805KAR1:020.Protectionoffreshwaterzones.Page1of2805KAR1:020.Protectionoffreshwaterzones.RELATESTO:KRS353.520STATUTORYAUTHORITY:KRSChapter13A,353.540,353.550,353.560NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.540authorizestheDepartmentforNaturalResourcestoadministerandenforcetheprovisionsofKRS353.500to353.720.ThewasteofoilandgasisprohibitedbyKRS353.520.Itisthepurposeofthisadministrativeregulationtoprotectfreshwaterzonesfromcontaminationassociatedwiththeproductionofoilandgas.KRS353.550providesthatthedepartmentshallhavetheauthoritytosetforththerequirementsforcasing,operationandpluggingofwellstopreventescapeofoilorgas,thedetrimentatintrusionofwater,blowouts,cave-ins,seepagesandfires.Section1.Definitions.ThedefinitionscontainedinKRS353.510andthefollowingaddiUonaldefinitionsshallapplytothisadministrativeregulation:(1)"Abnormalpressure"meansareservoirpressurethatexceedsthehydrostaticpressureoffreshwaterextendingfromthereservoirtothesurface.(2)•Annulus•meansthespacebetweentwo(2)stringsofcasingorbetweenastringofcasingandtheboreholewall.(3)"Casing(casingstring)"meanssteeltubesorpipesInstalledInawell.(4)"Surfacecasing"meansthefirstandlargestdiametercasingInstalledInawellanditsprimaryusesaretomaketheboreholestandupandtoprotectthefreshwaterzones.(5)"Intermediatecasing"meansoneormorestringsofpipesinstalledInawellInadditiontothesurfacecasinginwhicheachstringIssmallerIndiameterthantheprevious.(6)"Longcasingstring"meansthelastcasingInstalledInawelltobeusedforproductionorInjectionpurposes.(7)"Zone"meansalayerofstratacapableofproducingorreceivingnuids.Section2.ProtectionorFreshWaterZonesforDrillingand/orPluggingOperations.(1)Duringdrillingoperations,one(1)orthefollowingmethodsshallbeusedtoprotectfreshwaterzones:(a)MethodA.Casingshallbesetonacasingshoulderandsaldcasingshallhaveashoeinstalledonthebottomofthebottomjoint.Uponthecompletionofthedrillingprogram,alltherecoverablecasingmustberemovedorcementedtothesurface.(b)MethodB.Casingshallbesetonashoulderandcementedsufficientlytocover100feetIncludingtheshoe.Uponcompletionorthedrilling,allortherecoverablecasingmustberemovedorcementedtothesurface.(c)MethodC.Atoptobottomdrillingmudsystemwithafiltratewaterlossoflessthanten(10)cubiccentimeters,asdeterminedbyAmericanPetroleumInstitutestandards,Inlispubllcation"StandardProcedureslorFieldTesllngWaterBasedDrillingFluids"APIRP13B-1,Secllons1,2and3,June1 ,1990,filedandIncorporatedhereinbyreference.CopiesmaybeobtainedfromtheDepartmentforNaturalResources,P.0.Box14090,Lexington,Kentucky40512-4090.Certifteationoffiltratewaterlossmustbemadebytheoperator.(2)Intheeventawellistobeplugged,thenItshallbepluggedInthemannerprescribedbyB05KAR1:060or805KAR1:070.Section3.ProtectionofFreshWaterZones.AnywelldrilledintheCommonwealthofKentuckysubjecttothejurisdictionoftheDepartmentforNaturalResourcessubsequenttotheeffectivedateofthisadminlstrativeregulationshallbeequippedwiththefollowingfreshwaterprotectionpriortoproductionorinjection.(1)Aprotectivestringofcasing,beItsurface.Intermediate,orlongstring,shalextendthirty(30)feetbelowthedeepestknownfreshwaterzone.SuchprotectivestringshalhavecementcirculatedIntheannularspaceoutsidesaldcasingofasullidentvolumeofcement,calculatedusingapprovedengineeringmethods,toassurethereturnofthecementtothesurface.Intheeventcementdoesnotreturntothesurface,everyreasonableattemptwillbemadetofilltheannularspacesbyintrodudngcementfromthesurface.IftheintermediatecasingorlongcasingstringIs:(a)Cementedtothesurface;or(b)Cementedthirty(30)feetIntothenextlargerstringofcementedcasingInconformitywithprescribedprocedure,thestringorcombinationofstringsshallbeconsideredasthefreshwaterprolecllon.(2}Inareaswhereabnormalpressuresareexpectedorencountered,thesurfaceand/orintermediatecasingstringshallbeanchoredInsufficientcement,atasulfteientdepthtocontainsaidpressures,andblowoutprevenllonvalvesandrelatedequipmentshallbeinstalled.Section4.WellsUsedforlnjecllonofFluids.(1)TheinjectionoffluidsshallbeaccomplishedthroughatubingandpackerarrangementwiththepackersetImmediatelyabovetheInjectionzone,andtheannulusbetweenthetubingandcasingshallbemonitoredbypressuresensitivedevices.TheInjectionpressureshalberegulatedtominimizethepossibintyorfracturingtheconfiningstrata.Uponapplication,andafternoticeandhearing,ahttp://www.Irc.ky.gov/kar/805/001/020.htm3/12/2015805KAR1:020.Protectionoffreshwaterzones.Page2of2Yclrlancefromthisrequirementmaybegrantedbythedirector,uponashowingbyanIndividualoperatorthatalternateprudentengineeringpracticesshallresultInfreshwaterprotection.Thefollowingareexemptedfromtherequirementsofthissection:(a)Injectionoffk.lidsforthepurposeofwePstimulation;and(b)Injectionofgasforthepurposeofstorage.(2)BeforeInjectingHuidsIntoawellnotpreviouslypermittedforinjectionpurposes,theoperatorshallmakeapplicationtothedepartmentloraninjectionpermitforsaidwell.Theapplicationforapermittodrill.deepenorconvertawellforthepurposeofinjectionofHuldsshallinclude:(a)Astatementbytheoperatorastowhetherthewellistobeusedforpressuremaintenance,secondaryrecovery,tertiaryrecovery,gasstorageorfordisposalpurposes;(b)Theapproximatedepthsoftheknf1Wflfreshwaterzones;and(c)Aplatshowing:1.Thenamesofalllesseesandlessorscontiguoustothetractonwhichtheinjectionshalloccur,2.TheCarterCoordinatelocationandtheelevationofthewellsite;3.Thegeologicnameanddepthoftheinjectionzone;4.Atleasttwo(2)surfacefeatures,bybearinganddistancefromtheproposedwellsite,whichappearontheU.S.G.S.sevenandone-half(7112)minutetopographicmapofthearea;5.Thenameofsaidtopographlcmapandcounty;6.Thelocationofallknownfreshwaterwellswithinaradiusol1.000feetoftheproposedinjectionwellsite;7.Thelocationandcompletionand/orpklggingrecordofallwellswhetherproducingorplugged,withinaradiusof1,000feetoftheproposedinjectionwelsite.(3)PriortoInjectionintoanywei,theoperatorshallfumlshthedepartmentwithacertlrteateIndicatingthatallrequirementsofthisadministrativeregulationhavebeenmet.Thecertificatesharincludethefollowing:(a)Thek:lentirtcatlonofsaidbypermitnumber,operator'sname,leasename,wellnumber,carterCoordinatelocation,elevationandcounty;(b)Theentirecasingandcementingrecord,anypackersandotherspecialdownholeequipment,andcementbondlogs,IIrun;(c)Theanticipatedmaximumbottomholepressure(psi)andvolumeInbarrelsorcubicfeet,perday;(d)TheIdentificationoftheInjectionzonebygeologicalnameanddepth(topandbottomofzone),thenumberofperforationsifappHcable,ortheintervalofopenhole;and(e)Certificationbytheoperatorthatthemechanicalintegrityofthewellhasbeentested.Section5.ExemptionsforPreexistingWells.AnyinjectionwellInexistencepriortotheeffectivedateofthlsadministrativeregulationshallbeexemptfromtherequirementsofthisadministrativeregulationuntilsuchtimeasintheopinionofthedepartment,saidwellIsleakingfluidstootherzones,ortothesurface;provided,however,thatthisexemptionshallnotapplyunlesswithinone(1)yearfromtheeffectivedateofthisadministrativeregulation.theoperatorfilesanareaplat,orplats,showingallofsuchoperator'sinjectionandassociatedproductionwells.Section6.Recordkeeping.TheoperatorofaninjecfonprojectshallmonitorInjectionpressuresandvolumesatleastmonthly,andshaUkeepsaidrecordsonfileInhisplaceofbusinesslorthelifeoftheproject;plusfive(5)years.Thedirectormayrequiremorefrequentmonitoring,IIinhisopinion,goodreasonthereforexists.(4Ky.R.632;Am.5Ky.R.112;elf.8·2-78;18Ky.R.187;1020;elf.9-25-91;TAmelf.8-9-2007.)http://www.lrc.ky.gov/kar/805/001/020.htm3112/2015805KAR1:030.Welllocationandas-drilledlocationplat,preparation,formandcontents.Page1of2805KAR1:030.Welllocationandas-drilledlocationplat,preparation,formandcontents.RELATESTO:KRS353.550,353.590,353.737STATUTORYAUTHORITY:KRS353.540,353.550,353.590(4}NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.540authorizesthedepartmenttopromulgateadministrativeregulationstoadministerKRS353.500to353.720.KRS353.550and353.590(4)authorizethedepartmenttopromulgateadministrativeregulationsconcerningthepreparationandfilingofreportsandplats.ThisadministrativeregulationestablishesrequirementsforunllormityandclarityinwelllocationsandIdentity.Section1.Applicability.Thisadministrativeregulationshallapplyonlytotheoil·andgas-producingIndustryandshallnotapplytotransmissionanddistributionsystemsortoproductstoragelacillties.Section2.GeneralInformation.LocationplatsforwellsproposedtobedrilledpursuanttotheprovisionsofKRSChapter353andtheas-drilledlocationplattobesubmittedafterawellisdrilledshallbepreparedandcertifiedInaccordancewithKRS353.737.IIthelocationofthewellisknowntobeunderlainbycoalbearingstratum,thelocationplatforwellproposedtobedrilledpursuanttotheprovisionsofKRS353.590(4)shallbepreparedInaccordancewithKRS353.737andcertifiedbyanengineer,asdeHnedinKRS322.010(2)registeredinKentucky.IfanyplatsubmittedbyanapplicantIsdeterminedbythedepartmenttobemateriallyInaccurateorIncomplete,thedepartmentshallrequirethatanewplatbepreparedandsubmitted.Section3.Waiver.(1)Apersonshallnotdrillawellloroilorgaswithin150feetofanybuilding,unless:(a)Awaiverofobjectiontothedrillingissecuredinthemannerestablishedbelow;or(b)Thedepartment,afternoticeandhearing,determinesthatthedrillingandproductionofthewellisnotvlolativeofthepublicpolicysetoutInKRS353.500.(2)ThesurveyorpreparingtheplatforapermitshallIndicatethelocationofaproposedwellsiterelativetoallbuildingswithin150feetofthewellsite.(3)Ifanownerofabuildinglocatedwithin150feetofaproposedwellsitewaivesobjectiontolocatingawellcloserthan150feettothebuilding,thenacopyoftheexecutedagreementofwaivershallaccompanytheapplicationforpermitSection4.(1}Aseparatelocationplatshallbesubmittedwitheachapplicationtodrill,deepen,orreopenawell.(2)Toensurethedivisionhasaccurateinformationregardingthelocationofawelldrilledthroughaworkablecoalbed,aplatwiththeas·drilledlocationandelevationofthewellshallbeprovidedtothedivisionpursuanttoKRS353.737inadditiontothewelllocationplatsubmittedtodrmaproposedwell.Section5.PlatPreparation.LocationplatslorwellsproposedtobedrilledpursuanttotheprovisionsofKRSChapter353shallbepreparedInthefollowingmanner:(1}Allplatsshallbeclearlylegibleandsubmittedonasheeteightandone-half(81/2)byfourteen(14)Inches.Thissheetmaybe:(a}Bondpaper;(b)Tracingcloth;or(c)Tracingpaper.(2)Thewelllocationplatshall:(a)Showthelocationoftheproposedwellrelativetothetwo(2}nearestboundariesofoilandgasownership,Includinganysubdivisionofthelease;(b)Indicateallproducingwellsandpermittedwellsiteswithin1,000feetoftheproposedwellsite;and(c)Clearlydisplayalldistancesinfeet.(3}Thelocationoftheproposedwellshallbeshownontheplat,bybearinganddistance,relativetotwo(2}permanentpoints/monumentsthatappearontheapplicableUSGS.sevenandone-hall(71/2)minute;topographicquadranglemap,whichpermanentpoints/monumentsIncludethougharenotlimitedtoroadIntersections,benchmarks,andbuildings.AphotocopyofaportionofthetopographicquadranglemapshowingtheproposedwellsiteshallbeacceptableInlieuofldentilylngthepoints/monumentsontheplat.(4)ThelocationofthewellsiteshallbepreparedwithreferencetoeithertheCartercoordinatesystem,latitudeandlongitude,ortheKentuckycoordinatesystem.http://www.1rc.ky.gov/kar/805/001/030.htm3112/2015805KAR1:030.Welllocationandas-drilledlocationplat,preparation,formandcontents.Page2of2(5)TheelevationofthewellsiteshallbedeterminedbyInstrumentandcalculation.EstimatedtopographicelevationsshaHnotbeacceptable.(6}Theplatshallbepreparedtoascaleorone(1)Inchequals100,200,300,400,500,600,or800feet.Section6.As-DrilledPlatlocation.Locationplatsforas-drilledwellsshallbepreparedInthefollowingmanner:(t)Mplatsshallbeclearlylegibleandsubmittedonasheeteightandone-half(81/2)byfourteen(14)inches.Thrssheetmaybe:(a)Bondpaper:(b)Tracingcloth;or(c)Tracingpaper.(2}Thewelllocationplatshall:(a)Showthelocationoftheas-drilledwellrelativetothetwo(2)nearestboundariesoroilandgasownership,Includinganysubdivisionorthelease:(b)Indicateanproducingwellsandperm111edwellsiteswithin1,000feetoftheas-drilledwellsite;and(c)Clearlydisplayalldistancesinfeet.(3)Theas-drilledwelllocationplatshallprovidecoordinatesInfeet,usingtheNAD83,withSingleZoneProjectionasthetermsaredelinedInKRS353.010,(4)Thelocationortheas-drilledwellshallbeshownontheas-drilledwelllocationplat,bybearinganddistance,relativetotwo(2)permanentpointsormonumentsthatappearontheapplicableUSGSsevenandone-half(71/2)minute:topographicquadranglemap,whichpermanentpointsormonumentsIncludethougharenotlimitedtoroadintersections,benchmarks,andbuildings.AphotocopyoraportionorthetopographicquadranglemapshowingtheproposedwellsiteshallbeacceptableinlieuofIdentifyingthepointsormonumentsontheplat.(5}Inadl;itiontotherequirementsofsubsection(3)ofthissection,thelocationorthewellsiteshallbepreparedwithreferencetoeithertheCartercoordinatesystem,latitudeandlongitude,ortheKentuckycoordinatesystem.(6)TheelevationofthewellsiteshallbedeterminedbyInstrumentandcalculation.Estimatedelevationsshallnotbeacceptable.(7)Theplatshallbepreparedtoascaleofone(1)Inchequals100,200,300,400,500,600,or800feet.Section7.InadditiontothedatarequiredInSection5ofthisadministrativeregulation,welllocationplatsshallincludethefollowinginformation:(1)Operator;(2)Farmorleasename;(3)Wellnumber:(4)County;(5)Scaleatwhichtheplatisdrawn:(6)Northdirection;(7)legend:o-Proposedwellsite;•·Oilwell;(l-Gaswell;0·Injectionwell;a•Pluggedwell;anda-Abandonedwell,notplugged;(8)Dateofpreparallonofplat;(9)Nameolthetopographicquadranglemaponwhichthewellsitemaybelocated:(10)Owners,lessorsandlesseesoroilandgasontractsthatareoffsetbytheproposedwell;(ll)CertdicaUoninthefollowingform:•therebycertifythattheaboveplatisaccurateandcorrectandsatisfiestherequirementsof805KAR1:030tothebestofmyknowledgeandbelief":and(12)Certificationshallbefollowedbythewrittensignatureo1thepersonpreparingtheplat,thepreparer'smailingaddress,registrationnumber,andtelephonenumber.(OAG-Rg-1;1Ky.R.89;eff.11·13-1975;Am.11Ky.R.1894;eff.7-9-1985;36Ky.R.186;624;784;eff.10·23·2009.)http://www.lrc.ky.gov/kar/805/00I/030.htm3/1212015\805KAR1:040.Vacuums;useof.Page1of1805KAR1:040.Vacuums;useof.RELATESTO:KRS353.560STATUTORYAUTHORITY:KRS13A.100,353.560NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.560requirestheDepartmentforNaturalResourcestoregulatetheuseofvacuums.ThisadministrativeregulationIstorequireIdentificationofvacuumusestoprotectcorrelativerights.Section1.Theunauthorizeduseofvacuumpumpsorotherdevicesforthepurposeofputtingavacuumonanyoil-bearingstratumIsprohibited;however,thedepartmentshall,uponapplicationandlorgoodcauseshown,permittheuseofvacuumpumpssubjecttosuchrestrictionsorlimitatlonsasthedepartmentmayprescribe.Section2.Onorbeforethedateoffilingwrittenapplicationfortheuseofvacuumonanyproperty,theapplicantshallnotify,byregisteredmall,alloperatorsofproducingoilwellsonpremiseswithin1,000feetofthewellorwellswheretheuseofvacuumIsproposed,andshallsetoutInthenoticetheproposedstrataorformatlontowhichavacuumIstobeappliedandthelocationofthewellorwellsonwhichvacuumpumpsaretobeInstalled.Theapplicantshallsubmitproofofsuchnoticewiththeapplication,givingthenamesandaddressesofalloperatorsofoilInterests.Section3.Uponreceiptoftheapplicationandproofofnoticethedepartmentshallholdthesameforten(10)dayspendingthefiHngofobjections,andIfnoneIsreceivedattheendofsuchperiod,theapplicationmaybeapprovedbythedepartmenlIneventobjectionIsmadeandthedepartmentdeemsahearingshallbehad,noticeshallbegiventoeachobjectorandtheapplicantofthetimeandplacedesignatedbythedepartmentforsuchhearing.Section4.ThedepartmentshallhaveauthorityafternoticeandhearingasspecifiedInSectlon3ofthisadministrativeregulationtoprohibitvacuumortodenyorrevokepermissionfortheuseofvacwmwhen,initsjudgment,thereIsdangerofundergroundwasteorinfringementoncorrelativerights.ThedepartmentshallhaveauthoritytograntpermissionwhenItfindsafurtherrecoveryofoilcanbeobtainedbyuseofvacuumwithoutdangerofundergroundwasteandwithoutsubstantialInjurytocorrelativerights.(OAG-Rg-3;1Ky.R.633;elf.4-9-75;TAmelf.8-9-2007.)http://www.lrc.ky.gov/kar/805/001/040.htm3/12/2015805KAR1:050.Suretybonds;requirements,cancellation.Page1of1805KAR1!050.Suretybonds;requirements,cancellation.RELATESTO:KRS353.590STATUTORYAUTHORITY:KRSChapter13A,353.540.353.550NECESSITY,FUNCTION,ANDProvideformethodsofgivingnoticetooperatorsandsuretiesofnoncompUance.Establishrequlrementsofrelease,cance•at'onandforfeitureofbonds.Seclion1.AtanylimethedepartmentcausesanoticeoffloncomplianceIabeserveduponanoperator(principal)pursuanttoKRS353.590(7),cop1esolsuchnoticeshallbemaRedbyregisteredorcertifiedmalltothesuretycompanyattheaddressprovidedtotheKentuckyOfficeofInsuranceforreceiptofnotices.ThesuretyshallbeaHerdedtheopportunitytoactInbehalfoftheoperator(principal)withinthelimesetforthinKRS353.590(7)inregardtotheproperpluggingofthewellorwellsandsubmissionofrequiredwellllogandcompletionreports.electriclogs,IIrun,andpluggingaffidavits.Shouldtheoperator(principal)aridsuretyfailtocomplywithinthelimeprovidedlorInKRS353.590(7)thenandInthateventonlythebondshallbeforfeitedasprovidedinthatsection.Seclion2.Anindlvidualwellbondsha11bereleasedupontooproperpluggingofthewellandthewiththedepartmentofapluggingaffidavit,wellllogandcompletionreportandelectriclog,Ifrun.Ablanketborldshallbereleasedupontheproperpluggingofallwellsoftheoperator(principal)coveredbythebond.andthelllingwiththedepartmentofplugg:ngaffidavits.welllOgsandcompletionreportsandelectriclogs,IIrun,forsuchwells.Section3.AblanketsuretybondfiledpursuanttoKRS353.590(5)maybebythesuretybyacommunicationinwritingdeliveredpersona1yorbyreglsteredorcertifiedmailtotheofficeoftheDivisionofOilandGas,DepartmentforNaturalResources,providedsuchcancellationshalbeeHectlveonlytorelievethesuretyfromfiabilityunderthebondlorweUswhichpermitshavenotbeenissuedatthetimeoftherecelptofthenoticebythedepartmentUabllityunderthebondforwellswh:chpermitshavebeenIssuedpriortothereceiptbythedepartmentofthenoticeshallnotbeallectedbythecancellalion.(OAG·Rg-6;1Ky,R.633;elf,4·9·75;Am.18Ky.A.189;elf,9·25-91;TAmelf,B-9·2007.)http://www.1rc.ky.govlkar/805/001/050.htm3/1212015805KARI:060.Pluggingwells;noncoal-bearingstrata.Page1of1805KAR1:060.Pluggingwells;noncoal-beerlngstrata.RELATESTO:KRS353.550STATUTORYAUTHORITY:KRS13A.100,353.560NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.560requiresthedepartmenttoregulatethepluggingofallwalls.Thisadministrativeregulationldantiliastheminimumacceptablerequirementstoplugortemporarilyabandonwellsdrilledthroughnoncoal-bearingstrataSection1.Unlesswrittenpermissionshallbeobtainedlromthedepartment,nooperatororownershallpermitanywelldrilledloron,gas,saltwaterdisposaloranyotherpurposeinconnectionwiththeproductionofoilandgas,toremainunpluggedaltersuchwellisnolongerusedlorthepurposelorwhichItwasdrilledorconverted.However,nothinghereinshallpreventthedepartment,uponapplicationandforgoodcauseshown,fromissuingatemporarypermit.loraperiodnotexceedingtwo(2)years,toanoperatortoleaveawellunplugged,andnothinghereinshallaltartheprovisionsofKRS353.170relativetoutilizingawellforthepurposeofintroducingalr,gas,waterorotherliquidpressureintoorupontheproducingstrataforthepurposeofrecoveringoilandgas.Thepermissionfortemporaryabandonmentmayberenewedattheendofthetwo(2)yearperiodbyreapplication.Allwellsonwhichatemporaryabandonmentpermithasbeenissuedshallbecasedandcappedinsuchamannersoastoprotectallpotentialoiland/orgaszonesandfreshwater.Section2.BeforeanyworkIscommencedtoplugandabandonanywelltheowneroroperatorthereofshallgivenotlcetothedepartmentofhlsintentiontoabandonsuchwall.NoticeshallbegivenInthemannerspecifiedbythedepartmenlAdulyaU1horlzedrepresentativeofthedepartmentmaybepresentatthelimeandplacespeclliedtosupervisethepluggingofsuchwell.Section3.Wellsnotdrilledthroughcoal-bearingstratamaybepluggedasfollows:(1)Thebottomoftheholeshallbefilledtothe topofeachproducingformation,orabridgeshallbeplacedatthe topofeachproducingformation,andIneithereventacementplugnotlessthanfifteen(15)feetInlengthshallbeplacedImmediatelyaboveeachproducingformationwheneverpossible.(2)Acementplugnotlessthanfifteen(15)feetinlengthshallbeplacedImmediatelybelowallfreshwaterbearingstrata.(3)AplugshallbeplacedatthesurfaceofthegroundineachholepluggedinsuchamannerasnottoInterferewithsolicultivation.(4)AnuncasedrotaryholedrilledwiththeaidofBquidshallbepluggedwithapprovedheavymuduptothebaseofthesurfacestringatwhichpointaplugofnotlessthanfifteen(15)feelofcementshallbeplaced.Theholeshallalsobecappedsimilartootherabandonedholes.(5)AnywallInwhichcasinghasbeencementedlromsurfacetototaldepthandnocasingcanbepulledmaybepluggedasfollows:Thebottomoftheholeshallbefilledtothetopoftheproducingformationandacementplugnotlessthanfifteen(15)feetInlengthshallbeplacedabovethisfill.AsurfaceplugshallbeplacedasprovidedInsubsection(3)ofthissection.NoIntermediateplugswillberequired.(6)Theoperatorshallhavetheoptionastothemethodofplacingcementintheholeby:(a)Dumbbailer;(b)Pumpingthroughtubing;(c)Pumpandplug;or(d)Othermethodapprovedbythedirector.Section4.Withinthirty(30)daysalterthepluggingofanywellhasbeenaccomplished,theowneroroperatorthereofshallfileapluggingreportwiththedepartmentsettingforthIndetailthemethodusedInpluggingthewell.Suchreportshallbemadeonaformprovidedbythedepartment.Section5.Whenthewalltobepluggedmaysafelybeusedasafreshwaterwell,andsuchutilizationIsdesiredbythelandowner,thewellneednotbefilledabovetherequiredsealingplugsetbelowfreshwater;provided,thatwrittenauthorityforsuchuseIssecuredlromthelandownerandfiledwiththedepartment.Section6.Ifapersonfallstocomplywiththisadministrativeregulation,anypersonlawfullyInpossessionoflandadjacenttoorintheneighborhoodofthewellmayenteronthelanduponwhichthewallislocatedandplugthewellinthemannerprovidedinKRS353.180(1)orthisadministrativeregulation,andmaymaintainacivilactionagainsttheownerorpersonabandoningthewell,jointlyorseverally,torecoverthecostofpluggingthewell.ThissectionshallnotapplytopersonsowningthelandonwhichthewellIssituated,anddrilledbyotherpersons.(OAG-Rg-4;1Ky.R.1069;aH.6-11-75.)http://www.lrc.ky.gov/kar/805/001/060.htrn3/12/2015805KARI:070.Pluggingwells;coal-bearingstrata.805KAR1:070.Pluggingwells;coal-bearingstrata.RELATESTO:KRS353.110.353.120,353.170,353.550,353.739STATUTORYAUTHORITY;KRS353.540,353.560Page1of2NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.540authorizestnedepartmenttopromulgateadministrativeregulationstoadministerKRS353.500to353.720.KRS353.560requifesthedepartmenttoregulatethepluggingofallwells.ThisadministrativeregulationIdentifiestheminimumacceplablerequirementtoplug,ortemporarilyabandonwells,drilledthroughcoal-bearingsbata.Section1.