{"data":{"id":"us-ky/krs-349.040","jurisdiction":"us-ky","citation":"KRS 349.040","heading":"Prohibited drilling activities -- Filing requirements for permit application -","body":"- Appeal -- Waiver -- Filing of maps and plans -- Denial of permit.\n(1) It is unlawful for any person to drill, commence, operate, deepen, convert, or\nstimulate any coalbed methane well, to conduct any horizontal drilling of a coalbed\nmethane well or to convert any existing oil or natural gas well to a coalbed methane\nwell, without first securing from the department a permit pursuant to this chapter.\nBefore any well, borehole , or facility initially used for a coal mining related\npurpose, such as a vent hole, is converted for the purpose of recovering coalbed\nmethane for sale or use, the operator shall obtain a permit and comply with the\nprovisions of this chapter prior to the time that the well, borehole, or facility is\nconverted or used for the purpose of recovering coalbed methane for sale or use. It\nis unlawful for any person to drill, deepen, convert, or reopen a coalbed methane\nwell for the production of oil or natural gas  or for the injection of water, gas, or\nother fluids into any oil or natural gas producing formation until the person has\nobtained a permit from the department for a petroleum or natural gas well pursuant\nto KRS 353.570. However, no additional permit fee s hall be required if the original\npermit for the coalbed methane well has not expired.\n(2) Every permit application filed under this section shall be verified and shall contain\nthe following:\n(a) A statement that the applicant claims to have a valid real pr operty interest in,\nor the current legal right to produce coalbed methane from a person claiming a\nvalid real property interest in, the coalbed methane. The statement shall\nidentify with specificity the nature of the real property interest and the\ndocument or instrument evidencing that interest or right, including recording\ninformation of any recorded document or instrument;\n(b) The names and addresses of the coalbed methane well operator and every\nperson or entity whom the applicant must notify under any s ection of this\nchapter;\n(c) The name and address of each coal interest holder of any workable coalbed\nwhich is to be penetrated by a proposed coalbed methane well or within seven\nhundred fifty (750) horizontal feet or fifty (50) vertical feet of any portio n of\nthe proposed coalbed methane well;\n(d) The name and addresses of each record oil and gas lessee of, the record oil\nand gas lessor of, and the operator of all oil and gas formations from the\nsurface to one hundred (100) feet below the deepest penetration of the coalbed\nmethane well on the tract upon which the coalbed methane well is proposed to\nbe located;\n(e) The coalbed methane well name or such other identification as the department\nmay require;\n(f) The approximate depth to which the coalbed methane well is to be drilled,\ndeepened, or converted, the coal seams including the depth and thickness of\neach seam that will be completed for production, and any other coal seams\nwhich will be penetrated by the coalbed methane well;\n(g) A description of any mean s to be used to stimulate any of the workable\ncoalbeds penetrated by the coalbed methane well;\n(h) If the proposed coalbed methane well will require casing or tubing, the entire\ncasing program for the coalbed methane well, including the size of each string\nof pipe, the starting point and depth to which each string is to be set, and the\nextent to which each string is to be cemented;\n(i) If the proposed operation is to convert an existing petroleum or natural gas\nwell, as defined in KRS 353.010(19), or to con vert a vertical borehole or\nfacility initially used for a coal mining related purpose, such as a vent hole, to\na coalbed methane well, all information required by this section, all\nformations from which production is anticipated, and any plans to plug any\nportion of the well;\n(j) Except for a vent hole proposed to be converted to a coalbed methane well, if\nthe proposed coalbed methane well will be completed in some but not all coal\nseams for production, a plan and design for the coalbed methane well which\nwill protect all workable coalbeds which will be penetrated by the coalbed\nmethane well;\n(k) If the proposed operations will include horizontal drilling of a coalbed\nmethane well, a description of the operations, including both the vertical and\nhorizontal alignment and extent of the coalbed methane well from the surface\nto total depth; and\n(l) Other information as the department may require consistent with this chapter.