MARVIN MANDEL, Governor                                      849

(3)   NOTIFY THE DEPARTMENT WHEN A WELL IS ABOUT
TO BE ABANDONED;

(4)    SEAL AND PLUG THE HELL IN A MANNER APPROVED
BY THE DEPARTMENT; AND

(5)   POST A PERFORMANCE BOND TO THE STATE IN THE
AMOUNT OF $2,500 WITH GOOD AND SUFFICIENT SURETY,
CONDITIONED UPON COMPLIANCE WITH THE PROVISIONS OF
THIS SUBTITLE.

REVISOR'S NOTE: This section presently appears
as Article 66C, section 678 (a) through (d)
inclusive, of the Code. The only changes
made are in style.

6-106. LOCATION OF WELLS.

(A) DISTANCE FROM PROPERTY BOUNDARY - GENERAL
RULES.—A WELL FOR THE PRODUCTION OF GAS OR OIL MAY
NOT BE DRILLED ON ANY PROPERTY NEARER THAN 1,000 FEET
TO THE BOUNDARY OF THE PROPERTY EXCEPT BY AGREEMENT
WITH THE OWNERS OF THE GAS AND OIL ON ADJACENT LANDS.

REVISOR'S NOTE: This subsection presently appears
as the first sentence of Article 66C,
section 679 (a) of the Code. The only
changes made are in style.

(E) EXCEPTIONS.—ON PROPERTY ON WHICH IT IS
IMPOSSIBLE TO LOCATE A WELL THE REQUIRED DISTANCE FROM
THE BOUNDARY, AND WHERE NO AGREEMENT WITH THE OWNERS
OF THE GAS AND OIL ON ADJACENT LANDS HAS BEEN MADE, A
WELL MAY BE LOCATED NEARER THAN 1,000 FEET TO THE
BOUNDARY WITH THE CONSENT OF THE DEPARTMENT. HOWEVER,
WHEN ANY PERMIT TO DRILL A WEIL NEARER THAN 1,000 FEET
TO THE BOUNDARY HAS BEEN APPLIED FOR, THE DEPARTMENT
SHALL NOTIFY EVERY LANDOWNER, ROYALTY OWNER, OR
LEASEHOLDER WITHIN 1,000 FEET OF THE LOCATION OF THE
PROPOSED WELL, GIVING THEM A REASONABLE OPPORTUNITY TO
FILE OBJECTIONS TO THE ISSUANCE OF THE PERMIT. THE
DEPARTMENT THEN SHALL HOLD A HEARING. IF THE
DEPARTMENT DETERMINES THAT IT IS NECESSARY FOR THE
WELL TO BE LOCATED NEARER THAN 1,000 FEET TO THE
BOUNDARY, IT MAY ISSUE THE PERMIT. IF A PERMIT IS
ISSUED, ANY LANDOWNER, ROYALTY OWNER, OR LEASEHOLDER
WITHIN 1,000 FEET OF THE PROPOSED WELL HAS THE RIGHT
TO A REHEARING AND APPEAL TO THE COURTS PROVIDED IN
THIS SUBTITLE. A REQUEST FOR A REHEARING OR AN APPEAL