(1)Unfesswrittenpermissionisobtainedfromthedepartmeot,anoperatororownershalfnotpermitanywelldrilledforoil,gas,saltwaterdisposal,oranyotherpurposeInconnectionwiththeproductionofoilandgas,toremainunpluggedalterthewellisnolongerusedlorthepurposeforwhichitwasdrilledorconverted.However,nothingshallpreventthedepartment,uponapplicatlonandforgoodcauseshown,fromissungatemporaryabandonmentpermlt,foraperiodnotexceedingtwo(2)years,toanoperatortoleaveawellunplugged,andnothingshallaltertheprovisionsofKRS353.170felativetou1illzingawelllorthepurposeofIntroducingair,gas,water,orotherliquidpressureIntoorupontheproducingstrataforlhepurposeofrecoveringoilandgas.Thepermissionfortemporaryabandonmentmayberenewedattheendofthetwo(2)yearperiodbyfeapplicatlon.Allwellsonwh[chatemporaryabandonmentpermithasbeenissuedshallbecasedandcappedInamannerastoprotectallpotentialoilandgaszonesandcoalbedsshallbeandventedinamannersoastoprevoottheaccumulationofgasintheborehole.(2)PursuanttoKRS353.739,theDivisionofOilandGasConservationshallorderawelltobepluggedandabandonedII:(a)Thewell'spermitconditionscannotbesatisfiedbyremediation;or(b)TheoperatorIsnotabletomeettheorderedremediation.(3)IfaweMIsorderedpluggedandabandonedpursuanttoKRS353.739thenatemporaryabaflclonmentpermitshallnotbegranted.Section2.Priortoabandonmentofawelldrilledthroughaworkablecoalbedthewelloperatorshallnotify,byregisteredmail,theownerorownersofrecordandresseeorrecordandoperatorsofthecoalbedandtheproperallandgasInspectoroftheIntentiontoplugandabandonthewell.ThenoticeshallgivethepermitnumberofthewellandItsandfixthetimeatwhichtheworkofpluggingandfillingwillbecommenced,thetimenottobelessthanfive(5)daysafterthedayonwhichthenoticeIsreceived,orInduecourseshouldbereceived,bythedepartmentArepresentativeorrepresentativesofthecoatoperatororownerandofthedepartmentmaybepresentatthepluggingandfillingofthewell.Whetherornottheserepresentativesappear,thewelloperatormayproceed,atthetimefixed,toplugandfillthewelt.Whenthepluggingandfillinghavebeencompleted,anaffidavitsettingforththetimeandmannerinwhichthewellwaspluggedshallbemadeinbytwo(2)experiencedmenwhoparticipatedinthework.TheaffidavitshallbemadeonFormED-38.One(1)copyoftheaffidavitshallberetainedbythewelloperator,one(1)mailedtoeachcoaloperatorandeachowner,andone(1)tothedepartment.Section3.Ifanywelld1illedthroughaworkablecoalbedIsabandoned,Itshallbepluggedtoapointforty(40)feetbelowthelowestworkablecoalbed,Inthefollowingmanner;Theholeshallbefilledwithmud,clay,orothernonporousmateriallromthebottomtoapointtwenty(20)feetabovethetopofthelowestall,gas,orwater-bearingstrata,orapermanentbridgeshallbeanchoredthirty{30)feelbelowitslowestoil,gas,orwater-bearingstrata,andfromthisbridgeItshallbefilledwithmud,clay.orothernonporousmaterialtoapointtwenty(20)feetabovethestrata,atwhichpointthereshallbeplacedaplugofcementorothersuitablematerialthatwillcompletelysealthehole.Betweenthissealingplugandapointtwenty{20)feetabovethenexthigheroil,gas,orwater-bearingstrata,theholeshallbetreatedInalikemannerandatthatpointthereshallbeplacedanothersuitableplug,thatwillcompletelysealthehole.Inalikemannertheholeshallbefilledandpluggedorbridged,andplugged,withreferencetoeachofItsoil,gasorwater-bearingstrata.Ifthesestrataarenotwidelyseparatedandarefreefromwater,theymaybegroupedandtreatedasasingleproductivestratum.Alterpluggingallstrata,afinalplugshallbeanchoredapproximatelyten(10)feetbelowthebottomofthelargestcasingInthewellandfromthatpointtothesurfacethewellshallbetiltedwithmud,clay,orothernonporousmaterial.Section4.Ifanyofthestratainthewellhavebeenshot.creatingcavillesthatcannotreadilybefilledinthemannerdescribedinSection3ofthisadministrativeregulation,thewelloperatorshallfolloweitherofthefollowingmethods:(1)lithestratumthathasbeenshotIsthelowestoneInthewellthereshallbeplaced,atthenearestsuitablepotn,tbutnotlessthantwenty(20)feelabovethestratum,aplugofcementorothersuitablematerialthatwillcompletelysealthehole;butiftheshootinghasbeendoneaboveone(1)ormoreoilorgas-bearingstratainthewell,plugginginthemannerspecifiedshallbedoneatthenearestsuitablepoint,butnotlessthantwenty(20)feetbelowandabovethestratumshot.(2)Ifthecavityisinthelowestoilorgas-bearingstratumInthewell,alinershallbeplacedwhichshallextendfrombelowthestratumtoasuitablepoint,butnotlessthantwenty(20)feetabovethestratumInwh:chtheshootinghasbeendone;butUtheshootinghasbeendoneabovehttp://www.lrc.ky.gov/kar/805/001/070.htm3/12/2015805KAR1:070.Pluggingwells;coal-bearingstrata.Page2of2one(1)ormoreoilorgas-bearingstrataInthewell,thelinershallbesoplacedthalliwillextendnotlessthantwenty(20)feetaboveorlessthantwenty(20}feetbelowthestratumInwhichshootinghasbeendone.AfterthelinerIsplaced,IIshallbecompactlyfilledwithcement,clay,orothernonporoussealingmaterial.Section5.Whenawellhasbeenfilledandsecurelypluggedtoapointforty(40)feetbelowthelowestworkablecoalbed,andInthejudgmentofthewelloperator,thecoaloperator,andthedepartmentapermanentoutlettothesurfaceIsrequ!red,theoutletshallbeprovidedinthefollowingmanner:AplugofcementorothersuitablematerialshallbeplacedInthewellatadepth,notlessthanten(10)feetbelowthelowestworkablecoalbed.InthisplugandpassingthroughthecenterorItshallbesecurelyfastenedanopenpipe,notlessthantwo(2)InchesIndiameter,whichshallextendtothesurface.Atorabovethesurfacethepipeshallbeprovidedwithadevicethatwillpermitthefreepassageofgasandpreventobstruction.Aftertheplugandpipeareset,theholeshallbefilledwithcementtoapointten(10)feetabovethelowestworkablecoalbed.Ifthereareadditionaloverlyingworkablecoalbeds,theyshallbetreatedsimilarly,IIthistreatmentIsnecessaryInthereasonablejudgmentofthewelloperator,thecoaloperator,andthedepartment.lithepartiescannotagree,thedecisionofthedepartmentshallcontrol.Section6.Inthisadministrativeregulationwherementionismadeofa"plugofcementorothersuitablematerial",thisshallmeanhydrauliccementproperlymixedwithwateronly.Thistypedofplugshallfillnotlessthanfifteen(15)feetofboreholewhenplaced.Section7.InSection2ofthisadministrativeregulationtheword"time"shallbeboththehourandthedayatwhichtheworkofpluggingandfillingwillbecommenced.SectionB.IIthewelltobepluggedmaysafelybeusedlorafreshwaterwell,andthisutilizationisdesiredbythelandownerandisagreeabletotheowneroroperatorofallcoal-bearingstratabeneaththelocationofthewell,thewellneednotbefilledabovetherequiredsealingplugsetbelowfreshwater;IIwrillenauthoritylortheuseIssecuredfromthelandowner,andcoalowneroroperator,andfiledwiththedepartment.Section9.Withinthirty(30)daysalterthepluggingofanywellhasbeenaccomplished,theowneroroperatorofthewellshallfileapluggingreportwiththedepartmentsettingforthIndetailthemethodusedInpluggingthewell.ThisreportshallbemadeonformED-38.Section1o.TheoperatorshallhavetheoptionastothemethodofplacingcementIntheholeby:(1)Dumpbailer;(2)Pumpingthroughtubing;or(3)Pumpandplug.Section11.CareshallbetakentoInsurethatwhentheholeIsbeingfilledwithmud,clay,orothernonporousmaterialthattheholedoesnotbridgeandprohibitthefillingoftheenUreholeasrequired.Section12.IncorporationbyReference.(1)"Affidavittotimeandmannerolpluggingandfillingwell",FormED-38,October,2007,isincorporatedbyreference.(2}Thismaterialmaybeinspected,copied,orobtained,subjecttoapplicablecopyrightlaw,attheDivisionofOilandGasConversation,1025CapitalCenterDrive,Suite201,Frankfort,Kentucky40602-2244,MondaythroughFriday,Ba.m.to4:30p.m.(OAG-Rg-5;1Ky.R.1070;elf.6-11*1975;36Ky.R.188;786;eft.10-23-2009.)http://www.lrc.ky.gov/kar/805/001/070.htm3/1212015805KAR1:080.Gasstoragereservoirs;driJJing,plugginginvicinity.805KAR1:080.Gasstoragereservoira;drilling,pluggingInvicinity.RELATESTO:KRS353.500,353.520,353.540,353,550,353.560STATUTORYAUTHORITY:KRS13A.100,353,540,353.670Page1of3NECESSITY,FUNCTION,ANDCONFORMITY:ProvidesfortheprotectionoftheIntegrityofgasstoragereservoirsbyrequiringcertaintechniquesofdriLSng,casing,operatingandpluggingbeappliedwhenoperatingInthevicinityofgasstoragereservoirs.Section1.Purpose.Rulesandadministrativeregulationssetouthereinaredesignedfortheprotectionofgasstoragereservoirswhicharenaturalresourcesolthestate,andnoperson,firmorcorporationshallcausephysicaldamageto,orcreateahazardouscondiUonthreateningtheexistenceofsuchareservoirinanymannerastomakeanysuchreservoirlesssusceptibleforuselorgasstorage.Anyweipenetrating,drilledtoageologicstratumoverlying,anddrilledInthevicinityofanundergroundgasstoragereservoirsha"lbemalntainedatalltimesinsuchamanneraswillboth:(1)Excludetheencroachmentofoil,gasorwaterIntosuchreservoir;and(2)Protectsuchreservoirfromablowoutorwasteofgasduringthedrillingofandaftercomplelionand/orpluggingofsuchweN,Inaddition,lhlsadministrativeregulationhasasItspurposetheequitableadjustmentofcorrelativerightsofgasstorageownersandoilandgasoperatorsandUshallbeRberallyconstruedtogiveeffecttosuchpublicpolicy.Section2.DeRnltlons.(1)"Gasstoragereservoirs"arespecialgeologicandgeometricelementsofundergroundstratawhichareorcanbesoarrangedandsituatedastoberecognizedasuselullortheretention,Injection,storageandrecoveryofgastherefromonacommercialservicelevel.(2)"Undergroundgasstorage•Istheutilizationofsubsurfacestrataandassociatedfacilitieslorstoringandwithdrawinggasheldtnplacefortheprimarypurposesofconservation,fullerutinzationofpipe!inefaciliHes,andmoreeffectiveandbeneficialserviceofgastothepubic,{3)"Gasstorageoperator·Isanycorporation.partnership.orindlvldualwhoisengagedIntheworkofpreparingtoInject,orwhoInjectsgasInto,orwhostoresgasin,orremovesgasfrom,agasstoragereservoir,andwhoownstherighttodoso,includingbutnotlimitedtothoseengagedintransportinganddeliveringsuchgasInpublicservice.(4)"Welloperator"isanypersonwhoproposestoordoeslocate,drill,operateorabandonanywell.(5)"Well"Isanyboreholedrilledorproposedtobedrilled.deepenedorreopenedlorwhichapermitIsrequiredbyKRS353.570(1).Section3.EstablishmentofaGasStorageReservoir.(1)BeforeanyareamaybedeclaredtocontainoneormoregasstoragereservoirsforthepurposeofthisadministrativeregulationthegasstorageoperatorshallmewiththeDirectorofOilandGasConservationasloeachsuchreservoir,acertificateofconvenience,issuedbytheFederalPowerCommissionoritssuccessor,IfsuchIsIssued,acertificateofconvenienceissuedbytheKentuckyPublicServiceCommissionoritssuccessor,IfsuchIsissued,.oradeclarationolintent,roundbythedepartmenttobebonafide.preparedbythegasstorageoperatortodevelopagasstoragefacility.Theabovecitedfllingshallbeaccompaniedbyamap,preparedonthescaleofone(1)inchequals2.000feetandusingtheappropriatesevenandone-half(71/2)minutetopographicmapasthebase,whichoutlinesIndetallthepropertiesonwhlchstoragerightshavebeenorarebeingobtained,whetherbypurchaseorcondemnation,andanoudineofthestoragereservoirprotectionzoneassuggestedbythestorageoperator.Thisprotectionzoneshallbenowiderthan2,000feetlromthenearestpropertyonwhichgasstoragerightshavebeenorarebeingobtainedandthewidthshaUbesubjecttotheapprovalofthedepartmentbasedonthecharacteristicsofthereservoirandthemaximumanticipatedstoragepressure.(2)Therequiredmapshallberemedatanytimethatstoragerightsonadditionalacreageareacquiredoratanytimethatacreageonwhichstoragerightshavebeenacquirediseliminated.(3)NogasshanbemovedandstoreduntiltheabovecitedfilingIsmadewiththedirector.ThisdoesnotIncludemovedandstoredgaswhichlstobeusedtodetermlnewhetherornotundergroundgasstoragelsfeasible.(4)Anyoperatorofanexistinggasstoragereservoirshalltiletheabovecitedcertificateordeclarationandmapwiththedirectorwithinsixty(60)daysofthedatethatthisadministrativeregulationbecomeseffective.Section4.ApplicationforPermittoDrill,DeepenorReopenaWellonPropertyWhereGasStorageRightsareAcquired.(1}Beforedrr.ling,deepeningorreopeningawellonanypropertywheregasstoragerightshavebeenacquiredtheweltoperatorshallatthetimeofflijngwiththedepartmentalsoforwardtothegasstorageoperatorbyregisteredorcertifiedorbypersonalserviceacopyoftheandplat.(2)Onanypropertywherethereisanoutstandingoilandgasleaseoronanypropertyonwhlchproducingwe11sarelocatedIIshallbetheresponsibilityofthegasstorageoperatortonotifythewelloperatoratthetimestoragerightsareacquiredofsuchacquisitionandthatacopyofallfutureapplicationstodrill,deepen,orreopenweirsbythewenoperatorshallbefurnishedtothegasstorageoperator.http://www.lrc.ky.gov/kar/805/001/080.htm3/12/2015805KAR1:080.Gasstoragereservoirs;dri1ling,plugginginvicinity.Page2of3Section5.ApplicationlorPermittoDrill,Deepen,orReopenaWellonPropertyWhereGasStorageRightsareNotAcquiredbutwhichUesWithintheStorageReservoirProtectionZone.Whenanyappllcallonlorpermittodrill,deepen,orreopenawellIsreceivedbythedepartmentwherethelocationoftheproposedwellwillfallwithinthestoragereservoirprotectionzone,thedepartmentshallnotifythewelloperatorandthegasstorageoperatorofthereceiptoftheappllcallonbyfirstclassmail,postageprepaid.Section6.ObjectionandHearing.(1)Uponreceiptofanapplicationtodrill,deepen,orreopenawellonanypropertyonwhichgasstoragerightshavebeenorarebeingacquiredoruponanypropertywhichlieswithinthestoragereservoirprotectionzone,thedepartmentshallholdtheapplicationforfive(5)days.Thiswillenablethegasstorageoperatortofilewiththedepartmentspecificobjectionstotheproposedwell;andiftheobjectionsaresofiled,thegasstorageoperatorshall,atthesametime,servethesameuponthewelloperatorbyregisteredorcertifiedmail,orbypersonalserviceandthedepartmentshallfixatimeandaplacelorahearing,notmorethanten(10)daysaltertheendorthelive(5)dayperiod,atwhichhearingtheobjectionsshallbeconsidered.Atthehearing,thewelloperatorandthegasstorageoperatororsuchofthoseasarepresentorrepresented,shallconsidertheobjectionsandeitheragreeuponthedrillingorthewellasproposedormakesuchchangeInthedrillingprogramastosatisfyallobjectionsandmeettheapprovalofthedepartment.Allchangesagreeduponinthedrillingorsuchwellshallbesetoutonanamendedapplicationforpermittodrillbythewelloperatorandfiledwiththedepartmentwithinareasonableperiodoftimealterthehearing.Thedepartment,uponreceiptoltheamendedapplication,shallissuetothewelloperatoradrillingpermitapprovingthedrillingofsuchwell.Ifthegasstorageoperatorandthewelloperatorareunabletoagreeatthehearing,thedepartmentshall,inviewofthepurposeandIntentofKRSChapter353,issuetothewelloperatorapermittodrillsuchwelleitherasoriginallyproposedorwithsuchaddedorcorrectiveprogramasthedepartmentdeemsappropriatetoprotecttheundergroundgasstoragereservoirandpreventthelossofgastherelromwithoutunnecessarilyrestrictingdrillingoperations.(2)IIthegasstorageoperatorandthewelloperatorcannotagreeontheprogramunderwhichthewellistobedrilled,completedandplugged,thedepartmentshallinItsorderspecifywhatcosts,ifany,inexcessofcostsnormallyexpendedinthedrilling,completion,andpluggingofthewellshallbebornebythegasstorageoperatorandshallspecifywhenandInwhatmannerpaymentforsuchcostsshallbemade.(3)Thegasstorageoperatormaywaiveobjectionsbyletter,telegram,ortelephone,providedsuchtelephonenoticeorwaiverIsfollowedbyawrittenwaiver,tothedepartmentonanyone(1)well,groupolwells,allwellstobedrilledbyawelloperator,allwellstobedrilledinaspecificareaoronaspecificlease.Ifsuchwaiverorwaiversarefiledwiththedepartment,andthedepartmenthavingdeterminedthatthepublicinterestIsbeingserved,thedepartmentshallissuethepermitwithoutdelay.Section7.NoticetoWellOperator.ThegasstorageoperatorshallgivetothewelloperatoranoticeorIntentiontodrill,deepen,orreopenawellinthemannerprovidedforinSecllon4ofthisadministrativeregulaHon.NoticeshallberequiredonlytothewelloperatorInpossessionatthetimerightsofstorageareacquiredorhissuccessorinInterestIfthelatternotifiesthegasstorageoperatorInwritingofhisacquisition.ThewelloperatorshallhavethesamerightsandobligationsasdoesthegasstorageoperatorwithrespecttoobjectionsandhearingasdetailedInSection6orthisadministrativeregulation.SectionB.NoticeofIntentiontoPlugWells.(1)Priortotheabandonmentofawelldrilledthroughorwhichpenetratesanundergroundgasstoragereservoir,orwhichIsdrilledthroughorwhichpenetratesthesamestratigraphichorizonasthegasstoragereservoirInthestoragereservoirprotectlonzone,thewelloperatorshallnotifythegasstorageoperatorandthedepartmentoftheirIntentiontoplugandabandonthewell.Thenoticeshallbetimelyandreasonableinorderthatrepresentativesofthegasstorageoperatorandthedepartmentwillhavetheopportunitytobepresentatthepluggingandfillingofthewell.Whetherornotsuchrepresentativesappear,thewelloperatormayproceed,atthetimefixedinhisnotice,toplugandIiithewell.(2)UponreceiptofnoticeofIntentiontoplug,thegasstorageoperatormay,athisoptlon,andafterdeterminingfromthewelloperatorthephysicalconditionofthewell,electtoplugthewellorbeartheentirecostofplugging.Theoptionmaybeexercisedonlylorthepurposeofpluggingthewelll:ftheoptionIsexercised,thegasstorageoperatorshallnotifyInwritingboththewelloperatorandthedepartmentofhiselection.ThewelloperatorshallthenadviseInwritingboththegasstorageoperatorandthedepartmenttheconditionofthewell,anyequipmentorpipethatmaybeInthewellandtheexistenceandtypeofanyequipmentormaterialsthathavebeenlostInthehole.Uponreceiptbythedepartmentofthenoticerequiredofthegasstorageoperatorandtheadvicerequiredofthewelloperator,thedepartmentshallcausethewelloperator'sbondtobereleasedandthewellshallbeplacedunderthebondofthegasstorageoperator.(3)WhenthepluggingandliiHnghavebeencompleted,anaffidavitsettingforththetimeandmannerInwhichthewellwaspluggedshallbemadebytwo(2)experiencedmenwhoparticipatedInthework.Theaffidavitshallbemadeonformsfurnishedbythedepartment.One(1)copyortheaffidavitshallberetainedbythepersonthatcausedthewelltobeplugged,one(1)maltedtothegasstorageoperatororthewelloperatorandone(1)tothedepartment.http://www.lrc.ky.gov/kar/805/00l/080.htm3/12/2015805KAR1:080.Gasstoragereservoirs;drilling.plugginginvicinity.Page3of3Section9.DrillingAgainstHighReservoirPressures.Wheneverposslbte,thedriiHngIntoorthroughstoragereservoirswillbeconductedwhenthereservoirpressureIsequaltoorlessthantheoriginalformationpressureandsuchoriginalfonnatlonpressureshallbeprovidedbythegasstorageoperator.Section10.NothingInthisadministrativeregulationshallbeconstruedtoprohibitawelloperatororagasstorageoperatorfromdrillingawellthathewouldotherwisehavetherighttodrill.(O&G·M&M·7;1Ky.R.1071;eH.6-11·75.)http://www.lrc.ky.gov/kar/805/001/080.htm3/12/2015805KAR1:100.Commission'srulesofprocedure;spacingofdeepwelldrilling;wildcatwell...Page1of5805KAR1:100.Commission'srulesofprocedure;spacingofdeepwelldrilling;wildcatwellsandpoolingofInterests.RELATESTO:KRS353.651,353.652STATUTORYAUTHORITY:KRS13A.100,353.565NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.565requirestheKentuckyOilandGasConservationCommissiontoadministerandenforcetheprovisionsofKRS353.651and353.652byregulatingthespacingofdeepwelldrilling,drillingunitsandpooHngofinterests.Section1.DefinitionsandConstruction.UnlessthecontextotheiWiserequires,thefollowingwordsandtermsshallhavethefollowingmeaningswhenusedintheseadministrativeregulations:(1)"Department"meanstheDepartmentofMinesandMineralsasdefinedInKRS353.010;(2)"Commissioner"meanstheCommissioneroftheDepartmentofMinesandMineralsasdefinedInKRS351.010;(3)"Direc1or"meanstheDirectorofOilandGasConservationasprovidedInKRS353.530;(4)"Commission"meanstheKentucky011andGasConservationCommissionasprovidedInKRS353.565;(5)"Person"meansanynaturalperson,corporation,assoclation,partnership,receiver,governmentalagencysubjecttoKRS353.500to353.720,trustee,so-caUedcommon-laworstatutorytrust,guardian,executor,administratororfiduciaryofanykind;(6}"Correlativerights•meansthereasonableopportunityofeachpersonentitledtheretotorecoverandreceive withoutwastetheoilandgasInandunderhistractortracts,ortheequivalentthereof;(7)"Oil"meansnaturalcrudeoilorpetroleumandotherhydrocarbons,regardlessofgravity,whichareproducedatthewellInliquidformbyordinaryproductionmethodsandwhicharenottheresultofcondensationofgasafterItleavestheundergroundreservoir;(8)"Gas"meansallnaturalgas,Includingcasingheadgas,andallotherhydrocarbonsnotdefinedaboveasoil;(9)"Pool"meansanundergroundreservoircontainingacommonaccumulationofonorgasorboth.EachproductivezoneofageneralstructurewhichIscompletelyseparatedfromanyotherzoneInthestructure,orwhichforthepurposeofKRS353.500to353.720maybesodeclaredbythedepartment,Iscoveredbytheword"pool"asusedherein;(10)"Field"meansthegeneralareawhichIsunderlaidorappearstobeunderlaidbyatleastone(1)pool;and"field"Includestheundergroundreservoircontainingoilorgasorboth.Thewords"field"and"pool"meanthesamethingwhenonlyone(1)undergroundreservoirIsInvolved;however,"field"unlike"pool"mayrelatetotwo(2)ormorepools;(11)"Justandequitableshareorproduction•means,astoeachperson,anamountofoilorgasorbothsubstantiallyequaltotheamountofrecoverableoilorgasInthatpartofapoolunderlyinghistractortracts;(12)"Well"meansaboreholedrilled,orproposedtobedrilled,lorthepurposeofproducingnaturalgasorpetroleum,oronethroughwhichnaturalgasorpetroleumIsbeingproduced,oraboreholedrilledorproposedtobedrilledforthepurposeofInjectinganywater,gasorotherfluidthereinoroneIntowhichanywater,gasorotherHuldisbeingInjected;(13)"Deepwell"meansanywelldrilledandcompletedbelowthedepthor4,000feetor,Inthecaseofawelllocatedeastoflongitudelineeighty·lour(84)degreesthirty(30)minutes,awelldrilledandcompletedatadepthbelow4,000feelorbelowthebaseofthelowestmemberoftheDevonianBrownShale,whicheverisdeeper;(14)"Operator"meansanyowneroftherighttodevelop,operateandproduceoilandgasfromapoolandtoappropriatetheoilandgasproducedtherefrom,eitherforhimselforlorhimselfandothers;IntheeventthatthereIsnooilandgasleaseInexistencewithrespecttothetractinquestion,theowneroftheoilandgasrightsthereinshallbeconsideredas"operator"totheextentofseven-eighths(7fB)oftheoilandgasInthatportionofthepoolunderlyingthetractownedbysuchowner,andas"royaltyowner"astoone-eighth(1/8}Interestinsuchoilandgas;andIntheeventtheoilisownedseparatelyfromthegas,theowneroftherighttodevelop,operateandproducethesubstancebeingproducedorsoughttobeproducedfromthepoolshallbeconsideredas•operator"astosuchpool;(15)"Royaltyowner"meansanyownerofoilandgasInplace,oroilandgasrights,totheextentthatsuchownerisnotanoperatorasdefinedInsubsection(14)ofthissection;(16)"Drillingunit"generallymeansthemaximumareainapoolwhichmaybedrainedefficientlybyone(1)wellsoastoproducethereasonablemaximumrecoverableoilorgasInsucharea.Wheretheregulatoryauthorityhasprovidedrulesfortheestablishmentofadrillfngunitandanoperator,proceedingwithintheframeworkoftherulessoprescribed,hastakentheactionnecessarytohaveaspecifiedareaestablishedforproductionfromawell,suchareashallbeadrillingunit(17)Thesingularshallincludetheplural,andthemascutinegendershaillncludethefeminineandneuter.Section2.RulesofProcedure.(1)Rules,administrativeregulations,andordersofthecommissionofgeneral,orstatewide,effectshallbesubmitted,published,andreviewedInaccordancewithKRSChapter13A.Hearingsonsuchrules,administrativeregulations,orordersshallbeheld,Inhttp://www.lrc.ky.gov/kar/805/001/JOO.htm3/12/2015

