KRS 349.025: Procedure for plugging and abandoning wells -- Request for hearing --

Exception -- Rights of coal interest holder.

(1) Prior to the abandonment of a coalbed methane well drilled through a workable

coalbed, the well operator shall notify, by certified mail, return receipt requested, or

by registered mail, all the coal interest holders of the workable coalbed and the

department of the operator's intention to plug and abandon the well. The notice shall

give the number of the well and its location, and fix the time at which the work of

plugging and filling will be commenced. The time shall not be less than fifteen (15)

days after the day on which the notice was received, or in due course should be

received, by the department. The department shall prescribe the form of notice to be

used. A representative of any coal interest holder, at his or her own expense and

liability, and of the department may be present at the plugging and filling of the

well. Regardless of whether representatives appear, the well opera tor may proceed,

at the time fixed, to plug and fill the well. When the well is plugged and filled, an

affidavit setting forth the time and manner in which the well was plugged shall be

made in triplicate by two (2) persons experienced in plugging and fill ing wells who

participated in the work. The affidavit shall be made on forms furnished by the

department. One (1) copy of the affidavit shall be retained by the well operator, one

(1) provided to each coal interest holder, and one (1) provided to the department.

(2) In addition to the notification required under subsection (1) of this section, prior to

the abandonment of a coalbed methane well the operator shall submit a plugging

plan which is subject to approval by the department. The proposed plugging pla n

shall be designed to allow coal mining to occur through the well after the well is

plugged.

(3) If a coalbed methane well ceases to produce in paying quantities and no dewatering

operations are being conducted for a period of fifteen (15) consecutive mon ths, any

coal interest holder or any record oil or gas lessor or lessee of any tract being

penetrated by the coalbed methane well, may file a request for hearing pursuant to

KRS 349.060, to determine whether the well has been abandoned and should be

plugged in accordance with this section. However, nothing in this subsection shall

require the plugging and abandonment of a coalbed methane well that is being

temporarily shut in by the coalbed methane well operator. Simultaneously with the

filing of a request for a hearing with the department, the person requesting the

hearing shall send a copy of the request to the coalbed methane well operator.

(4) Any coal interest holder shall have the following rights with respect to a coalbed

methane well to be plugged and abandoned:

(a) To convert the coalbed methane well to a vent hole or otherwise take the

coalbed methane well. In this event the department, upon determination that

the coal interest holder has placed the coalbed methane well under a mining

permit, shall release the coalbed methane well operator's bond and the coalbed

methane well operator shall be relieved of further responsibility for the

coalbed methane well; and

(b) To file an objection concerning the proposed manner or method of plugging

with the department, within fifteen (15) days after receipt of notice of intent to

plug. The department shall consider any objection and may issue an order

specifying the manner and method of plugging and reclamation consistent

with this section.

(5) All coalbed methane wells shall be plugged and abandoned in accordance with this

section. The department shall promulgate regulations specifying the manner and

method of plugging vertical and horizontal coalbed methane wells and in so doing,

or in entering any order for suc h plugging and abandonment, shall give

consideration to the ability to mine any affected coal seam safely and the protection

of any affected coal seam for future mining.