aspects of oil and gas exploration, production, development, gathering, and 

transmission rests with state government. The department shall promulgate 

regulations relating thereto and take all actions necessary to assure efficient oil 

and gas operations and to protect the property, health, and safety of the 

citizens of the Commonwealth in a manner consistent with KRS Chapter 353, 

and to the exclusion of all other nonstate governmental entities except as 

provided in KRS Chapter 1 00. The department shall promulgate regulations 

relating to gathering lines within six (6) months after June 24, 2003. Nothing in 

this section shall be construed as limiting the rights of local governmental units 

to regulate the use of streets, highways, and rights-of-way. The department 

shall report quarterly to the Legislative Research Commission beginning July 1, 

2003, through December 31, 2004. The report shall detail progress made in 

carrying out this section, and the efficacy of the regulatory programs 

implemented. 

Effective: June 24, 2003 History: Amended 2003 Ky. Acts ch. 150, sec. 7, effective June 24, 2003. -

Created 1960 Ky. Acts ch. 103, sec. 1, effective June 16, 1960. 

Legislative Research Commission Note. The Interstate compact to conserve oil 

and gas was ratified, approved, and confirmed by the Commonwealth of 

Kentucky and the Governor directed to sign the compact by joint resolution of 

the 1942 General Assembly (Acts 1942, ch. 267). Section 1 of the compact was 

repealed, amended, and reenacted by joint resolution of the 1948 General 

Assembly, authorizing the execution of the interstate compact to conserve oil 

and gas and any renewal thereof within the Governor's discretion (Acts 1948, 

ch. 288). 
353.510 Definitions for KRS 353.500 to 353.720. 

As used in KRS 353.500 to 353.720, unless the context otherwise requires: 

(1) "Department" means the Department for Natural Resources; (2) "Commissioner'' means the commissioner of the Department for Natural 

Resources; 

(3) "Director" means the director of the Division of Oil and Gas as provided In KRS 

353.530; 

(4) "Commission" means the Kentucky Oil and Gas Conservation Commission as 

provided in KRS 353.565; 

(5) "Person" means any natural person, corporation, association, partnership, 

receiver, governmental agency subject to KRS 353.500 to 353.720, trustee, 

so-called common-law or statutory trust, guardian, executor, administrator, or 

fiduciary of any kind, federal agency. state agency, city, commission, political 

subdivision of the Commonwealth, or any interstate body; 

(6) "Correlative rights" means the reasonable opportunity of each person entitled 

thereto to recover and receive without waste the oil and gas in and under hls 

tract or tracts, or the equivalent thereof; 

(7) "Oil" means natural crude oil or petroleum and other hydrocarbons, regardless 

of gravity, which are produced at the well in liquid form by ordinary production 

methods and which are not the result of condensation of gas after it leaves the 

underground reservoir; 

(8) ''Gas" means all natural gas, including casinghead gas, and all other 

hydrocarbons not defined in subsection (7) of this section as oil; 

(9) "Pool" means an underground reservoir containing a common accumulation of 

oil or gas or both. Each productive zone of a general structure which is 

completely separated from any other zone in the structure, or which for the 

purpose of KRS 353.500 to 353.720 may be so declared by the department, is 

covered by the word "pool" as used herein; 

(10) "Field" means the general area which is underlaid or appears to be underlaid 

by at least one (1) pool; and ''field" includes the underground reservoir 

containing oil or gas or both. The words "field" and "pool" mean the same thing 

when only one (1) underground reservoir is involved; however, •field," unlike 

"pool," may relate to two (2) or more pools; 

(11) "Just and equitable share of production" means, as to each person, an amount 

of oil or gas or both substantially equal to the amount of recoverable oil and 

gas in that part of a pool underlying his tract or tracts; 

(

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completed at a depth less than four thousand (4,000) feet or above the base of 

the lowest member of the Devonian Brown Shale, whichever is the deeper in 

depth; 

(16) "Deep well" means any well drilled and completed below the depth herein 

provided for a shallow well; 

(17) "Operator'' means any owner of the right to develop, operate, and produce oil 

and gas from a pool and to appropriate the oil and gas produced therefrom, 

either for himself or for himself and others; in the event that there is no oil and 

gas lease in existence with respect to the tract in question, the owner of the oil 

and gas rights therein shall be considered as "operator" to the extent of 

seven-eighths (7/8) of the oil and gas in that portion of the pool underlying the 

tract owned by such owner, and as "royalty owner'' as to one-eighth (1/8) 

interest in such oil and gas; and in the event the oil is owned separately from 

the gas, the owner of the right to develop, operate, and produce the substance 

being produced or sought to be produced from the pool shall be considered as 

"operator'' as to such pool; 

(18) "Royalty owner'' means any owner of oil and gas in place, or oil and gas rights, 

to the extent that such owner is not an operator as defined in subsection (17) of 

this section; 

(19) "Drilling unit" generally means the maximum area in a pool which may be 

drained efficiently by one (1) well so as to produce the reasonable maximum 

recoverable oil or gas in such area. Where the regulatory authority has 

provided rules for the establishment of a drilling unit and an operator, 

proceeding within the framework of the rules so prescribed, has taken the 

action necessary to have a specified area established for production from a 

well, such area shall be a drilling unit; 

(20) "Underground source of drinking water" means those subsurface waters 

identified as such in regulations promulgated by the department which shall be 

consistent with the definition of underground source of drinking water in 

regulations promulgated by the Environmental Protection Agency pursuant to 

the Safe Drinking Water Act, 42 U.S.C. sees. 300(f) et seq.; 

(21) "Underground injection" means the subsurface emplacement of fluids by well 

injection but does not include the underground injection of natural gas for 

purposes of storage; 

(22) "Endangerment of u'nderground sources of drinking water'' means underground 

injection which may result in the presence in underground water, which 
supplies or can reasonably be expected to supply any public water system, of 

any contaminant and if the presence of such contaminant may result in such 

system's not complying with any national primary drinking water regulation or 

may otheJWise adversely affect the health of persons; 

(23) "Class II well" means wells which inject fluids: 

(a) Which are brought to the surface in connection with conventional oil or 

natural gas production and may be commingled with waste waters from 

gas plants which are an integral part of production operations, unless 

those waters are classified as a hazardous waste at the time of injection; 

(b) For enhanced recovery of oil or natural gas; and 

(c) For storage of hydrocarbons which are liquid at standard temperature and 

pressure; 

(24) "Fluid" means any material or substance which flows or moves whether in a 

semisolid, liquid, sludge, gas, or any other form or state. 

Effectlve:July 15,2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1903, effective July 15, 2010. -

Amended 2005 Ky. Acts ch. 123, sec. 64, effective June 20, 2005. - Amended 

2000 Ky. Acts ch. 139, sec. 1, effective July 14, 2000. - Amended 1986 Ky. 

Acts ch. 277, sec. 1, effective July 15, 1986. - Amended 1974 Ky. Acts ch. 45, 

sec. 1.- Amended 1966 Ky. Acts ch. 255, sec. 259. - Created 1960 Ky. Acts 

ch. 103, sec. 2. 
well, or wells drilled, deepened, or reopened in a manner that causes, or 

tends to cause, a reduction in the quantity of oil or gas ultimately 

recoverable from a pool under prudent and proper operations, or contrary 

to any provision of, or any order, rule or regulation promulgated or issued 

under KRS 353.500 to 353.720; 

(b) Permitting the migration of oil, gas or water from the stratum in which it is 

found into other strata, thereby ultimately resulting in the loss of 

recoverable oil or gas, or both; 

(c) The drowning with water of any stratum or part thereof capable of 

producing oil or gas in paying quantities, except for secondary recovery 

purposes, or in hydraulic fracturing or other completion practices; 

(d) The unreasonable damage to underground, fresh or mineral water 

supply, workable coal seams, or other mineral deposits in the operations 

for the discovery, development, production or handling of oil and gas; 

(e) The unnecessary or excessive loss of oil and gas by spillage or venting or 

destruction of oil or gas or their constituents; and 

(f) The drilling of more wells than are reasonably required to recover 

efficiently the maximum amount of oil and gas from a pool. 

(3) The production of oil or gas from any well in any pool unless a permit has been 

issued as required by KRS 353.500 to 353.720, or in violation of the spacing 

provisions of KRS 353.500 to 353.720, is prohibited; except that this 

subsection shall not prohibit the continuation of production of oil or gas from a 

well producing oil or gas on June 16, 1960. 

Effective: June 24, 2003 

History: Amended 2003 Ky. Acts ch. 150, sec. 8, effective June 24, 2003. -

Amended 1974 Ky. Acts ch. 45, sec. 2.- Created 1960 Ky. Acts ch. 103, sec. 3, 

effective June 16, 1960. 
353.530 Director of Division of Oil and Gas - Qualifications - Duties - Oath. 

(1) The secretary of the Energy and Environment Cabinet shall appoint, as director 

of the Division of Oil and Gas in the Department for Natural Resources, a 

person who has, at the time of his appointment, at least five (5) years' 

experience in the exploration for or the production of oil or gas. 

(2) It shall be his duty to administer the provisions of KRS 353.500 to 353.720 

subject to the direction and supervision of the commissioner. 

(3) Before taking office. the director shall take oath, which shall be certified by the 

officer administering it. The oath, in writing, and the certificate shall be filed in 

the office of the Secretary of State. 

(4) No director shall, while holding office, acquire any financial interest, directly or 

indirectly, in any venture or activity for the exploration for or production of oil or 

gas in this Commonwealth. 