\n(3) Each application for a coalbed methane well permit shall be accomp anied by the\nfollowing:\n(a) A permit application fee of three hundred dollars ($300);\n(b) A bond in an amount prescribed in KRS 349.120;\n(c) A certificate that the applicant's notice requirements of KRS 349.015 have\nbeen satisfied. Certification may be by affidavit of personal service, or the\nreturn receipt card, or other postal receipt, for certified mailing;\n(d) If the proposed coalbed methane well will be located within one-half (1/2) of a\nmile, measuring horizontally, of a water supply well being used f or residential\nor domestic purposes, the applicant will submit the groundwater protection\nplan required under KRS 224.70 -110 and applicable administrative\nregulations promulgated pursuant thereto for review by the department, or\ndemonstrate to the department that a plan is not required; and\n(e) Proof that the applicant has public liability insurance coverage in an amount\nnot less than five hundred thousand dollars ($500,000) in aggregate and three\nhundred thousand dollars ($300,000) per occurrence for damag es to persons\nand property caused by the applicant's operations or proof that the applicant\nhas satisfied self -insurance requirements as provided by administrative\nregulations which shall be promulgated by the department.\n(4) Prior to the department's issu ance of a permit to drill a coalbed methane well, a\ncopy of the written authorization from the mine licensee shall be filed with the\napplication under the following circumstances:\n(a) If the proposed coalbed methane well is to penetrate a workable coalbed that\nis within the permitted area of an existing permit or the proposed permitted\narea of a permit pending before the division and if the applicant plans to\nstimulate, complete, or horizontally drill the coalbed methane well in a\nworkable coalbed that is within the permitted area of an existing permit or the\nproposed permitted area of a permit pending before the division;\n(b) If the proposed coalbed methane well is to be located within a surface area\npermitted under an existing permit, or the proposed permi tted area of a permit\npending before the division for which no bond release has been obtained; or\n(c) If the proposed coalbed methane well is to be located within a surface area\npermitted under an existing permit by the division for which a partial bond\nrelease has been obtained.\nIf a coalbed methane well permit is issued for a well site located within the\nboundaries of any coal mine for which a permit has been issued or is pending\npursuant to KRS Chapter 350, the permit shall include a provision specifica lly\nstating that the permitted coalbed methane well location is in an area for which a\ncoal mine permit has been issued or is pending pursuant to KRS Chapter 350 and is\nsubject to the mine-through rights set forth in KRS 349.030(1).\n(5) If a partial bond release for the surface area on which the proposed coalbed methane\nwell is located has been obtained from the division and the applicant is denied\nwritten authorization from the mine licensee, the applicant may file an appeal with\nthe review board requestin g approval to drill the proposed coalbed methane well.\nWhen requesting an appeal, the applicant shall submit a verified statement including\nthe following:\n(a) The applicant has met and conferred with or offered to meet and confer with\nthe mine licensee concerning the authorization;\n(b) The mine licensee has refused to provide written authorization to disturb the\npermitted area;\n(c) The physical area to be disturbed by the proposed well location and the use of\narea, including ingress and egress thereto, qual ifies as a commercial or\nindustrial postmining land use entitling the mine licensee to a complete bond\nrelease for the area to be disturbed by the coalbed methane well operator in\naccordance with KRS Chapter 350; and\n(d) The applicant has agreed to pay the  reasonable and actual costs of the permit\nrevision required by the division to affect the incremental bond release for the\nproposed area to be disturbed by the coalbed methane well operator, not to\nexceed five thousand dollars ($5,000).\n(6) Prior to the issuance of a permit to drill a coalbed methane well, the applicant shall\ngrant assignable subsidence waivers to any mine licensee if requested in an\nobjection filed pursuant to KRS 349.060 and, if required, to allow present or future\nmining with planned subsidence under KRS Chapter 350. However, this subsection\nand any subsidence waivers shall in no way waive, affect, or impair the ability of\nthe applicant or the applicant's successors or assigns to pursue any remedies for\ndamages to persons, or to improved  or tangible property, suffered or incurred as a\nresult of any subsidence caused by the mine licensee or the mine licensee's\nsuccessors or assigns. The mine licensee, its successors or assigns, shall be liable\nfor any and all damages to persons or to impro ved or tangible property proximately\ncaused by the mine licensee.