{"data":{"id":"us-ky/krs-349.070","jurisdiction":"us-ky","citation":"KRS 349.070","heading":"Powers of Coalbed Methane Well Review Board to take actions necessary","body":"to prevent waste and protect rights of owners -- Objections by holders, lessors,\nand lessees -- Hearings.\n(1) In order to prevent the waste of coalbed methane or to protect the corr elative rights\nof the owners of coalbed methane, the review board on its own motion or upon\napplication of an operator of a coalbed methane well or owner of coalbed methane\nshall have the power to establish or modify drilling units, establish or modify fie ld\nrules, or unitize coalbed methane wells, pools or fields. Drilling units, to the extent\nreasonably possible, shall be of uniform shape and size for an entire pool or field.\nAny operator of a coalbed methane well or owner of coalbed methane may apply to\nthe review board for the creation or modification of drilling units, the establishment\nor modification of field rules for a pool or field, and the unitization of any coalbed\nmethane wells, pools, or fields.\n(2) With respect to any request for the creation or modification of drilling units,\nestablishment or modification of field rules for the pool or field, and the unitization\nof any coalbed methane wells, pools, or fields, the review board shall grant or deny\nthe request and issue an order consistent with t he intent and purposes of KRS\nChapters 350 and 352 and this chapter, taking into consideration the following\nfactors that it considers applicable in the particular proceedings:\n(a) The area which may be drained efficiently and economically by the proposed\ncoalbed methane well or wells and the spacing requirements of KRS 349.075;\n(b) The plan of development for the coal, that drilling units conform to mine\ndevelopment plans, and the need for proper ventilation of any mines or\ndegasification of any affected coal seams;\n(c) The nature and character of any coal seam or seams which will be affected by\nthe coalbed methane well or wells;\n(d) The surface topography and mineral boundaries of the lands underlaid by the\ncoal seams to be included in the unit;\n(e) Evidence relevant to the proper boundary of the drilling unit;\n(f) The nature and extent of ownership of each coalbed methane owner or\nclaimant and whether conflicting claims exist;\n(g) Whether the applicant for the drilling unit proposes to be the operator of t he\ncoalbed methane well within the drilling unit; and if so, whether the applicant\nhas a lease or other agreement from the owners or claimants of a majority\ninterest in the proposed drilling unit;\n(h) Whether a disagreement exists among the coalbed methane  owners or\nclaimants over the designation of the operator for any coalbed methane well\nwithin the drilling unit; and if so, relevant evidence to determine which\noperator can properly and efficiently develop the coalbed methane within the\ndrilling unit for the benefit of the majority of the coalbed methane owners;\n(i) If more than one person is interested in operating a coalbed methane well\nwithin the drilling unit, the estimated cost of submitting by each such person\nfor drilling, completing, operating and marketing the coalbed methane from\nany proposed coalbed methane well or wells;\n(j) Any other available geological or scientific data pertaining to the pool which\nis proposed to be developed;\n(k) The correlative rights of the operators and owners of coalbed  methane, so that\neach operator and owner may obtain his or her just and equitable share of\nproduction from the coalbed methane; and\n(l) Any other factor the review board determines should be considered consistent\nwith KRS Chapters 350 and 352, and this chapter.\n(3) Upon consideration of the matters raised at the hearing, the review board shall\nrender a decision based upon whether to establish or modify a drilling unit, establish\nor modify field rules or establish or modify the unitization of coalbed methane\nwells, po ols or fields. The review board shall enter a written order containing\nfindings of fact and conclusions which address any relevant considerations in\nsubsection (2) of this section and based thereon shall issue and file with the\ndepartment a written order:\n(a) Establishing or modifying a drilling unit, field rules or unitizing coalbed\nmethane wells, pools or fields;\n(b) Refusing to establish or modify a drilling unit, field rules or unitization of\ncoalbed methane wells, pools or fields; or\n(c) Attaching certain conditions to the establishment or modification of a drilling\nunit, field rules, or unitization of coalbed methane wells, pools or fields.\n(4) In establishing or modifying a drilling unit for coalbed methane wells, and in order\nto accommodate the uniqu e characteristics of coalbed methane development, the\nreview board may require that drilling units conform to the mine development plan,\nif any. If requested by the coal interest holder, well locations and spacing shall\ncorrespond with mine operations, including the drilling of multiple coalbed methane\nwells on the same surface location of each drilling unit.\n(5) If an order to establish or modify a drilling unit, field rules or unitization of coalbed\nmethane wells, pools or fields will allow a coalbed meth ane well to be drilled into\nor through a workable coalbed, any coal interest holder and any record oil and gas\nlessor and lessee within the area to be covered by the drilling unit, field rules or\nunitization of coalbed methane wells, pools or fields may ob ject to the\nestablishment or modification of the drilling unit, field rules or unitization of\ncoalbed methane wells, pools or fields.\n(6) The review board may continue a hearing to allow for further investigation and the\ngathering and taking of additional data and evidence. If at any time during a hearing\nthere is not sufficient evidence for the review board to determine field boundaries,\nor drilling unit size or shape, the review board may enter a temporary order\nestablishing provisional drilling units, an d field boundaries for the orderly\ndevelopment of the pool or field, pending receipt of the information necessary to\ndetermine the ultimate pool or field boundaries, and spacing of wells for the pool or\nfield. Upon additional findings of fact, the boundari es of a pool or field and drilling\nunits for the pool or field may be modified by the review board.\n(7) Unless otherwise provided for by the review board, after an application for a\nhearing to establish or modify drilling units or pool boundaries has been filed, no\nadditional wells shall be permitted in the pool or field until the review board's order\nestablishing or modifying the pool or field or unit has been entered.\n(8) After the review board issues a field or pool spacing order which creates drilling\nunits or a pattern of drilling units for a pool or field, should an operator or owner of\ncoalbed methane apply for a permit or otherwise indicate a desire to drill a coalbed\nmethane well outside of such drilling units or pattern of drilling units and thereb y\npotentially extend the pool or field, the review board may, on its own motion or the\nmotion of any interested person, require that the coalbed methane well be located\nand drilled in compliance with the provisions of the order affecting the pool or field.","path":["KRS Chapter 349"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=32737","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:34Z","sha256":"065e1ea80711ce4cf8a9d7f753efe4fc4a9edd04d9b321a69ef71f0ee07fa06d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-349.065","next":"us-ky/krs-349.075"},"notice":"GroundRules: Original legal text. Not legal advice."}