Effectlve:July 15,2010 Hfstory: Amended 2010 Ky. Acts ch. 24, sec. 1904, effective July 15, 2010. -

Amended 2005 Ky. Acts ch. 123. sec. 65, effective June 20, 2005. - Created 

1960 Ky. Acts ch. 103, sec. 4, effective June 16, 1960. 

353.550 Specific authority over oil and gas operators. 

Without limiting its general authority, the department shall have the specific authority 

to require of and from all operators of any oil or gas property in this Commonwealth: 

(1) Identification of producing leases, submitted on the form on which production is 

required by the department to be reported; 

(2) The making of driller's logs, and filing of all logs and downhole surveys made; 

(3) The drilling, casing, operation, and plugging of wells in such manner as to 

prevent: 

(a) The escape of oil or gas from one pool into another, or into mineral 

bearing stratum; 

(b) The detrimental intrusion of water into an oil or gas pool or into 

mineral-bearing stratum that is avoidable by efficient operations; and 

(c) Blowouts, cavings, seepages, and fires; 

(4) The filing of the reports and plats with the department for transmittal to the 

Kentucky Geological Survey as may be prescribed by rules and regulations 

promulgated hereunder. All such reports and plats shall be transmitted by the 

department to the Kentucky Geological Survey within thirty (30) days after 

receipt thereof by the department. 

Effectlve:July 15, 1996 

History: Amended 1996 Ky. Acts ch. 276, sec. 1, effective July 15, 1996. -

Created 1960 Ky. Acts ch. 103, sec. 7, effective June 16, 1960. 
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Amended 2003 Ky. Acts ch. 150, sec. 9, effective June 24, 2003. - Created 

1960 Ky. Acts ch. 103, sec. 8, effective June 16, 1960. 
353.565 Kentucky Oil and Gas Conservation Commission. 

(1) There is hereby created in the Department for Natural Resources, the 

"Kentucky Oil and Gas Conservation Commission" which shall be composed of 

five (5) members. Four (4) of the members shall be appointed by the Governor 

and the fifth member, who shall serve as chairman of the commission, shall be 

the director of the Division of Oil and Gas and who shall serve in an ex officio 

capacity as a nonvoting member except in the case of a tie. The four (4) 

members appointed by the Governor shall be residents of this state and not 

more than one (1) of them may be directly employed in the exploration for or 

the production of oil or gas, or deriving more than fifty percent (50%) of that 

person's income from the exploration for or production of oil or gas, or engaged 

in a business directly servicing or supplying these activities. No member of the 

commission shall participate in the deliberations of the commission or vote on 

any matter before the commission in which he, his employer, or any business 

unit in which he has a financial interest Is an interested party, but a member of 

the commission is not prohibited from deliberating or voting on matters of 

general interest, such as the fixing of statewide spacing patterns, affecting him, 

his employer, or a business unit in which he has financial interest as a member 

of a class of persons to be affected by an administrative regulation or order of 

the commission. The commission shall not contain more than one (1) 

representative from any one (1) operator, including subsidiaries or affiliates. Of 

the four (4) members appointed by the Governor, two (2) shall be residents of 

eastern Kentucky and two (2) shall be residents of western Kentucky. 

Longitude 84 deg. 30 min. shall be deemed as the division line between 

eastern Kentucky and western Kentucky. 

(2) The members of the commission, except the chairman, shall be appointed for 

terms offour (4) years each, except that: 

(a) The original appointments shall be for terms of one (1 ), two (2), three (3), 

and four (4) years respectively; and 

(b) Of the members appointed after July 15, 1998, one (1) member 

appointed to fill the term expiring June 21, 1999, shall serve until January 

21, 2000; one (1) member appointed to fill the term expiring June 21, 

2000, shall serve until January 21, 2001; one (1) member appointed to fill 

one (1) of the two (2) terms expiring June 21, 2001 , shall serve until 

January 21, 2002; and one (1) member appointed to fill the second of the 

two (2) terms expiring June 21, 2001, shall serve until January 21, 2003; 

and subsequent appointments shall be for four (4) year terms ending on 

January 21. Each member appointed by the Governor shall serve until his 

successor has been appointed and qualified

Members may be 
brought before it for decision. 

(4) Each member of the commission, except the chairman, shall receive one 

hundred fifty dollars ($150) per diem not to exceed one hundred (100) days per 

calendar year while actually engaged in the performance of his duties as a 

member of the commission. Each member of the commission, including the 

chairman, shall also be reimbursed for all reasonable and necessary expenses 

actually incurred in the performance of his duties as a member of the 

commission. 

(5) The commission shall execute and carry out, administer, and enforce the 

provisions of KRS 353.651 and 353.652. The commission may make any 

investigation of records and facilities as it deems proper. 

(6) If an emergency is found to exist by the commission which, in its judgment, 

requires the making, changing, renewal, or extension of an administrative 

regulation or order without first having a hearing, an emergency regulation may 

be promulgated in accordance with KRS Chapter 13A and an emergency order 

may be issued in accordance with KRS 138.125. 

(7) The commission shall have specific authority to: 

(a) Promulgate and enforce reasonable administrative regulations and issue 

orders reasonably necessary to prevent waste, protect correlative rights, 

govern the practice and procedure before the commission, and otherwise 

administer the provisions of KRS 353.651 and 353.652; and 

(b) Issue subpoenas for the attendance of witnesses and subpoenas duces 

tecum for the production of any books, records, maps, charts, diagrams, 

and other pertinent documents, and administer oaths and affirmations to 

witnesses, whenever, in the judgment of the commission, it is necessary 

to do so for the effective discharge of its duties under the provisions of 

KRS 353.651 and 353.652. 

(8) Any interested person may have the commission call a hearing for the purpose 

of taking action in respect to any matter within the jurisdiction of the 

commission by making a request therefor in writing. Upon the receipt of any 

request, the commission promptly shall call a hearing thereon, and, after the 

hearing and with all convenient speed, and in any event within thirty (30) days 

after the conclusion of the hearing, shall take appropriate action with regard to 

the subject matter thereof as it may deem appropriate. If the hearing is 

adjudicatory in nature, it shall be conducted in accordance with KRS Chapter 

138. 
(9) Agreements made in the interest of conservation of oil or gas, or both, or for 

the prevention of waste, between and among owners or operators, or both, 

owning separate holdings in the same field or pool, or in any area that appears 

from geologic or other data to be underlaid by a common accumulation of oil or 

gas, or both, and agreements between and among these owners or operators, 

or both, and royalty owners therein, for the purpose of bringing about the 

develop

ment and operation of the field, pool, or area, or any part thereof, as a 

unit, and for establishing and carrying out a plan for the cooperative 

development and operation thereof, when the agreements are approved by the 

commission, are hereby authorized and shall not be held or construed to 

violate any of the laws of this state relating to trusts, monopolies, or contracts 

and combinations in restraint of trade. 

(10) Nothing in this section shall be construed as giving to the commission the right 

or authority to supersede the authority of the department in the administration 

of KRS 353.060. 

Effectlve:July 15, 2010 History: Amended 2010 Ky. Acts ch. 24, sec. 1906, effective July 15, 2010. -

Amended 2000 Ky. Acts ch. 139, sec. 2, effective July 14, 2000. - Amended 

1998 Ky. Acts ch. 194, sec. 11, effective July 15, 1998. -Amended 1996 Ky. 

Acts ch. 318. sec. 340, effective July 15, 1996. - Amended 1984 Ky. Acts 

ch. 111, sec. 145, effective July 13, 1984.- Amended 1978 Ky. Acts ch. 154, 

sec. 39, effective June 17, 1978.- Created 1974 Ky. Acts ch. 45, sec. 3. 
hereunder, the department shall issue the permit. 

(3) The department may authorize the commencement of the drilling, deepening or 

reopening of any well prior to the issuance of a permit therefor; except if the 

location of the well is known to be underlaid by a coal-bearing stratum and 

consent of the owner, operator, and lessee of the coal-bearing stratum has not 

been granted. Consent shall be implied, when the coal-bearing stratum is 

owned by the oil and gas lessor or lessee, and the coal is not under lease to 

any third party. 

Effectlve:July 15, 1998 History: Amended 1998 Ky. Acts ch. 359, sec. 4, effective July 15, 1998. -

Amended 1966 Ky. Acts ch. 147, sec. 1. - Created 1960 Ky. Acts ch. 103, 

sec. 9. 
353.575 Duty of applicant to meet and confer with permittee if drilling will 

disturb permitted area. 

Prior to the issuance of a permit to drill an oil or gas well on land which is permitted 

or bonded under the provisions of KRS Chapter 350, the applicant shall certify that 

he has met and conferred with, or offered to meet and confer with, the permittee as 

to any activity that will disturb the permitted area. 

Effective: July 14, 1992 

History: Created 1992 Ky. Acts ch. 348, sec. 2, effective July 14, 1992. 
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issued prior to July 15, 2002, no extension shall be granted for any permit in 

cases where there has been a complete severance of the ownership of the oil 

and gas from the ownership of the surface to be disturbed, unless the 

requested extension is agreed to in writing by the surface owner. 

(2) The extension of the permit term pursuant to subsection (1) of this section shall 

not create a right to object to the well location under KRS 353.060 nor to 

mediation under KRS 353.5901. 

(3) All permits issued by the department under any previous statute shall continue 

in force as written, only if the drilling of the well has been commenced pursuant 

thereto on or before sixty (60) days after June 16, 1960. 