# 805 KAR 1 : 100

. Commission's rules of procedure; spacing of deep well drilling; wildcat well

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accordance with KRS Chapter 13A

.

(2)

Rules, administrative regulations

, or orders other than those of general, or statewide, effect. Including but not 

# lim i ted to orders establishing

drilling units, pool or field-wide units

, or special field rules, shall be adopted only alter notice and hearing In accordance with these rules and consistently

with provisions of KRS 353

. 500 to 353.720.

(3) All hearings before the commission shall be open to the public. Hearings shall be 

# called by the commission for the purpose of taking an act i on i n

respect to any matter within Its jurisdiction upon its own motion or upon the request or application ol any I nterested party

. Applications or requests for

hearing (except as otherwise provided herein) shall be 

# written and may be 

# In the form of a letter, shall be brief 

# and concise

, shall state In general terms

the matter upon which action of the commission Is desired, the Interest of the applicant, or person making the request, the action sought, and the

reasons therefor.

(4) The director shall maintain a docket book, and all applications or requests for hearings and all hearings called on motion of the commission shall

be docketed and given a docket number, and a lile carrying such number shall be opened by the director. An applications for hearing, a copy of the

notice of hearing, together with proof of Its publication, the originals of all Instruments, documents

, plats, and other data filed In connection with the

hearing or the subject matter thereof, a transcript of all evidence taken at the hearing

, the originals or copies or all correspondence with the comm i ss i on

concerning such hearing or the subject matter thereof shall be stamped with the docket number of the hearing and placed and kept in the file carrying

such number. The 

# docket book 

# and all files pertaining to hearings shall be 

# open to the public at an reasonable limes but shal not be removed from the

custody of the commission or I ts employees

. Copies ol all such Instruments, documents, plats, other data, and correspondence sha W be furnished to

any I nterested party upon payment of the cost or making such copies

. All notices of hearing shall refer to the docket number thereof. Copies or

applications for hearing shall be 

# furnished by the director to any person upon request

(5) A D hearings shall be held In Lexington, Kentucky, unless otherwise ordered.

(6) Upon receipt of a proper request or application lor hearing, the commission shall call a hearing wit hin th i rty (30) days, and alter such hearing and

with all convenient speed, and In any event within thirty (30) days after the conclusion of the hearing

, shal l take action with regard to the subject matter

thereof. (7) 

# Notice or all hear i ngs shall be given 

# by publication, as authorized by KRS 353

. 680, In accordance with KRS Chapter 424

. When required by

KRS 353.65 1 or 353

. 652 to give personal notice to all persons reasonably known to own an Interest in the oil and gas In an area to be 

# unitized or for

which special field rules are proposed, the commission shall give such notice by registered mail unless a person has given a mailing address as

provided In subsection (8) or this section

.

(8)

The director shall maintain a general mailing list and shall place thereon the names and addresses of all persons, firms, or corporations who

make request in writing to be i ncluded on such 

# t

. st. Each person , firm, 

# and corporation on such maiHng Ust shall be 

# mailed by lirst class mall at the

address listed a copy or all notices and orders Issued 

# by the commission

. The d i rector shaD maintain a mailing list 

# for each field In the state containing

deep wells and shall place on each such &st the names and addresses of all persons , firms, or corporations who make request in writing to be 

# included

thereon . Each person Included on the mailing l i st or 

# any lield shall be mailed by first class mall at the address listed a copy ol all notices and orders

issued by the commission as to such field. The fai l ure to mail a copy of a notice to any such person, lirm

. or corporation shall not affect the validity of

any hearing held pursuant to the notice published In accordance wnh subsection (7) of this sect i on or any rule, administrative regulation, or order issued

pursuant to such hearing, unless such person Is one reasonably known to own an Interest In the ail and gas in an area to be 

# unitized and lor which

speciallield rules are proposed and I s thus entitled to personal notice 

# by KRS 353.651 or 353.652. When a person entitled to personal notice ol a

hearing has requested to 

# be praced on e i ther t h e general or a field mai ! ing list, a notice mailed by first c r ass mai l to the address g i ven shall constitute

compliance with KRS 353

. 651 or 353.652, as the case may be

.

(9)

Notices of al l hearings shall state the lime and p t ace of the hearing

, the name of the party requesting the hearing, the nature thereof

. the action

sought, and the docket number.

(10) No noijce by personal service shall be necessary except as required by KRS 353.651 or 353.652 or by special order of the commission entered

on Its minutes

.

(11)

Aller notice of a hearing Is once g · ven, the hearing may be 

# continued to another day and from 

# day to day by order of the commission entered

on the 

# day fixed lor the hearing

.

(12)

The commission 

# may adopt an emergency ru l e, adm i nistrative regulation, or order of general

, or statewide

, effect without notice and hearing

upon a linding of necessity t o prevent waste, prevent Irreparable Injury, or other cause and issuance by the Governor ol an executive order providing

that It shal l become effective upon submission to the Legislative Research Commiss i on in accordance with KRS Chapter 13A. Such a rule,

a d ministrative regulation

, or orde r shall provide that i t will remain in force no longer than 120 days from the date ol filing

. II the commission desires to

make such a rule

, administrative regulation, or order permanent

, II shall proceed as required by KRS Chapter 1 3A.

(13) The commission may adopt emergency rules, admlnlslrallve regulations, or orders other than those of general

, or statewide, effect without

notice and hearing upon a finding ol necessity to prevent waste, Irreparable Injury, or other cause. Any such rule, administrative regulation, or order