\n(7) If the mine licensee is mining in a coal seam that is not being produced by the\ncoalbed methane well operator and has not exercised his or her mine-through rights,\nas set forth in KRS 34 9.030(1) or (2), in any coal mine before removing any coal or\nother material or driving any entry or passageway within five hundred (500)\nhorizontal feet of the vertical segment of a coalbed methane well or within fifty (50)\nvertical feet of the horizontal segment of a coalbed methane well, the mine licensee\nshall forward simultaneously to the well operator and to the department, by certified\nmail, return receipt requested, or by registered mail, a copy of the maps and plans\nrequired by law to be filed and kept up to date. Maps or plans shall show the mine\nworkings and projected mine workings within five hundred (500) horizontal feet of\nthe coalbed methane well. However, the issuance of any coalbed methane well\npermit shall not preclude or prevent coal mining outside two hundred (200) feet, but\nnot closer than fifty (50) feet, of the vertical segment of a coalbed methane well or\noutside of the workable coalbed in which the horizontal segment of a coalbed\nmethane well is located, unless specified by the depart ment for reasons of mine or\nwell safety. The mine licensee shall not mine within fifty (50) feet of the vertical\nsegment of a coalbed methane well without the written authorization of the coalbed\nmethane well operator. A mine licensee may file a request wi th the department to\nmine closer than two hundred (200) feet of the vertical segment of the coalbed\nmethane well. The mine licensee shall forward simultaneously to the well operator\nand the department, by certified mail, return receipt requested, or by registered mail,\na request to mine closer than two hundred (200) feet, but not closer than fifty (50)\nfeet, of the vertical segment of the coalbed methane well, which shall be\naccompanied by the following:\n(a) A copy of the maps and plans required by law to b e filed and kept up to date,\nshowing on the copy of the map or plan its mine plan workings and projected\nmine workings beneath the tract of land and within two hundred (200) feet,\nbut not closer than fifty (50) feet, of the vertical segment of the coalbed\nmethane well; and\n(b) A statement that the applicant has met and conferred with, or offered to meet\nand confer with, the well operator concerning the mine licensee's plan to mine\ncloser than two hundred (200) feet, but not closer than fifty (50) feet, of t he\nvertical segment of the coalbed methane well.\nThe well operator may, within twenty (20) days of receipt of the documents listed in\nparagraphs (a) and (b) of this subsection, file specific objections in writing with the\ndepartment. When objections are f iled, the department shall provide a copy of the\nobjections to the mine licensee and fix a time and place for an informal hearing. The\nhearing shall be held not more than ten (10) days from the end of the twenty (20)\nday period. At the hearing, the mine li censee and the well operator, in person or by\nrepresentative, shall consider the objections and seek agreement on the character\nand the extent of operations to be conducted within less than two hundred (200)\nfeet, but not closer than fifty (50) feet, of th e vertical segment of the coalbed\nmethane well. If no agreement can be reached, the department, after administrative\nhearing conducted in accordance with KRS Chapter 13B, shall make a decision\ndefining what coal, if any, is necessary to be left for the saf e protection, use, and\noperation of the well. The department's decision shall be subject to appeal by either\nparty as provided in this chapter. The department shall keep a complete record of all\nhearings. The mine licensee shall, every six (6) months, whil e mining within two\nhundred (200) feet, but not closer than fifty (50) feet, of the vertical segment of the\ncoalbed methane well, file up -to-date maps and plans required by this section, or\nfile new maps and plans complete to date.\n(8) The department may deny the issuance of a permit if it determines that the applicant\nhas a documented pattern or practice of substantial violations of the provisions of\nthis chapter and has failed to abate or seek review of the violations. If the\ndepartment finds that a subst antial violation has occurred with respect to existing\noperations and that the operator has failed to abate or seek review of the violation in\nthe time prescribed, the department may suspend the permit. After a suspension, the\noperator shall forthwith ceas e all work being conducted under the permit until the\ndepartment reinstates the permit. The department shall make a written finding of its\ndetermination and may enforce the determination in Circuit Court pursuant to KRS\n349.145.","path":["KRS Chapter 349"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32731","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:34Z","sha256":"0954cb27e1bb407579b8aedf467dd570c72be52009c982fcf6fca51df0afcad6","source_id":"us-ky","stale":false,"prev":"us-ky/krs-349.035","next":"us-ky/krs-349.045"},"notice":"GroundRules: Original legal text. Not legal advice."}