KRS 353.520: Territorial application of KRS 353.500 to 353.720 -- Waste of oil and gas

prohibited.

(1) KRS 353.500 to 353.720 shall apply to all lands located in the Commonwealth,

however owned, including any lands owned or administered by any government or

any ag ency or political subdivision thereof, over which the Commonwealth has

jurisdiction under its police power.

(2) The waste of oil and gas is hereby prohibited. The waste prohibited includes

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

includes:

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

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

to cause, a reduction in the quantity of oil or gas ultimately recoverable from a

pool under prudent and proper operations, or contrary to any provision of, or

any order, rule or regulation promulgated or issued under KRS 353.500 to

353.720;

(b) Permitting the migration of oil, gas or water from the stratum in which it is

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

oil or gas, or both;

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

oil or gas in paying quantities, except for secondary recovery purposes, or in

hydraulic fracturing or other completion practices;

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

workable coal seams, or other mineral deposits in the operations for the

discovery, development, production or handling of oil and gas;

(e) The unnecessary or excessive loss of oil and gas by spillage or venting or

destruction of oil or gas or their constituents; and

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

the maximum amount of oil and gas from a pool.

(3) The production of oil or gas from any well in any pool unless a permit has been

issued as required by KRS 353.500 to 353.720, or in violation of the spacing

provisions of KRS 353.500 to 353.720, is prohibited; except that this subsecti on

shall not prohibit the continuation of production of oil or gas from a well producing

oil or gas on June 16, 1960.