# http://www.lrc.ky . gov/kar/805/00l/lOO

. htm 3/12/2015805KAR1:100.Commission'srulesofprocedure;spacingofdeepwelldrilling;wildcatwell...Page3of5shallprovidethatitwillremainInforcenolongerthanforty·five(45)daysfromItseffectivedate.Immediatelyuponenteringsucharule,administrativeregulation,ororder,thecommissionshallcallahearingonthesubjectmatterthereof,andsuchhearingshallbeheldpriortotheexpirationoftherule,administrativeregulation,ororder.(14)Allinterestedpartiesshallhavetherighttobeheardatallhearingsandtopresentwitnessesandotherevidencewhetherornotrepresentedbylegalcounselortechnicalassistance.Thecommissionmayrequireanyprotestmadetobereducedtowritingandfiled.(15)InanyproceedingbeforethecommissionsubpoenasmaybeIssuedrequiringtheattendanceofwitnessesandtheproductionofbooks,records,maps,charts,diagrams,andotherpertinentdocumentsmaterialtothematterslawfullybeforethecommissionatthedesignatedplaceofhearing.(16)Hearingsshellbeopenedwiththereadingofthenoticeornotices.Therequestforhearing,thenoticeornoticesthereof,andproofoftheduepublicationofthenoticeornoticesofthehearingshallbemadeapartoftherecordofthehearing.(17)Allwitnessesshallberequiredtotestilyunderoath,administeredbyamemberofthecommission,totellthetruth,thewholetruth,andnothingbutthetruth,andallwitnessesshallbesubject,todirectandcross·examinatlonbyanymemberofthecommissionorbyanyInterestedpartyorbyhisrepresentative.(18)InallnoncontestedmattersorIncontestedmatterswherethosepartieswhoappearinpersonatthehearingagreethereto,swornaffidavitsmaybereceivedInevidence.Thecommissionreservestherighttorejectanyandallsuchaffidavitsandtorequiretheaffianttoappearinperson.(19)Themateriality,relevancy,andcompetencyofanytestimonyorotherevidenceshallbesubjecttochallengebyanypartytothehearingorbyanymemberofthecommission.Whensointerposed,suchobjecllonsshallbeacteduponbythechairmanorbytheactingchairman,hisrulingthereonbeingsubjecttochangebyamajorityvoteofthecommissionmembersthensitting.(20)Allpersonspresentingexhibitsshallfileatotalofeight(8)copieswiththereporter.AllsuggestedformsofordersshallbepresentedInquintuplicate.Theserequirementsmaybewaivedbythecommission.(21)ThecommissionshallfromllmetotimebyorderenteredonItsminutesappointacompetentshorthandreporter.Allhearingsshallberecordedbyareporterappointedbythecommissionandswornfaithfullytodischargehisdutiesinaccordancewithlawandlhedirectionofthecommission.Thereportershalltranscribehearingsonlyuponorderorthecommission.Whensuchanorderhasbeenentered,transcriptsshallbeavailablelorInspectionattheofficeofthecommissionInLexington,KentuckyandtranscriptsshallbeavailableforpurchasebyinterestedpartiesfromthereporteratratesprescribedlortranscriptsofevidenceIncircuitcourtproceedingsInKentucky,whetherorderedtranscribedbythecommissionornot(22)RegularmonthlymeetingsshallbeheldbythecommissiononthefirstFridayofeachmonth.Wherecircumstancespermit,thecommission,aftersoundingthedocket,shallfirstcallupanddisposeofallnoncontestedmattersandmotionsforcontinuance.Section3.PermittingandSpacingofWildcatWells.(1)"Wildcatwell"meanseitheradeepwelldrilledwiththeIntentofdiscoveringandproducinghydrocarbonsfromaformationorformationsnotpreviouslyproductiveofoilorgasfromawellwithin25,000feetofItslocation,orawelldrilledundersuchprovengeologicalconditionsthat,eventhoughlocatedlessthan25,000feetfromthenearestdeepwellpreviouslyproductiveofoilorgas,willnot,IIcompletedsuccessfully,producefromapreviouslyproductivepool.Proofsupportingpermittingofawelllocatedlessthan25,000feetfromthenearestdeepwellpreviouslyproductiveofoilorgasshouldbesubmittedtothedirectorwiththepermitapplication;thedirectormay,however,requireadditionalproof.Ifadeepwellencountersaformationorpoolastowhichillsnotawildcatwell,itmaynotbeproducedunlessItIsotherwiseincompfiancewiththepermitrequirementsandspacingregulationsforotherwellsInthatformationorpool.Thedirectormay,Inhisdiscretion,grantpermissiontotestpreviouslyproducingformationsencounteredInthedrillingofawildcatwellandmayfixsuchconditionsas,inhisjudgment,willprotecttheformationorformationstestedandtherightsoftheoperatorofanywellorwellsproducingtherefrom.Ifthedirectorgrantspermissionforsuchtesting,heshallinformtheothermembersofthecommissionlnwritingofhisaction.(2)Withinninety(90)daysfollowingthecompletionoftestingbysurfaceproductiontestofawellshowntobecapableofproductionofoilorgas,orwithinninety(90)daysofcompletionasaproduciblewell,whicheveroccursfirst,theoperatorthereofshallfilewiththecommissionaplatshowingaproposedunitforthewellconformingtotherulesprovidedinSection4(1)ofthisadministrativeregulation.(3)NoadditionalpermitswillbeIssuedlorthepooluntilaproposedunitplatisfiled,andwhentheplatisfiledforawildcatwelloranysubsequentwells,nopermitsshallbeIssuedwhichwillviolatetheIntegrityoftheproposedunitorthespacingregulationsestablishedbySection4(2)to(4)ofthisadministrativeregulation.Secllon4.SpacingofDeep011andGasWells.(1)Ifapermitisrequestedforadeepgaswellotherthanawildcatwelloraweidrilledonaunitpreviouslyformedbythecommission,theappHcatlonshallincludeaplatshowingaproposedunitcomprisingasquarewithsidesof3,500feetifthewellistobedrilledtoadepthlessthan7,000feetandwithsidesof5,000feetifthewellistobedrilledtoadepthof7,000feetormore.IIthepermitisloradeepoilwell,theproposedunitplatshallcompriseasquarewithsidesof1,750feetifthewellistobedrilledtoadepthoflessthan7,000feetand2,500feetIIthewellistobedrilledtoadepthol7,ooofeetormore.Thefirstproposedunitlorapoolshaabedelineatedsothattheformingone(1)http://www.lrc.ky.gov/kar/805/001/lOO.htm3/1212015805KAR1:100.Commission'srulesofprocedure;spacingofdeepweJJdrilJing;wildcatwell...Page4of5sideofthesquareIsabaselinerunningfromsouthtonorthparalleltotheKentuckyCoordinateSystem.Allothernorth-southlinesforthatproposedunitandanyaddiHonalunitsforthesamepoolshallbedrawnparalleltothebaselino.(2)ExceptasprovidedInsubsections(4)and(5)ofthissectionnodeepgaswelldrilledtoadepthlessthan7,000feelshallbelocatedwithin1,072feetoftheboundaryoftheproposedunit,andnodeepgaswelldrilledtoadepthof7,000feetormoreshallbedrilledwithin1,532feetoftheboundaryoftheproposadunit.(3)Exceptasprovidedinsubsections(4)and(5)ofthissectionnodeepoilwelldrilledtoadepthlessthan7,000feetshallbelocatedwithin536feetoftheboundaryoftheproposedunit,andnodeepoilwelldrilledtoadepthof7,000feetormoreshallbedrilledwithin766feeloftheboundaryoftheproposedunit(4)(a)Uponreceivingevidenceshowinganecessitytherefor,thedirectormayInhisdiscretiongrantpermitswiththefollowinglimitationonwelllocation:1.Adeepoilwellatadepthlessthan7,000feetmaybelocatednocloserthan438feeltotheboundaryoftheproposedunit2.Adeepoilwellatadepthof7,000feetormoremaybelocatednocloserthan625feettotheboundaryoftheproposedunit.3.Adeepgaswellatadepthoflessthan7,000feetmaybelocatednocloserthan875feettotheboundaryoftheproposedunit.4.Adeepgaswellatadepthof7,000feetormoremaybelocatednocloserthan1,250feeltotheboundaryoftheproposedunit(b)Thedirectorshallnotgrantapermitundertheprovisionsofsubsection(4)(a)ofthissectionexceptInthepresenceofevidencewhichreasonablysubstantiatesthattheproposedlocationisjusUfledbyeithertopographicalorgeologicalconditions.Upongranllngsuchapermit,thedirectorshallinformtheothermembersofthecommissionofhisactioninwriting.(c)Priortothetimeacertificateofcomplianceisgrantedandawellisproducedotherthanforthepurposeoftesting,thedirectorshalldeterminewhetherahearingisnecessaryforthepurposeoftakinganyspecialactionthatmayberequ!redtooffsetanyadvantageresultingfromthelocationofthewellaccordingtothepermitandthusprotectingcorrelativerightsofotherswithInterestsInthepool.IfItIsdeterminedthatspeciatactionIsnecessary,thedirectorshallcallahearing.(5)(a)Exceptionlocationsvaryingfromthelimitationsprovidedinsubsections(2)to(4)ofthissectionmaybegrantedIfthecommissiondetermines,afternoticeandhearing,andthefactsclearlysupportthedetermination,thataproposedunitorapreviouslyformedunitIspartlyoutsidethepool,or,lorsomeotherreason,awelllocatedInaccordancewiththestatewiderulescouldnotreasonablybeexpectedtobeproducUveortopographicalconditionsaresuchastomakethedrillingatsuchalocationundulyburdensome.AnapplicationfOfanexceptionlocationshallbeaccompaniedbyaplatdrawntothescaleolnotsmallerthan1:12,000accuratelyshowingtoscaletheproposedlocationofthewellaccordingtotheCarterCoordinateSystemandallotherdeepwellswithintwo(2)locationsoftheproposedlocation.Theapplicationshallbeverifiedbysomepersonacquaintedwiththefacts.(b)WhenanexceptionlocationIssoughtonlhegroundoftopographicalconditions,ItmustbeshownthatthecommissioncaneHectivelyoHsetanyadvantagetotheapplicantaccruingfromsuchvariation.(c)WheneveranexceptionIsgranted,thecommissionshalltakesuchconcurrentactionasmayberequiredtooffsetanyadvantagetotheapplicantandthustoprotectthecorrelativerightsolotherswilhInterestsinthepool.11theproposedunitoralreadyformedunitlso11essacreagethanthatprescribedbytheapplicablespacingruleloraregularunit,whetherproposedorformedaccordingtospecialfieldordersforthepoolInquestion,suchspecialunitshallbeallowedtoproduceonlyintheproportionthattheacreagecontentofsuchspecialunitbearstotheacreagecontentofaregularunll.(6)Noportionofaproposedunit,orunitformedbyorderolthecommissionuponwhichawellIslocatedshallbeattributed,inwholeorinpart,toanyotherdrillingorproduciblewellinthesamepool.(7){a)Unlessauthorizationtointentionallydeviateanddirectionallydrillisgrantedbythecommission.everyweDshallbedrilledinsuchamannerthatatanymeasureddepththeactualorapparentlocationofthewellboreshallbewithinacirclewhosecenterIsthesurfacelocationandwhoserad:usIsequaltothemeasureddepthmultipliedbyafactor0.087156.Theactual'orapparentresultantdeviationolthewellborefromtheverticalshallnotbeinexcessolfive(5)degreesatanymeasureddepth.IntheeventasurveyIndicatesthatthewellboreisoutsidetheabovecircleatanymeasureddepth,thedeviationmustbecorrectedsothatdrillingwillberestoredtothespeci6edllmiLUponcompletionofasurveyshowingorInthepresenceofknowledgegivingrisetoareasonablebelielthatawellmaybedeviatedbeyondtheaboveprescribedtolerance,theoperatorshallInformthedirector.Afteranoperatorhascommenceddrillingawellanddesirestochangethebottomholelocationbydirectionallycontrollinganddeflectingthewelllromthevertical,whethermoreorlessthanlive(5)degrees,unlessdonetostraightentheholeortosidetrackjunkintheholeorbecauseofothermechanicaldifficulties,heshallfirstmakeapplicationforanamendedlocationshowingbyattachedplattheamendedprojectedbottomholeobjectiveandsecureanamendedpermittodrillbeforecommencingsucttoperations.Theamendedbottomholelocationorobjectiveshallcomplywithallminimumdistancesfromunitlinesasprescribedbyallstatewideordersorapplicablefieldorders.(b)IntheeventawellIstobedrilledatadislancefromaunitlinewheresuchdislanceIslessthantheapparentresultant lateraldeviation,asdeterminedbymultiplyingtheproposedtotaldepthofthewellbythefactor0.087156,apermlltodrillwillbeIssuedwiththeunderstandingthatthehttp://www.Irc.ky.gov/kar/805/00111OO.htm3/12/2015805KAR1:100.Commission'srulesofprocedure;spacingofdeepwelldrilling;wildcatwell...Page5of5operatorwillberequiredtofurnishthecommissionwithinclinatlonordirectionalsuiVeydataasproofthatthewellwillbecompletedIncompliancewiththeprovisionsofthisorderbeforeacertificateofcomplianceIsIssued.AnInclinationSUIVBYshallbemadeonallwellsdrilledwiththefirstshotpointatadepthnotgreaterthanthatofthesurfacecasingseatandsucceedingshotpointsnotmorethan1,000feelapart.InclinationsuiVBysconformingtotheserequirementsmaybemadeeitherduringthenormalcourseofdrillingorafterthewellhasreachedtotaldepth.SuchSUIVeydatashallbecertifiedbytheoperator'srepresentativeordrillingcontractorandshallindicatetheresultantlateraldevlaUonasthesumofthecalculatedlateraldisplacementdeterminedbetweeneachInclinationsuiVeypoint,assumingthatallsuchdisplacementoccursInthedirectionofthenearestunitHne.IfadirectionalsuiVeydeterminingthebottomoftheholeIsfiledwiththecommissionuponcompletionofthewell,itshallnotbenecessarytofurnishtheInclinationSUIVeydata.(c)Thecommissionmay,allisdiscretion,requireanoperatortoconductInclinationordirecUonalsuiVBysunderconditionsotherthanthoseabovespecified.Section5.CertifiCateofCompliance.(1)Priortoproductionfromadeepwell,otherthantestproductionloraperiodnotinexcessorfifteen(15)days,theoperatorthereofshallapplyforandobtainacertificateofcompliancefromthedirector.Theapplication,whichmustbeverified,shalldiscloseInformationadequatetosatisfythedirectorthat:(a)AllworkingInterestsInthedrillingunitorproposedunitareIdenticallyowned,orhavebeenpooledbyvoluntaryagreementororderofthecommission,orthatthewellmaybeproducedwithoutvlolallngthecorrelativerightsofanyownerIntheunit;and(b)TheoperatorInthelocation,drilling,andcompletionofthewellhascompliedwiththeconseiVallonlawsoftheCommonwealthandtherulesandadministrativeregulationsestablishedbytheDirectoroftheDivisionofOilandGasandthecommissionapplicablethereto.(2)AcertifiCateofforawellforwhichaunithasnotbeenestablishedmaybeconditionedbythedirectorbylimitingItsdurationtoaperiodofnotmorethan180daysunlessaunithasbeenestablishedandseparatelyownedtractshavebeenpooledvoluntarilyorbyorderofthecommission.Section6.ApplicationlorSpecialAeldOrders.(1)WhenanewpoolispenetratedandawellisprovenbysurfaceproductiontesttobecapableofPfoducingoilorgasinpayingquantities,theoperatorthereofshall,within120daysalterthetestiscompletedoralterthewellIscompletedasaproduciblewell,whicheveroccursfirst,orwithinsixty(60)daysofthecompletionofaconfirmallonwellinthepool,whetherdrilledbyhimoranotheroperator,applylorahearingtoIssuespecialfieldordersgoverningthespacingofwellsandestablishmentofunitsInthepool.(2)AnapplicationforspecialfieldordersshallcontainaplatshowingallwellsInthepoolaffectedandtheunitorunitsPfoposedlorthepool.(3)IfupontestingadiscoverywellanoperatorbelievesthattheconfirmaUonwellshouldnotorcannotreasonablybelocatedInaccordancewiththestatewidespacingrules,heshallPfoceedbyapplyingforahearingtoobtainanexceptionlocation.Section7.Poo6ngofInterestsInUnitsEstablishedbyOrderoftheCommission.{1)AnapplicantlorahearingtoIssuespecialfieldordersforanewpoolorotherwisetoestablishadrillingunit,oranyInterestedparty,mayrequestthatthecommissionpooltheInterestsoftheownersandtheroyaltyownersInanyunitorunitsestablishedasaresultofthehearing.Arequesttopoolseparatelyownedtractsconcurrentlywiththeestablishmentofaunitorunitsmustbesubmittedwiththeapplicationforthehearing,orsufficientlyInadvancetoIncludenoticeoftherequestInthenoticesofhearing.WhenInItsjudgmentItIsnecessary,thecommissionmayonItsownmotionIncludethepoolingofseparatelyownedtractsInthenoticeofahearingtoestablishaunitorunits.(2)Ifseparatelyownedtractsarenotpooledasaresultofthehearingtoestablishaunitorunits,anyInterestedpartymayrequestpoolingatanysubsequenttime;provided,however,thatiftheownersandroyaltyownershavenotagreedtopooltheirInterestswithin120daysoftheIssuanceofacertificateofcompliance,theoperatorofthewellshallapplyforahearingtoissueapooHngorder.Sectiona.ReformationofDrillingUnits.(1)DrillingunitsformedbythecommissionmaybereformeduponnoticeandhearingasrequiredbyKRS353.651,toexcludePfevlouslyIncludedacreageortoIncludenewacreage,orboth.(2)ArequestforahearingtoreformdrillingunitsmustspecifythatthereIsnewgeologicalorgeophysicaldatawhichwillformabasisfortherequestedreformationandgenerallydescribethesourceandnatureofthedata.UnitswillnotbereformedIntheabsenceofsuchdataGenerally,"newdata"mustbedatanotInexistenceatthelimeofthehearingresultingIntheformationoftheunitsproposedforreformation.AelnterpretatlonofdataexistingattheUmeofthepriorhearingwillnotseiVeasabasisforreformation.(1Ky.R.1403;Am.2Ky.R.155;ell.8-13-75.)http://www.1rc.ky.gov/kar/805/001/1OO.htm311212015805KAR1:110.Undergroundinjectioncontrol.Page1ofJO805KAR1:110.UndergroundInjectioncontrol.RELATESTO:KRS353,180(3),353.510,353.520,353.550,353.570(1),(2),353.590,353.992,40C.F.R.146.6,42U.S.C.300j-6STATUTORYAUTHORITY:KRS353.540,353.550,353.560,353.592NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.540authorizestheDepartmentforNaturatResourcestoadministerandenforcetheprovisionsofKRS353.500to353.720.ThewasteofallandgaslsprohibitedbyKRS353.520,whichprovidesthatprohibitedwasteincludestheunreasonabledamagetoundergroundfreshormineralwatersupply,workablecoalseams,orothermineraldepositsIntheoperationsforthediscovery,development,production,orhandlingofoilandgas.;thewmecessaryorexcessivesurfacelossordestructionofoilorgasortheirconstituents;andthedrowningwithwaterofallystratumorpartthereofcapableofprOY!dlngoilorgasInpayingquantities,exceptforsecondaryrecoverypurposes,orinhydraulicfracturingorothercompletionpractices.KRS353.592authorizesthedepartmenttodeveloparegulatoryprogramlorthepurposeofacceptingprimaryresponsibilitylortheadmirlistratlonoftheUndergroundInjectionContfolProgram.thisadministrativeregulationestablishesrequirementslorthedrilling,casing,operation.plugging,construction,conversion,andmaintenanceofClassIIwellsandtheprotectionoffreshwaterzonesfromcontaminationassociatedwiththeproductionofoilandgas.Section1.Definitions.ThedefinitionscontainedlnKRS353.510andthefollowingadditionaldefinitionsshallapplytothisadministrativeregulation:(1)"Administrator"meanstheregionaladministratorforRegionIVaiU.S.EPA.(2)"Aquifer"meansanundergroundgeologicalformation,groupofformations,orpartofaformation!hallscapableofyieldingaslgnl<ficantamountofwatertoawenorspring.(3)"Areaofreview-meansthatareawithinnotlessthanafixedradiusofone-fourth(1/4)milearoundanInjectionwell,exceptthatattheoptionolthepermitapplicant,theareaofreviewmaybedeemedtobethezoneofendangeringInfluencecalculatedInaccordancewith40C.F.R.146.6.(4)"Casing"meansapipeortubingofappropriateofvaryingdiameterandweight,loweredIntoaboreholeduringorafterdrillingInordertosupportthesidesoftheholeandpreventthewallsfromcaving,topreventlossofdrillingmudorfluidsintoporousgroundortopreventwater,gas,orotherfluidfromenteringorleavingthehole.(5)"Cementing"meanslheoperationInwhichacementslurryIsdisplacedaroundthecasing'sannulususingapprovedengineeringmethods.(6)"ClassIIwell"meansawellwhichInjectsfluids:(a}arebroughttothesurfaceinconnectionwithnaturalgasstorageoperations,orconventionaloilornaturalgasproductionandmaybecommingledwastewatersfromgasplantswhichareanIntegralpartofproductionoperations,unlessthosewatersareclassifiedasahazardouswastewhenInjected;(b)'Forentlancedrecoveryofoilornaturalgas;or(c)Forstorageofhydrocarbonswhichareliquidatstandardtemperatureandpressure.(7}"Commerciallyproducible"meansawenwhichmaybeusedcommerciallylortheproductionofoilandgasorlorClassIIInjection.(B)"Confiningzone"meansageologicalformation,groupofformations,orpartofaformationthatIscapableollimltlnglluidmovementaboveanInjectionzone.(9)•cootamlnant"meansanyphysical,chemical,biological,orrad:ologlcalsubstanceormatterInwater.(10)•Dateofprimacy"meanstheeffectivedateoftheAdmlnls!Ialo(sapprovajofKentucky'sUndergroundInjectionControl(UIC)ProgrammadepursuanttoSection1425oftheSafeDrinkingWaterActascodifiedIn42U.S.C.300h-4.(11)"Division"meanstheKentuckyDivisionof011andGasConservation.(12)"Endangerment"meansthatanInjectionoperationmayresultInthepresenceofacontaminantIngroundwater.whichsuppliesormayreasonablybeexpectedtosupp!yanypublicwatersystem,andthatthepresenceofthatcontaminant,oranycontaminantmayresultInviolationofanynationalprimarydrinkingwaterregul'atlonormayotherwiseadverselyaffectthehealthofpersons.(13)"EPA"meanstheUnitedStatesEnvironmentalProtectionAgency.(14)"Flowrate"meansthevolumepertimeunitgiventotheflowofgasesorotherfluidsubstancewhichemergesfromanorifice,pump,orturbineorpassesalongaconduitorchannel.(15)"Fluid"meansanymaterialorsubstancewhichflowsormoveswhetherInasemisolid,liquid,sludge,gas,orotherformorstate.(16)"Formationbreakdownpressure•meansIndicatedvaluesfromdatarecordedpriortoandduringsqueezecementing,acidizing,orhydraulicfracturingtreatmentsperfOfmedbyappropriateservicecompanies.Thesebreakdownpressurevaluesarefrequentlyreportedasthesurfacegaugepressurewhichshall,throughappropriateengineeringcalculatrons,bemodifiedtoreflectthepressureatwhichanexposedformationfracturesandallowsfluidtobeinjectedIntothefDfmallon.(17)"Freshwater"meansanundergroundsourceofdrinkingwater.http://www.lrc.ky.govfkar/805/001/110.htm3/12/2015805KAR1:110.Undergroundinjectioncontrol.(18)"Freshwaterzone"meansundergroundsourceofdrinkingwater.(19)"Groundwater"meanswaterbelowthelandsurfaceInanaquifer'szoneofsaturation.(20)"Injectionwell'meansawellintowhichfluidsarebeinginjected.(21)"Injectionzone•meansageologicalformation,groupofformations,orpartofformationreceivingfluidsthroughawell.Page2of10(22)"MechanicalIntegrity"meansaconditionofInjectionwellswhichexistsIIthereisnotleakageInthewell'scasing,tubing,orpackerandifthereIsnotfluidmovementIntoanundergroundsourceofdrinkingwaterthroughverticalchannelsadjacenttothewellbore.(23)"Owneroroperator"meansthecompanyorpersonhavingsecuredapermitlor:(a)Aneworconvertedwell;or(b)Aruleauthorizedwellinoperatlonpriortotheeffectivedateorprimacy,asdefinedInsubsection(10)olthissection.(24)"Packer"meansadeviceloweredintoawetltoproducefluid-tightseal.(25)"Plugging"meanstheactorprocessofstoppingtheflowofwater,oilorgasIntooroutofaformationthroughaboreholeorwellpenetratingthatformationbytheplacementorcementplugsInthewellbore.(26)"Project"meansagroupofwellsInasingleoperation.(27)"Publicwatersystem•meansasystemlortheprovisiontothepublicofpipedwaterlorhumanconsumption,lithesystemhasatleastfifteen(15)serviceconnectionsorregularlyservesatleasttwenty•five(25)Individuals.(28)"Undergroundsourceofdrinkingwateror"USDW'meansanaquiferoritsportion,whichIsnotanexemptedaquiferandwhich:(a)suppliesanypublicwatersystem;or(b)containsasufficientquantityofgroundwatertosupplyapublicsystem;and1.Currentlysuppliesdrinkingwaterlorhumanconsumpllon;or2.Containslessthan10,000mglllotaldissolvedsolids.(29)"Well"meansaboreholedrilled,orproposedtobedrilled,lorthepurposeof:(a)Producingnaturalgasorpetroleum,oronethroughwhichnaturalgasorpetroleumIsbeingproduced;or(b)Injectingwater,gas,orotherfluidoroneIntowhichwater,gas,orotherfluidIsbeingproduced.Section2.General.(1)ApersonshaQnotdrilaClassIIwellwithoutfirstobtainingapermittodrillpursuanttoKRS353.570(1)and(2).(2)ApersonshallnotInjectfluidstothesubsurfacethrougha ClassIIwellwithouttheauthorizationofthedivisionIntheformorapermitissuedpursuanttoSecllon11ofthlsadministrativeregulation.(3)TheowneroroperatorofaClassIIwellshallmaintainfinancialresponsibilityandresourcestoclose,plug,andabandontheundergroundInjectionoperationpursuanttotherequirementsinSection8ofthisadministrativeregulation.(4)ThefeerequirementsforanapplicationtodrillanewClassIIInjectionwellpursuanttoKRS353.590(2)(a)shallsufficelorandbeapplicabletothepermittoInject.(5)ThepermittooperateanyClassIIweimaybetransferredtoasuccessoronlyalternoticeisgiventothedivisionontheWellTransferforUICWells,FormED-26,andshallincludeatleastthefollowing:(a)Theoriginaloperator'scompanynameandaddress;(b)Thesuccessor'scompanynameandaddress;(c)Thepermitnumberofthewell;(d)TheCarterCoordinatelocation;(e)Thefarmnameandwellnumber;(f)Signaturesoftheoriginaloperatorandthesuccessororthatoftheirofficialrepresentatives;and(g)AstatementthatthesuccessorassumesallresponsibilitylorthewellandprovidesfinancialresponsibilitypursuanttoSection8ofthisadministrativeregulation.(6)AClassIIwellwithanoutstandingnoncomplianceshallnotbetransferred,unlessthesuccessorIswillingtocorrectdeficienciesandsubmitacorrectiveactionplanwhichIsapprovedbythedivisionpursuanttosubsection(11)ofthissection.(7)AClassIIwellshallbepluggedInthemannerestablishedIn805KAR1:060and805KAR1:070,whicheverisapplicable.(8)AnInjectionpermitshallnotbeissuedunlesstheapplicantdemonstratesthattheClassIIwellwillnotcausetheendangermentofaUSDW.{9)(a)IfthecasingandcementingofaClassIIweRIsinadequateandmovementolfluidscausetheendangermentofaUSDW,thedivisionshallrequiretheowneroroperatorofawelltotakenecessarycorrectiveaction.(b)Correctiveactionshallbecompletedwithinninety(90)daysofnotificationfromthedivisiontotheowneroroperator.(c)ln)ecllonshallnotbeauthorizeduntilthecorrectiveactionhasbeencompletedandmechanicalintegrityhasbeendemonstrated.(10)(a)Inadministeringandapplyingthisadministrativeregulation,thedivisionshall,aspracticable,lakeIntoaccountthevaryinggeologic,http://www.lrc.ky.gov/kar/805/00I/IIO.htm3/12/2015805KAR1:110.Undergroundinjectioncontrol.Page3oftohydrological,andhistoricalconditionsIndilferentareaswithinthestate.(b)Thedivisionmay,ifconsistentwilhotherprovisionsolthissection,uponsubmldaloftheClassIIWe11PermitAppHcatlonlorUndergroundInjectionContrOl',FormED·14andalternoticeandhearing,grantavariancelromanyrequirementsubsection(8)olthissectionuponademonstrationthatalternateprudentengineeringpracticeswillprotectaUSDW.(11)Thedivisionmaymodify,suspend,orrevokeaClassIIwellpermitIftheInjectionoperationIsalteredInawaythatdoesnotadequatelyprotecttheUSDWorIfamechanicalintegrityfailureordownholeconditioncompromisestheInjectionsystem.Section3.ExemptedAquifers.AnaquiferoraportionthereolwhichmeetsthecriteriaestablishedInthissectionforaUSDWmaybedeterminedbythedivisiontobean•exemptedaquifer"IfItmeetsthefollowingcriteria:(1)Itdoesnotcurrentlyserveasasourceofdrinkingwater;and(2)ItcannotnowandwillnotInthefutureserveasasourceofdrinkingwaterbecause:(a)ItIsmineral,hydrocarbon,orgeothermalenergyproducing,ormaybedemonstratedtocontainmineralsorhydrocarbonsthat,consideringtheirquantityandlocation,areexpectedtobecommerclatlyproducible;(b)ItIssituatedatadepthorlocationwhichmakesrecoveryofwaterfordrinkingwaterpurposeseconomicallyortechnologicallyImpractical;(c)ItIssocontaminatedthatItwouldbeeconomicallyortechnologicallyimpracticaltorenderthatwaterfitforhumanconsumption;or(d)ThetotaldissolvedsolidscontentofthegroundwaterIsmorethan3,000mg/1,andlessthan10,000mg/1andillsnotreasonablyexpectedtosupplyapublicwatersystem.Section4.RequirementsApplicabletoClassUWellPermits.AuthorizationtoInjectnuldsthroughaClassIIwellshallbeconditioneduponcompliancewiththefollowingrequirements:(1)(a)TheowneroroperatorshallpromptlynotifythedirectorInwritingofanymoclilicatloninthemannerInwhichtheinjectionoperationIsconductedorofanymechanicalfailureordownholeproblemencounteredIntheoperationoftheClassIIwelloruponrecognitionofafailureInaninjectionsystem.(b)ThewellorwellswhichappeartobeleakingshallbashutdownImmediatelyandcorrectionproceduresshallbelnltlatedwithinfilteen(15)days,orthepermittoInjectmayberevokedunderappropriateconditions.(c)Theprescribednoticetothedirectorshalldescribeallproposedmodificationsorcorrectiveactionsandshallbesubjecttotheapprovalofthedirector.(2)Theowneroroperatorshallaffordthedilector,orhisauthorizedrepresentative(s)uponproperpresentallonofcredentials,accesstoCfassIIwellsandrelaledfacilitieslorthepurposeofconductingInspections,mechanicalintegritytests,correctiveactionoperationsandpluggingprocedures,andtestingsamplesollnjectedfluids.(3)(a)TheowneroroperatorshallregulatetheInjectionpressureInamannersothatthepressureIntheinjectionzonedoes1lOtInitiatenewfracturesorpropagate existingfracturesIntheconfiningzonethatwouldcausethemovementofinjectedfluidsIntoaUSDW.(b)Thedivisionmay,Ifnecessarytoensurecompliancewiththisrequirement,estab1ishlimitationsonthewellheadpressureatwhichaClass11wellmaybeoperated.(c)AnylimitationshallbeIncludedasa permitconditionorthroughanorderIssuedalternoticeandopportunityforhearing.(4)(a)TheowneroroperatorprovideforthemechanicalintegrityofthewellbyoperatingwithoutleaksInthecasing,tubing,orpackerandwithoutRuidmovementintoaUSDWthroughverticalchannelsadjacenttothewellbore.(b)Theowneroroperatorshall,uponrequestofthedivision.conducttestsofthemechanicalIntegrityoftheClassIIweP,ut1UzlngamethodapprovedbythedivisionasrequiredInSection6ofthisadministrativeregulallon.(c)EachClassIIwellshallbetestedformechanicalintegrityatleasteverylive(5)yearspursuanttoSection6{6)ofthisadministrativeregulation.(d)Anallematlvemechanicalintegritylestauthorizedbythedivisionshallbeapprovedbytheadministrator.(5)(a)TheowneroroperatorshallmonitorandrecordInjectionpressuresratesandvolumesatleastmonthlyandshallsubmitontheAnnualDisposalorInjectionWellMonitoringReport.FormED·1Bprovidedbythedivision,anannualreportoftheresultsofmonitoringtothedlvislon.(b)Theowneroroperatorshallretainalltheserecordsonfileforaperiodoffive(5)years.(c)Theowneroroperatorofhydrocarbonstorageorenhancedrecoverywellsmaymonitorthembymanifoldmonitoringonafieldorprojectbasrsratherthanonanindividualwellbasis1rthefaclUtlesconsistofmorethanone(1)lnjectlonwell,operatedwithacommonmanifold,andprovidedtheowneroroperalotdemonstratestothedivisionthatmanifoldmonitoringIsequivalenttoindividualwellmonitoring.Secllon5.ConstructionRequirementsforClassIIWells.(1)(a)AclassIIinJectionwellproposedtobeconstructedaltertheeffectivedateofhttp://www.lrc.ky.gov/kar/805/0011110.htm3/12/2015805KAR1:110.Undergroundinjectioncontrol.Page4of10primacyshallbeconstructedInaccordancewithapplicableprovisionsofKRS353.570(1)and(2)and805KAR1:020inamannerthatshallpreventInjectedfluidsfromescapingtoaUSDW.(b)ExistingClassIIwellsauthorizedbyEPAareexemptfromthisrequirementunlessthedivisiondeterminesthatcorrectiveactionIsnecessarytopreventinjectedfluidsfromescapingtoaUSDW.(c)1.Afreshwaterstringofcasingshallextendfilly(50)feetbelowthefreshwaterdepthslatedonthepermllorthebaseolthedeepestfreshwater,whicheverIsgreater.2.Allfreshwatercasingstringsshallhavecementcirculatedtofilltheannularspaceofthecasing.3.Thiscasingshallbecemented,usingapprovedengineeringmethodstoassurethecirculationofthecementtothesurface.4.ThelongstringofcasingshallextendatleastlromthesurfacetoImmediatelyabovetheinjectionInterval,andshallhaveaminimumof300feetofcementbehindthelowermost300feetofcasing.5.Ifthefreshwaterisnotprotectedbyaseparatestringofcasing,thenthelongstringshallbecementedwithcirculationofcementbacktosurface.