KRS 349.050: Requirements and procedures for stimulating workable coal seam --

Contents and construction of agreements to stimulate -- Request for hearing --

Liability of well operator.

(1) If any coal interest holder has objected to the proposed stimulation pursuant to KRS

349.020(1), no permit shall be issued to stimulate a coalbed methane well unless the

applicant has obtained and filed with the department an agreement between the coal

interest holders of any workable coalbed within five hundred (500) horizontal feet

of the proposed coalbed methane well to be stimulated and within the five hundred

(500) foot horizontal radius and fifty (50) vertical feet above or below the workable

coalbed proposed to be stimulated.

(2) The requirement for an agreement to stimula te in this section shall not be construed

to impair, abridge, or affect any contractual rights or obligations arising out of a

contract, lease, deed, or similar agreement which provides for the development of

coalbed methane and stimulation of workable coa lbeds between the applicant and

the coal interest holder. The existence of any such contract, lease, deed, or similar

document shall constitute a waiver of the requirement to file an agreement to

stimulate with the department.

(3) An agreement to stimulate shall provide:

(a) That the coal interest holder has been provided with a copy of the permit

application to drill a coalbed methane well and a copy of all plats and

documents which may accompany the application; and

(b) That the coal interest holder agrees to the stimulation of the workable coalbed

as described in the application.

(4) Subject to KRS 349.020(5), in the absence of the applicant submitting the

agreement to stimulate as described herein, the applicant may submit a request for a

hearing before the review board accompanied by an affidavit, or verified statement,

which shall include the following:

(a) A statement that the coal interest holder has refused to sign a written

agreement to stimulate the workable coalbed;

(b) A statement detailing the e fforts undertaken to obtain the signed agreement to

stimulate; and

(c) A statement that the proposed method of stimulation does not involve the use

of explosives and will not have a significant adverse affect on the mineability

of the workable coalbed, or impair mine safety.

(5) The failure to obtain an agreement to stimulate shall in no way create an inference

or presumption that the method of stimulation proposed by the applicant will harm

the workable coalbed.

(6) Upon receipt of a request for a hearing and an affidavit, or verified statement, as set

forth in this section, the department shall forward the application to the review

board to consider the proposed stimulation, or if other objections or requests are

filed requiring a hearing before the review board, the request may be included for

consideration by the review board along with other matters related to the permit

application.

(7) Any well operator that stimulates a workable coalbed without an agreement to

stimulate from the coal interest holder s hall be liable in tort without proof of

negligence for any damages proximately caused by the stimulation to the workable

coalbed, or any other workable coalbed within five hundred (500) horizontal feet of

the coalbed methane well stimulated or within the f ive hundred (500) foot

horizontal radius and fifty (50) vertical feet above or below the workable coalbed

stimulated and for damages to any mining equipment proximately caused by the

stimulation. The well operator shall be liable for injury, death, or dama ge to

property proximately caused by the stimulation.