the proposed coalbed methane well will be

located within the boundaries of any coal mine for which a permit has been issued

or has been applied for pursuant to KRS Cha pter 350. If the proposed coalbed

methane well is to penetrate a workable coalbed that is within the area of an

existing permit for an underground mine issued by the division, or the proposed

permitted area of a pending application or permit modification f or an underground

mine before the division, the written authorization of the mine permittee shall be

required prior to issuance by the department of a permit to stimulate, complete, or

horizontally drill the coalbed methane well in the workable coalbed tha t is within

the area of an existing permit for an underground mine issued by the division or

within the proposed permitted area of a pending application or permit modification

for an underground mine before the division. If the proposed coalbed methane wel l

is to be located within a surface area permitted, or proposed in a pending

application or permit modification to be issued by the division, the written

authorization of the mine permittee shall be required prior to issuance by the

department of a permit to drill the coalbed methane well. In the absence of the

written authorization of the mine permittee, the applicant may file an appeal with

the review board requesting approval to drill the proposed coalbed methane well if:

(a) Authorization has been denied by the mine permittee; and

(b) The proposed location and area to be disturbed by the proposed coalbed

methane well has achieved either a partial bond release status or the bond for

the area has been forfeited.