Effective: June 24, 2003 

History: Amended 2003 Ky. Acts ch. 150, sec. 10, effective June 24, 2003. -

Amended 2002 Ky. Acts ch. 325, sec. 1, effective July 15,2002.- Created 1960 

Ky. Acts ch. 103, sec. 10, effective June 16, 1960. 
353.590 Application for permit - Fees -- Plat -- Bond to insure plugging --

Schedule - Blanket bonds - Corporate guarantee •• Use of forfeited 

funds - Oil and gas well plugging fund •• Wells not included in .. water 

supply well ... 

(1) Any person seeking a permit required by KRS 353.570 shall submit to the 

department a written application in a form prescribed by the department. 

(2) Each application shall be accompanied by a specified fee as follows: 

(a) The fee shall be three hundred dollars ($300) for each well to be drilled; 

deepened, or reopened for any purpose relating to the production, 

repressuring, or storage of oil or gas, and for each water supply well, 

observation well, and geological or structure test hole. 

(b) If the department receives delegation of authority for administration of the 

underground injection control program under Section 1425 of the Safe 

Drinking Water Act (Pub. L. 93-523 as amended), the department may, by 

administrative regulation, establish a fee or schedule of fees in an amount 

not to exceed fifty dollars ($50) per well, in addition to the fees imposed 

by paragraph (a) of this subsection, upon each application to drill, 

deepen, or reopen a well for any purpose relating to the production, 

repressuring, or storage of oil or gas, and for each water supply well, 

observation well, and geological or structure test hole. The fees or 

schedule of fees to be established by administrative regulation shall not 

exceed an amount sufficient to recover the costs incurred by the 

department in administering the Underground Injection Control Program 

less any other state or federal funds which are made available for this purpose. 

(c) All money paid to the State Treasurer for fees required by paragraph (b) 

of this subsection shall be for the sole use of the department in the 

administration of the Underground Injection Control Program under 

Section 1425 of the Safe Drinking Water Act (Pub. L. 93-523 as 

amended). 

(3) All money paid to the State Treasurer for licenses and fees required by KRS 

353.500 to 353.720 shall be for the sole use of the department and shall be in 

addition to any moneys appropriated by the General Assembly for the use of 

the department. 

(4) Each application shall be accompanied by a plat, which shows the location and 

elevation of each well, prepared according to the administrative regulations 

promulgated under KRS 353.500 to 353.720. The plat shall be certified as 

accurate and correct by a professional land surveyor licensed in accordance 
2,501 feet to 3,000 feet 

3,000.00 

3,001 feet to 3,500 feet 

3,500.00 

3,501 feet to 4,000 feet 

4,000.00 

4,001 feet and deeper 

5,000.00 

(6) The commission may establish a bond in a sum greater than five thousand 

dollars ($5,000) for any well to be drilled to a depth of more than four thousand 

(4,000) feet if the members of the commission determine that the particular 

circumstances of the drilling of the well warrant an increase in the bond amount 

established in subsection (5) of this section. 

(7) All bonds required to be posted under this section shall: 

(a) Be made in favor of the Department for Natural Resources; 

(b) Be conditioned that the wells, upon abandonment, shall be plugged in 

accordance with the administrative regulations of the department and that 

all records required by the department be filed as specified; and 

(c) Remain in effect until the plugging of the well is approved by the 

department, or the bond is released by the department. 

(8) An operator may petition the department to amend the drilling depth and bond 

amount applicable to a particular well and shall not proceed to drill to a depth 

greater than that authorized by the department until the operator is so 

authorized, except pursuant to administrative regulations promulgated by the 

department. 

(9) (a) Any qualified well operator, in lieu of the individual bond, may file with the 

department a blanket bond according to the following tiered structure: 

1. One (1) to twenty-five (25) wells require a ten thousand dollar 

($10,000) bond; 

2. Twenty-six (26) to one hundred (100) wells require a twenty-five 

thousand dollar ($25,000) bond; 

3. One hundred one (1 01) to five hundred (500) wells require a fifty 

thousand dollar ($50,000) bond; and 

4. Five hundred one (501) or more wells require a one hundred 

thousand dollar ($100,000) bond. 
(b) Any nonqualified well operator, in lieu of an individual bond. may file with 

the department a blanket bond according to the following tiered structure: 

1. One (1) to one hundred (1 00) wells require a fifty thousand dollar 

($50,000) bond; and 

2. One hundred one (1 01) or more wells require a one hundred 

thousand dollar ($100,000) bond. 

(1 0) To qualify for a blanket bond under the tiered structure set forth in subsection 

(9)(a) of this section, an operator shall: 

(a) Have a blanket bond in place filed with the department prior to July 15, 

2006, and have no outstanding, unabated violations of KRS Chapter 353 

or regulations adopted pursuant thereto which have not been appealed; 

(b) Demonstrate for a period of thirty-six (36) months prior to the request for 

blanket bonding a record of compliance with the statutes and 

administrative regulations of the division; or 

(c) Provide proof of financial ability to plug and abandon wells covered by the 

blanket bond. 

(11) In addition to the requirements set forth in subsection (12) of this section, proof 

of financial ability set forth in subsection (1 O)(c) of this section shall be 

established by an audited financial statement that satisfies at least two (2) of 

the following ratios: 

(a) A ratio of total liabilities to net worth less than two (2); or 

(b) A ratio of the sum of net income plus depreciation, depletion, and 

amortization to total liability greater than one-tenth (0.1 ); or 

(c) A ratio of current assets to current liabilities greater than one and 

five-tenths ( 1.5). 

(12) If the operator is a corporate subsidiary, the operator further shall provide a 

corporate guarantee in which the guarantor shall be the parent corporation of 

the operator of the wells covered under the bond. The corporate guarantee 

shall provide: 

(a) That if the operator fails to perform with the proper plugging and 

abandonment of any well covered by the blanket bond, the guarantor 

shall do so or provide for alternate financial assurance; and 

(b) The corporate guarantee shall remain in force unless the guarantor sends 

notice of the cancellation by certified mail to the operator and to the 

department. Cancellation shall not occur, however, during the one 

hundred twenty (120) day period beginning on the first day that both the 

operator and the department have received notice of cancellation

as 
bond which shall consist of a cash bond in the amount of one thousand dollars 

($1,000) plus a lien on the property to cover future plugging costs. Only one (1) 

combination bond may be posted by each individual. 

(16) A certificate of deposit, the principal of which is pledged in lieu of a bond and 

whose interest is payable to the party making the pledge, may serve for an 

individual well bond. A certificate of deposit, the principal of which is pledged in 

lieu of a bond and whose interest is payable to the party making the pledge, 

may serve for a blanket bond, provided that the first five thousand dollars 

($5,000) of the blanket bond is posted with the department in cash. 

(17) The bond or bonds referred to in this section shall be executed by the well 

operator as principal and, if a surety bond, by a corporate surety authorized to 

do business in the Commonwealth. 

(18) A deposit in cash shall serve in lieu of either of the above bonds; all cash 

bonds accepted by the department shall be deposited into an interest-bearing 

account, with the interest thereon payable to the special agency account 

known as the oil and gas well plugging fund, created in subsection (24) of this 

section, to be used in accordance with the purposes described therein. All cash 

bonds being held by the department on July 13, 1990, shall likewise be 

deposited in the interest-bearing account, with the proceeds to be used for the 

purposes established for the oil and gas well plugging fund. 

(19) The bond amounts prescribed by subsection (5) of this section shall be 

applicable only to permits issued upon and after July 15, 2006. All bonds 

posted for permits issued prior to July 15, 2006, shall remain in full force and 

effect for the duration of the permits. 

{20) The blanket bond amounts prescribed by subsection (9) of this section shall be 

effective upon and after July 15, 2006. Any operator having filed a blanket 

bond with the department prior to July 15, 2006, may at its discretion increase 

the level of the blanket bond incrementally by increasing the blanket bond by 

the amount of the individual bond prescribed by subsection (9) of this section 

on any wells drilled subsequent to July 15, 2006, until the blanket bond has 

reached the level prescribed by subsection (9) of this section. 

(21) A successor to the well operator shall post bond, pay a twenty-five dollar ($25) 

fee per well to the department, and notify the department in writing in advance 

of commencing use or operation of a well or wells. The successor shall assume 

the obligations of this chapter as to a particular well or wells and relieve the 

original permittee of responsibility under this chapter with respect to the well or 

wells. It shall be the responsibility of the selling operator to require the 
successor operator to post bond before use or operation is commenced by the 

successor and relief of responsibility under this chapter is granted to the 

original permittee. 

(22) If the requirements of this section with respect to proper plugging upon 

abandonment and submission of all required records on all well or wells have 

not been complied with within the time limits set by the department, by 

administrative regulation, or by this chapter, the department shall cause a 

notice of noncompliance to be served upon the operator by certified mail, 

addressed to the permanent address shown on the application for a permit. 

(a) The notice shall specify in what respects the operator has failed to 

comply with this chapter or the administrative regulations of the 

department. 

(b) If the operator has not reached an agreement with the department or has 

not complied with the requirements set forth by it within forty-five (45) 

days after mailing of the notice, the bond shall be forfeited to the 

department. 

(23) A bond forfeited pursuant to the provisions of this chapter may be collected by 

an attorney for the department or by the Attorney General, after notice from the 

director of the Division of Oil and Gas. 

(24) All sums received under this section or through the forfeiture of bonds shall be 

placed in the State Treasury and credited to a special agency account to be 

designated as the oil and gas well plugging fund, which shall be an 

interest-bearing account with the interest thereon payable to the fund. This 

fund shall be available to the department and shall be expended for the 

plugging of any abandoned wells coming within the authority of the department 

pursuant to this chapter. The plugging of any pursuant to this subsection 

shall not be construed to relieve the operator or any other person from civil or 

criminal liability which would exist except for the plugging. Any unencumbered 

and any unexpended balance of this fund remaining at the end of any fiscal 

year shall not lapse but shall be carried forward for the purpose of the fund until 

expended or until appropriated by subsequent legislative action. 

