2023 New York Laws › ENV - Environmental Conservation › Article 23 - Mineral Resources › Title 5 - Well Permits and Well Spacing in Oil and Natural Gas Pools and Fields › 23-0501 - Well Permits.

§ 23-0501. Well permits.
1.  a.  This  section  shall not apply to (1) wells drilled, deepened,
plugged back or converted in oil fields or pools which were  discovered,
developed   and  operated  prior  to  January  first,  nineteen  hundred
eighty-one, and (2) wells drilled, deepened, plugged back  or  converted
in  natural  gas  fields  or  pools which were discovered, developed and
operated prior to January first, nineteen hundred ninety-five and  which
are not being extended.
b.  As used in titles five, seven and nine of this article, unless the
context otherwise requires:
(1) "Statewide spacing" means spacing units for gas or oil wells  that
are  within  ten  percent  of the following sizes, as applicable, unless
another percentage is specifically stated:
(i) For Medina gas pools at any depth,  40  acres  with  the  wellbore
within  the  target  formation  no  less  than  460  feet  from any unit
boundary, plus, if applicable, the number of additional acres  necessary
and  sufficient to ensure that any horizontal wellbore within the target
formation is not less than 460 feet from any unit boundary;
(ii) For Onondaga reef or Oriskany gas pools at any depth,  160  acres
with the wellbore within the target formation no less than 660 feet from
any  unit  boundary, plus, if applicable, the number of additional acres
necessary and sufficient to ensure that any horizontal  wellbore  within
the target formation is not less than 660 feet from any unit boundary;
(iii)  For  fault-bounded  Trenton  and/or  Black  River  hydrothermal
dolomite gas pools where the majority of the pool is between  4,000  and
8,000  feet  deep, 320 acres with the proposed productive section of the
wellbore within the target formation no less than one-half mile from any
other well in another unit in the same pool and no less than 1,000  feet
from any unit boundary that is not defined by a field-bounding fault but
in no event less than 660 feet from any unit boundary;
(iv)   For  fault-bounded  Trenton  and/or  Black  River  hydrothermal
dolomite gas pools where the majority of the pool is below  8,000  feet,
within five percent of 640 acres with the proposed productive section of
the  wellbore within the target formation no less than one mile from any
other well in another unit in the same pool and no less than 1,500  feet
from any unit boundary that is not defined by a field-bounding fault but
in no event less than 660 feet from any unit boundary;
(v)  For shale gas pools at any depth, for a vertical well outside any
existing spacing unit for the same formation, 40 acres with the wellbore
within the target  formation  no  less  than  460  feet  from  any  unit
boundary;
(vi)  For  shale gas pools at any depth, for a horizontal well outside
any existing spacing unit for the same  formation  and  with  a  written
commitment  from  the  well  operator  to drill infill wells pursuant to
subdivision 4 of section 23-0503 of  this  title,  with  all  horizontal
infill  wells  in  the  unit to be drilled from a common well pad within
three years of the date the first well in the unit  commences  drilling,
notwithstanding   the   ten   percent   tolerance   specified   in  this
subparagraph, up to 640 acres with the initial  horizontal  wellbore  or
wellbores  within  the  target  formation  approximately centered in the
spacing unit and no wellbore in the target formation less than 330  feet
from any unit boundary;
(vii)  For shale gas pools at any depth, for a horizontal well outside
any existing spacing unit for the same formation and in the absence of a
written commitment from the well operator to drill infill wells pursuant
to subdivision 4 of section 23-0503 of this title,  40  acres  with  the
wellbore within the target formation no less than 330 feet from any unit
boundary plus the number of additional acres necessary and sufficient to

ensure  that  the  wellbore within the target formation is not less than
330 feet from any unit boundary;
(viii) For all other gas pools where the majority of the pool is above
the  depth  of  4,000 feet, 80 acres with the wellbore within the target
formation no less than  460  feet  from  any  unit  boundary,  plus,  if
applicable,  the  number of additional acres necessary and sufficient to
ensure that any horizontal wellbore within the target formation  is  not
less than 460 feet from any unit boundary;
(ix)  For  all other gas pools where the majority of the pool is 4,000
to 6,000 feet deep, 160  acres  with  the  wellbore  within  the  target
formation  no  less  than  660  feet  from  any  unit boundary, plus, if
applicable, the number of additional acres necessary and  sufficient  to
ensure  that  any horizontal wellbore within the target formation is not
less than 660 feet from any unit boundary;
(x) For all other gas pools where the majority of the pool is 6,000 to
8,000 feet deep, 320 acres with the wellbore within the target formation
no less than 1,000 feet from any unit boundary, plus, if applicable, the
number of additional acres necessary and sufficient to ensure  that  any
horizontal  wellbore  within the target formation is not less than 1,000
feet from any unit boundary;
(xi) For all other gas pools where the majority of the pool  is  below
8,000  feet,  within  five percent of 640 acres with the wellbore within
the target formation no less than 1,500 feet  from  any  unit  boundary,
plus,  if  applicable,  the  number  of  additional  acres necessary and
sufficient to ensure that any  horizontal  wellbore  within  the  target
formation is not less than 1,500 feet from any unit boundary;
(xii) For oil pools in the Bass Island, Trenton, Black River, Onondaga
reef or other oil-bearing reefs at any depth, 40 acres with the wellbore
within  the  target  formation  no  less  than  460  feet  from any unit
boundary, plus, if applicable, the number of additional acres  necessary
and  sufficient to ensure that any horizontal wellbore within the target
formation is not less than 460 feet from any unit boundary; and
(xiii) For all other oil pools at any depth, the wellbore  within  the
target formation shall be no less than 165 feet from any lease boundary.