(d)TubingshallbeinstalledInthecasingwithapackersetatadepthnottoexceedfifty(SO)feetabovetheinjectionzone.(e)TheowneroroperatorshallprovideadetaileddescriptionofthecasingplanontheCasingandCementingPlanforUICWells,FormED·25,andsubmittedwiththeClassIIWellPermitApplicationforUndergroundInjectionControl,FormED·14lorpermittoInject(f)ThecasingplanshallbeapprovedbythedirectorandshallIncludealistingofthecasingsize,type,grade,depthofeachcasingstring,andtheclassandvolumeofthecementtobeused.(2)(a)AnactiveoilandgaswelloranabandonedorpluggedwellreopenedlorthepurposeofconversiontoaClassIIinjectionwell,shallsatisfytherequirementsforcementingofaClassIIwell.(b)IfperforationofexistingcasingIsrequiredtosatisfythecementingrequirementsduringtheconversionofthewelltoaClassIIwell,atubingandpackershallbeinstalledIntheexistingcasingtotheareaImmediatelyabovetheInjectioninterval,nottoexceedfifty(50)feetabovetheInjectionInterval.(3)AClassIIdisposalwellshallbedesignedtoensurethatdisposalzonesarehydraulicallyIsolatedfromUSDW.(4)TheowneroroperatorshallprovidethedivisionwithallrequiredgeophysicallogsandresultsoftestsconductedduringthedrillingandcompletionofaClassIIwellthatspecificallyrelatetotheUSDW,theconfiningzoneadjacenttoIt,andtheInjectionandadjacentformations,andshallincludethefollowing:(a)AgeophysicallogmarkedtoIndicateallfreshwaterzones,theconfiningzoneandtheinjectioninterval;(b)AgeologicdescriptionoftheconfiningandInjectionzonethatshallincludethelithologicdescription,geologicname,andthickness;and(c)1.AreportdescribingthenatureoffluidsandformationpressureintheInjectionzone.2.Thisinformationmaybeobtainedfromgeophysicallogs,physicalexaminationsofsamplesandcores,andchemicalanalysis,andshallbepreparedbyaprofessionalgeologistregisteredinthestateofKentucky.3.TheowneroroperatormaysubstituteInformationfromnearbywellsIfcomparabletotheinjectionwell,andInthecaseofanareapermit,ifsufficientInformationisavailablelromwellswithinthefieldtoadequatelydescribethewholefield.Section6.MechanicalIntegrityRequirementsforClassIIInjectionWells.(1)(a)OperatorsshalldemonstratemechanicalintegrityofnewandexistingClassIIinjectionwells.(b)TheowneroroperatorshallsubmitaplantodemonstratemechanicalIntegritywiththeapplicationforpermittoinject.(2}AninjectionwellisdeterminedtohavemechanicalIntegrityIf:(a)TherearenotleaksInthecasing,tubing,orpacker;and(b)Thereisnotfluidmovementintoanundergroundsourceofdrinkingwaterthroughverticalchannelsadjacenttotheinjectionwellbore.(3)One(1)olthefollowingmethodsshallbeusedtoevaluatetheabsenceofsignificantleaksundersubsection(2)(a)ofthissection:(a)FollowinganInitialpressuretest,monilorlngofthetublngandcasingannuluspressurewithsufficientfrequencytoberepresentative,asdeterminedbythedivision,whilemaintaininganannuluspressuredifferentfromatmosphericpressuremeasuredatthesurface;(b)Apressuretestshallbeperformedwithliquidorgas;or(c)RecordsofmonitoringdemonstratingtheabsenceofsignificantchangesIntherelationshipbetweeninjectionpressureandInJectionflowrateforthefollowingClassIIenhancedrecoverywells:1.ExistingwellscompletedwithoutapackerprovidedthatapressuretesthasbeenperformedandthedataIsavailableandprovidedfurtherthanone(1)pressuretestshallbeperformedatatimewhenthewellIsshutdownandIItherunningofthetestdoesnotcausefurtherlossofsignificantamountsofoilorgas;or2.Existingwellsconstructedwithoutalongstringcasingbutwithsurfacecasing,whichterminatesatthebaseolfreshwater,providedthathttp://www.lrc.ky.gov/kar/805/001/11O.htm3/12/2015805KAR1:110.Undergroundinjectioncontrol.Page5of10localgeologicalandhydrologicalfeaturesallowthisconstructionandprovidedfurtherthattheannularspaceshallbevisuallyInspected.Forthesewells,thedivisionshallprescribeamonitoringprogram,whichshallverifytheabsenceofsignificantfluidmovementfromtheInjectionzoneIntoanusow.(4)One(1)ofthefol!owingmethodsshallbeusedtoconfirmtheabsenceoffluidmovementundersubsection(2)(b)ofthissection;(a)Theresultsofatemperaturelogornoiselog,cementbondlog;(b)Cementingrecordsdemonstratingthepresenceofadequatecementtopreventamigration;or(c)othermethodsapprovedbytheadministrator.(S)(a)Themechanicalintegritytestshallbeperformedontheannulusofthetubingandcasing.(b)Aminimumpressureof300psishallbeappliedtotheannulusofthetubingandcasing.(c)ThewellisconsideredtohavemechanicalintegrityII,attheendofthirty(30)minutes,thereisnomorethanaptusorminusofthree(3)percentchangeofthetestpressureonthegauge.(d)Amechanlca11ntegritytestshallbewitnessedandapprovedbyadivisionfieldInspector.(e)ThedivisionmayrequirehighertestpressurestobeusedwhentheanticipatedinjectionpressurewiDbehigh.(f)ThetestresultsshallbefiledontheCertificateofMechanicalIntegrity,FormED-22.(6)(a)TheowneroroperatorofaClassIIwellshallscheduleatfive(5)yearIntervalsorless,mechanicalIntegritytestasdescribedInsubsection(5)ofthissection.(b)TheowneroroperatorshallcertifythetestresultstothedivisionInwritingwithinfifteen(15)daysofcompletionofthetest.(7)(a)TheowneroroperatorshaDnotperformmechanicallntegrltytestofaClassIIwellwithoutgivingwrittennoticetothedivisionwithinfifteen(15)calendardayspriortotheproposedtestdate.(b)ThedivisionshallthennotifytheowneroroperatOI'oftheearliestpossibledateavailabletotestthewell.Section7.AreaofReviewforClassIIWens.TheowneroroperatorshallsupplythefollowingInformationIfapplyingforapermittoInjectpursuanttoSection11ofthisadministrativeregulation:(1)Adescriptionoftheareaofreviewwhichshallbedeterminedby:(a)Afixedradiusofone·fourth(114)milearoundtheInjectionwell,Ofone-fourth(114)mllearoundthepermitareaboundary;or(b)ThezoneofendangeringInfluencecalculatedinaccordancewith40C.F.R.146.6foranareaofreviewlessthanone-fourth(1/4)mile.(2)AmapshowingthefollowingInformationwithintheareaofreview;(a)Existingproducingwells,Injectionwells,abandonedwells,dryholes,andwaterwells;(b)Surfaceandsubsurfacemines,quarriesandotherpertinentsurfacefeaturesIncludingtesldences,roads,andfaults;and(c)ThedistributionmanifoldapplyinginjectionfluidtoallwellsintheareaofreviewIncludingallsystemmonitoringpoints,forthoseInjectionwells,Ifoperatingfromacommonmanifold;(3)Thefollowingdatalorwellswithintheareaofreview:(a)Atabulationofdata,reasonablyavailablefrompublicrecordsorotherwiseknowntotheapplicant,Includingadescriptionofwelltype,construction,datedrilled,location,depth,recordofpluggingorcompletion,andapplicableadditionalinformation;and(b)TherecordofcompletionandpluggingforeachwellwhichpenetratestheInjectionzone,andanyotherwellswithintheareaofreviewwellswhichwouldbeaffectedbyanyproposedIncreaseInpressureIftheInjectionwellIstobeoperatedoverthefracturepressureoftheInjectionformation;and(4)(a)ForwellsintheareaofreviewwhichareImproperlysealed,completed,orabandoned,acorrectiveactionplanwhichconsistsofstepsormodificationsasnecessarytopreventmovementoffluidIntoundergroundsourcesofdrinkingwater.(b)Thedivisionshallconsiderthefollowingcriteriaandfactorsduringevaluationofthecorrectiveactionplan:1.Natureandvolumeofinjectedfluids;2.Natureofnativefluidsorby-productsolInjection;3.Potentiallyaffectedpopulation;4.Geology;5.Hydrology;6.Historyofinjectionoperations:7.Completionandpluggingrecords;8.Pluggingproceduresuponabandonment;and9.Hydraulicconnectionswithundergroundsourcesofdrlnklngwater.http://www.lrc.ky.gov/kar/805/001/11O.htm3/12/2015805KAR1:110.Undergroundinjectioncontrol.Page6of10Section8.FinancialResponsibility.(1)TheowneroroperatorofallClassIIwellsshalldemonstratefinancialresponsibilitytoplugandabandonawell.(a)FinancialresponsibilityofexistingClassIIwellspriortothedateofprimacyshallbesubmittedtothedivisionpursuanttoSection9ofthisadministrativeregulation.(b)TheowneroroperatorofaClassIIwellauthorizedbyapermittoInjectpursuanttothisadministrativeregulationshall,uponapplication,demonstratefinancialresponsibilityandsubmitthepluggingabandonmentplanInaccordancewith805KAR1:060or805KAR1:070.(2)(a)TheowneroroperatorshallprovidefinancialcoveragetoadequatelyplugthewellpursuanttotheIndividualwellbondrequirementsofKRS353.590(5).(b)1.IfthedivisionIssuesaletterofviolation,forfeitstheIndividualbond,andsubsequentlyplugsthewell,theowneroroperatorshallberesponsibleforanyadditionalcostsexpendedbythedivisionforpluggingthewellwhichexceedsthebondamount.2.Thesecosts,Ifnotpaid,shallberecoveredbycivilsuitpursuanttoKRS353.180(3).3.Inadditiontotherecoveryofcosts,theowneroroperatorshallbesubjecttopenaltiesasprescribedinKRS353.992.Section9.TransitionalRequirementsforOwnerorOperatorsofClassIIWells.(1)(a)ThedivisionshallacceptaClassIIwellpermit,includingruleauthorizedwells,issuedundertheauthorityoftheEPAadministeredprogram.Ruleauthorizedwellsshallbedeemedpermittedbythedivision,providedtheowneroroperatorsatisfiestherequirementsthissection.(b)Thedivisionshall:1.AcceptrecordsfromEPAolallauthorizedwells;and2.Createaninventoryolapprovedexistingwells.(c)ThefinancialresponsibilitydemonstrationrequiredinSection8olthisadministrativeregulationandthesubmissionofthepluggingandabandonmentplaninSection10ofthisadministrativeregulationshallbecompletedwithinninety(90)daysfollowingtheeffectivedateofprimacy.(d)IftheexistingbondpostedwithEPAmeetstherequirementsolSection8ofthisadministrativeregulationandistransferabletothedivision,thetransferolthebondshallbeacceptedbythedivision.(2)(a)TheowneroroperatorolaClassIIwellhavingamechanicalIntegritytestapprovedbyEPAshallremainonthesamescheduleofmechanicalIntegritytests,upontheeffectivedateofprimacy.(b)AcopyofalldocumentsshowingapprovalbyEPAofthewell'smechanicalIntegrityandacopyofallforms,testdata,andlogsrequiredbyandsubmittedtoEPAshallbesubmittedtothedivisionwithinninety(90)daysortheeffectivedateofprimacy.(3)TheowneroroperatorwithapendingapplicationsubmittedlorClassIIwellsundertheEPAprogrammaytransferapendingapplicationtothedivisionandshallsatisfythepermittingrequirementsInSection11ofthisadministrativeregulationupontheeffectivedateorprimacy.Section10.PluggingandAbandonmentorClassIIWells.(1)AClassIIwellshallbepluggedInaccordancewith805KAR1:060or605KAR1:070,whicheverIsapplicable.(2)TheowneroroperatorshallnotifythedivisionInwritingthirty(30)dayspriortopluggingandshallschedulewiththedivisioninspectoratimeanddatelorperformingthepluggingprocedure.(3)TheInspectorshaltscheduletheearliestdaleavailable.(4)Uponcompletionoftheplugging,theowneroroperatorshallmeapluggingaffidavitonFormED·38.(5)Aftercessallonoroperationsoftwo(2)years,theowneroroperatorshallplugandabandonthewellinaccordancewiththeplan,unlessanoticeIssenttothedivisiondescribingactionsorproceduresthattheowneroroperatorshalltaketoensurethatthewellwillnotcausetheendangermentofaUSDWduringtheperiodoftemporaryabandonment.Theseactionsandproceduresshallincludecompliancewiththetechnicalrequirementsapp6cabletoactiveInjectionwellsunlesswaivedbythedivision.Section11.RequirementsloraPermittoInjectIntoaClassIIWell.AllpersonsseekingapermittoinjectintoaClassIIwellshall,altertheeffectivedateofprimacy,complywiththerequirementsofthissection.(1)ApersonshallnotInjectfluidsintothesubsurfacethroughaClassIIwellwithoutobtainingapermittoInject.(2)AnapplicationforapermittoInjectshallbesubmittedonformED-14andshallInclude:{a)Astatementbytheowneroroperatorastowhetherthewellwillbeusedforenhancedrecovery,hydrocarbonstorage,orfordisposalpurposes;(b)Theapproximatedepthorthedeepestknownfreshwaterzone.(c)Inaccordancewith805KAR1:030,alocationplatlorapermittoInjectintoaClasslllnjectlonwell.(d)Anareaofreviewmappreparedona7.5minutequadrangletopographicmapandincluding:http://www.lrc.ky.gov/kar/805/001/llO.htm3/12/2015805KAR1:110.Undergroundinjectioncontrol.1.Thelocationofallknownfreshwaterwells;2.Thelocationandcompletionorpluggingrecordofallwells,whetherprodudngorplugged;3.ThelocationofhazardouswastetreatmentordisposalfadiiUes;4.Thelocationofriversorstreams;5.Thelocationofquarriesandsurfaceandsubsurfacemines;6.Thelocationofand7.Thelocationofpermanentresidences;(e)Aschematicdiagramofthewellshowingthefollowing:1.Thetotaldepthoftheplugbackofthewen;2.ThedepthoftheInjectionordisposalinterval;3.Thegeologlcalnameoftheinjectionordisposalzone;4.Thegeotoglcalname,thickness,anddescriptionoftheconfiningzone;5.TheverticaldistanceseparatingtheuppermostextremityoftheinjectionzonefromthebaseofthelowestUSDW;6.Thedepthofthelopandthebotlomofthecasingandthecement;7.Thesizeofthecasingandtubingandthedepthofthepacker;and8.Thedepthtothebaseofthelowermostundergroundsourceofdrinkingwater;(I)Fortheconversionofanexistingwell,acopyofthecompletionreportandanyavailablegeophysicallogofthewell;(g)Proposedoperatingdataasfollows:1.Thegeolog'calname,depth,andlocationofthesourceoftheinjectionfluid;Page7of102.AstandardlaboratoryanalysisolarepresentativesampleofthefluidtobeInjectedundertheproposedClassIIpermit,withthefollowingparameters,ascontainedin40C.F.R.136.3and40C.F.R.Part261AppendixIll:a.BariumifsulfateIslessthan500mg/1;b.Calcium;c.TotalIron;d.Magnesium;e.Sodium;I.Bicarbonate;g.pH;h.SpecificGravity;i.CarbonDioxide;j.TotalDissolvedSolids;andk.HydrogenSulfideIfH2SodorIsdetected.3.AmaterialsafetydatasheetforinhibitorsIIaddedtotheinjectionfluidforcontrolofscaling,corrosion,orbacterialgrowth;4.a.Thenatureoftheannulusfluidtobeusedintheannulusbetweenthetubingandcasing.b.ThisdescriptionshallIncludethetypeoflluidtobeuseda.ndthecorrosivityoftheannulusfluid.c.Theamountofinhibitortobeaddedshallbe5.TheJ)Joposedmaximuminjectionrateandpressure.Theowneroroperatorshalllimitinjectionpressuretoeitheravalue:a,ThatdoesnotexceedamaximumInjectionpressureatthewellheadcalculatedtoassurethatthepressureduringInjectiondoesnotinitiatenewfracturesorpropagateexistingfracturesintheconfiningzoneadjacenttoanundergroundsourceofdrinkingwaterandwillnotcausethemovementorInjectionoffluidsintoanundergroundsourceofdrinkingwater;orb.Forwellheadpressurecalculatedbyusingthefollowingformula:Pmax..(0.733pstlft•(.433psVII(Sg)))d.Where:Pmax•Maximuminjectionpressure(psla)atthewellhead;Sg•SpecificgravityoftheInjectedfluid;andd=DepthtothetopoftheInjectionzoneinfeet:(h)Thelocationanddescriptionofeachundergroundsourceofdrinkingwaterthroughwhichthewellwouldpenetrate;(i)AdescriptionofthecurrentorproposedcasingprogramontheCasingandCementingPlanlorUICWells,FormED·25,Includingthefollowing:1.Casingsize,weight,andtype;2.Cementvolumeandtype;andhttp://www.lrc.ky.gov/kar/805/001/11O.htm3/12/2015805K.AR1:110.Undergroundinjectioncontrol.Page8of103.Packertype;ij)Adescriptionofallproposedstimulationprograms;(k)Adescriptionofproposedplanstocopewithallshut-Insorwellfailures,soastopreventmigrationofHuidsintoanyundergroundsourceofdrinkingwater;(I)IfamanlloldmonitoringprogramIsutilized,adescriptionoftheprogramandademonstrationequivalencetoIndividualwellmonitoring.(m)Acorrectiveactionplan,whichshallbesubmittedforallwellwithintheareaofreviewasrequiredInSection7(4)ofthisadministrativeregulation;(n}AdemonstrationoffinancialresponsibilityasrequiredinSection8(2}ofthisadministrativeregulationandapluggingandabandonmentplanasrequiredinSection10ofthisadministrativeregulation;and(o}TheplanbytheowneroroperatorofmechanicalIntegrity.EachwellshallbetestedformechanicalintegrityusingthemethodasdescribedInSection6(5}ofthisadministrativeregulation.(3)AnapplicationforpermitshallbesignedbytheowneroroperatoroftheInjectionwell,includingcorporateofficers,generalpartners,soleproprietors,orotherpersonsauthorizedtoexecutedocumentsonbehalfoftheapplicant.(4)Withrespecttoanapplication,ClassIIWellPermitApplicationforUndergroundInjectionControl,FormED-14,loraClassItwell,anapplicantshallpersonallyorbycertifiedmallsubmitawrittennotificationdescribingtheproposedwelltoeachofthefollowingpersons,IIthedescribedpropertyIslocatedwithinone-quarter(1/4)mileoftheproposedwell:(a)Theowneroroperatorofeachwellforoilandgaspurposes,IncludingawellhavingtemporaryabandonmentstatusunderthisadministrativeregulationornotyetInproduction;(b)ThepermitteeofanundergroundminepermittedunderKRSChapter350;and(c)Eachownerofrightstosurfaceorsubsurfacepropertythatthewellpenetrates.(5)(a)1.ThenotificationrequiredunderthissubsectionshallspecifythatapersonwhowishestoobjecttoIssuanceofthepermitshall,withinthirty{30)daysofreceiptofthenotification,submitwrittencommentsorrequestahearing.2.ThenotificationshallIncludetheaddresstowhichwrittencommentsorthehearingrequestshallbeforwardedandwhereadditionalInformationmaybeobtained.(b)1.Inadditiontothenotificationrequiredunderthissubsection,theapplicantshallcauseanoticeofapermitapplicationtobeplacedInanewspaperofgeneralcirculationInthecountywheretheproposedwallislocated.2.Individualandpublicationnoticesshallinclude:a.Thenameandaddressoftheapplicant;b.Thelocatlonoftheproposedwell;c.ThegeologicalnameanddepthoftheInjectionzone;d.ThemaximumInjectionpressure;ande.Themaximumrateofbarrelseachday.3.Thenoticeshallspecifythatapersonwhowishestoobjecttoissuanceofthepermitmay,withinthirty{30)daysofpublicationofthenotification,submitwrittencommentsorrequestahearing.4.Thenotificationshallincludetheaddresstowhichthewrittencommentsorhearingrequestsshallbeforwarded,howapersonmayreceivewrittennotlceoftheproceedings,andwhereadditionalinformationconcerningtheproposedpermitmaybeobtained.5.ProofofserviceofthenotirlcatlonrequiredInthissubsectlonshallbedeliveredtothedivisionbeforeapermitforaClassIIwellshallbeIssued.{6)(a)Theowneroroperatorshallverballynotifyfieldinspectorsfive(5)daysbeforeallmechanicalintegritytestsareperformed.{b)Awrittennoticeshallbegiventothedivisionfiheen(15)daysbeforethetestsareperformedasrequiredInSection6(7)ofthisadministrativeregulation.{7}(a)ThepermittoinjectIntoaClassIIinjectionwellshallremainvalidforthelifeofthewellorproject.(b)ThepermitmaybeterminatedifthewellorprojectisinviolationofthisadministrativeregulationandapplicableprovisionsofKRSChapter353.{c)Theowneroroperatorshallcomplywiththerequirementsofallapplicableadministrativeregulations.Section12.CompletionandMonitoringReports.(1)TheowneroroperatorshalluponcompletionofconstructionofaClassIIwellfilewiththedivisionaCertificateofCompletionforanInjectionWell,FormED-23,withinninety{90)daysoffinalconstruction.(2)(a)TheowneroroperatorshallfileanannualreportofmonthlymonitoringofInjectionfluidvolumes,injectionpressure,andcasingannuluspressureonFormED-18,onthetwenty-eighthdayolJanuaryfortheprevioustwelve(12)months.http://www.lrc.ky.gov/kar/805/001/110.htm3/12/2015805KARI:110.Undergroundinjectioncontrol.Page9of10(b)TheowneroroperatorshallretainanrecordsonfilefOI'aperiodoffive(5)years.(c)Theowneroroperatorofaliquidhydrocarbonstorageorenhancedrecoverywellmaymonitorthembymanifoldmonitoringonafieldorprojectbasis ratherthanonanIndividualweUbasisIIthefacilities:1.Consistofmorethanone(1)Injectionwelll;2.Operatewithacommonmanifold;and3.ProvidedtheowneroroperatordemonstratestothedirectorthatmanifoldmonitoringIsequivalenttoindividualmonitoring.(3)TheowneroroperatorpermitteeofaClassIIInjectionwellshallnotifythedirectorInwritingwithinthirty(30)daysoftheterminationoroperationsatwhichlimethepermittoinjectshallexpire.Section13.WO!'koverofClassIIWells.(1)Theowneroroperatorshallnotllythedivisionwithinninety(90)daysofawellworkover,logging,ortestingthatmayrevealdownholeconditions.(2)TheowneroroperatorshallsubmitaWellReworkReport,FOI'mED-4,documentingtheactivitywithinthirty(30)daysfollowingthecompletionoltherework.(3)Ifthepackerunseatsduringtheworkover,amechan1calIntegritylestshanbeconductedundertheprovisionsorSection6ofthisadministrativeregulation.(4)Injectionshallnotbealloweduntilanapprovedmechanicalintegritytesthasbeenperformed.Section14.ProcedureslorPublicParticipationinEnforcementActions.Uponreceivingacompialntfromthepublic,Interestedpartiesorothers,tiledivisionshall:(1)Investigateandprovidewrittenresponsetoallcitizenscomplaintssubmittedregardinganyconcernsfortheendangermentofanundergroundsourceofdrinkingwater;(2)NotopposeInterventionbyanycitizenwhenpermissiveInterventionIsauthorizedpursuanttoKRS353.160(3).(3)Publishnoticeofandprovideatleastthirty(30)dayslorpubliccommentonanyproposedsettlementofadivisionenforcementactionbeyondthefO!'IeitureofabondforaClassIIwell.Section15.ConfidentialityofInformation.(1)InformationsubmittedtothedMslonpursuanttothisadministrativeregulationmaybeclaimedasconfidentialbythesubmitter.AclaimofconHdentialityshallbeasserteduponsubmissioninthemannerprescribedontheapplicationformorinstructions.Othersubmissionsshallbestampedwiththewords"confidentialbusinessinformation·oneachpagecontainingconlidenlialinformation.Ifaclaimisnotmadeatthetimeofsubmission,thedivisionmaymaketheinformationavailabletothepublicwithoutfurthernotice.(2)Claimsofconfidentialityshallnotapp1yto:(a)Thenameandaddressofanypermitapplicantorpermittee;(b)Informationregardingtheexistence,absence,orlevelofcontaminantsIndrinkingwater;and(c)Recordsdirectlybystatutetobedisclosedorpublished.Section16.Penalties.AnowneroroperatorInviolationoftherequ!rementsofthisadministrativeregulationshallbesubjecttothepenaltiesestablishedinKAS353.992.Section17.Primacy.Theprovisionsofthisadministrativeregulationshallbecomeeffectiveuponthedateofprimacy,onorafterwhichaClassIIwellshallbesubjecttotherequirementsofthisadministrativeregulationandshallbeexemptfromSections4,5,and6of805KAA1:020.Sectlon16.IncorporationbyReference.(1)Thefo:lowingmaterialIsincorporatedbyreference:(a)"WellReworkReport,"FormED-4,August2007;(b)"ClassIIWellPermitApplicationforUndergroundInjectionControl,"FormED·14August2007;(c)"AnnualDisposalorlnjecllonWellMonitoringReport,"FormED-16.August2007;(d)"CertificatlonofMechanicatlntegrlty,•FormED-22,August2007;(e)"CertificateofCompletionforanInjectionWell,"FormED-23,October2007;(f)"CasingandCementingPlanforUICWells,"FormED-25,October2007;(g)"WellTransferforUICWells,"FormED-26,October2007;and(h)"AffidavittoTimeandMannerofPluggingandFillingWell,"FormED-36,October2007.(2)Theseformsmaybeinspected,copied,andobtained,subjecttoapplicablecopyrightlaw,attheDivisionofOilandGasConservation,1025http://www.lrc.ky.gov/kar/805/00IllIO.htm311212015805KAR1:110.Undergroundinjectioncontrol.Page10of10CapitalCenterDrive,Frankfort,Kentucky40601,MondaythroughFriday,8a.m.to4:30p.m.(10Ky.R.1109;Am.11Ky.R.406;ell.9-1-84;34Ky.R.1212;1989;efl.4-4-08;TAmeff.8·9·2007.)http://www.Irc.ky.gov/kar/805/001/11O.htm3/12/2015805KARI:120.Operatingordeepeningexistingwensanddrillingdeeperthanthepennitted...PageIofI805KAR1:120.Operatingordeepeningexistingwellsanddrillingdeeperthanthepermitteddepth.RELATESTO:KRS353.520STATUTORYAUTHORITY:KRSChapter13A,353.540,353.550,353.560,353.570,353.590NECESSITY,FUNCTION,ANDCONFORMITY!KRS353.550requlrestheDepartmentforNatlKalResourcestoregulatethedrillingandoperationofallwells,whileKRS353.590requiresittoregulatethedrillingofawellpastthepermitteddepth.Thlsadminlstrativeregulationestatinshestherequirementstooperateawttllanddrilldeeperthanthepermitteddepth.Section1.Definitions.ThedefinitionscontainedinKRS353.510andthefohowlngadditionaldefinitionsshallapplytothisadministrativeregulation:(1)"Deepening"meansthedriiMngdeeperofanyexistingwellwherenewdrillingistoproceedpastthedepthatwhichlhelnltialdrillingofthewellceased.(2)"Operatingawell"meanstoreenter.reopen,deepen.drill,Injectinto.produce,attempttoproduce,orworkover,anywell.Section2.PermitRequired.TheoperatorshallobtainapermittooperateanywellIfthewellIsinviolationofapplicablestandardsandthedepartmenthasforfeitedthebondfornoncompliance.Section3.PermitNotRequired.AnoperatormayoperateanexistingwellifheanacceptablewelltransferonformED·13andbondingasrequiredinKRS353.590(5)IItheconditionsinsubsections(1)and(2)ofthissectionapply.Thewentransferform,E0-13.revisedApril4,1990,jsfiledandIncorporatedhereinbyreference.CopiesmaybeobtainedfromtheDepartmentlorNatUialResources,P.O.Box14090,Lexington,Kentucky40512-4090,MondaythroughFriday,Bam.to4:30p.m.(1)Thewellisproducingorcapableofproducing,notabandonedandnolinviolationofapplicablestandards;or(2)Thewellhasbeenabandonedbythepreviousoperator,butthecurrentoperator'ssoleintentistoreenterthewellforthepurposeofproperlypluggingandabandontngitSection4.PermitRequiredforDeepening.TheoperatorshallobtainanewpermitpriortodeepeninganywellIItheoriginalpermitismorethanone(1)yearoldortheoriginalwellwasdrilledpriortothepermittingrequirementsofthedepartment,andshallnotdrilluntilthepermitisIssued.Section5.PermitNotRequiredrorDeepening.ThepermittedoperatormaydeepenanexistingwellIIthepermitIsnotmorethanone(1)yearoldandifthewellhasnotbeendrilledpastthepermittedandbondeddepth.Section6.DrillingDeeperThanthePermittedDepth.AnoperatormaydrilldeeperthanthepermitteddepthofthewelllprovidedthathebringshispermitintocompliancewithinthetimeandcondiUonssetforthbelow:(1)Theoperatorshallnotifydivisionpersonnelthathehasdrilleddeeperthanthepermitteddepththenextofficialworkdayofthedepartment(2)Theoperatorshall,withinten(10)daysofdrillingdeeperthanthepermitteddepth,amendhispermittothedepthtowhichhehasdril!ed.(3)Theoperatorshall,withinten(1O)daysofdrillingdeeperthanthepermitteddepth.submitadditionalbondingrequiredtosatisfyKRS353.590(5).(4)TheoperatorshallnotdriUdeeperthanthepermitteddepthIfsuchdrillingcausesthetobeinnoncompliancewiththewe:lspacingstandardssetoutinKRS353.610.Section7.Adirectionalorhorizontalwelloradeepwellshallnotbedeepenedwithoutpriorapprovalofthedirectororapermitthereforbeingissued.SectionB.AnoperatorInnoncompliancewiththerequirementsofthisadministrativeregulationIssubjecttopenaltiespursuanttoKRS353.991.(18Ky.R.233;Am.1021;ell.9·25-91;TAmeftB-9·2007.)http://www.lrc.ky.gov/kar/805/0011120.htm3112/2015805KAR1:130.Deepwelladministrativeregulationrelatingtocasing,cementing,plugging,...Page1of2805KAR1:130.DeepwelladministrativeragulaUonrvlatlngtocasing,cementing,plugging,gasdetectionandblow-outprevenUon.RELATESTO:KRS353.520STATUTORYAUTHORITY:KRSChapter13A,353.540,353.550,353.560NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.550requirestheDepartmentlorNaluralResourcestoregulatethedrillingandcasingofallwells.Thisadministrativeregulationestablishestherequirementsforthedrillingandcasingofadeepwell.Section1.Definitions.ThedefinitionsInKRS353.510andthefollowingadditionaldefinitionsshallapplytothisadministrativeregulation:(1)"Abnormalpressure"meansareservoirpressurethatexceedsthehydrostaticpressureoffreshwaterextendingfromthereservoirtothesurface.(2)"Annulus•meansthespacebetweentwo(2}stringsorcasingorbetweenastringorcasingandtheboreholewall.(3)"Blow-outpreventer(BOP)"meansadeviceInstalledonthesurfaceorIntermediatecasingtoprvventtheescapeofpressureeitherIntheannulusbetweencasinganddrillpipeorIntheopenholewithoutdrillpipeandwhichIsusedduringdrillingoperations.(4)"Casing(casingstring)"meanssteeltubesorpipesinstalledInawell.(5)"Cement"meanshydrauliccementproperlymixedwithwaterorwithadditivesapprovedbythedirector,andwhichIsusedtofilltheannulusofcasingstring(s)ortoplugthewell.(6)"Deepwell"meansanywelldrilledandcompletedbelowthedepthof4,000feetor,Inthecaseofawelllocatedeastoflongitudelineeighty-four(84)degreesthirty(30)minutes,awelldrilledandcompletedatadepthbelow4,000feetorbelowthebaseofthelowestmemberoftheDevonianBrownShale,whicheverIsdeeper.(7)"DES"meansthestateDisasterandEmergencyServicesOfficeunderauthorityoftheDepartmentofMilitaryAffairsInFrankfort,KentuckywithregionalofficesthroughouttheCommonwealth.(8)"Intermediatecasing"meansone(1)ormorestringsofpipesInstalledInawellInadditiontothesurfacecasingInwhicheachstringIssmallerIndiameterthantheprevious.(9)"Longcasingstring•meansthelastcasinginstalledinawelltobeusedforproductionorinjectionpurposes.(10)"Surfacecasing•meansthefirstandlargestdiametercasingInstalledInawellanditsprimaryusesaretomaketheboreholestandupandtoprotectthefreshwaterzones.(11)"Zone"meansalayerolstratacapableofproducingorreceivingfluids.Section2.WhenanapplicationforadeepwellpermitIssubmittedtothedepartment,theoperatorshallprepareadetaileddrillingandcasingplanonFormED·7forthereviewbyandapprovalofthedepartmentThiscasingandcementingformdatedAugust1,1991IsHiedandIncorporatedhereinbyreference.CopiesofthisformmaybeobtainedfromtheDepartmentforNaturalResources,P.O.Box14090,Lexington,Kentucky40512-4090,MondaythroughFriday,8a.m.to4:30p.m.ThisplanshallIncludethefollowing:(1)Adraftedschematicshowingtheholesizeanddepthofeachcasingstring.Thefreshwaterstringshallbesetatleastthirty(30)feetbelowthedepthrecommendedbythedepartment;IffreshwaterIsencounteredduringdrillingoperationsdeeperthansuchrecommendeddepth,thefreshwatercasingshallbesetatleastthirty(30}feetbelowtheactualfreshwaterdepth.Allfreshwatercasingstringsshallbecirculatedwhentheyaresetbeforedrillingcommences.(2}Adescriptionorthetype,sizeandgradeofcasingtobeusedandthemannerInwhichtheannulusofthecasingstringandwellborewillbecementedtoprotectallfreshwater,coal,mineral,andoilandgasproducingformationIntheareaproposedfordrilling.Thevolume,class,additivesandweightofthecementtobeusedshallalsobedescribed.(3}IIdrillingfluidisused,ItshallcomplywithBOSKAR1:020,Section2(1)(c).Section3.TheoperatorshallInstallablow·outpreventiondevicecapableofwithstandingaWDI'klngpressureof1500psiandatestpressureof3000psi.AdescriptionofthisdeviceandItsinstallationshallbeincludedwiththedrillingandcasingplanrequiredInSection2ofthisadministrativeregulation.TheBOPequipmentshallbeinplaceatsuchtimeasthewellIsdrilledpastthedepthatwhichIIbecomesadeepwell.AtestshallbeperformedatregularintervalstoensuretheBOPwilloperateatltsratedcapacity,andtheresultsofsuchtest(s)shallbekeptatthedrillsiteandmadeavailabletodepartmentpersonneluponrequest.Section4.ThedirectormaywaivetherequirementsloraBOPestablishedInSection3orthisadministrativeregulationIftheoperatorsubmitsawrittenrequestforsuchawaiverthatIncludes:(1)Thegeologicformationstobedrilledthrough;andhttp://www.lrc.ky.gov/kar/805/001/130.htm3/12/2015