(25) Upon request by any person applying ror a permit for a geological or structure 

test hole, the department shall keep the location and elevation of the hole 

confidential until the information is allowed to be released by the person 

obtaining the permit. 

(26) For the purpose of this chapter, "water supply well" shall not include: 

(a) Any well for a potable water supply for domestic use or for livestock; or 

(b) Any water well used primarily for cooling purposes in an industrial 
Acts ch. 139, sec. 3, effective July 14, 2000.- Amended 1998 Ky. Acts ch. 214, 

sec. 43, effective January 1, 1999.- Amended 1994 Ky. Acts ch.127, sec. 1, 

effective July 15, 1994.- Amended 1990 Ky. Acts ch. 12, sec. 1, effective July 

13, 1990.- Amended 1982 Ky. Acts ch. 232, sec. 1, effective July 15, 1982.-

Amended 1966 Ky. Acts ch. 147, sec. 2. - Created 1960 Ky. Acts ch. 103, 

sec. 11. 
353.5901 Operations and reclamation proposal for land with complete 

severance -- Contents, distribution, and agreement or mediation •• 

Mediation report. 

(1) In all cases where there has been a complete severance of the ownership of 

the oil and gas from the ownership of the surface to be disturbed, a well 

operator shall submit to the department an operations and reclamation 

proposal at the time of filing an application for permit to drill, deepen, or reopen 

a well. The proposal shall be filed on forms provided by the department and 

shall include: 

(a) A proposal to prevent erosion of and sedimentation from the well site and 

all disturbed areas, including roads; 

(b) A narrative description of the location of all areas to be disturbed, 

including the location of roads. gathering lines. the well site, tanks and 

other storage facilities, and any other information that may be required by 

the department. Accompanying this narrative description shall be a plat 

depicting the location on the land of all of these disturbances or facilities; 

(c) A signed agreement by the surface owners of all disturbed areas to the 

operations and reclamation proposal; and 

(d) Any additional information that the department may require. 

(2) In all cases where there has been a complete severance of the ownership of 

the oil and gas from the ownership of the surface and the surface owners of all 

disturbed areas have not signed agreements with the well operator agreeing to 

the operations and reclamation proposal, at the time of filing the application the 

well operator shall cause to be delivered to the surface owners of all disturbed 

areas who have not agreed to the operations and reclamation proposal, by certified mail, return receipt requested: 

(a) A copy of the operations and reclamation proposal required by paragraph 

(a) of subsection (1) of this section, and the narrative description of land 

disturbances and plat required by paragraph (b) of subsection (1) of this 

section; and 

(b) A notice to read as follows: "If you do not agree with the proposed use of 

your land by the well operator, the well operator may request mediation of your dispute by the General Counsel's Office of the Department for 

Natural Resources. If mediation is requested, and you decide to 

participate, each party to the mediation wi11 be charged one hundred 

dollars ($100) to help cover the cost of mediation. You will be notified of 

the time and place for mediation, if the well operator chooses mediation, 

and of your right to participate

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conduct mediation at the site proposed to be disturbed within fifteen (15) days 

from the date requested, if practicable. At the mediation, the mediator will 

attempt to facilitate an agreement between the well operator and the surface 

owner. If an agreement is not forthcoming after mediation, the mediator shall, 

within five (5) days after mediation, issue a report to the director of the Division 

of Oil and Gas recommending that the director: 

(a) Accept the proposal as submitted by the well operator; or 

(b) Accept the proposal with modifications set forth by the mediator. 

(5) If an agreement between the well operator and the surface owners of all 

disturbed areas is not forthcoming after mediation, the mediator shall consider 

the following factors as to the reasonable use of the surface by the well 

operator in issuing a report to the director, which recommendations shall 

become permit conditions: 

(a) The location of roads, gathering lines, and tank batteries; 

(b) The timing of the operation, considering seasonal uses of the land by the 

surface owner and the need of the well operator to drill expeditiously; 

(c) The impact on the other uses of the land by the surface owner, including 

the location of timber, houses, barns, ponds, crops, and other 

improvements; 

(d) Whether the proposal includes a plan for timely, effective reclamation of 

all disturbed areas; and 

(e) Any other information deemed appropriate by the mediator. 

(6) The director shall act upon the recommendation of the mediator within five (5) 

days of the receipt of the mediation report. 

Effectlve:July 15, 2010 

History: Amended 2010 Ky. Acts ch. 24, sec. 1908, effective July 15, 2010. -

Created 1994 Ky. Acts ch. 127, sec. 2, effective July 15, 1994. 
353.591 Purpose and application of KRS 353.592 and 353.593. 

The purpose of KRS 353.592 and 353.593 shall be, upon delegation of authority for 

administration of the Underground Injection Control Program under Section 1425 of 

the Safe Drinking Water Act (Public Law 93-523 as amended), to protect 

underground sources of drinking water and to prevent their endangerment from 

class II wells. KRS 353.592 and 353.593 shall apply to all persons as defined in KRS 

353.51 0; to all lands including federally-owned lands; and to all class II wells without 

regard to the time the well was drilled; provided that the department may make reasonable distinctions between existing and new class II wells in the 

implementation of KRS 353.592 and 353.593. No provision of KRS 353.592 or 

353.593 shall apply to crude oil or natural gas production wells that are not class II 

wells. 

Effectlve:July 15, 1986 

History: Created 1986 Ky. Acts ch. 277, sec. 2, effective July 15, 1986. 
underground sources of drinking water and to prevent their endangerment; 

(2) Regulations prohibiting underground injection through class II wells except as 

authorized by such regulations or by a permit issued pursuant thereto; 

(3) Regulations requiring owners or operators of class II wells to demonstrate 

financial responsibility for the costs of closure of all class II wells. Such 

demonstration of financial responsibility may include but need not be limited to 

the well plugging bond required by KRS 353.590(5) and (9); 

(4) Regulations providing for reasonable public notice of applications for permits 

for class II wells and providing for public participation in the issuance of such 

permits; 

(5) Regulations establishing a schedule of fees for the mechanical integrity testing 

and periodic registration of class II wells to be paid by the owners or operators 

thereof. The schedule of fees shall be based upon the reasonable cost to the 

department of administering the underground injection control program. The 

regulations may provide for the collection of a fee prior to delegation of 

authority by the Federal Environmental Protection Agency which shall be 

refunded by the department if the department does not receive said delegation. 

No regulation promulgated pursuant to this section shall authorize the endangerment 

of an underground source of drinking water or be more stringent than regulations 

promulgated by the Environmental Protection Agency pursuant to the Underground 

Injection Control Program of the Safe Drinking Water Act, 42 U.S.C. sec. 300f et 

seq. 

Effectlve:July 12, 2006 

History: Amended 2006 Ky. Acts ch. 160, sec. 3, effective July 12, 2006. -

Created 1986 Ky. Acts ch. 277, sec. 3, effective July 1, 1986. 
353.593 Appeals. 

Appeals may be taken from all final orders of the department to issue, deny, modify, 

or revoke any permit under the Underground Injection Control Program. Appeals 

shall be taken to the Circuit Court of the county in which the well is located or 

proposed to be located in accordance with KRS Chapter 139. 

Effective: July 15, 1996 

History: Amended 1996 Ky. Acts ch. 318, sec. 341, effective July 15, 1996. -

Created 1986 Ky. Acts ch. 277, sec. 5, effective July 15, 1986. 
(c) "Entry" means the moving upon the surface of land with equipment to 

commence drilling operations, but shall not include entry for the survey for 

or ascertaining or identification of a well location. 

(d) "Operator'' means the person, whether the owner or not, who applies for 

or holds a permit for drilling operations or who is named as the principal 

on a bond for a permit for a well that was issued by the department. 

{e) "Surface owner" means the person in whose name the surface of the land 

on which drilling operations are contemplated, and who is assessed for 

purposes of taxes imposed according to the records of the property 

valuation administrator of the county where the land is located as certified 

by the property valuation administrator. 

(f) "Production operation" means the operation of a well for the production of 

oil or gas, including all acts, structures, equipment, and roadways 

necessary for the operation. 

(g) "New well" means a well that is spudded after July 13, 1990, and does 

not utilize any part of a well bore or drilling location that existed prior to 

July 13, 1990. 

(h) "Completion of the well" means completion of those processes necessary 

before production occurs, including the laying of flow lines and the 

construction of the tank battery. If the well is not productive, the date of 

completion of the well shall be the day it is plugged and abandoned. 

{2) This section shall be applicable only for the drilling operations of new wells 

except as provided in subsection (7) of this section. This section shall not apply 

for reworking operations on a well. This section shall be applicable only when 

the surface owner has not consented in writing to the drilling operations and: 

(a) There has been a complete severance of the ownership of the oil and gas 

from the ownership of the surface; or 

(b) The surface owner owns an interest in the oil and gas. 

(3) (a) Prior to commencement of the drilling of a well, the operator shall give 

written notice to the surface owner of the operator's intent to commence drilling 

operations. 

(b) The operator shall, for the purpose of giving notice, secure from the 

property valuation administrator's office, within ninety (90) days prior to 

the giving of the notice, a certification which shall identify the person in 

whose name the lands on which drilling operations are to be commenced 
and who is assessed at the time the certification is made. The written 

certification made by the property valuation administrator of the surface 

owner shall be conclusive evidence of the surface ownership. 

