KRS 349.035: Application of chapter -- Prohibition of waste -- Permits required --

Notification to state and federal agencies.

(1) This chapter shall apply to all lands located in the Commonwealth however owned

including lands owned or administered by any governme nt or any agency or

political subdivision thereof, over which the Commonwealth has jurisdiction under

its police power.

(2) The waste of coalbed methane is hereby prohibited. The waste prohibited includes

physical waste as that term is generally understood in the oil, gas, and coalbed

methane industry, giving consideration to coal mining operations and the safe

recovery of coal and includes:

(a) The locating, drilling, equipping, operating, or producing of any coalbed

methane well or wells drilled, deepened , or reopened in a manner that causes

or tends to cause a reduction in the quantity of coalbed methane ultimately

recoverable from a pool under prudent and proper operations, or contrary to

any provision of, or any order, rule or administrative regulation promulgated

or issued under this chapter;

(b) Permitting the migration of coalbed methane from the stratum in which it is

found into other strata, thereby ultimately resulting in the loss of recoverable

coalbed methane;

(c) The drowning with water of any s tratum or part thereof capable of producing

coalbed methane in paying quantities, except for secondary recovery purposes,

or in hydraulic fracturing or other completion practices;

(d) The unlawful damage to underground, fresh, or mineral water supply,

coalbeds, or other mineral deposits in the operations for the discovery,

development, production, or handling of coalbed methane;

(e) The unnecessary or excessive loss of coalbed methane by spillage or venting

or destruction of coalbed methane or its constituents; and

(f) The drilling of more wells than are reasonably required to recover efficiently

the maximum amount of coalbed methane from a pool.

(3) For purposes of this chapter, waste does not include coalbed methane vented or

released from any mine area, t he degasification of a coal seam for the safe recovery

of coal, the plugging of coalbed methane wells for the safe recovery of coal, or the

conversion of coalbed methane wells to vent holes for the safe recovery of coal.

(4) The sale or use of coalbed meth ane from any coalbed methane well unless a permit

has been issued as required by KRS 349.040, or in violation of the spacing

provisions of KRS 349.075, shall be prohibited.

(5) No person shall conduct coalbed methane operations unless that person has first

obtained the necessary permits, including surface discharge and underground

injection control permits, as appropriate for the particular operation to be

conducted. The department shall notify state and federal agencies with jurisdiction

over the protection of surface waters and groundwater when permit applications are

filed and shall, to the extent possible, coordinate permit review.