Kentucky Administrative Regulations › Title 805 - ENERGY AND ENVIRONMENT CABINET › Chapter 1 - Division of Oil and Gas › Section 805 KAR 1:010 - General information associated with oil and gas permits

Current through Register Vol. 51, No. 1, July 1, 2024
RELATES TO: KRS 349.120 353.550, 353.735-353.747
NECESSITY, FUNCTION, AND CONFORMITY: KRS 353.540 authorizes the
				department to promulgate administrative regulations to administer KRS 353.500
				to 353.720. KRS 353.570 requires a person to obtain a permit prior to drilling,
				deepening, or reopening a well. KRS 353.590 requires a bond be posted with a
				permit application. KRS 349.040 requires a person to obtain a permit prior to
				drilling, deepening, converting, or reopening a well. KRS 349.120 requires a
				bond be posted with a permit application for coalbed methane wells. KRS 353.745
				authorizes the Division of Oil and Gas to charge a fee, not to exceed fifty
				(50) dollars, to provide funds to meet the requirements of KRS 353.735 to
				353.747. This administrative regulation provides general information concerning
				the submittal of permit application, bond submittal, directional and
				inclination surveys, and establishes the fee and details to whom the fee
				applies and the appropriate time for submittal.
Section 1.
(1) General Permit Application Requirements.
			 A person shall not drill, deepen, or reopen an oil or gas well without first
			 obtaining a permit from the division pursuant to KRS 353.570 or KRS 349.040.
			 Each person who intends to engage in oil and gas operations shall file with the
			 division a complete, accurate, and notarized Application for Permit, Form
			 OG-1.
(2) Application Review.
(a) The Department shall review the
			 Application for Permit, Form OG-1 for administrative and technical completeness
			 and compliance with:
1. 805 KAR Chapter 1 for
			 all wells; and
2. KRS Chapter 353
			 for production wells; or
3. KRS
			 Chapter 349 for coalbed methane wells.
(b) If the application is administratively or
			 technically incomplete, the division shall notify the applicant after review of
			 the application of the deficiencies that render the application
			 incomplete.
(c) The applicant shall
			 submit supplemental information to correct the identified deficiencies within
			 thirty (30) days after notification of the deficiencies.
(d) If, after thirty (30) days, the
			 application is still incomplete, the division may return the incomplete
			 application to the applicant with written notification of the reasons for the
			 determination.
(3)
			 Review of violations.
(a) After the
			 application has been determined to be administratively and technically
			 complete, the division shall perform a compliance review of the application and
			 the applicant pursuant to KRS 353.572. The division shall not approve an
			 application for permit if the application or the applicant is not in complete
			 compliance with KRS 353.572.
(b)
			 During the compliance review, the division shall review the readily available
			 compliance information related to the application and the applicant.
(c) The division shall notify the applicant
			 in writing if the application is not approved.
(4) Final Determination. Once the division
			 determines that the application is administratively and technically complete
			 and has not found compliance violations, a permit authorization shall be
			 issued.
(5) Bonding Requirements.
(a) As part of the permit application
			 required by subsection (1) of this section, the applicant shall submit a bond
			 in an amount required by KRS 353.590(7) for production wells or KRS 349.120 for
			 coalbed methane wells.
(b)
			 Operators that secure a surety bond to satisfy the requirements of this
			 subsection shall comply with the requirements of  805 KAR 1:050.