(c) The notice required to be given by the operator to the surface owner shall 

identify the following: 

1. The location of the proposed entry on the surface for drilling 

operations and the date on or after which drilling operations shall 

commence. 

2. A photocopy of the drilling application to the department for the well 

to be drilled. 

3. The name, address, and telephone number of the operator. 

4. An offer to discuss with the surface owner those matters set forth in 

subsection (4) of this section prior to commencement of drilling 

operations. 

(d) If the surface owner elects to meet the operator, the surface owner shall 

request the operator to schedule a meeting at a mutually agreed time and place within the limitations set forth herein. Failure of the surface owner to 

contact the operator at least five (5) days prior to the proposed 

commencement of drilling operations shall be conclusively deemed a 

waiver of the right to meet by the surface owner. The meeting shall be 

scheduled between the hours of nine o'clock in the morning and the 

setting of the sun of the same day and shall be at least three (3) days 

prior to commencement of drilling operations. Unless agreed to otherwise, 

the place shall be located within the county in which drilling operations are 

to be commenced where the operator or his agent shall be available to 

discuss with the surface owner or his agent those matters set forth in 

subsection (4) of this section. 

(e) The notice shall be given to the surface owner by either: 

1. Certified mail addressed to the surface owner at the address shown 

in the certification obtained from the property valuation 

administrator, which shall be postmarked atleast ten (10) days prior 

to the commencement of drilling operations; or 

2. Personal delivery to the surface owner at least eight (8) days prior to 

the commencement of drilling operations. 

(f) Notice to the surface owner as defined in this section shall be deemed 

conclusive notice to the record owners of all interest in the surface. 

(4) The operator, or his agent shall, if the surface owner accepts the offer to 
cause measurable damage to the productive capacity of the soil. In addition, 

the operator shall not utilize any more of the surface estate than is reasonably 

necessary for the exploration, production and development of the mineral 

estate. 

(6) The compensation required pursuant to subsection (5) of this section shall be 

paid in any manner mutually agreed upon by the operator and the surface 

owner, but the failure to agree upon, or make the compensation required, shall 

not prevent the operator from commencement of drilling operations. The 

operator shall tender to the surface owner payment by check or draft in 

accordance with the provisions of this section no later than ninety (90) days after completion of the well. The surface owner's remedy shall be an action for 

compensation in the Circuit Court in which the lands, or the greater part 

thereof, are located on which drilling operations were conducted. If the operator 

fails to tender payment within the ninety (90) day period or if the tender is not 

reasonable, the surface owner shall be entitled to reasonable compensation as 

provided in this section, as well as attorney's fees. If the operator relies on a 

third-party appraiser's assessment of damages there shall be no award of 

attorney's fees. 

(7) In conjunction with the plugging and abandonment of any well or the reworking 

of any well, the operator shall restore the surface and any improvements 

thereon to a condition as near as practicable to their condition prior to 

commencement of the work. The surface owner and operator may waive this 

requirement in writing, subject to the approval of the department that the waiver 

is in accordance with its administrative regulations. 

(8) Nothing in this section shall be construed to diminish the rights of the operator 

or surface owner as they exist by established common law. Any compensation 

paid and accepted pursuant to the provisions of subsections (5) and (6) of this 

section shall be a complete bar to the assertion of any other remedy for such 

damages. 

Effectlve:July 13, 1990 

History: Created 1990 Ky. Acts ch. 128, sec. 1, effective July 13, 1990. 
353.597 Replacement of disrupted water supply by well operator. 

A well operator shall replace the water supply of any owner of interest in real 

property who obtains all or part of his supply of water for domestic, agriculture, 

industrial, or other legitimate use from an underground or surface source where the 

supply has been substantially disrupted by contamination, diminution, or interruption 

proximately resulting from the operator's oil or gas operation. 

Effectlve:July 15, 1994 

History: Created 1994 Ky. Acts ch. 127, sec. 3, effective July 15, 1994. 

353.610 Conditions under which permits may be issued·· Exceptions. 

(1) Except as provided in KRS 353.500 to 353.720, no permits shall be issued for 

the drUiingt deepening, or reopening of any shallow well for the production of 

oil, unless the proposed location of the well shall be at least three hundred 

thirty (330) feet from the nearest mineral boundary of the premises upon which 

the well is to be drilled, deepened or reopened; and, the proposed location 

must be at least six hundred sixty (660) feet from the nearest oil producing 

well. This subsection shall not be construed to regulate the distance between 

wells which do not produce oil from the same pool. 

(2) Except as provided in KRS 353.500 to 353.720, no permit shall be issued for 

the drilling, deepening or reopening of any shallow well for the production of 

gas unless the proposed location of the well shall be at least five hundred (500) 

feet from the nearest mineral boundary of the premises upon which such well is 

to be drilled, deepened or reopened; and, the proposed location must be at 

least one thousand (1,000) feet from the nearest gas producing welL This 

subsection shall not be construed to regulate the distance between wells which 

do not produce gas from the same pool. 

(3) This section shall not apply: 

(a) To wells drilled, deepened, or reopened for the injection of water, gas or 

other fluids into an oil or gas producing formation. 

(b) To any well drilled, deepened or reopened in a pool or portion thereof, 

which is included in a secondary recovery program commenced or 

proposed, if the location or proposed location of the well conforms to a 

geometric pattern already established on all premises which will be offset 

and affected by the well. 

(c) To wells drilled or deepened as water supply wells and geological or 

structure test holes; or 

(d) To premises within the limits of any incorporated city, town or village 

which has enacted or enacts hereafter an ordinance regulating the 

location or spacing of wells for the production of oil and gas at distances 

of not less than the prescribed in this section. 

(e) To wells for the production of oil to be drilled, deepened, or reopened and 

completed at a depth of less than two thousand (2,000) feet where there 

are no workable beds of coal at lesser depths and the formation from 

which the oil is expected to be extracted is not appreciably affected by 

factors, as determined by the commissioner, other than natural drainage. 

The location of wells for the production of oil coming within this exception 

shall be at least two hundred (200) feet from the nearest boundary of the 

353.620 Variance from requirements of KRS 353.61 0. 

(1) Notwithstanding KRS 353.610, if an application is submitted for a permit to drill, 

deepen, or reopen a well closer to a boundary or to another well than 

prescribed in KRS 353.610 and the application is accompanied by the written 

consent of all owners of oil and gas interests in the adjacent premises directly 

affected by the prescribed boundary distances in KRS 353.610, which will be 

offset by the proposed well, the department shall issue a permit for the well. 

(2) Notwithstanding KRS 353.610, the department may issue a permit for a well to 

be drilled,. deepened, or reopened closer to a boundary or another well than 

prescribed in KRS 353.610, if the director, after notice and hearing, finds that 

topographical or other conditions are such as to make compliance with the 

requirements of KRS 353.610 unduly burdensome or in conflict with reasonably 

prudent methods and practices for the production of oil or gas. 

(3) Notwithstanding KRS 353.610, the department shall issue a permit for a well to 

be drilled, deepened, or reopened closer to a boundary than prescribed in KRS 

353.610 if a pooling order has been issued pursuant to KRS 353.630. 

(4) If a permit is issued to drill, deepen, or reopen a well under subsection (1) or 

(2) of this section at a location closer to a well or boundary than prescribed in 

KRS 353.610, the department shall permit a like variance from the 

requirements of KRS 353.610 on all premises offset and adversely affected by 

the well. 

Effective: June 24, 2003 

History: Amended 2003 Ky. Acts ch. 150, sec. 13, effective June 24, 2003. -

Amended 2000 Ky. Acts ch. 268, sec. 1, effective July 14, 2000.- Created 1960 

Ky. Acts ch. 103. sec. 14, effective June 16, 1960. 
development and operation of all pooled acreage as a single leasehold estate 

in accordance with regulations and rules promulgated under KRS 353.500 to 

353.720. 

(2) Whenever an operator proposes to drill, deepen, or reopen a well at a location 

that would require the pooling of separate tracts or interests in order to comply 

with the spacing requirements of KRS 353.610, and the operator has secured 

the written consent or agreement from the owners of at least fifty-one percent 

(51%) of the interests in each tract, or portions thereof, included in the 

proposed pooled acreage, the department shall, where it finds that the 

requirements of this subsection have been met, order, after notice and a 

hearing, the pooling of all oil and gas interests in all tracts, or portions thereof, 

that are included within the proposed pooled acreage as established by the 

spacing requirements of KRS 353.610. For purposes of this section, any 

unknown or nonlocatable owners shall be deemed to have consented or 

agreed to the pooling, provided that the operator has complied with the 

publication requirements of KRS 353.640(1) with respect to the unknown or 

nonlocatable owners. The department shall issue a permit to drill, deepen, or reopen the well and require the development and operation of the pooled 

acreage as a single leasehold estate in accordance with administrative 

regulations promulgated under KRS 353.500 to 353.720. 

(3) Whenever an operator proposes to drill, deepen, or reopen a well at a location 

that would require the pooling of interests or tracts in order to comply with the 

spacing requirements of KRS 353.610, and the operator owns or controls the 

right to develop the oil and gas underlying one hundred percent (100%) of the 

interests in each tract, or portions thereof, included in the proposed pooled 

acreage, the department shall, where it finds that the requirements of this 

subsection have been met, order, after notice and a hearing, the pooling of all 

oil and gas interests in all tracts, or portions thereof, that are included within the 

proposed pooled acreage established by the spacing requirements of KRS 

353.610. The department shall issue a permit to drill, deepen, or reopen the 

well and require the development and operation of all pooled tracts as a single 

leasehold estate in accordance with administrative regulations promulgated 

under KRS 353.500 to 353.720. 