# 805 KAR 1: 130

. Deep well administrative regulation relating to casing, cementing

, plugging,

... Page 2 of 2

(2) A history of driNng in the 

# vicinity of the proposed 

# wen with pressure meaS\Jfements that show 

# gas pressures were not encountered at such levels



# to require the BOP 

# equipment; and

(3) 

# The maximum anticipated 

# gas pressure I n the proposed well

.

Section 

# 5. The operatot' shaR obtaln written inslrUclions from the department prior to plugging the well and the department shall approve the

commencement of plugging opefatlons. 

# Upon the department's request, the operato r shall submit a well log and completion report 

# and any geophysical

logs used lor preparing plugging Instructions

.

Section 6

. 

# T he department shall be notified verbally within forty-eight (48) 

# hours of any mechanical !allure or other d i ffiCUlty which may jeopardize

the p ! ugging operation or mechan : callntegrlty of the well encountered while conducting any operation or production of a deep provided, however,

DES or the department shall 

# be Immediately notified whenever there are any we i !al l ures or blow·outs which pose the Nkelihood ol Imminent

envlronmental damage or danger to the public

. The operator shall correct any and all such dllflcultles with due diligence

.

Sect i on 7

. 

# An operatot' In noncompliance with the requirements 

# ot this adm ini strative regulation is subject to penalties pursuant to KRS 353.991. (18



# Ky . R. 234; 

# Am. 1022 ; 

# ell

. 9-25-91 : 

# TAm elf

. 8-9 · 2007.)



# http : //www .lrc.ky

. gov/kar/805/00 1/130

. htm 3112/2015805KAR1:140.Directionalandhorizontalwells.805KAR1:140.Directionalandhorizontalwalls.RELATESTO:KRS353.050,353.060,353.520,353.590,353.610,353.651,353.652,353.991STATUTORYAUTHORITY:KRS353.540,353.550Page1of2NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.540authorizesthedepartmenttopromulgateadministrativeregulationstoadministerKRS353.500to353.720.KRS353.550authorizesthedepartmenttoregulatethedrillingandcasingofallwellsandfilingofalldownholesurveys.ThisadministrativeregulationIdentifiestherequirementsforpermittingdirectionalandhorizontalwells.Section1.Definitions.(1)"Abnormalpressure"meansareservoirpressurethatexceedsthehydrostaticpressureoffreshwaterextendingfromthereservoirtothesurface.(2)"Annulus"meansthespacebetweentwo(2)stringsofcasingorbetweenastringofcasingandtheboreholewall.(3)"Blow-outpreventer(BOP)"meansadeviceinstalledonthesurfaceorintermediatecasingtopreventtheescapeofpressureeitherIntheannulusbetweencasinganddrillpipeorintheopenholewithoutdrillpipeandwhichIsusedduringdrillingoperations.(4)•casing"isdefinedbyKRS353.010(3).(5)"Deepwell"isdefinedbyKRS353.510(16).(6)"DES"meanstheStateDisasterandEmergencyServicesOffice.(7)"Directionalandhorizontaldrilling"meansthescienceofdirectingawellborealongapredeterminedcoursetoatargetlocatedagivendistancefromthevertical.(B)"Directionalsurvey"IsdefinedbyKRS353.010(8).{9)"Intermediatecasing"meansone(1)ormorestringsofpipesInstalledinawellinadditiontothesurfacecasingInwhicheachstringissmallerindiameterthantheprevious.(10)"Intersectionlength"meansthehorizontaldistancebetweenthepointatwhichthewellpenetratesthe topoftheintendedformationandtheendpointwithinthatformation.(11)"Longcasingstring"meansthelastcasinginstalledinawelltobeusedforproductionorinjectionpurposes.(12)"Measureddepth"meansthetotaldepthmeasuredInthewellfromthesurface.(13)"Surfacecasing"meansthefirstandlargestdiametercasinginstalledInawelltheprimarypurposeofwhichIstomaketheboreholdstandupandtoprotectthefreshwaterzones.{14)"Trueverticaldepth"meansthedepthofthewellfromanypointinthewellbeingmeasuredtothesurfaceofthegroundabovethepointbeingmeasured.(15)"Zone"meansalayerofstratacapableofproducingorreceivingfluids.Section2.InformationSubmittal.(1)Priortodrillingadirectionalorhorizontalwell,theoperatorshallsubmitthefollowinginformation:(a)AnapplicationformED1,forapermittodrillthewell,withacoverletterfromtheoperatormakingarequestfordrillingthehorizontalordirectionalwell;(b)Three(3)copiesofalocationplatsatisfyingtherequirementsof805KAR1:030(planview),Inadditiontothefollowingrequirements:1.Thesurfacelocationandproposedtargetformationwiththeirrespective"CarterCoordinates".2.Theproposedcourseofthewell.3.TheIdentificationoftheintersectionlengthoftheproposedwellandtheproposedproducingformation(s).Toavoidanyconflictswiththespacingrequirements,adashedlineshallbedrawnaroundtheIntersectionlengthwithregardtothespacingrequirementsinKRS353.610or,fordeepwells,805KAR1:100andKRS353.651and353.652.Thisdistanceshallbeclearlyshowninfeet;{c)AbondasrequiredInKRS353.590(5);and{d)Anapplicationleeof$300.{2)(a}Inadditiontotheplanviewrequiredinthissection,theoperatorshallsubmitthree{3)copiesofaplatwhichshowsaverticalcross·sectionviewoftheareatobedrilledbythewell.(b)Thiscross-sectionshallbepreparedfromtheproposed"predrillhole"directionalsurveycompiledbythecontractorresponsibleforthedirectionalcontrolmechanismandcertifiedasrequiredby805KAR1:030,Sections2and7{1)(k).(c)Thecross-sectionshallincludetheareafromthewellsitetothetargetmadethroughtheproposedcourseofthewell.(d)Thesurfaceshallbelocatedaszeroinreferencetothedepthandthelateraldistancefromthewellsiteandtrueverticaldepthsshallbeshownforallofthefollowing:http://www.lrc.ky.gov/kar/805/0011140.htm3/1212015

# 805 K.AR 1:140. Directiona] and horizontal wel1s. Page 2 of2

1 . The klck · off point or selected depth at which the devlaUon Is started ;

2 . The known coal seams to be Intersected;

3 . The pJoducing Interval;

4 . The proposed producing formation; and

5 . The proposed target.

(3) When the permit 

# Is I ssued, the operator shall provide verba l or written notice to the department field Inspector at least forty · elght (46) hours

In advance of the commencement of drilling operations

.

(4)

Once the we n has been drilled and comp l eted, the following sha D be submitted within ten (10) days f r om the date of comp l etion :

(a) Three (3) copies of an amended plan view of the well focation plat required In subsect i on ( l )(b)1. through 3

. of this section

, with the actua l

course drilled, the kick-off point, and the actual target superimposed on the proposed we ll location pial

. A correction In the target Carter

Coordinates . I f necessary , shall then be Issued by the department ;

(b) Th r ee (3) copies of the side or cross - sectiona l view plat required I n subsection (2 ) (d)1 t h rough 5 of this section of this section shall be

amended for the actual path of the well

, showing the actual formallon(s), coal seams, target. kick-o ff point ;

(c) Copies of a l directiona l surveys certified by the operator and the contractor responsible for the directional survey . This survey shaft be

submitted for the entire well bore, and the operator shall be able to identify t he path or depth of the well bore at any given time during and after the

drifting of the directional or horizontal well. The survey points shall be made at each too l joint or at any intervals more frequent ; and

(d) On Form ED · 8

, the operator shan record the lateral offset from the we ll I n feet and the true vertical depth lor the producing Interval and

formation and the coal seam Intersections and their true vertical depth

.

(5)

The operator sha lt satisfy spacing req ui rements ol offset mineral boundary l i nes and between wellS for the actua l drilled course of the well

and Its end point and the Intersection of the well bore and the producing formations

.

(6)

All coat operators or owners affected by the drilling of a direcllonat or a horizonta l welt shall be provided a copy of the predrHI plat and cross ·

section

plat described In subsections (1)(b) and (2)(b) o l thls section of this section as required by KRS 353.050 and 353

. 060

. Within ten (10) days

after the well Is drilled

, the operator shall submit to the coal operator or owner the revised plats and deviation survey 

# Jog requ i red I n subsection (5)

of this section

.

(7)

The r equ ir ements for a deep direclional or horizontal we ll shall satisfy those requirements set out In 805 KAR 1:100 and KRS 353.651 an d

353 . 652 regar di ng the app U callon process and spac i ng units

. Prior to the deep directional or hor i zontal well being d rlU ed

, a hearing s hall be held

before the Kentucky O il and Gas Conservation Commission

.

Section 3

. When 

# an application for a directional or hOfizontal perm i t is submitted to the department

, the operator

**sha~** 

# prepare a deta i led dr U tlng

and ca si ng plan on Form E0-7 for the r eview by and the approval of the department

. The items requested In 805 KAR 1 : 1 30

, Sect i on 2(1), (2) and

(3) sha ll be s u bm l ned with this plan

.

Section 4

. The o pera t or shalt I nstall a b ! ow·out prevenlfon device capable of withstanding a working pressure ol 1500 psi and a test pressure ol

3000 psi

. A descr i ption o f this d evice and its i nsta t tallon shalt be I ncluded with the drilling and cas i ng pla n requ i red I n Sec ti on 3 of this adm i nistrativ e

regu l at i on . This BOP eq ui pment shan be teste d at Intervals necessary to ma i ntain Its ability to operate at rated capacity

. The res u lts of these tests

shall be kept at the d r ill site and made avairabte to department personnel at their request.

Section 5. The r equ i rements of 805 KAR 1 : 130, Sections 4

, 5 and 6 shall also apply to this admin : stralive regulation

.

Section 6

. An operator In noncompl i ance with the requirements of this admin l stralive regulation Is subject to penalt i es pursuant to KRS 353.99 1

.

Section 7. l ncorporalion by Reference. (1) The follow i ng material I s I n corporated by reference :

(a) " Applicatio n Form ·, EO 1. March 1 990 ;

(b) " Casing and Cementing Form ", ED 7, August 1 991 ; and

(c) · opera t or C ert i Oca t ion of Forma ti on Offset and Vert i cal Depth Form"

, ED 6

, August 199 1

.

(2)

Th i s mate ri a l may be Inspected

. cop i ed, or obta i ned

, subject to applicable copyright l aw, at the Divis i on of Oil and Gas Conservation

, 1025

Cap i t al Cen t er Drive, S u i te 201

, Frankfort

, Kentucky 40602·2244, Monday through Friday

, 6 a.m . to 4:30p

. m. (18 Ky

. R. 236 : Am

. 1023 ; eff. 9·25·91;

TAm elf. 8-9·200 7 ; 36 Ky

. R

. 190; 767 : ell

. 1 0·23-2009.)



# http://www . lrc

. ky

. gov/kar/805/00I/J40

. htm 3/12/2015805KAR1:160.Postingofadangersignonafacilityusedforthestorageofoil.Page1of2805KAR1:160.Postingofadangersignonafacilityusedforthestorageofon.RELATESTO:KRS353.500,353.656STATUTORYAUTHORITY:KRS353.540(1)NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.656requiresawelloperatortodisplayasignprintedwiththeword"Danger"andotherinformationspecifiedbythedepartmentnearoronaladlityusedlorstorageofoil,whetheritIsinactiveproductfonorhasbeenabandoned.Thisadministrativeregulatlonspecifiesthesize,wording,coloration,andplacementofthesign.Section1.Definitions.(1)"NFPA"meanstheNationalAreProtectionAssociation.(2)"Tankbattery"meansasinglestoragetankorgroupofstoragetanksthatareInterconnectedorarelessthanthree(3)feetapart.whereoiliscollectedfromawellhead.Section2.(1)Anoperatorshalldisplayaprintedsignoneachtankbattery,whetherItisInactiveproductionorhasbeenabandoned.(2)Eachsignshallcontainthefollowingwordsandphrases:(a)"Danger";(b)"Nosmokingoropenname";(c)"Extremelyflammableliquidandvapor";(d)"Maycausenashfire";(e)"Notrespassing":and(I)"Petroleumcrudeoil".(3)Symbol.Anosmokingsymbolwithacigarettecrossedthroughshaltbedisplayedoneachsideofthewords"nosmokingoropenflame".Section3.(1)ThesignshallusethenumbEiflngsystemdescribedInNFPA704"StandardSystemfortheIdentificationoftheFireHazardsofMaterials,"whichprovidesaclassllicatlonandmarkingsystemlorIdentificationofalirehazard.(2)Afacilityusedlorthestorageofoilshalthavea"healthhazards"rankingof"1"identifiedby:(a)Ablack"1"atthenine(9)o'clockpositionInabluesquarelocatedInasquare-on-pointfield;or(b)Ablue"1"atthenine(9)o'clockpositionwithoutthecoloredsquare.(3)Afacilityusedforthestorageofoilshalthavea"flammabilityhazards"rankingof"3"identifiedby:(a)Ablack"3"atthetwelve(12)o'clockpositionInaredsquarelocatedinasquare-on-pointfield;or(b)Ared"3"atthetwelve(12)o'clockpositionwithoutthecoloredsquare.(4)Afacllityusedforthestorageofoilshallhavea"reactivityhazards"rankingof·o·Identifiedby:(a)Ablack·o·atthethree(3)o'clockpositionInayellowsquarelocatedinasquare-on-pointfield;or(b)Ayellow·o·atthethree(3)o'clockpositionwithoutthecoloredsquare.Section4.DimensionsandColorationoftheSign.( t ) Asignshallnotbesmallerthan:(a)Seventeen(17)inchesinheight;and(b)Twenty-eight(28)inchesinwidth.(2)Thelettersizefortherequiredwordingshallbeasfollows:(a)Theword"dangEif"shall:1.BeInuniformlysizedletters;and2.Notbelessthanthree(3)InchesInheight;(b)Thewords•nosmokingoropenflame"shall:1.Beinuniformlysizedletters;and2.Notbelessthanone(1)Inchinheight;and(c)ThewordssetoutinSection2(2)(c)through(f)ofthisadministrativeregulationshall:1.Beinuniformlysizedletters;and2.Notbelessthanone-half(1/2)InchInheight.(3)The"nosmoking"symbolwithacigarettecrossedthroughshallnotbelessthanoneandone-half(11/2)inchesInheight.(4)TheNFPAnumbersshallnotbelessthanone-half(112)InchInheight.(5)ThebackgroundcolorofthesignshallcontrastwiththeforegroundcolorofthelettersandtheNFPAnumberstomakethemclearlyvisible(e.g.,whitebackgroundwithblackletters).Section5.(1)Thereshallbeone(1)signper:(a)Tankbattery;or(b)Tank,iftheindividualtanksInabatteryarecontrolledbymorethanone(1)operator.(2)Asignshallbe:(a)Displayedat:1.Leastfive(5)feetfromtheground;and2.Themostvisiblelocationfromtheapproach;(b)Properlymaintained;and(c)ReplacedIfitIs:1.Illegible;2.Damaged;3.Vandalized;or4.Stolen.Section6.SignsInExistencePriortothisAdministrativeRegulation.(1)AdangersignpostedonatankortankbatterypriortopromulgationofthisadministrativeregulationmayberetainedbyanoperatorJf:(a)Hefilesawrittenpetitionlorawaiverseekingpermissiontoretainthenoncomplyingsign;and(b)Thepriorsignisclearlydisplayed:1.Onthetankortankbattery;and2.Atthemostvisiblelocationfromapproach;(2)Apriornoncomplyingdangersignshallbereplacedwithasignthatcomplieswiththisadministrativeregulationif itIs:(a)Illegible;(b)Damaged;(c)Vandalized;orhttp://www.lrc.ky.gov/kar/805/001/160.htm3/12/2015805KAR1:160.Postingofadangersignonafacilityusedforthestorageofoil.Page2of2(c)Stolen.Section7.ViolationsforFailuretoPostaSign.(1)Uponlocatingatankortankbatterywithoutadangersign,theInspectorshallissueanoticeofnoncompUancetothelastknownoperator.(2)ThenoticeofnoncompNanceshallbemailedtotheoperatorbycertifiedmall,return-receiptrequested.IftheviolationIsnotcorrectedbythepostingofapropersignwithlnforty-five(45)daysofhisreceiptofthenoticeofnoncompliance,theoperatorshallbesubjecttothepenaltiessetoutInKRS353.991.Section8.Materiaiii'IC;Oip(ll'atedbyReference.(1)ThefollowingmaterialisIncorporatedbyreference:NFPAEdition704,"StandardSystemfortheIdentificationofFireHazardsofMaterials",1990edition,Chapters1-4andFigure6.1.(2)Th!smaterialmaybeexaminedorcopiedattheKentuckyDepartmentforNaturalResources,1025CapitalCenterDrive,Suite201,P.O.Box2244,Frankfort,Kentucky40602-2244,MondaythroughFriday,8a.m.to4:30p.m.(23Ky.R.3653;Am.4180;24Ky.R.88;elf.7·9·97;TAmeff.8-9-2007.)http://www.lrc.ky.gov/kar/805/00l/160.htm3/1212015805KAR1:170.ContentoftheoperationsandrecJamationproposal;formonwhichtheprop...Page1of2805KAR1:170.Contentoftheoperationsandreclamationproposal;formonwhichtheproposalIsflied.RELATESTO:KRS353.520,353.570,353.590,353.5901,353.595,353.597STATUTORYAUTHORITY:KRS353.540,353.550,353.5901,353.670NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.5901(1)requiresawalloperatortosubmittotheDepartmentforNaturalResourcesanoperationsandreclamationproposalapplicabletoalltractsonwhichtherehasbeenacompleteseveranceoftheownershipoftheoilandgasfromtheownershipofthesurfacetobedisturbed.Thisadministrativeregulationspecifiesthecontentoftheoperationsandreclamationproposal,createstheformonwhichthatproposalistobefiled,andprovideslortheformonwhichwelltransfersareindicated.Section1.Definitions.InadditiontothosesetoutInKRS353.510,thefollowingdefinitionsshallapplytothisadministrativeregulation:(1)"Crossdrain"meansanopenditch,constructedacrosstheroadway,tocarryoffroadsurfacewaterandwhichIsnotIntendedtoreplaceculvertsorprohibitvehiculartraffic.(2)"Diversionditch"meansachannelorridgeconstructedacrossaslopefordivertingsurfacerunolf.(3)·merstrip"meansanaturalvegetativestrip,leftundisturbed,betweenthedisturbedconstructionareaandawatercourse,andwhichactsasabufferareatocatchsedimentbeforeitentersthewatercourse.(4)"Finalreclamation•meansthedateonwhichtheoperatorhascompletedhisdrilfingoperationsatthewellsite,haspluggedthewe•andhasperformedallobHgationsdescribedintheoperationsandreclamationproposal.Secllon2.(1)TheoperationsandreclamationproposalshallbefiledonFormED·10,entitled"PlantoPreventErosionofandSedimentationfromaWellSite".(2)InadditiontotherequirementssetoutinKRS353.5901,thefollowinginformationshallbesetoutonFormED·1o:(a)Theoperator'sandsurfaceowner'snames,addressesandtelephonenumbers,thecountyInwhichthewellIsproposedtobedrilled,andthewallnumber;(b)Alistingordescriptionoffertilizersandsoilamendmentsandseedortreestobeplantedforeachaffectedarearequiringrevegetationtreatmentandthetypesandamountsperacreofseedandtreestobeplanted;and(c)Adetaileddrawingoftheroad,welllocationandproposedareaofdisturbance,whichshallbeinsufficientdetailtoallowreadyldentiftcallonofsurfacefeaturesandwhichshallsatisfythefollowingrequirements:1.Thesurfaceowner'stract(s)shallbeIdentifiedonthedrawing,withthenameofthesurfaceownerIInotlistedonthelegend,whichdrawingshallalsoIndicatetheacreagetobedisturbed;2.ThedrawingmaybemadeoveranenlargedsectionoftheUnitedStatesGeologicalSurvey(USGS)1:24000topographicmapandmaybeenlargedtoapproximately1"•400'andbesubmittedonaneightandone-half(8112)inchbyfourteen(14)inchessheet,usingthesymbolssetoutonFormED-10.3.Thedrawingshallhavealegendwiththeoperator'sandsurfaceowner'snamesnotlistedonthemap,thescaleofthemap,thewellnameandnumber,andtheleasename.(3)SignatorysectionslortheoperatorandsurfaceownershallbecompletedonFormED-10inthefollowingmanner:(a)Thenameandtitle,Ifany,oftheoperatorshallbelndicaledandhissignaturenotarized,whichsignatureshallbeeitherthatofanoffiCerofthecompanyorofsomeotherpersonwhoholdsadulyrecordedpowerofattorneytoexecutedocuments,acopyofwhichpowerofattomeyshatlbewl1hthedivision.IftheprospectiveoperatorIsanIndividual,thesignatoryshallbeInthesamenameastheapplicant'sorapowerofattorneytoexecutedocumentsshallbesubmittedtothedivisionifthesignatoryIssomeoneotherthantheapplicant;(b)Thesurfaceowner'snameshallbeIndicatedandhissignaturenotarizedIfheapprovesoftheoperationsandreclamationproposal,togetherwithanyattachmentssubmittedwl1hit.Section3.UnsignedReclamationForms.IftheownerofthesurfaceoftheseveredmineralstractIsunwillingorlorsomeotherreasonhasfailedtoexecuteFormED-10,theoperatorshallfileawrittenpetitionformediation,togetherwiththefollowing,atthelimetheapplicationforpermitIsfiled,inaccordancewithKRS353.5901:(1)Acopyofthecertifiedmallreceiptverifyingthattheoperationsandreclamationproposal,thestatementrequiredInKRS353.5901(2)(b),andtheplatweremailedtoandreceivedbythesurfaceowneror,Ifnotreceived,theoriginaloracopyoftheunclaimedenvelope.AcopyoftheoperationsandreclamationproposalandtheattachmentsenclosedintheenvelopemailedtothesurfaceownershallalsobeIncluded.(2)IfthesurfaceownercannotbereachedathislastknownaddressofrecordandcertilledmallIsretumedasunde6verableorunknown,theoperatorshallpublishanoticeofintendedactivity,togetherwitharequestlorInformationonthewhereaboutsofthesurfaceowner,whichpublicationshallbemadetwo(2)consecutivetimesInalocalnewspaperinthecountywheretheproposedwellislocatedandonceInanewspaperofgeneralclrculatlon.AcopyofthenoticeofintendedactivityandrequestforsurfaceownerInformationshallbeIncludedwhentheoperatorhisapplicationforpermitandshallinclude:(a)Thenameandaddressoftheoperator;(b)AbriefdescriptionoftheIntendedactivityassetoutintheoperationsandreclamationproposal;(c)Thesurfaceownermustrespondtothisnoticewithinfifteen(15)daysofthesecondpublicationinthenewspaper;and(d)AstatementofwhereInterestedpersonsmayobtainadditionalinformationastotheoperator'sIntendedactivity.Section4.MediationofDispute.(1)Thesurfaceownermayfilewiththedivisionarequestformediationatanylimeafterhehasreceivedfromtheoperatortheproposedoperationsandreclamationproposal,butonlyaltertheoperatorhasfiledhisrequestformediationandnotlaterthanthetimesetforthintheNoticeofRequestforMediationprovidedbythedepartmentandmailedtothesurfaceowner.Thesurfaceowner'srequesttoparticipateinmediationshallincludethemediationfee,InaccordancewithKRS353.5901(2)(b).(2)IfthesurfaceownerdoesnotfilehismediationfeewithinthetimeandinthemannerrequiredintheNoticeofRequestforMediation,heshallbedeemedtohavefailedtosatisfythestatutoryrequirementsapplicabletomediation,themediatorshallfileareportnotingthefailureandrecommendtheacceptanceoftheoperator'soperationsandreclamationproposal.(3)ThemediatorshallnotsettledamageclaimsormakeanydeterminationsregardingthemInhisreportHowever,InformationpresentedbytheoperatororsurfaceownerastocostsincurredbyeitherpartyasaresultoftheprojecteddrillingandthelossofmineralsorsurfacedamagemaybeutiUzedbythemediatorInrecommendingtheplacementofroads,pitsorotherconstructionandreclamationactivitiesinamannerwhichhastheleastadversesurfaceImpact(4)Iftheoperatorwithdrawshisapplfcationforapermittodrill,deepen,orreopenawellafterreceiptbythedivisionofthesurfaceowner'smediationfee,thatfeeshallberefundedtothesurfaceowner.Section5.(1)Theconstructionofthewellsite,Includingroads,pits,tanks,linesandotherareasdisturbed,shallbeperformedbytheoperatorInaccordancewiththeoperationsandreclamationproposal.Allcutsandfillsshallhavesideslopesthatarestableforthesoilorfillmaterialinvolved.TheverticalgradesshallbeaslowasreasonablypracllcableandcompaUblewithtopography.(2)IfthewellproducesandthesiteIskeptopenforlong-termuseforwellservicingandloroilandgasremoval, theoperatorshall:http://www.lrc.ky.gov/kar/805/001/l?O.htm3/12/2015