Wells completed under a well permit issued pursuant to clause (xii) or
(xiii)  of  this  subparagraph  that do not produce oil may not commence
production of natural gas prior to  modification  of  the  spacing  unit
pursuant to applicable provisions of this title.
(2) "Well operator" means the applicant for a permit to drill, deepen,
plug  back or convert a well subject to this title and titles 7 and 9 of
this article, or the actual operator of the well  if  the  well  is  not
operated by the original applicant.
(3)  "Permit"  or  "well permit" means a permit to drill, deepen, plug
back or convert a well for production of oil or gas.
2. Every person who applies for a permit to drill an oil or  gas  well
or  deepen  or  plug back a well to a different pool after the effective
date of  this  section,  notwithstanding  prior  orders,  shall  control
through  fee  ownership, voluntary agreement, or integration pursuant to
section 23-0701 or 23-0901 of this article no less than sixty percent of
the acreage within the proposed spacing unit for  such  well  and  shall
provide the department with:
a.  A  map  in  a  format  specified  by  the department depicting the
proposed spacing  unit  for  the  well,  the  surface  and  bottom  hole
locations  of  the  well,  the  location  of  the wellbore in the target
formation, the location of any field-bounding faults within the proposed
spacing unit,  the  acreage  of  the  proposed  spacing  unit,  and  the
boundaries of each tract wholly or partially within the proposed spacing
unit as may be evidenced by tax identification numbers; and
b.  A demonstration that the applicant controls the oil or gas rights,
as applicable, in the target formation to be penetrated by the wellbore,
provided that, if the applicant does not control such oil or gas rights,
the department shall  issue  a  permit  that  is  conditional  upon  the
applicant completing the integration process required by section 23-0901
of  this  article  before the applicant can exercise the right to drill,
deepen, plug back or convert under the permit.
3. (a) No permits shall be issued authorizing an applicant  to  drill,
deepen,  plug  back,  or  convert  wells  that use high-volume hydraulic
fracturing to complete or recomplete natural gas or oil  resources.  For
purposes  of  this  section,  high-volume  hydraulic fracturing shall be
defined as the stimulation of a well using  three  hundred  thousand  or
more gallons of water as the base fluid for hydraulic fracturing for all
stages  in a well completion, regardless of whether the well is vertical
or directional, including horizontal.
(b) There shall be a moratorium on the department  taking  actions  on
applications  filed  after the effective date of the chapter of the laws
of 2020 which added this subdivision to drill,  deepen,  plug  back,  or
convert  wells  that use gelled propane hydraulic fracturing to complete
or  recomplete  natural  gas  or  oil  resources  until  the  department
completes  an  analysis  of  the  potential  impacts  of  gelled propane
fracturing and makes the analysis publicly available. The scope  of  the
department's analysis shall reflect the potential for development of oil
and  gas  wells  using  gelled  propane  hydraulic  fracturing and shall
disclose the potential adverse impacts to the environment. For  purposes
of this section, gelled propane hydraulic fracturing shall be defined as
the  stimulation  of  a well using gelled propane or liquefied petroleum
gas as the base fluid for hydraulic fracturing for all stages in a  well
completion,  regardless  of whether the well is vertical or directional,
including horizontal.
4. In furtherance of  the  policy  objectives  of  this  article,  the
department  shall  take  all actions required by it under this title and
titles 7 and 9 of this article as expeditiously as possible.