(4) No pooling as permitted by this section shall be ordered except: 

(a) When an application has been filed to drill, deepen, or reopen a well 

within the distance limitations prescribed in KRS 353.61 0; and 

(b) When a lessee or owner of an oil or gas interest in the tract shall request 
the pooling. 

(5) No pooling as permitted by this section shall be ordered with respect to any 

tract or portion thereof upon which a well is drilled, deepened, or reopened: 

(a) Unless the pooling was requested prior to the commencement of the 

drilling, deepening, or reopening of the well by a lessee or owner of an oil 

and gas interest in a contiguous tract pursuant to subsection (1 ), (2), or 

(3) of this section; and 

(b) Unless the request, if made by the owner of an operating interest who 

elects to participate in the risk and cost of the drilling, deepening, or 

reopening of the well, is accompanied by a bond or other security 

satisfactory to and in an amount set by the director for the payment of 

such owner's share of the cost of drilling, deepening, or reopening the 

well. 

(6) Production from any well which is ordered pooled pursuant to KRS 353.500 to 

353.720 shall be deemed for all purposes to have been so produced from each 

tract or portion thereof included in the pool in proportion to the amounts 

established in the pooling order. 

Effectlve:June 24,2003 History: Amended 2003 Ky. Acts ch. 150, sec. 14, effec:tive June 24, 2003. -

Amended 2000 Ky. Acts ch. 268, sec. 2, effective July 14, 2000. - Amended 

1986 Ky. Acts ch. 233, sec. 1, effective July 15, 1986.- Created 1960 Ky. Acts 

ch. 103, sec. 15, effective June 16. 1960. 
at least twenty (20) days prior to the 

hearing on the application for the pooling 

order, one (1) notice in the newspaper of the largest circulation in each county 

in which any tract, or portion thereof, proposed to be pooled is located. The 

notice shall: 

(a) State that an application for a pooling order is being filed with the Division 

of Oil and Gas in the Department for Natural Resources; 

(b) Describe any tract, or portion thereof, proposed to be pooled; (c) In the case of an unknown owner, identify the name of the last known 

owner; 

(d) In the case of a nonlocatable owner, identify the owner and the owner's 

last known address; and 

(e) State that any party claiming an interest in any tract, or portion thereof, 

proposed to be pooled should contact the operator at the published 

address and provide a copy of the notification to the director of the 

Division of Oil and Gas in the Department for Natural Resources within 

twenty (20) days of the date of publication. 

(2) A pooling order shall authorize the drilling, deepening, or reopening, and the 

operation of a well for the production of oil or gas on the tracts or portions 

thereof pooled; shall designate the operator to drill and operate the well; shall 

prescribe the time and manner in which all owners of operating interests in the 

pooled tracts or portions thereof may elect to participate therein; shall provide 

that all reasonable costs and expenses of drilling, deepening, or reopening, 

and the completing, operating, plugging, and abandoning the well shall be 

borne, and all production from the well shall be shared by all owners of 

operating interests in proportion to the net mineral acres in the pooled tracts 

owned or under lease to each owner; and shall make provision for the payment 

of the reasonable actual cost thereof, including a reasonable charge for 

supervision, by all those who elect to participate therein. 

(3) A pooling order shall establish a procedure for the owner of an operating 

interest who does not decide to become a participating operator to elect to 

either: 

(a) Surrender, by means of sale or lease, the interest to a participating 

operator on a reasonable basis and for a reasonable consideration, which 

if not agreed upon shall be determined by the director of the Division of 

Oil and Gas; or 

(b) Share in the operation of the well as a nonparticipating operator on a 
carried basis after the proceeds allocable to his or her share equal two 

hundred percent (200%) of the share of the costs allocable to his or her 

interest. 

(4) An oil or gas owner whose identity and location remain unknown at the 

conclusion of a hearing concerning the entry of a pooling order for which public 

notice was given and whose interest is pooled pursuant to KRS 353.630(3) 

shall be deemed to have elected to lease the interest to the oil or gas operator, 

exclusive of one-eighth (1/8) of the production attributable to the unleased 

interest, and shall not be entitled to make the election established in subsection 

(3) of this section. 

(5) Except as provided in this subsection, an oil or gas owner who does not make 

an election under the pooling order within thirty (30) days of the entry of the 

order shall be deemed to have leased the oil or gas interest to the oil or gas 

well operator in the manner established in subsection (4) of this section. If the 

holder of an operating interest has obtained the interest by lease or other 

agreement granting the right to conduct operations to anyone other than the 

holder of the oil and gas estate, and if the owner of the operating interest does 

not make an election under the pooling order, the holder of the operating 

interest shall be deemed to have elected to share in the operation of the well 

as a nonparticipating operator on a carried basis after the proceeds allocable to 

his or her share equal two hundred percent (200%) of the share of the costs 

allocable to his or her interest. 

(6) A person whose interest is subject to an oil or gas lease or other agreement 

which grants to another the right to operate or conduct operations shall not own 

an operating interest for the purposes of subsection (3) of this section. 

(7) A certified copy of any pooling order entered under KRS 353.500 to 353.720 

shall be entitled to be recorded in the office of the county clerk of the county or 

counties in which all or any portion of the pooled tract is located, and the record 

of the order, from the time of lodging the order for record, shall be notice of the 

order to all persons. 

Effectlve:July 15, 2010 History: Ameflded 2010 Ky. Acts ch. 24, sec. 1909. effective July 15, 2010. -

Amended 2002 Ky. Acts ch. 217, sec. 1, effective July 15. 2002. - Amended 

2000 Ky. Acts ch. 268, sec. 3, effective July 14, 2000. - Amended 1978 Ky. 

Acts ch. 384, sec. 487, effective June 17, 1978. - Created 1960 Ky. Acts 

ch. 103, sec. 16, effecti,ve June 16, 1960. 
the pool or pools shall have the opportunity to recover his fair and equitable 

share of the recoverable oil and gas in the unit. 

(a) The hearing shall be conducted in accordance with KRS Chapter 138. 

Notice of the hearings prescribed in this subsection shall be given to all 

persons reasonably known to the department to be a lessee or owner of 

an oil and gas interest in a pool or pools within a proposed unit. 

(b) The department may require a reasonable application fee from a lessee 

or owner of an oil and gas interest applying for a proposed unit. 

(2) The application for a unit shall include the following: 

(a) A description of the area to be included in the unit, with a map attached, 

and a description of the pool or pools, or portions thereof, to be included 

within the unit; 

(b) A statement of the nature of the unit operations contemplated; 

(c) A proposed allocation of production and reserves among the 

separately-owned tracts and interests contributed to the unit. Reserves 

shall be calculated by industry standard methods supported by geological 

and engineering data, as determined to be appropriate by the department. 

The department may require an independent third party to verify the 

calculations as to proposed allocation of production or reserves; 

(d) The procedure upon which wells and equipment of the separately-owned 

tracts and interests are to be used and compensated for in unit 

operations; and 

(e) Documentation that the application is approved by at least fifty-one 

percent (51%) ownership in the interests proposed for inclusion in the 

unit. 

(3) After notice and hearing in the manner established in this section, the 

department shall issue a final order establishing a unit and requiring unit 

operation and development if it finds that: 

(a) 1. The unitized operation and development of a pool or pools, or any 

portion thereof, for the production of oil and associated gas is 

reasonably necessary in order to effectively carry on operations for 

enhanced recovery, including but not limited to, increased density 

drilling, or secondary recovery operations by pressure-maintenance, 

repressuring, cycling, water flooding, tertiary recovery operations, or 

any combination of these, in order to substantially increase the 

ultimate recovery of oil and associated gas from the pool or pools 
within the unit, or to protect the correlative rights of affected mineral 

owners; and 

2. The value of the additional recovery of oil and associated gas 

exceeds the estimated additional cost incident to conducting the 

operation; or 

(b) The unitized operation of the pool or pools within the unit will prevent 

waste and protect the correlative rights of the owners in the pool or pools 

within the unit. 

(4) Each well permitted to be drilled, deepened, reopened, or converted to an 

injection well and operated in a unit shall conform to either the spacing 

standards established in KRS 353.610, or to other unit spacing that shall be 

established by the department as a part of the hearing provided for in this 

section. 

(5) All unit operations and production shall be deemed, for all purposes, as the 

conduct of operations and production upon each of the separately-owned tracts 

and interests in the unit. 

(6) A unitization order issued in accordance with this section shall: 

(a) Authorize the unit operation of a pool or pools, including drilling, 

deepening, reopening, conversion to injection wells, and operation of all 

wells within the unit for the production of oil and gas from the unit: 

(b) Designate the unit operator of the operation; 

(c) Approve a unit operating agreement; (d) Provide for the allocation of production and reserves among all 

separately-owned tracts and interests in the unit; 

(e) Provide for the proportionate allocation of all reasonable costs and 

expenses of unit operations as these costs and expenses are set out in 

the approved operating agreement. Costs and expenses shall be 

allocated among all participating owners of operating interests who elect 

to participate in the proportion that the separately-owned tracts and 

interests share in the production of the unit; and 

(f) Establish the spacing approved for the unit. 

(7) Any unitization order shall provide just and equitable alternatives whereby an 

owner of an operating interest who does not elect to participate in the risk and 

cost of developing the unit may elect to surrender his interest, or a portion of it, 

to the participating owners on a reasonable basis and for a reasonable 

consideration, which if not agreed upon, shall be determined by the 

department; or elect to participate in the development of the unit on a carried 
course of unit operations, and shall supersede and be in lieu of the 

allocation of production provided for in any previously-established unit 

and shall have an effective date provided for in the order. 