# 805 KAR 1: 170. Content of the operations and reclamation proposal; form on which the prop... Page 2 of 2

(a) Maintain access roads In a manner as to altow access by 

# the operator without causing unreasonable settlement of 

# the roadbed or slides of the

cut

slopes, and provide that maintenance in accordance with the operations and reclamation proposal;

(b)

Estabish drainage to adequately accept runoff from access roads, the weU site 

# and other areas In 

# a manner which preveniS unreasonable

Interference

with the surface owner's property, roads, farm i ng operations, and buildings, and establish that drainage In 

# accordance with the operations

and reclamation proposal:

(C)



# Repair access roads, the

**we~** 

# site area, and pits damaged by eveniS as 

# floods, landslides. or excessive settlement of the embankment as soon

as

practicable after the damage has occurred; however, the operator shall not be responsible for damage attributable to another party's use of the

access

road not relating to the driiHng, construction or operation of the well 

# by the 

# operator.

Section 6. ( 1) The operator shalt provide written notice to the division when final reclamation and plUgging have been completed.

(2)

The bond required In KRS 353.590(5) shal l not be released until a division inspector has made an Inspection of the well site one (1) year alter

the

date of the letter of notlrlcation from the operator of final reclamatton and p 1 ugging 

# and has filed a report to the director documenting that the

foltowlng

have occurred:

(a)

All areas disturbed by 

# the operator have been secured In a manner to prevent runoff, sedimentation

, or settlement of the roadway, sliding of 

# cut

slopes

or any fill material;

(b)

A diverse and effective permanent vegetative cover has been established ; and

(c)

Any mailers relating to settlement, inadequate vegetative cover or erosion have been corrected

.

Section 7

. Transfer of Wells having Existing Reclamation Ptans

. (1 ) Prior to transfening a wel l located on a severed m ln erals tract and for which an

approved

operations and reclamation proposal Is on file with the division, the operator shan :

(a)

Provide the successor operator a copy of the approved reclamation forms and altachmeniS on file with the divis l on before signing Form ED-13

,

"Well Transfer•;

(b)

Advise the successor operator of any reclamation responsibility the transfening operator had with regard to the wall and related surface

disturbance

;

(c

) Secure from the successor operator a letter Indicating he has received from the transferring operator a copy of 

# Form ED-1 0 and that he 

# Is willing

to

accept responsibility for the reclamation of the well site and other surface disturbances related to the operation of the well;

(d)



# Submit to the division the executed Form E0-13, applicable fee. and the letter of the successor operator's agreement to accept respons i bility for

reclamation



# In the manner set forth on Form ED-10; and

(e)

Provlde the surface owner of record with a copy of form ED - 13 when he submiiS 

# It to the division

.

(2) The division shall not transfer the well unti l the f equirements of th i s section are satisfied and shal l advise the transferring and successor

operators

I n writing when the wallis transferred.

Section 8. If a well Is to be drilled and completed on lederallands, the director sha A1 accept a copy of a surface use reclamation agreement between

the

well operator and the federal agency In lieu of the operations and reclamation proposal

. If the operator elects to submit this agreement, II shall be

submitted

at the time of filing the application for permit 

# to drill a well.

Section 9

. (1) If a field inspection indicates there is noncompliance with the approved operations and reclamation proposal or the requ l remeniS of

Section

6 ol this administrative regulation, a written notice of violation describing the noncompliance shall be given to the operator

, together with a

statement

of the action required to correct the noncompliance

.

(2) The wriHen notice of violation shall allow the operator up to forty · five (45) days to correct the violation

.

(3) An operator may file for an extension ol time to correct a violation by submiHing a letter to the director describing the need lor that extension; II

the

director concludes that the request 

# Is reasonable and that an extension of time will not violate the requlrements of this administrative regulation or

applicable

statutes

, he may grant the request lor extension of tlme

.

(4) The operator's bond may be forfeited to the department's oil 

# and gas well plugging fund, pursuant to KRS 353

. 590(7), II he falls to make requ i red

corrections .

(5) An operator who, after hearing, 

# is determined 

# by the department to be In noncompliance with any section of this administrative regulation, or

who

lalls to abate any noncompliance of the approved operations and reclamation plan, is subject to the penalties described In KRS 353.991

.

Section 10. Material Incorporated by Reference. (1) The following material is Incorporated by reference:

(a)

Form ED·1 0, "Plan to Prevent Erosion of and Sedimentation from a Well Site", (February 14, 1997 Edition), Division ol Oil and Gas : and

(b)

Form ED·13, " Well Transfer", (April16, 1990 Edition), Division of 011 and Gas.

(2)

These forms may be obtained from, examined, or copied at the Kentucky Department for Natural Resources, 1 025 Capital Center Drive, Suite

201,

P.O. Box 2244, Frankfort, Kentucky 40602 · 2244, Monday through Friday, B a

. m. to 4:30p.m. (23 Ky.R. 3655; Am. 4182 ; 24 Ky

. R

. 90; 365; ell. 

# 1·

9-97;

TAm elf. 8-9 · 2007.) 

# http://www Jrc.ky .gov/kar/805/00 11170.htm 3 /12/2015805KAR1:180.Productionreporting.Page1of1805KAR1:180.Productionreporting.RELATESTO:KRS353.550{1)STATUTORYAUTHORITY:KRS353.540,353.550(4),353.670(1)NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.550{1)authorizesthedepartmenttopromulgateadministrativeregulationsrequiringanoperatorofoilandgaspropertiesIntheCommonwealthtoIdentityproducingleases.Thisadministrativeregulationisnecessarytospecllytherequirementofannualreporting,thecontentofthereport,andtheformonwhichthereportshallbemade.Section1.Definitions.InadditiontothedeftnltionssetoutinKRS353.51o,thefollowingdeftnltionsshallapplytothisadministrativeregulation;(1)"GPS"meansaglobalpositioningsatellite,which:(a)Receivesradiofrequenciesfrommorethanone(1)satellite;and(b)Isabletolocateapointontheearth.(2)"Mermeans1,ooocubicfeetolnaturalgas.{3)"Netgassales"meanstheamountormeteredorproratedgassoldintothelineoffirstpurchaseandmaybedifferent!romproducedgas,duetolinelossandcompressorusage.(4)"Producedgas•meanstheamountofproducedgasmeteredorproratedatthewellheadonamonthlybasis.{5)"Purchaserorleasenumber"meansthenumberassignedbythepurchasingcompanytotheleaseorwellforaccountingandpaymentpurposes.(6)"Topographicspot"meanstheactoflocatingawellonaUnitedStatesGeologicalSurvey1:24,000TopographicMapandscalingthatwelllocationonthemaptodetermineItsCarterCoordinatelocation.Section2.AnnualReportofMonthlyProduction.(1)Anoilorgasoperatorshall:(a)CompileandretainrecordsorthemonthlyproductionofnaturalgasandcnJdeoil;and(b)Fortheprecedingyear,filetheproductionInformationwiththeDivisionbyApril15.(2)Theinformationmaybesubmittedtothedivision:(a)OnFormED-17,"AnnualReportofMonthlyProductionforNaturalGasand/orCrudeOil";or(b)Byusing:1.Commonpersonalcomputerspreadsheetordatabasesoftware;2.Anelectronicmailattachment.(3)Anoperatorshallbepermittedtosubmittheinformationinaccordancewithsubsection{2)(b)ofthissection,subjecttothedivisionbeingabletoprocesstheproductiondataelectronically.(4)ThefollowingshallbeIncludedIntheinformationsubmittedbytheoperator:(a)Operatornameandaddress;(b)Productionyear;(c)PermitnumberIssuedbytheDivisionofOilandGas;(d)Purchasernumber;(e)NumberolwellsontheleaseforwhichthereportIsbeingftled;(f)Farmname,completewiththeIndividualwellnameandwellnumber;(g)Countyofproduction;(h)Producingformationor,ifproductionIscommingledfrommultiplewellswhicharenotmeteredseparately,theIdentificationofthewellsas•commingled"andthepertinentformationsfromwhichproductionwasmade;and(i)Wellstatus,Identifiedasproducingorshut-ln.(5)ProductionfromagaswellshallbereportedinMelolnetgassalesbywell.Inadditiontoreportingnetgassales,producedgasmayalsobereportedattheoptionoftheoperator.{6)MonthlyoilproductionshallbereportedinbarrelsbyIndividualwellorbylease;IIbylease,theoperatorshallattachtoFormED-17alistIdentifyingthepurchasernumberanddivisionpermitnumberolallwellsproducingonthatlease.(7)Forawelldrilledpriortothedateuponwhichapermitforthedrillingandproductionofawellwasstatutorilyrequired,theoperatorshallprovideaCarterCoordinatelocationforeachwellnothavingalocallononfilewiththedivision;thatlocationmaybeestimatedbyatopographicspot,aGPSlocator,orbysurvey.(B)ProductionInformationreportedpursuanttothisadministrativeregulationshallbeorganizedIntoastandardformatandshallbemadeavailablelorpublicreleasenoearlierthanJanuary1norlaterthanMarch1ofthefollowingyear.Section3.Penalties.IfanoperatordoesnotfilehisproductiondataonFormED-17byApril15altereachproductionyear,thedivisionshallnotilyhimInwritingofhlsnoncompHance.IIhedoesnotsubmitallrequiredproductionInformationwithinforty·five{45}daysafterbeingnotiHedofhisnoncompliance,heshallbesubjecttodenialofpermitsInaccordancewithKRS353.570andthepenaltiesestablishedInKRS353.991(2),{3}and(4).Section4.IncorporationbyReference.{1)"AnnualReportolMonthlyProductionforNaturalGasand/orCrudeOil",{November12,1997edition),Divisionof011andGas,IsIncorporatedbyreference.(2)Thisformmaybeobtained,examined,orcopiedattheKentuckyDepartmentforNaturalResources.Divisionof011andGas,1025CapitalCenterDrive,Suite201,P.O.Box2244,Frankfort,Kentucky40602-2244,MondaythroughFriday,Ba.m.to4:30p.m.(23Ky.R.3658;Am.24Ky.R.92;1263;elf.11-12-97;TAmelf.B-9-2007.)http://www.lrc.ky.gov/kar/805/0011180.htm3/12/2015805KAR1:190.Gatheringlines.Page1of5805KAR1:190.Gatheringlines.RELATESTO:KRS353.160,353.500{2),353.590,353.745,353.991,353.5901{1),40C.F.R.Part112,49C.F.R.Parts191, 192,194,195STATUTORYAUTHORITY:KRS353.500(2),353.540NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.540authorizesthedepartmenttopromulgateadministrativeregulationstoadministerKRS353.500to353.720.KRS353.500(2)requiresthedepartmenttopromulgateadministrativeregulationspertainingtogatheringlines,InordertominimizetheirpotentialeffectsonthecitizensandtheenvironmentoftheCommonwealth.EO2009·538,effectiveJune12,2009,abolishestheEnvironmentalandPublicProtectionCabinetandestablishesthenewEnergyandEnvironmentalCabinet.ThisadministrativeregulationestablishesprovisionsfortheInstallationofgatheringlines,reclamationofdisturbedareas,andsafetyrequirementsofgatheringlinesastheypertaintooilandgasproductionoperations.Section1.Definitions.(1)"Division•meanstheDivisionofOilandGas,(2)"Environmentallysensitivefeature•meansastream,spring,sinkhole,wetland,stateornationalpark,wildernessarea,orwildliferefuge.(3)"Existinggatheringline•meansanygatheringUneInstalledandnotabandonedortakenoutofservicepriortoMarch18,2004.(4)"Gasproductionnowline•means:(a)ThesegmentofagatheringlinerunningfromawelltothepointofinterconnectionwithanothergatheringUneorproductioncompressor;or(b)Ifawellproducesbothoilandgas,thelinefroma(5)"Gatheringline•meansanypipelinethatIsInstalledorusedforthepurposeoltransportingcrudeoilornaturalgasfromawellorproductionfacilitytothepointolInterconnectionwithanothergatheringline,anexistingstoragefacilityoratransmissionormainUne,includingalllinesbetweenInterconnections,exceptthoselinesorportionsthereofsubjecttotheexclusivejurisdictionoftheUnitedStatesDepartmentofTransportationunder49C.F.R.Parts191,192,194and195.(6)"GPS•meansthecofectlonmethodofacquiringlocationdatausingtheGlobalPositioningSystemthatis:(a)1.ReportedaslatitudeandlongitudeIndegreesanddecimaldegrees;2.CapturedInthree(3)meteraccuracyforstationarylocationdata,suchasfinemark&fS:and3.Submltledaswaypolntsandtracklogsforthegatheringlinelocation:(b)RecordedinthedatumofWGS84;and(c)SubmittedasArcViewshapefileorasanASCIIflleissubmittedelectronically.(7)"Oilproductionflowline"means:(a)AgalhetingUnerunningfromawellorwellstoatankbatteryforproductrontreatmentandstorage;or(b)Ifanlnjecllonwell,thelinefromthetankbatterytotheweP.(8)"Productioncompressor•meansacompressorInstalledonagathering1lineandusedtoil'lCfeaseproducedgaspressuretoenhancedelivery.(9)"Transmissionline•meansapipeline\hallssubjecttotheexclusivejurisdictfonoftheUnitedSlatesDepartmentofTransportationunder49C.F.R.Parts191.192,194and195.Section2.Applicabnity.ThisadministrativeregulationshallapplytogatheringlinesInstalledunderpermitsIssuedafterMarch18,2004andshagnotappiytoexisllnggatheringlinesunlosstheselinesareIdentifiedasbelngsubjecttotherequirementsolSection4ofthisadministrativeregulation.Section3.License.(1)Theoperatorofanygatheringline,lnclud:nganexistinggatheringline.shallobtainagatheringlineoperator'slicensefromthedivisiontooperateanyandalloilorgasgatheringrtnesoperatedbyhim,upontheellectivedateofthisadministrativeregulation.TheoperatorInphysicalcontrolofanygatheringlineshallmaintainacurrentlicenseevenifthegatheringlineIsshutinorIdle.Allgatheringlinesoperatedbythesameoperatorshallbesubjecttoasinglegatheringlineoperator'slicense.Anoperatorofanexistinggatheringlineshallmakeapplicationforlicensewithinninety{90)daysoftheeffectivedateofthisadministrativeregulation.(2)Eachlicenseeshallannuallysubmitacompletedlicenserenewallormusingthe"Application•GatheringLineOperator'sLicense",FormED·2,onorbeforetheexpirationdateolhiscurrentlicense.Annualrenewalofthegatheringlineoperator'sllcenseshallbemadeonJanuary1andduenolaterthanFebruary15.IftherearenosubstantivechangestotheoperatorinlormationprovidedIntheInitialapplicationforlicense,theshallbereneweduponreceiptolthelicensefee.Alicenseemayalsosubmitthelicensetenewalinformationandpaymentthroughthedivision'son·Wneapplicationwhentheon-lineapplicationbecomesavallable.ToqualifyloralicenseorRcenserenewal,theapplicantshallbeIncompliancewithapplicablelawsandshallsubmitthefollowingitemstothedivision:(a)Anapprrcationsatisfyingtherequirementsolsubsection(3)ofthissection;and(b)1.A$100Ucensefee;or2.Afeeoltwenly·live(25)dollars foreachdwelling,IftheapplicationIsforalicensetooperateagatheringlineloragaswellusedstrictlyforthepurposeofheatingaresidentialdwelling.(3)Application.Theapplicationforalicenseoralicenserenewalshallbe:(a)NotarizedormeettherequirementsforelectronicsignatureIfelectronicallysubmittedpursuanttoKRSChapter369;{b)Filedwiththedivision;and(c)Contalnthefollowinginformation:1.ThefuNnameunderwhichtheoperatortransactsorIntendstotransactbusinessunderthellcenseandtheoperator'scorrectmailingaddress.Theappltcallonshallincludethenameandaddressoftheprincipalofficersofthepartnershiporcorporation,Includingtheagentforprocess;2.Allotherinformationrequiredbythe"GatheringLineOperator'sLicenseApplication•,FormED·2,October2003;and3.EachappHcationforalicenseshallbesignedorsubmitledwithelectronicsignatureaspreviouslydescribedbytheoperatoriftheoperatorisanaturalperson,byaprincipalofficerIftheoperatorisapartnershiporcorporation.Section4.MapsofExistingGatheringLines.Withinelghteen(18)monthsoftheeffectivedateofthisadministrativeregulation,eachoperatorofanyexistinggatheringlineshallfilewiththedivisionamap,whichoutinestheapproximatelocatlonoftheexistinggatheringline.ThegatheringlinemaybenotedoveranenlargedsectionofaUnitedStatesGeologicalSurvey(USGS)1:24000topographicmap,whichmaybeenlargedtoapproximately1·..4oo·andbesubmittedonan81/2ln.x14in.sheet.AdditionalmapsmaybeprovidedIfnecessarytofullydocumentthetotallengthofthegatheringline.Thisrequirementforthefilingofmapsmayalsobesatisfiedbyelectronicsubmissiono1themapssubjecttothedivisionbeingabletoImportandviewthemapfiles.Section5.Permil.Priortotheinstallationofagatheringline,theoperatorshallsubmitapermitapplicationtothedivisionfortheInstallationandoperationofthegatheringllneinthefollowingmanner:(1)Permitbyruleforanollproductionflowline.Anoilproductionflowlineshallbedeemedtohaveapermitbyruleupontheissuanceofthehttp://www.lrc.ky.gov/kar/805/001/190.htm3/12/2015805KAR1:190.Gatheringtines.Page2of5welldrillingpermitIftheoperatorsatisfiesthefollowingconditions:(a)NotifiesthedivisionInthemannerprescribedInSection7ofthisadministrativeregulationuponthesuccessfulcompletionofthewellandpriortotheInstallationordisturbanceofanysurfaceuponwhichtheoilproductionflowlineshallbeInstalled;(b)CompileswithSections9,10,11(1),(2), (3),{4),12and14ofthisadministrativeregulation;and(c)Paysafeeof$100,inaddiUontothewellpermitfeerequiredbyKRS353.590(2)andanadditionalflhy(50)dollarfeerequiredbyKRS353.745(4)and805KAR1:200.(2)Permitbyruleloragasproductionflowline.AgasproductionnowlineshallbedeemedtohaveapermitbyruleupontheissuanceofthewelldrillingpermitIftheoperatorsatisfiesthefollowingconditions:(a)NotiHesthedivisionInthemannerprescribedInSection7ofthisadministrativeregulationuponsuccessfulcompletionofthewellandpriortotheinstallationordisturbanceofanysurfaceuponwhichthatgatheringlineshallbeInstalled;and(b)Paysaleeof$200,InadditiontothewellpermitleerequiredbyKRS353.590(2)andanadditionalfihy(50)dollarleerequiredbyKRS353.745(4)and805KAR1:200.(3)Permitforagatheringlineatherthananoilproductionorgasproductionflowline.ThedivisionmayissueapermitfortheInstallationandoperationofagatheringlineotherthananoilproductionorgasproductionftowlineIftheoperatorsatisfiesthefollowingconditions:{a)File.sanapplicationwiththedivisionforapermitfortheInstallation,reclamation,andoperationofagatheringlineInthemannerprescribedbySection7ofthisadministrativeregulationpriortotheInstallationordisturbanceofanysurfaceuponwhichthatgatheringlineshallbeinstalled;and(b)Paysafeeof$500.Section6.TransferofOwnershipofaGatheringLlne.AsuccessoroperatorofagatheringlineshallnotifythedivisionInadvanceofcommencinguseoroperationofagatheringline.Thesuccessorshallassumetheobligationsofthisadministrativeregulationandrelievetheoriginalpermitteeofresponsibilityunderthisadministrativeregulationwithrespecttothegatheringline.Itshallbetheresponsibilityofthesellingoperatortorequirethesuccessoroperatortonotifythedivisionbeforeuseoroperationiscommencedbythesuccessorandreliefofresponsibilityunderthisadministrativeregulationisgrantedtotheoriginalpermittee.IIanoilproductionorgasproductionflowlineIsinvolved,thesuccessorshallbedeemedtohaveprovidednoticetothedivisionuponthesuccessfulcompletionofthewelltransfer,asrequiredunderKRS353.590(6),fortheoilproductionorgasproductionflowlineapplicabletothecorrespondingwell.Section7.PermitRequirements.(1)Thenotificationorapplicationforpermitfortheinstallationandoperationofagatheringlineshallbesubmittedtothedivisionusingthe"Notirlcatlon/AppllcatlonforaGatheringLlnePermit:Installation,ReclamationandOperationPlan",FormED·11,alongwithanattachedtopographicalmapdepletingthelocationoftheproposedlinewhichshallbeInsufficientdetailtoallowreadyidentificationofadjacentsurfacefeatures.Anoperatormayalsosubmitthenotificationorapplication,mapandpaymentthroughthedivision'son-lineapplicationsubjecttotheprovisionsofKRSChapter369.Themapshallhavealegendwith:(a)ThenamesofthegatheringlineownerandoperatorandanyownersofsurfacetractsuponwhichthegatheringlineIstobeInstallednototherwiselistedonthemap;(b)Thescaleofthemap;(c)Thewellnameandnumber,IIapplicable;and(d)Theleasename,Ifapplicable;andshalldepictthefollowing:1.Theapproximatelocationsofpropertylines,dwellings,environmentallysensitivefeaturesand road andstreamcrossingsalongthepathofthegatheringline;2.ThenamesoftheownersofsurfacetractsuponwhichthegatheringlineIstobeInstalled,asIdentifiedasthepartyassessedforthepurposesofpropertytaxationIntherecordsofthepropertyvaluationadministratorofthecountyInwhichthelandIslocated,unlesslistedinthelegend;and3.Theapproximateacreagetobedisturbedalongthepathoftheproposedgatheringline.(e)Subparagraphs1.through3.ofparagraph(d)shallbenotedclearlyandlegiblyonanenlargedsectionofaU.S.GeologicalSurvey(USGS)1:24000topographicmap,whichmaybeenlargedtoapproximatelyone(1)Inchequals400feetandbesubmittedonaneight(8)andone·half(1/2)byfourteen(14)inchsheet.ThisrequirementforthefilingofmapsmayalsobesatisfiedbyelectronicsubmissionofthemapssubjecttothedivisionbeingabletoImportandviewthemapfiles.(2)InfilingtheapplicationfortheInstallationandoperationofagatheringlinewiththedivision,theoperatorshallstatethathehastheauthoritynecessarytoInstallandoperatethegatheringlineuponthepropertywhichthegatheringlinewilltraverseandthathemaintainsgeneralliabilityinsurancecoverageforhisgatheringlineoperations.Theoperatorshallincludethedivisionasa"certificateholder"onhispolicysothatthedivisionshallreceiveadvancenoticeofanycancellationoftheoperator'sgeneralliabilityinsurance.(3)TheoperationsandreclamationplanrequiredbyKRS353.5901,filedInconjunctionwiththeapplicationforapermitforawelllocatedonatractonwhichthereIsaseveranceoftheownershipofthesurfaceandmineralestates,shallsatisfythisadministrativeregulation'srequirementsforanoperationsandreclamationplanapplicabletothepropertyuponwhichthewellisdrilled.(4)IftheoperationsandreclamationplanisnotsubjecttoKRS353.5901,theoperatorshallfileaplanwhichincludesashortnarrativeIndicatingthefollowing:(a)LocationofallareastobedisturbedInconnectionwiththeInstallationofthegatheringlineandtheproposaltopreventerosionandsedimentationonthoseareas;(b)Arevegetationplanwhichincludesalistingordescriptionoffertilizersandsoliamendmentsandseedortreestobeplantedforeachaffectedarearequiringrevegetationtreatmentandthetypesandamountsperacreofseedortreestobeplanted;and(c)Aproposedplanforthetimelyreclamationofalldisturbedareas.Sectiona.Rlght·oi·WayAgreements.(1)PriortosubmittinganapplicationforapermitorpriortoanyinstallationoroperationsonanysurfaceonwhichagatheringlineIsproposedotherthanthepropertyuponwhichthewellislocated,theoperatorshallhaveobtainedthenecessaryauthority,right·of·wayorleaseagreementfromanownerofthepropertyonwhichthegatheringlineIstobeInstalled.(2)PriortotheissuanceofapermitfortheInstallationandoperationofagatheringlineonwhichtheoperatorhasanexistingright-of-way,leaseordeed,oronlandthatrequiresanewright·of·waybytheoperator,theoperatorshallcertifyIntheapplicationforthepermitthathehasmetandconferredwith,orofferedtomeetandconferwith,thesurfaceownerastoanyactivitythatmaydisturbthesurface.Section9.MeetingwithBondedPermittee.PriortotheIssuanceofapermitfortheinstallationandoperationofagatheringlineonlandwhichispermittedorbondedundertheprovisionsofKRSChapter350,theoperatorofthegatheringshallcertifyIntheapplicationforapermitthattheoperatorhasmetandconferredwith,orofferedtomeetandconferwith,thebondedpermitteeastoanyactivitythatmaydisturbthepermittedarea.Section10.ReclamationPlans.Reclamationofalldisturbedareasshallbeconductedinaccordancewiththereclamationplanonfilewiththedivision.AnyamendmentstothereclamationplanshallbesubmittedtoandapprovedbythedivisionpriortocommencementofInstallationorashttp://www.Jrc.ky.gov/kar/805/0011190.htm3/12/2015

# 805 KAR 1: 190. Gathering lines. Page 3 of5

soon as practica l after discovery that reclamation shall be 

# conducted In 

# a manner other than that described In 

# lhe reclamation plan on file with the

division.

