ID Code § 47-317 (2021)
2021 Idaho Code|Title 47 - MINES AND MINING|Chapter 3 - OIL AND GAS WELLS — GEOLOGIC INFORMATION, AND PREVENTION OF WASTE|Section 47-317 - DRILLING LOCATIONS.

47-317. DRILLING LOCATIONS. (1) To prevent or assist in preventing the waste of oil and gas, to avoid drilling unnecessary wells or to protect correlative rights, the department may, on its own motion or on the application of an interested person, and after notice and opportunity for hearing, issue an order establishing drilling units on a statewide basis, or for defined areas within the state, or for oil and gas wells drilled to varying depths. (2) An order establishing drilling units shall comply with section 47-318(2), Idaho Code. (3) In the absence of an order by the department establishing drilling or spacing units, or authorizing different well density patterns for particular pools or parts thereof, the following requirements shall apply: (a) Oil wells. Every well drilled for oil shall be located in the center of a drilling unit consisting of a forty (40) acre governmental quarter-quarter section or lot or tract, or combination of lots and tracts substantially equivalent thereto, with a tolerance of two hundred (200) feet in any direction from the center location. (i) No oil well shall be drilled less than nine hundred ninety (990) feet from any other well drilling to and capable of producing oil from the same pool; and (ii) No oil well shall be completed in a known pool unless it is located more than nine hundred ninety (990) feet from any other well completed in and capable of producing oil from the same pool. (b) Vertical gas wells. Every vertical well drilled for gas shall be located in a drilling unit consisting of either a one hundred sixty (160) acre governmental quarter section or lot or tract, or combination of lots and tracts substantially equivalent thereto, or a six hundred forty (640) acre governmental section or lot or tract, or combination of lots or tracts substantially equivalent thereto. A vertical gas well located on a one hundred sixty (160) acre drilling unit shall have a minimum setback of three hundred thirty (330) feet to the exterior boundaries of the quarter section. A vertical gas well located on a six hundred forty (640) acre drilling unit shall have a minimum setback of six hundred sixty (660) feet to the exterior boundaries of the governmental section. (i) No gas well shall be drilled less than nine hundred ninety (990) feet from any other well drilling to and capable of producing gas from the same pool; and (ii) No gas well shall be completed in a known pool unless it is located more than nine hundred ninety (990) feet from any other well completed in and capable of producing gas from the same pool. (c) Horizontal wells. Every horizontal well drilled shall be located in a drilling unit consisting of a six hundred forty (640) acre governmental section or lot or tract, or combination of lots or tracts substantially equivalent thereto. No portion of the completed interval of a horizontal lateral shall be closer than six hundred sixty (660) feet to a section boundary or uncommitted tract within a unit. Except for wells in federal exploratory units or in secondary units, the completed interval shall be no closer than one thousand three hundred twenty (1,320) feet to any horizontal well or vertical well completed in the same formation.  (d) Notice. After drilling, testing and completing a well that meets the location requirements in paragraphs (a), (b) or (c) of this subsection, but prior to producing that well, an operator shall provide notice and opportunity for hearing for the proposed drilling unit. In addition to any other notice required by statute or rule, the operator shall provide notice of the proposed drilling unit by certified mail to all uncommitted owners within the proposed drilling unit. The department may authorize drilling units upon application, notice and an opportunity for hearing as provided in section 47-328, Idaho Code. However, prior to establishing a drilling unit for a well that meets the location requirements in paragraph (a), (b) or (c) of this subsection, the department may grant a permit to drill that provides only the notice required in section 47-316, Idaho Code. (4) An operator may request a change in the size, shape or location of a drilling unit under this section, as provided in section 47-318(6), Idaho Code. Request may be made for drilling units that are: (a) Larger or smaller than forty (40) acres for oil; (b) Larger or smaller than one hundred sixty (160) acres for gas; or (c) Not located within the boundaries of a governmental section, quarter section or quarter-quarter section. (5) Changes to drilling units may be authorized upon application, notice and an opportunity for hearing as provided in section 47-328, Idaho Code. To authorize a change, the department shall find that such change would assist in preventing the waste of oil and gas, avoid drilling of unnecessary wells, or protect correlative rights. In addition to any other notice required by statute or rule, an operator shall provide proper notice and a copy of the application to all uncommitted owners within the proposed unit and to all other parties an operator reasonably believes may be affected. In establishing drilling units under this section, the department shall review the drilling unit’s size, shape and location based on the application, any supporting exhibits, and evidence introduced at a hearing.  History: [47-317, added 2017, ch. 271, sec. 10, p. 687.]