THEODORE R. MCKELDIN, GOVERNOR 1145

blowouts and fires; (d) the furnishing of a reasonable bond
with good and sufficient surety, conditioned for the per-
formance of the duty to plug each dry or abandoned well
in accordance with the procedure approved by the Depart-
ment; (e) the operation of wells with efficient gas-oil and
water-oil ratios, and to fix these ratios; (f) that every
person who produces oil or gas in this State shall keep and
maintain complete and accurate records of the quantities
thereof, which records shall be available for examination
by the Department or its agents at all reasonable times,
and that every such person file with the Department such
reports as it may prescribe with respect to such produc-
tion of oil or gas.

(2) To regulate, for the purpose of eliminating waste of
oil and gas for the protection of the correlative rights of
all owners of oil and gas; (a) the drilling, spacing, and
plugging of wells; (b) operations to increase ultimate
recovery of oil wells by accepted and approved secondary
recovery methods; and (c) disposal of salt water and oil
field wastes.

(3) To classify wells as oil or gas wells for the purposes
material to the interpretation or enforcement of this sub-
title.

(4) To promulgate and to enforce rules, regulations,
and orders to effectuate the purposes and the intent of this
sub-title.

45D. It shall be unlawful to commence operations for
the drilling of a well for oil or gas without first obtaining
a permit from the Department as prescribed in Article 66C
of the Annotated Code of Maryland (1951 Edition), Sec-
tions 682 to 702. It shall also be unlawful for any person
or persons to purchase or dispose of any product of any
oil or gas well drilled without said permit having been
issued by the Department as herein provided.

45E. (a) When necessary to prevent waste or to pro-
tect correlative rights of the owners of the oil and gas,
the Department shall establish spacing units and a well
spacing plan for a pool, except in those pools which, prior
to the effective date of this sub-title, have been developed
to such an extent that it would be impracticable or unrea-
sonable to establish spacing units at the existing stage of
development. Spacing units when established shall desig-
nate the minimum number of acres of contiguous adjoining
or adjacent property required by the Department to qualify
for a spacing unit in the pool, except that when found to