(9) Wells drilled, deepened, or reopened for the injection of water, gas, or other 

fluids into any subsurface formation shall be governed by applicable state and 

federal statutes and regulations. 

Effectlve:July 15, 1996 History: Amended 1996 Ky. Acts ch. 318, sec. 342, effective July 15, 1996. -

Created 1994 Ky. Acts ch. 431, sec. 2, effective July 15, 1994. 
353.650 Exclusion of royalty interest in computing share of production •• 

Limitation. 

(1) If one (1) or more of the owners of any operating interest in any portion of the 

pooled tract shall drill, deepen or reopen and operate, or pay the costs of 

drilling, deepening or reopening and operating a well for the benefit of another 

owner of an opening interest, as provided in the pooling order, then such owner 

or owners shall be entitled to the proceeds from the share of production from 

the tracts or portions thereof pooled accruing to the interest of such other 

owner, exclusive of any royalty reserved in any lease or leases of such tracts or 

portions thereof or exclusive of one-eighth (1/8) of production attributable to all 

unleased tracts or portions thereof, until such proceeds equal the sums 

payable by or charged to the interest of the other owner plus a reasonable 

charge for interest on such sums. 

(2) If a dispute shall arise as to the costs of drilling, deepening or reopening, and 

operating a well, the director of the Division of Oil and Gas shall determine and 

apportion the costs. 

Effective:July 15, 2010 

History: Amended 2010 Ky. Acts ch. 24, sec. 1910, effective July 15, 2010. -

Created 1960 Ky. Acts ch. 103, sec. 17, effective June 16, 1960. 
equitable share of the recoverable oil and gas in such pool. 

(b) For the prevention of waste, to protect and enforce the correlative rights 

of the owners in a pool, and to avoid the augmenting and accumulation of 

risks arising from the drilling of an excessive number of wells, the 

commission shall, after notice and a hearing, to be conducted in 

accordance with KRS Chapter 138, establish drilling units for each pool. 

The spacing of wells in proved oil and gas fields shall be governed by 

administrative regulations promulgated for that particular field. Wells 

drilled in areas not covered by special field administrative regulations 

shall be governed by statewide administrative regulations promulgated by 

the commission. 

(c) Each well permitted to be drilled upon any drilling unit shall be drilled in 

accordance with the administrative regulations promulgated by the 

commission and in accordance with a spacing pattern fixed by the commission for the pool in which the well is located, with any exceptions 

that may be reasonably necessary where it is shown, in accordance with 

administrative regulations promulgated by the commission, that the unit is 

partly outside the pool or for some other reason a well otherwise located 

on the unit would not be likely to produce in paying quantities, or 

topographical conditions are such as to make the drilling at the location 

unduly burdensome. Whenever an exception is granted, the commission 

shall take action as will offset any advantage which the person securing 

the exception may have over other owners by reason of the drilling of the 

well as an exception. 

(d) No drilling unit established by the commission shall be smaller than the 

maximum area which can be drained efficiently by one (1) deep well so as 

to produce the reasonable maximum recoverable oil or gas in such area, 

unless an exception is granted in accordance with administrative 

regulations promulgated by the commission. 

(e) An order establishing drilling units may be modified, altered, extended, 

amended, or vacated by the commission after notice and hearing as 

prescribed above. 

(2) Pooling of interests in drilling units: 

(a) When two {2) or more separately owned tracts are embraced within a 

drilling unit, or when there are separately owned interests in all or a part 

of a drilling unit, the interested persons may pool their tracts or interests 
for the development and operation of the drilling unit. In the absence of 

voluntary pooling and upon application of any operator having an interest 

in the drilling unit, and after the commission has given 

notice to all 

persons reasonably known to own an interest in the oil or gas in the 

drilling unit, and after a hearing conducted in accordance with KRS 

Chapter 138, the commission shall enter an order pooling all tracts or 

interests in the drilling unit for the development and operation thereof and 

for the sharing production therefrom. Each pooling order shall be upon 

terms and conditions which are just and reasonable. 

(b) All operations, 'including, but not limited to, the commencement, drilling, 

or operation of a deep well, upon any portion of a drilling unit for which a 

pooling order has been entered, shall be deemed for all purposes the 

conduct of those operations upon each separately owned tract in the 

drilling unit by the several owners thereof. That portion of the production 

allocated to a separately owned tract included in a drilling unit shall, when 

produced, be deemed for all purposes to have been actually produced 

from the tract by a deep well drilled thereon. 

(c) Any pooling order under the provisions of subsection (2) of this section 

shall authorize the drilling and operation of a deep well for the production 

of oil or gas from the pooled acreage; shall designate the operator to drill 

and operate such deep well; shall prescribe the time and manner in which 

all owners of operating interests in the pooled tracts or portions of tracts 

may elect to participate therein; shall provide that all reasonable costs 

and expenses of drilling. completing, equipping, operating, plugging, and 

abandoning the deep well shall be borne, and all production therefrom 

shared, by all owners of operating interests in proportion to the acreage in 

the pooled tracts owned or under lease to each owner; and shall make 

provision for payment of all reasonable costs thereof, including 

reasonable charge for supervision and for interest on past due accounts, 

by all those who 

erect to participate therein. Upon the application of any 

operator having an interest in the drilling unit, the person or persons 

selected to drill and operate the deep well shall be determined by 

competitive bids. 

{d) Upon request, 

a

ny 

p

o

oling order shall provide just and equitable 

alternatives 

w

hereby 

an owner of an operating interest who does not elect 

to participate in the risk and cost of the drilling of a deep well may elect to 

surrender his interest or a portion thereof to the participating owners on a 

reasonable basis and for a reasonable consideration, which, if not agreed 

upon, shall be determined by the commission; or to participate in the 
the existence of such dispute. 

(3) This section shall not apply to wells drilled, deepened, or reopened for the 

injection of water, gas, or other fluids into any subsurface formation. 

Effectlve:July 12,2006 

History: Amended 2006 Ky. Acts ch.158, sec.1, effective July 12, 2006. -

Amended 2000 Ky. Acts ch. 139, sec. 4, effective July 14, 2000. - Amended 

1996 Ky. Acts ch. 318, sec. 343, effective July 15, 1996. - Created 1974 Ky. 

Acts ch. 45, sec. 5. 
353.652 Unit operation of pool Procedure. 

(1) Upon the application of any operator in a deep well pool productive of oil or 

gas, or both, and other minerals which may be associated and produced 

therewith and after notice given by the commission to all persons reasonably 

known to own an interest in the oil or gas in the pool, and after a hearing 

conducted in accordance with KRS Chapter 13B, the commission may enter a 

final order requiring the unit operation of a pool or of any portion or 

combinations thereof within a field. The unit operation shall be in connection 

with a program designed to avoid the drilling of unnecessary wells, or otherwise 

to prevent waste, or to increase the ultimate recovery of the unitized minerals 

by additional recovery methods. The final order shall provide for the unitization 

of separately-owned tracts and interests within the pool or pools, but only after 

finding that: 

(a) The order is reasonably necessary for the prevention of waste; 

(b) The proposed plan of unitized operation will increase the ultimate 

recovery of oil or gas, or both, from the pool and will be economically 

feasible; 

(c) The production of oil or gas, or both, from the unitized pool can be 

allocated in a manner to insure the recovery by all owners of their just and 

equitable share of the production; and 

(d) A contract incorporating the unitization agreement has been signed or in 

writing ratified or approved by the owners of at least seventy-five percent 

(75%) in interest as costs are shared under the terms of the order and by 

seventy-five percent (75%) in interest as production is to be allocated of 

the royalty in the unit area, and a contract incorporating the required 

arrangements for operations has been signed or in writing ratified or 

approved by the owners of at least seventy-five percent (75%) in interest 

as costs are shared, and the commission has made a finding to that effect 

either in the final order or a supplemental order. 

(2) The final order requiring the unit operation shall designate one (1) operator as 

unit operator and shall also make provision for the proportionate allocation to 

all operators of the costs and expenses of the unit operation, including a 

reasonable charge for supervision, which allocation shall be in the proportion 

that the separately-owned tracts share in the production from the unit. In the 

absence of an agreement entered into by the operators and filed with the 

commission providing for sharing the costs of capital investments in wells and 

physical equipment, and intangible drilling costs, the commission shall provide 

by order for the sharing of the costs in the same proportion as the costs and 
o be added 

o u

ope

a

o

s by 

e o

de

a

d by se

e

y

e pe

ce

(75%) in interest as production is to be allocated of the royalty owners in 

the pool, pools, portions, or combinations and evidence thereof has been 

submitted to the commission. 

(4) Any agreement, in providing for allocation of production from the unit area, 

shall first allocate to each pool or added portion a portion of the total production 

of oil and gas, or both, from all pools affected within the area, as enlarged, the 

allocation to be in proportion to the contribution which added pool or portions or 

extensions thereof are expected to make, during the remaining course of unit 

operations, to the total production of oil or gas, or both, of the unit as enlarged. 

The remaining portion of unit production shall be allocated among the 

separately-owned tracts within the previously established unit area in the same 

proportions as those specified prior to the enlargement. 

Effectlve:July 15, 1996 History: Amended 1996 Ky. Acts ch. 318, sec. 344, effective July 15, 1996. -

Amended 1990 Ky. Acts ch. 11, sec.1, effective July 13, 1990.- Created 1974 

Ky. Acts ch. 45, sec. 6. 
353.653 Share of production from drilling unit or unitized pool. 

