{"data":{"id":"us-ky/krs-353.429","jurisdiction":"us-ky","citation":"KRS 353.429","heading":"Sequestration reservoirs -- Rights and duties of mineral owners, lessees,","body":"pore space owners, oil and gas operators, and sequestration operators -- Duties\nof cabinet -- Hearing.\nThe provisions of this section shall apply to activities occurrin g within or proposed to\noccur within a sequestration reservoir:\n(1) Nothing contained in KRS 353.411 to 353.459 prohibits the mineral owner or lessee\nor the pore space owner or lessee from exploring, developing, or producing oil, gas,\nor other minerals above or below a sequestration reservoir or from using other strata\nor formations for carbon dioxide sequestration. Wells penetrating sequestration\nreservoirs shall protect their integrity and prevent carbon dioxide release. Wells\npenetrating oil and gas form ations shall protect their integrity and prevent\ncontamination or damage;\n(2) Before drilling, deepening, reopening, converting, or plugging wells drilled\npursuant to this chapter and KRS Chapter 349 on any property with a permitted\nsequestration reservoir, the oil and gas operator shall, at the time of filing with the\ncabinet, forward a copy of the application to the sequestration operator via\nregistered or certified mail or by personal service;\n(3) When the cabinet receives a permit application for a well  within a sequestration\nreservoir or buffer zone, the cabinet shall notify both the oil and gas operator and\nsequestration operator by registered or certified mail or by personal service;\n(4) Before drilling, deepening, reopening, converting, or plugging a  Class VI injection\nwell or monitoring well on a property where oil, gas, or other minerals are owned\nby a person other than the sequestration operator, the sequestration operator shall, at\nthe time of filing, forward a copy of the application and plat to the oil, gas, or other\nmineral owner via registered or certified mail or by personal service;\n(5) The sequestration operator shall:\n(a) Notify the oil, gas, or other mineral operator when sequestration rights are\nacquired on property with:\n1. An oil or gas lease or oil and gas operations; or\n2. A coal or noncoal lease, or coal or noncoal operations pursuant to KRS\nChapter 350; and\n(b) Ensure that notice of future applications to drill Class VI injection wells or\nmonitoring wells are sent to the oil, gas, coal, or other mineral lessee and\noperator, if any;\n(6) Upon receiving an application to drill, deepen, convert, reopen, complete, or plug\nan oil or gas well or a Class VI injection or monitoring well, the cabinet shall hold\nthe application for fifteen (15) days to allow non -applicant operators to file\nobjections. If objections are filed, the objecting non -applicant operator shall serve\nthe objections on the applicant operator. The cabinet shall schedule a hearing,\npursuant to KRS 353.419(6), within ten (10) days of receiving the objection. If,\nduring or before the hearing, the parties reach an agreement regarding the\nobjections, changes to the drilling plan in accordance with the agreement shall be\nsubmitted by the applicant operator in an amended application. If an agreement is\nnot reached, the cabinet, after considering the objections and the evidence presented\nat the hearing, shall ent er an order and issue a permit to drill with modifications to\nprotect the rights and resources of the parties involved;\n(7) If the oil and gas operator and the sequestration operator disagree on the drilling,\ndeepening, reopening, completing, or plugging of an oil or gas well or a Class VI or\nmonitoring well, the cabinet shall:\n(a) Determine how the costs above those normally incurred in the drilling,\ncompletion, or plugging of the well will be allocated to the applicant operator\nand non-applicant operator; and\n(b) Specify the payment terms;\n(8) Upon receipt of notice of an application to drill, deepen, reopen, complete, or plug\nan oil or gas well or a Class VI or monitoring well, a non -applicant operator may\nwaive his or her objection and specify whether th e waiver applies to one (1) or\nmore wells, a group of wells, or specific areas. The waiver shall be made by letter\nor by telephone with written confirmation. If the waiver is filed and the cabinet\ndetermines that the application is otherwise complete and t he public interest is\nserved, the permit shall be issued; and\n(9) (a) Before plugging and abandoning an oil or gas well that penetrates a\nsequestration reservoir or a Class VI or monitoring well that penetrates an oil\nor gas formation:\n1. The operator prop osing to plug and abandon the well shall notify the\nother non-plugging operator and the cabinet of the operator's intention to\nplug and abandon the well and shall state the date and time when the\nplugging will occur;\n2. Notice shall be sufficient to reason ably allow the non -plugging operator\nto attend and view the plugging of the well. The operator may proceed\nwith plugging the well if, after notice, the non -plugging operator does\nnot attend; and\n3. The operator shall:\na. Seek and receive the approval of the cabinet; and\nb. Allow a cabinet representative to be present at the well plugging.\n(b) Plugging shall not occur except pursuant to the approval of the cabinet and\nwith a cabinet representative present at the plugging.","path":["KRS Chapter 353"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57867","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:39Z","sha256":"b8c701dc1065fee552414ecd847c4d6088e1e8613cf3276e73b0c149682db3ea","source_id":"us-ky","stale":false,"prev":"us-ky/krs-353.427","next":"us-ky/krs-353.431"},"notice":"GroundRules: Original legal text. Not legal advice."}