Alabama Administrative Code › Title 400 - STATE OIL AND GAS BOARD OF ALABAMA › GOVERNING ONSHORE LANDS OPERATIONS › Chapter 400-1-2 - PERMITTING OF WELLS › Section 400-1-2-.02 - Spacing Of Wells

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Each well drilled
				in search of oil or gas shall be spaced on either (a) a drilling unit or (b) a
				drainage or production unit. A drilling unit is an administrative unit
				established by the Board to provide and allow for the drilling of a well. A
				drainage or production unit is the area in a pool that may be drained
				efficiently and economically by one well. The term "production unit" is
				hereinafter used from time to time in place of the term "drainage or production
				unit." Prior to the establishment of a field and the establishment of
				production units within the field, an operator may drill a well on a drilling
				unit. When the Board, after notice and hearing, establishes a field for a pool,
				the Board establishes special field rules for the field. The special field
				rules designate, among other things, the drainage or production units for the
				field. Thereafter, wells are drilled on the production units designated in the
				special field rules. The term "spacing unit" is used from time to time in these
				regulations. A spacing unit is either (a) a drilling unit or (b) a drainage or
				production unit. A spacing unit shall not include any part of another unit
				established for the same pool. Subject to the approval of the Supervisor, the
				drilling of additional wells to a pool may continue prior to the establishment
				of special field rules for the pool.
(2) The spacing for a well to be drilled to a
				pool or pools in an established field shall be governed by special field rules
				for that particular field. With respect to a well to be drilled to a pool or
				pools that are not governed by special field rules, the following spacing
				provisions shall be applicable for determining the drilling unit for a well.
(a) A well may be drilled on a drilling unit
				consisting of a governmental quarter-quarter section (approximately 40 acres).
				Such well shall be located at least three hundred thirty (330) feet from every
				exterior boundary of the drilling unit.
(b) A well may be drilled on a drilling unit
				consisting of a governmental quarter section (approximately 160 acres). The
				Supervisor may require written justification for the drilling unit. Such well
				shall be located at least six hundred sixty (660) feet from every exterior
				boundary of the drilling unit.
(c)
				A well to be drilled in search of gas in the Counties of Fayette, Lamar,
				Pickens, or Tuscaloosa may be drilled on a drilling unit consisting of a
				governmental half section (approximately 320 acres) . Such well shall be
				located at least six hundred sixty (660) feet from every exterior boundary of
				the drilling unit. The operator shall designate on the permit application an
				alternate forty (40) acre drilling unit, and the well shall be located at least
				three hundred thirty (330) feet from every exterior boundary of the alternate
				unit. In the event that the well location on the alternate unit is less than
				three hundred thirty ($330) feet from every exterior boundary of the alternate
				unit and is, therefore, an exceptional location, the Supervisor may allow the
				exceptional well location. If said well is completed as an oil well, then the
				spacing for the well shall automatically revert to the designated alternate
				forty (40) acre drilling unit until the proper spacing for said well is
				determined by the Board after notice and hearing.
(d) A well to be drilled in search of gas in
				the Counties of Baldwin, Escambia, Mobile, or Washington may be drilled on a
				drilling unit consisting of a governmental section (approximately 640 acres).
				The Supervisor may require written justification for the drilling unit. Such
				well shall be located at least one thousand three hundred twenty (1,320) feet
				from every exterior boundary of the drilling unit. The operator shall designate
				on the permit application an alternate one hundred sixty (160) acre drilling
				unit, and the well shall be located at least six hundred sixty (660) feet from
				every exterior boundary of the alternate unit. In the event that the well
				location on the alternate unit is less than six hundred sixty ($660) feet from
				every exterior boundary of the alternate unit, and is, therefore, an
				exceptional location, the Supervisor may allow the exceptional well location.
				If said well is completed as an oil well, then the spacing for the well shall
				automatically revert to the designated alternate one hundred sixty (160) acre
				drilling unit until the proper spacing for said well is determined by the Board
				after notice and hearing.
(e) The
				Supervisor, upon receipt of written justification from an operator, may approve
				a permit application under sections (2)(a) through (2)(d) above for a well to
				be drilled on a drilling unit consisting of approximately 40, 160, 320, or 640
				contiguous surface acres other than a governmental section or division thereof
				as set forth herein.
(f) The
				Supervisor may require that a well to be drilled on a drilling unit contiguous
				with an existing field be drilled and completed as an extension of the field,
				in accordance with spacing provisions in the special field rules thereof. If,
				however, an operator provides written justification that such proposed well
				will likely be completed in a pool or pools not defined in the special field
				rules for said field, the Supervisor may approve the drilling and completion of
				such well in compliance with the spacing provisions as set forth
				herein.
(g) Pursuant to Section
				9-17-12 (c) of the
Code of Alabama
(1975), the Board may
				grant an exception to the spacing rules as may be reasonably necessary where it
				is shown, after notice and hearing, and the Board finds, that the spacing unit
				is partly outside the pool, or for some other reason, that a well located in
				accordance with applicable rules would be nonproductive, would not be at the
				optimum position in such spacing unit for the most efficient and economic
				drainage of the spacing unit, or where topographical conditions are such as to
				make the drilling at an authorized location on the spacing unit unduly
				burdensome or where an exception is necessary to prevent confiscation of
				property. Provided, however, that an exceptional location order issued by the
				Board for a well shall expire one (1) year from the date of issuance of the
				order unless a well has been spudded at said exceptional location.
(h) No well shall be drilled within two
				hundred (200) feet of any permanent residence, unless otherwise approved by the
				Board.