Each operator shall have the right to take in kind its share of any oil or gas produced 

from any drilling unit or pool unitized under KRS 353.510, 353.520, 353.565, 

353.610, 353.651 to 353.654, 353.700, or 353.991. The operator shall pay the 

expenses occasioned thereby and pay or account to the unit operator for the oil or 

gas or the value thereof if he has not paid his share of drilling, completing and 

operating costs. This section applies to deep well drilling units only. 

Effectlve:July 13, 1990 

History: Amended 1990 Ky. Acts ch. 11, sec. 2, effective July 13, 1990. - Created 

1974 Ky. Acts ch. 45, sec. 9. 
by an oil or gas lease or otherwise" from the end of the section; however, In the 

engrossed bill as signed by the Governor, the words were not stricken. 
353.655 Use of shackle rods or related cables. 

(1) No operator shall utilize shackle rods or related cables for the production of oil 

or gas without the permission of the present owner of the land upon which the 

wells exist or are drilled unless such rods or cables are placed in conduit and 

buried at least twenty-four (24) inches below the surface of the land between 

all wellheads and power stations or are attached to power poles with the rods 

or cables twenty (20) feet above the surface of the land between all wellheads 

and power stations. 

(2) Nothing in this section shall apply to lands classified by the United States Soil 

Conservation Service as class 5, 6, 7, or 8. 

Effectlve:January 1. 1985 History: Created 1984 Ky. Acts ch. 244, sec. 1. effective January 11 , 1985. 

353.660 Report required after termination of operations -- Contents •• 

Confidentiality of information - Exceptions. 

(1) Any person to whom a permit is issued pursuant to KRS 353.500 to 353.720 

shall file, within ninety (90) days after termination of operations conducted 

under the permit, with the department for transmittal to the Kentucky 

Geological Survey on forms to be furnished by the department the following 

information relating to the well: 

(a) A copy of the driller's log certified to be true and accurate; (b) The depth and thickness of all water zones encountered and logged; (c) The depth of all showings of oil or gas; (d) The depth and thickness of all coal seams encountered; and (e) A true copy of all electrical surveys and similar logs and surveys taken. If 

the person to whom the permit is issued obtains a copy of the electrical 

survey or similar log or survey in electronic form, the operator shall submit 

the electrical survey or similar log in electronic form if requested by the 

department. 

(2) Upon request by the department, any person to whom a permit is issued shall 

save for the Kentucky Geological Survey samples of all cuttings from the well 

drilled or deepened pursuant to the permit for a period of ninety (90) days after 

completion thereof. 

(3) Upon request by any person furnishing information under this section, the 

information shall be kept confidential, for a period of one (1) year after the information is furnished by such person. 

(4) This section shall not apply to wells drilled or deepened as geological or 

structure test holes. 

Effective: June 24. 2003 

History: Amended 2003 Ky. Acts ch. 150, sec. 15, effective June 24, 2003. -

Amended 1966 Ky. Acts ch. 147, sec. 4. - Created 1960 Ky. Acts ch. 103, 

sec. 18. 
hearings conducted under KRS 353.500 to 353.720. 

(3) The director of the Division of Oil and Gas, or his representatives, shall attend 

all hearings under this section conducted by the department. 

(4) All rules, regulations and orders promulgated or issued under KRS 353.500 to 

353.720 shall be in writing, shall be entered in full and indexed in books to be 

kept by the department for that purpose, shall be public records open for 

inspection at all times during office hours, and shall be filed in accordance with 

the provisions of KRS Chapter 13A. A copy of any rule, regulation, or order, 

certified by the commissioner of the Department for Natural Resources or the 

director of the Division of Oil and Gas, shall be received in evidence in all 

courts of this Commonwealth without any further authentication thereof. 

Effectlve:July 15, 2010 

History: Amended 2010 Ky. Acts ch. 24, sec. 1911, effective July 15, 2010. -

Amended 1986 Ky. Acts ch. 331, sec. 48, effective July 15, 1986. - Created 

1960 Ky. Acts ch. 103, sec. 19, effective June 16, 1960. 
353.680 Repealed, 1996. 

Catchllne at repeal: Notice - Method of giving - Proof of service. 

History: Repealed 1996 Ky. Acts ch. 318, sec. 357 effective July 15, 1996. -

Amended 1966 Ky. Acts ch. 239, sec. 211.- Created 1960 Ky. Acts ch. 103, 

sec. 20. 
in the case of disobedience to a like subpoena issued by the court, or for 

refusal to testify. 

Effective: January 2, 1978 

History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 14, sec. 285, effective 

January 2, 1978. - Created 1960 Ky. Acts ch. 103, sec. 21, effective June 16, 

1960. 
353.700 Review of order of department by civil action·· Appeal. 

(1) Any person aggrieved by any order issued by the department or by the 

commission under KRS 353.500 to 353.720 shall have the right to bring a civil 

action for review of the order by filing a complaint in the Circuit Court of the 

county in which the premises or any portion thereof affected by the order is 

located, or in the Franklin Circuit Court. 

(2) The suit shall be brought within thirty (30) days after the order is issued, and in 

event no suit is filed within the thirty (30) day period, the order shall be final. 

(3) In the suit the burden of proof shall be upon the party complaining of the order, 

and the order shall be deemed prima facie valid. Any party to the suit may offer 

in evidence all or any part of the record of the hearing which resulted in the 

order, and any other relevant evidence. 

(4) On appeal no new evidence may be introduced, except as to fraud or 

misconduct of some person engaged in the hearing before the commission, 

unless the court upon motion and for good cause shown determines that the 

interests of justice will be better served by the introduction of new evidence. 

The court sitting without a jury shall hear the cause upon the record before it, 

and dispose of the appeal in a summary manner, being limited to determining: 

whether or not the commission acted without or in excess of its powers; the 

order was procured by fraud; the order is not in conformity to the provisions of 

KRS Chapter 353; the order is clearly erroneous on the basis of reliable, 

probative and material evidence contained in the whole record; or the order is 

arbitrary, or capricious or characterized by abuse of discretion or clearly 

unwarranted exercise of discretion. The court shall enter its findings on the 

order book as a judgment of the court, and such judgment shall have the same 

effect and be enforceable as any other judgment of the court in civil causes. 

(5) The practice, pleading and proceedings in the suit shall be in accordance with 

the Rules of Civil Procedure. 

(6) In the suit the court may stay the order until the court shall enter its decree. 

The court shall have jurisdiction to enter a decree affirming or setting aside the 

order or remanding the cause with directions to modify the order so that it shall 

conform to the provisions of KRS 353.500 to 353.720. Appeals may be taken 

by any party to the suit in the same manner and to the same extent as in other 

civil actions. 

History: Amended 1974 Ky. Acts ch. 45, sec. 7. - Created 1960 Ky. Acts ch. 103, 

sec. 22, effective June 16, 1960. 
as the facts may warrant, including a temporary restraining order or injunction. 

(2) If the department shall fail to bring suit to enjoin a violation or threatened 

violation of any provisions of KRS 353.500 to 353.720, or any rule, regulation, 

or order promulgated or issued under KRS 353.500 to 353.720 within ten (10) 

days after receipt of a written request to do so by any person who is or will be 

adversely affected by the violation, the person making the request may bring 

suit in his own behalf to restrain the violation or threatened violation in any 

court in which the department might have brought suit. The department shall 

be made a party defendant in the suit in addition to the person allegedly 

violating or threatening to violate a provision of KRS 353.500 to 353.720, or 

any rule, regulation or order promulgated or issued under KRS 353.500 to 

353.720. 

(3) Whenever it appears that any person is violating any provision of KRS 353.500 

to 353.720, or any rule, regulation or order promulgated or issued hereunder, 

the Attorney General or any person who is adversely affected by the violation 

may bring suit to restrain the violation in any court in which the department 

might have brought suit. The department shall be made a party defendant in 

the suit in addition to the person allegedly violating a provision of or any rule, 

regulation or order promulgated or issued under KRS 353.500 to 353.720. 

Effective: June 16, 1960 

History: Created 1960 Ky. Acts ch. 103, sec. 23, effective June 16, 1960. 
353.720 Construction of KRS 353.500 to 353.720. 

(1) KRS 353.500 to 353.720 shall not be construed to authorize any limitation of 

production of oil or gas from any well, lease, pool, field or property to prevent or 

control economic waste or to limit production to market demand. 

(2) Nothing in KRS 353.500 to 353.720 is intended to or shall be construed as 

superseding, impairing, abridging or affecting any contractual rights or 

obligations now or hereafter existing between the respective owners of oil, gas, 

coal, or other minerals, or any interests therein. 

Effectlve:June 16, 1960 

History: Created 1960 Ky. Acts ch. 103, sees. 25 and 26, effective June 16, 1960. 
property upon which the well is located and to conduct the investigation. 

(2) The department shall review all applications for investigation. If the department 

approves the request for investigation, the applicant shall be allowed to 

produce the well without a permit as required by KRS 353.570, and the 

applicant shall submit a report of investigation to the department on forms 

provided by the department. In order to produce the well for more than sixty 

(60) days, the applicant must obtain a bond as required by KRS 353.590(5) or 

(9). Notwithstanding the provisions of KRS 353.590(2), no fee shall be required 

for any such well. 

Effectlve:July 12, 2006 

History: Amended 2006 Ky. Acts ch. 160, sec. 4, effective July 12, 2006. -

Created 1998 Ky. Acts ch. 359, sec. 3, effective July 15, 1998.