If 

# the surface is 

# disturbed Incidental 

# to t he repa i r of a gathering Une after reclamation has occurred undef the reclamation plan, the

reclamation



# ot the area so disturbed sha l be 

# commenced within lhlrty (30) days of completion of the repa i r operation, I f practical. The operator shall

satisfy

the following standards for excavation, backfi B ing and reclamation :

(1)

If 

# a gathering line crosses agricultural lands, the operator shall segregate topsoil while trenching

. and trenches shall be 

# backfilled so that the

so

il s are returned to their orig i nal relative posiUons and contour

, unless waived by the surface owner. This requirement to segregate and backfill

topsoil

sha l l not apply to trenches that are twelve (12) 

# Inches or less In width.

(2)

On agricultural lands and nonagricultura l lands, gathering line trenches shall be maintained In order to correct trench subsidence and

reasonably

minimize erosion

. Interim and final rec l amation, l nch.ldlng revegetation

, sha l l be 

# performed In accordance with the reclamation plan

.

Seclion 1 1

. 

# General Requlfements. (1) 

# Buria l of a gathering line

. The operator shall bury a gathering line or portion thereof that crosses

agricultura

l land or that would otherwise I nterfere with the use of a preexisting private roadway, If 

# requested to do so by the owner of the surface of

the

agricultura l land or of other land lo which access would be affecled

, prior to lhe Installation of the gathering Nne to pro t ect It from damage

. The

gathering

line shall be buried to a minimum depth of twenty · four (24) 

# Inches, except where solid rock Is encountered, In which case the minimum

depth

of burial sha H be twelve (12) 

# Inches, 

# ff practical

. If 

# an underground slructure or other geologic or economic condlllon prevents a gathering line

from

being buried In accordance with the standards set out above

, or If there Is an agreement between the surface owner and the operator whereby

the minimum standard Is waived, the line may be i nstalled at less t han the minimum depth or above ground

.

(2) A gathering line constructed of plastic pipe shaH be 

# ins t alled below ground leve l

, unless otherwise permitted by 

# subsection (3) of th i s section,

and

In accordance with the following :

(a)

The operator shall undertake efforts to minim i ze shear and tens i le stresses ; and

(b)

A t racer line

, location device, or suitable conductive wire sha il be 

# placed In 

# the trench to facfHtate the detection 

# ot the gathering

(3) A ga t hering fi ne constructed of plastic 

# pipe may be 

# temporar il y Installed above ground I f :

(a)

The operator demonstrates that the cumulative period of above · ground exposure of the pipe does not exceed the manufac tur er's

recommended

maximum period 

# ot exposure or two (2) years, whichever Is less;

(b)

The pipe either Is located so as to minim i ze the possibi li ty of damage by external forces or Is otherwise protected against damage ;

(c)

The pipe adequately resists exposure to ultraviolet light and high and low temperature: and

(d)

The pipe Is being used during a production tesl period not to exceed ninety {90) days

.

(4) Une burial at road crossing. Notwithstand i ng any other provision of lh ! s administrative regulation, a gathering l i ne crossing a road sha n be

burled

I n accordance with the requirements of the agency having jurisd i ction over the road

.

(5) L i ne markers

. The operator sha ll Instal l and ma i ntain line markers over an active buried gathering line In 

# accordance w i th the following

standards :

(a)

At Intervals of no greater than 500 feet, corresponding to the 500 foot GPS data requirements described I n subsection (8) of this section,

except

that this requ i rement shall not apply to lines crossing agricultural lands;

(b)

Unes Installed after June 25, 2009, on slopes grealer than twenty (20) degrees, markers shall be p l aced at intervalS not to e x ceed 250 feet ;

(c)

At points where the li ne changes direction. so that the line location Is accurately known;

(d)

At both sides of each public or private road crossing and at each railroad crossing ; and

(e)

Each marker shall contain the word "Warning", "Caution", or "Danger", followed by lhe words "Petroleum Pipeline · or " Gas Pipe : ln e",

whichever

is appropriate

, In letters at least one (1) 

# Inch high with one-quarter (1 / 4) 

# Inch stroke and the name of the operator with a twenty·four (24 )



# hour

emergency response lelephone number

.

(6) Testing of a galherlng li ne . Before placing a gathering line In operation

, It shall be tested to ensure that it 

# Is capable of maintain i ng 110



# percent

of the ma x imum anticipated operating pressure . In conduc ti ng the t est

, the operator shaH ensure th a t reasonable precautions are taken to

protect

his employees and the general pubtic. The testing may be 

# conducted u si ng natural gas , 

# compressed air

, I nert gas or water

. Product i on flow

lines

operating at less than fiiteen (15) 

# pslg are exempt from pressure testing requirements

.

(7) Patroi W ng , maintenan c e and 

# repair

. All gathering lines shall be 

# maintained In good operating con di tion at all ti mes a nd the operator shal l take

reasonable

precautions to prevent failures, leakage and corrosion by performing the following procedures :

(a)

Perform on · site Inspections 

# ot a permitted gathering line at least once each calendar year, at i nterva l s not to e x ceed elghleen {18) 

# months

. If



# an

operator discovers any condition that could adversely affect the safe and proper operation of a gathering Hne, the operator sha ll correct it within

a

reasonable time and I n accordance with KRS 353 .1 60

. 

# However, II the condlllon presents an I mmediate h azar d t o persons or property

, the

operator

shall nol operate the affected part of the system until the unsafe cond ilf on has been co rr ected ;

(b)

In repairing the gathering A ne , the operator shall take appropriate action to conduct the repair In a sale manner so as to prevent Injury to

persons

and damage lo property; and

(c)

Maintain records of gathering li ne In spections and leak rep ai r f or divis io n Inspection, if requested, lor a t least three (3) yoars .

(8) As·built requirement. The as·bullt location of the gathering K ne shall be depleted with GPS data po i nts spaced every 500 feet, II practical

. a t

points

where the gathering line changes d 1r ect1on and at the beginnin g and termination points of lhe gathering line

. All in formation regarding the as-

bu

i lt location shall be subm i tted to the div i sion within twelve months of completi o n of the galherlng line

.

(9) Compressor station requ i remenls

. Am 

# w e llhead and fi eld compressors shall be Installed and maintained according to the following

requirements

:

(a)

The operator shall maintai n a posit i ve suction pressure at all times ;

(b)

The operator shalllnsta U safety devices to en s ure the downstream pressure does not exceed the t es t pressure of the gathering line ; and

(c)

The operator shall record a GPS location of all compressor station sites and submit that locat i on data to the div i sion

.

Section 12

. 

# Reporting of Incidents

. (1 ) 

# As soon as reasonably pract i cable fol l owing discovery of an Inc i d e nt r ega rd i n g t he I n stal la t ion,

reclamation

o r operation 

# ot a gathering line, the operator shaa give notice by telephone to the d i vi si on Inspector responsible for the co un ty In w hich

the

line Is 

# lnstaUed or to the division Inspector supervisor for the area, of any the folowing :

(a)

Personal injury requ i ring hospitalization or a fataNty ;

(b)

Either ftre or explosion not Intentionally set by the operator for purposes ol routine maintenance or construction ;

(c)

The release of a sign l ftcant volume o t gas that would requ l re a protective action being t aken by the general publ i c ; or

(d)

The po l ution 

# ot any stream, river, lake o r reservoir, or other similar body of water

, In violation of appficable water

**qua ty**  

# standards

.

(2) This requ i rement for the reporting of Inc i dents shall not release the operator from making any notice required by any o t her state or federal

agency . (3) Notice made under th i s section sha n Include the following Information :

(a)

Name and address of the operator ;

(b)

Name and telephone number of lhe person making the report ;

(c)

location of the Incident;

(d)

Date and time of the incident;

(e)

A br i ef descrlpUon of the Incident;



# http : //www .lrc

. ky .gov/kar/805/00 11190.htm 3/12/2015805KAR1:190.Gatheringlines.Page4of5(f)Numberof,andinformationregarding,personalinjuriesorfatalltles,IIany:and(g)AnyothersignificantfactsknownbytheoperatorthatarerelevanttothecauseoftheIncidentorextentofthedamages.Section13.EmergencyResponsePlans.Theoperatorshallprepareamanualofwrittenproceduresforthemakingofanemergencyresponse,availabletothedivisionuponrequest,andshallkeepthatmanualInalocationaccessibletoemployeeswhoseresponsibilitiesIncludeImplementationofanemergencyresponse.TheoperatorshallprovidetrainingtothoseemployeesandreviewtheirperformancefollowinganemergencytodeterminewhetherapplicableprocedureswereeffectivelyfollowedInthatemergency.Themanualshallbereviewedatleastonceeachcalendaryearandappropriatechangesmadeasnecessarytoensurethatthemanualisaneffectiveemergencyresponsetool.ThemanualshallIncludeproceduresforthefollowingInordertofacilitatesafetyIIanemergencyconditionoccurs:(1)Receiving,Identifying,andclassifyingnoticesofeventswhichrequireimmediateresponsebytheoperatorornoticetofire,police,orotherappropriateemergencyresponseentitlesandcommunicatingthisInformationtoappropriateoperationalpersonnelforcorrectiveaction.(2)Providingpromptandeffectiveresponsetoeachtypeofemergency,Includinggas,fire,explosionornaturaldisasternearorInvolvingabuildingoradjacentfacility.(3)Dispatchingpersonnel,equipment,andInstruments,asneeded,tothesceneoftheemergency.(4)Takingnecessaryaction,suchasemergencyshutdownorpressurereduction,tominimizetheamountofreleasefromthegatheringlineIntheeventofafaMure.(5)MinimizingpublicexposuretoInjuryandprobabilityofaccidentalIgnitionbyassistingwithevacuationofresidentsandassistingwiththecontroloftrafficonroadsandrailroadsIntheaffectedarea,orbytakingotherappropriateactionnecessarytoprotectpublicsafety.(6)Notlfylngfire,pollee,andotherappropriateemergencyresponseentitlesofagatheringlineIncidentoremergencyandcoordinatingwiththemIndevisingresponsestobemadeduringanemergency.Methodstoaccomplishthisshallincludethefollowing:(a)IncludingIntheemergencyresponsemanualallstlngofappropriatefire,pollee,andotherhealthandsafetyentitles,alongwiththeirofficials'namesandemergencytelephonenumbers;(b)Establishingandmaintainingliaisonwithfire,pollee,andotherappropriateemergencyresponseentitlestodeterminetheresponsibilityandresourcesofeachgovernmentorganizationthatmayrespondtoagatheringlineemergency:(c)Apprisingfire,poficeandotherappropriateemergencyresponseentltiesoftheoperator'sabilitytorespondtoagatheringlineemergency:(d)Identifyingthetypesofgatheringlineemergenciesaboutwhichtheoperatornotifiesfire,polleeandotherappropriateemergencyresponseentities:and(e)DeterminingthemannerInwhichtheoperatorandfire,policeandotherappropriateemergencyresponseentitlescanengageInmutualassistancetominimizehazardstolifeorproperty.(f)Providingacopyoftheemergencyresponsemanualtofire,policeandotherappropriateemergencyresponseentitles.(7)AnoperatormayIncorporatetheapplicablespillprevention,control,andcountermeasures(SPCC)planIntotheemergencyresponsemanual.Sectlon14.AbandonmentEachgatheringlineabandonedInplace,unlessotherwiseagreedtoberemovedunderarlght·of·wayorleaseagreement,shallbedisconnectedfromalsourcesandsuppliesofnaturalgasandpetroleum,purgedofliquidhydrocarbons,depletedtoatmosphericpressure,andcutoffthree(3)feetbelowgroundsurface,oratthedepthofthegatheringline,whicheverisless,andsealedattheends.Priortoabandonment,theoperatorshallcontactthedivisionInspectorandrequestasitescanningfornaturallyoccurringradioactivematerialstobeconductedbythedivisioninspector.Section15.Inspections.Thecommissionerofthedepartmentmay,bywrittenorderorbyothermeansappropriateunderthecircumstances,designateandauthorizerepresentativestoperformdullespursuanttotheadminlslratlveregulationscontainedin805KARChapter1.Unlessthecommissionerhasmadeawrittenordercontrarytothetermsofthissection,personnelauthorizedbythedirectorshallbetheauthorizedrepresentativesofthedepartmentforthepurposesofthisadministrativeregulatlonasfollows:(1)General.Inaccordancewiththeprovisionsofthisadministrativeregulation,thedivisionshallconductInspections,studies,InvestigationsormakeotherdeterminationsasItdeemsreasonableandnecessarytoobtainInformationandevidencewhichshallensurethattheInstallation,reclamationandoperationofgatheringlinesareconductedInaccordancewiththeprovisionsofallapplicablestatutesandadministrationregulations,andalltermsandconditionsofthegatheringlinepermit.(2)Rightofentryandaccess.Authorizedemployeesofthedivisionshallhaveunrestrictedrightofentrytoallportionsofthegatheringlineforanypurposeassociatedwiththeirdullespursuanttothisadministrativeregulation,IncludingbutnotlimitedtomakingInspectionsanddeliveringdocumentsorInformationofanykindtopersonsresponsiblefororotherwiseassociatedwiththegatheringline.(3)TimingandfrequencyofInspections.(a)ThedivisionshalldeterminethefrequencyofItsInspectionsofgatheringlines.(b)InspectionsshallordinarilybeconductedatIrregularandunscheduledtimesduringnormalworkdays,butmaybeconductedatnight,onweekendsoronholidaysIfthedivisiondeemstheseInspectionsnecessarytoproperlymonitorcompliancewithallapplicablestatutesandadministrativeregulationsandthetermsandconditionsofthegatheringlinepermit.(c)ThedivisionshallhavenoobligationtogivepriornoticethatanInspectionshallbeconductedortoobtainawarranttodoso.(4)Citizen'srequestlorInspectionofagatheringline.(a)AnycitizenmayrequestthatthedivisionconductanInspectionofagatheringlinebyfurnishingtothedivisionasignedstatementoranoralreportfollowedbyasignedstatementInwhichcircumstancesaresetoutwhichgivethedivisionreasontobelievethataviolation,conditionorpracticeInviolationofthisadministrativeregulationorapermitconditionexists,andsettingforthatelephonenumberandaddressatwhichthepersonmakingtherequestcanbecontacted.(b)TheIdentityofanypersonsupplyingInformationtothedivisionrelatingtoapossibleviolation,conditionorpracticeinviolationofthisadministrativeregulationorpermitconditionshallremainconfidentialwiththedivisionifrequestedbythatperson,unlessdisclosureIsrequiredbylaw.(c)Withinareasonablelime,thedivisionshalladvisethepersonmakingtherequestforinspectionorprovidingInformationtothedivisionofthefollowing:1.Ifnoinspectionwasconducted,anexplanationofthereasonslorwhichnoInspectionwasconducted.2.IfanInspectionwasconducted,adescriptionoftheenforcementactiontaken,IIany,oranexplanatlonofwhynoenforcementactionwastaken.(5)NoticeofnoncompRance.AnyauthorizedrepresentativeofthedivisionmayIssuetotheoperatoranoticeofnoncomplianceandorderforremedialmeasuresII,onthebasisofaninspection,hefindsaviolationofthisadministrativeregulation,anypermitcondition,oranyotherapplicablerequirementThenoticeofnoncomplianceshallcontainthefollowing:(a)Thenatureoftheviolation:and(b)Theprovisionofaperiodofforty-five(45)daysfromthedaleofIssuanceofthenoticeforthetakingofcorrectiveactionormakingofanagreementwiththedivision,whichmayincludeaschedulefortheaccomplishmentofInterimcorrectiveprocedures,Ifappropriate.Thedirectororhisauthorizedrepresentativemayex1endthetimeestablishedforthetakingofcorrectiveactionorforaccomplishmentofaninterimremedialhttp://www.lrc.ky.gov/kar/805/00l/190.htm3/1212015805KARI:190.Gatheringlines.Page5of5requirementforgoodcauseshown.Section16.OrderofCessationandImmediateCompliance.(1)ISsuance.(a)HtheoperatortowhomanoticeofnoncomplianceIsissuedfailstocomplywiththetermsofthenoticewithinthetimefortheofcorrectiveactionestablishedinthenoticeofnoncomplianceoragreementmaderegardingcorrectivemeasuresassubsequentlYextended,thedrectormayIssuetotheoperatoranorderforcessationandImmediatecompliance.(b)ThedirectormaylssueanorderforcessationandImmediatecompNanceIfhefinds,onthebasisofanInspectionperformedbyanyauthorizedrepresentative,anyconditionorpractice,anyviolationofthisadmlolstraliveregulationoranyv[olalionofatermorcondUionoftheapplicablepermitwhich:1.Iscreatingorcanreasonablybeexpec1edtocreate an Imminentdangertothehealthorsafetyofthepublic;or2.Iscausingorcanreasonablybeexpectedtocausesignificant,Imminentenvironmenlalharmtoland,air,orwaterresources,(c)ThedirectormayIssueanorderforthecessationofinstallationandimmediatecomplianceIfhefinds,oothebasisofanInspectionperformedbyanyauthorizedrepresentative,thatgatheringlineInstallationisbeingconductedwithoutavalidgatheringlinepermitinaccordancewiththisadministrativeregulation.(2)EHect.(a)TheorderforcessationandImmediatecomplianceshallrequirethecessationortheoperationofthegatheringlineorportionthereofthatIsthesubjectofthenoticeofnoncompliance.TheordershallalsorequiretheoperatortowhomIIisIssuedtoundertakeanyprocedurereasonablydeemednecessarytoabatetheviolation,condition,orpracUceInthemostexpeditiousmannerpossible,IncludingbutnotWmltedtotheuseorexistingoradditionalpersonnelandequipment.(b)TheordershallremainIneffectuntiltheviolation,condition,orpracticehasbeenabatedanduntiltheorderIsvacated,modified,orterminatedinwritingbythedirector.(c)Theoperatorshallcontinuetoperformreclamationoperationsandotheractivitiesintendedtoprotectpubfichealth,safetyandtheenvironmentduringtheperiodofanycessationorderunlesstheorderrequiresthatthereclamationoperationsandotheractivitiescease.(3)Modification,extension,andtermination.(a)Thedirectormay,bywrillennotice,modifyorterminateanorderforcessationandImmediatecompUanceissuedunderthissectionforgoodcauseandmayextendthetimeforabatementifthefailuretoabatewithintheperiodInitiallyestablishedwasnotcausedbylackofdiligenceonthepartoftheoperatortowhomItwasIssued.(b)ThedirectormayterminateanorderforcessationandImmediatecompliance,bywrittennoticetotheoperatortowhomtheorderwasIssued,Ifthedirectordeterminesthatallviolations,conditions,andpracticesnotedInthenoticeofnoncompliancehavebeenabated.TerminationoftheorderofcessationandImmediatecomplianceshallnotaffecttherightofthedivlslontoImposeanyotherapplicablesanctionauthorizedbylaw.Section17.Pena!Ues.AnoperatorinnoncompliancewiththerequirementsofthisadministrativeregulationIssubjecttothepenaltiesestablishedInKRS353.991.Section18.1ncorporationbyReference.(1)ThefollowingmaterialIsIncorporatedbyreference:(a)"Application-GatheringLineOperator'sLicense",FormED-2,Decemberand(b)"Notilication/AppllcatlonforGatheringLinePermit:Installation,ReclamationandOperalionPlan•,FormED-11,December2003.(2)Thismaterialmaybeinspected,copied,orobtained,subjecttoappNcabtecopyrightlaw,attheDivisionofOilandGas,1025CapitalCenterDrive,Suite201,Frankfort,Kentucky40602-2244,MondaythroughFriday,8a.m.to4:30p.m.(30Ky.R1385;Am.1965;2030;ef:l.3·18-2004;36Ky.R.193;789;1024;eff.11-17-2009.)http://www.lrc.ky.gov/kar/805/00lll90.htm3/12/2015805KAR1:200.Administrativefeesandgeneralinfonnationassociatedwithoilandgasper...Page1of1805KAR1:200.AdministrativefeesandgeneralInformationassociatedwithallandgaspermits.RELATESTO:KRS353.550,353.735-353.747STATUTORYAUTHORITY:KRS353.540,353.745NECESSITY,FUNCTION,ANDCONFORMITY:KRS353.540authorizesthedepartmenttopromulgateadministrativeregulationstoadministerKRS353.500to353.720.KRS353.745authorizestheDivisionof011andGasConservationtochargealee,nottoexceedfifty(SO)dollars,toprovidefundstomeettherequirementsofKRS353.735to353.747.ThisadministrativeregulationprovidesgeneralInformationconcerningthetimeframesassociatedwiththesubmittalofdirecUonalandinclinationsurveysandestablishesthefeeanddetailstowhomthefeeappliesandtheappropriatelimeforsubmittal.Section1.DirectionalandInclinationSurveys.TheoperatorofawelldrilledInanact!veminingareaorthroughaworkablecoalbedthatIsnotInanactiveminingareashallsubmittheresultsofthedirectionalorInclinationsurveyrequiredbyKRS353.739(1)withinthirty(30)daysfromthedrillingofthewell.Section2.FeeSubmittal.(1)Eachapplicationforanoilorgaspermitshallbeaccompaniedbyafeeoffifty(50)dollarsloreachapplicationforanoilorgaspermitInadditiontoanyotherfeerequiredfortheseapplications.(2)AllfeesrequiredshallaccompanytheapplicationlorwellsproposedtobedrilledpursuanttotheprovisionsofKRS353.735to353.747Intheformofapersonalcheck,cashier'scheck,ormoneyorderpayabletotheKentuckyStateTreasurer.Apermitapplicationshallnotbeprocessedunlesstheapplicationfeehasbeenpaid.(3)AllfeesshallbeforthesoleuseoftheDivisionofOJIandGasConservationIntheadministrationofItsprogramsandshallbeInadditiontomoneyappropriatedbytheGeneralAssemblyfortheuseofthecabinet.(36Ky.R.193;Am.789;1024;elf.10·23·2009.)http://www.lrc.ky.govlkar/805/001/200.htm3/12/2015