{"data":{"id":"us-ky/krs-353.595","jurisdiction":"us-ky","citation":"KRS 353.595","heading":"Notice to surface owner of intent to drill oil or gas well -- Compensation","body":"for damage to surface -- Restoration of surface.\n(1) As used in this section:\n(a) \"Person\" means any natural person, corporation, firm, partnership, venture,\nreceiver, trustee,  executor, administrator, guardian, fiduciary, or other\nrepresentative of any kind, and includes any government or any political\nsubdivision or agency thereof.\n(b) \"Drilling operations\" means the drilling, deepening, or conversion of a well\nfor oil or gas production, core hole for oil or gas purposes, or drill hole for a\nstratigraphic test for oil or gas purposes.\n(c) \"Entry\" means the moving upon the surface of land with equipment to\ncommence drilling operations, but shall not include entry for the survey for or\nascertaining or identification of a well location.\n(d) \"Operator\" means the person, whether the owner or not, who applies for or\nholds a permit for drilling operations or who is named as the principal on a\nbond for a permit for a well that was issued by the department.\n(e) \"Surface owner\" means the person in whose name the surface of the land on\nwhich drilling operations are contemplated, and who is assessed for purposes\nof taxes imposed according to the records of the property valuation\nadministrator of the county where the land is located as certified by the\nproperty valuation administrator.\n(f) \"Production operation\" means the operation of a well for the production of oil\nor gas, including all acts, structures, equipment, and roadways necessary for\nthe operation.\n(g) \"New well\" means a well that is spudded after July 13, 1990, and does not\nutilize any part of a well bore or drilling location that existed prior to July 13,\n1990.\n(h) \"Completion of the well\" means completion of those processes necessa ry\nbefore production occurs, including the laying of flow lines and the\nconstruction of the tank battery. If the well is not productive, the date of\ncompletion of the well shall be the day it is plugged and abandoned.\n(2) This section shall be applicable o nly for the drilling operations of new wells except\nas provided in subsection (7) of this section. This section shall not apply for\nreworking operations on a well. This section shall be applicable only when the\nsurface owner has not consented in writing to the drilling operations and:\n(a) There has been a complete severance of the ownership of the oil and gas from\nthe ownership of the surface; or\n(b) The surface owner owns an interest in the oil and gas.\n(3) (a)  Prior to commencement of the drilling of a w ell, the operator shall give written\nnotice to the surface owner of the operator's intent to commence drilling operations.\n(b) The operator shall, for the purpose of giving notice, secure from the property\nvaluation administrator's office, within ninety (9 0) days prior to the giving of\nthe notice, a certification which shall identify the person in whose name the\nlands on which drilling operations are to be commenced and who is assessed\nat the time the certification is made. The written certification made by  the\nproperty valuation administrator of the surface owner shall be conclusive\nevidence of the surface ownership.\n(c) The notice required to be given by the operator to the surface owner shall\nidentify the following:\n1. The location of the proposed entry on the surface for drilling operations\nand the date on or after which drilling operations shall commence.\n2. A photocopy of the drilling application to the department for the well to\nbe drilled.\n3. The name, address, and telephone number of the operator.\n4. An offer to discuss with the surface owner those matters set forth in\nsubsection (4) of this section prior to commencement of drilling\noperations.\n(d) If the surface owner elects to meet the operator, the surface owner shall\nrequest the operator to schedule a meeting at a mutually agreed time and place\nwithin the limitations set forth herein. Failure of the surface owner to contact\nthe operator at least five (5) days prior to the proposed commencement of\ndrilling operations shall be conclusively deemed a waiver of the right to meet\nby the surface owner. The meeting shall be scheduled between the hours of\nnine o'clock in the morning and the setting of the sun of the same day and\nshall be at least three (3) days prior to co mmencement of drilling operations.\nUnless agreed to otherwise, the place shall be located within the county in\nwhich drilling operations are to be commenced where the operator or his agent\nshall be available to discuss with the surface owner or his agent t hose matters\nset forth in subsection (4) of this section.\n(e) The notice shall be given to the surface owner by either:\n1. Certified mail addressed to the surface owner at the address shown in the\ncertification obtained from the property valuation administ rator, which\nshall be postmarked at least ten (10) days prior to the commencement of\ndrilling operations; or\n2. Personal delivery to the surface owner at least eight (8) days prior to the\ncommencement of drilling operations.\n(f) Notice to the surface owner  as defined in this section shall be deemed\nconclusive notice to the record owners of all interest in the surface.\n(4) The operator, or his agent shall, if the surface owner accepts the offer to discuss, be\navailable at the time agreed, date, and place to discuss with the surface owner the\nfollowing:\n(a) Placement of roads to be constructed by the operator;\n(b) Points of entry upon the surface for drilling operations;\n(c) Construction and placement of pits used for drilling operations;\n(d) Restoration of fe nces to be cut in order to make entry upon the surface for\ndrilling operations;\n(e) Use of water on the surface of the lands;\n(f) Removal of trees; and\n(g) Surface water drainage changes caused by drilling operations.\n(5) The surface owner shall be entitle d to reasonable compensation from the operator\nfor damages to growing crops, trees, shrubs, fences, roads, structures,\nimprovements, and livestock thereon caused by the drilling of a new well. The\nsurface owner shall be entitled to reasonable compensation from the operator for\nsubsequent damages to growing crops, trees, shrubs, fences, roads, structures,\nimprovements, and livestock caused by subsequent production operations of the\noperator thereon. The surface owner shall be entitled to reasonable compensat ion\nfor all negligent acts of the operator that cause measurable damage to the productive\ncapacity of the soil. In addition, the operator shall not utilize any more of the\nsurface estate than is reasonably necessary for the exploration, production and\ndevelopment of the mineral estate.\n(6) The compensation required pursuant to subsection (5) of this section shall be paid in\nany manner mutually agreed upon by the operator and the surface owner, but the\nfailure to agree upon, or make the compensation required , shall not prevent the\noperator from commencement of drilling operations. The operator shall tender to\nthe surface owner payment by check or draft in accordance with the provisions of\nthis section no later than ninety (90) days after completion of the wel l. The surface\nowner's remedy shall be an action for compensation in the Circuit Court in which\nthe lands, or the greater part thereof, are located on which drilling operations were\nconducted. If the operator fails to tender payment within the ninety (90) day period\nor if the tender is not reasonable, the surface owner shall be entitled to reasonable\ncompensation as provided in this section, as well as attorney's fees. If the operator\nrelies on a third -party appraiser's assessment of damages there shall be no award of\nattorney's fees.\n(7) In conjunction with the plugging and abandonment of any well or the reworking of\nany well, the operator shall restore the surface and any improvements thereon to a\ncondition as near as practicable to their condition prior t o commencement of the\nwork. The surface owner and operator may waive this requirement in writing,\nsubject to the approval of the department that the waiver is in accordance with its\nadministrative regulations.\n(8) Nothing in this section shall be construed  to diminish the rights of the operator or\nsurface owner as they exist by established common law. Any compensation paid\nand accepted pursuant to the provisions of subsections (5) and (6) of this section\nshall be a complete bar to the assertion of any other remedy for such damages.","path":["KRS Chapter 353"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33120","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:40Z","sha256":"fb58c4a964ffd3cb4623f520b7fa72d9e6a223ca7242cbf2f7c5bebff959e82c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-353.593","next":"us-ky/krs-353.597"},"notice":"GroundRules: Original legal text. Not legal advice."}