KRS 349.080: Authority of Coalbed Methane Well Review Board to issue pooling orders.

(1) Whenever an applicant proposes to drill, deepen, convert, or reopen a well for

purposes of production of coalbed methane and the ownership of the right to

produce coalbed methane is in dispute, the department shall refer the application to

the review boar d for its consideration and the issuance of appropriate pooling

orders, if any, in accordance with KRS 349.085. Upon the issuance of a pooling

order by the review board, and if all other provisions of this chapter are complied

with, the department shall issue a permit to drill, deepen, convert, or reopen the well

and require the development and operation of all pooled tracts and interests as a

single leasehold estate in accordance with the pooling order.

(2) No pooling as permitted by this section shall be ordered except:

(a) When an application has been filed to drill, deepen, or reopen a well within

the distance limitations prescribed in KRS 349.075; or

(b) A request for pooling has been made pursuant to this section or KRS 349.085.

(3) No pooling, as permitted by this section, shall be ordered with respect to any tract or

portion thereof upon which a well is drilled, deepened, or converted or reopened:

(a) Unless the pooling was requested prior to the commencement of the drilling,

deepening, converting, or reopening of the coalbed methane well; and

(b) Unless the request, if made by the owner of an operating interest who elects to

participate in the risk and cost of the drilling, deepening, converting, or

reopening of the coalbed methane well, is accompanie d by a bond or other

security satisfactory to and in an amount set by the review board for the

payment of such owner's share of the cost of drilling, deepening, converting,

or reopening the well.

(4) Production from any well which is ordered pooled pursuan t to this section shall be

deemed for all purposes to have been so produced from each tract or portion thereof

included in the pool in proportion to the amounts established in the pooling order.