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S.B. 881
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VETOES
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14-112.
(a) (1) [A] EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION,
A well for the production or underground storage 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.
(2) A WELL FOR THE PRODUCTION OF COALBED METHANE MAY NOT BE
DRILLED ON ANY PROPERTY NEARER THAN 500 FEET TO THE BOUNDARY OF THE
PROPERTY EXCEPT BY AGREEMENT WITH THE OWNERS OF THE GAS AND OIL
COALBED METHANE ON ADJACENT LANDS.
(b) On property on which it is impossible to locate a well the required
MINIMUM distance from the boundary, and where no agreement with the owners of
the gas and oil OR COALBED METHANE on adjacent lands has been made, a well may
be located nearer than [1,000 feet] THE REQUIRED MINIMUM DISTANCE UNDER
SUBSECTION (A) OF THIS SECTION to the boundary with the consent of the
Department. However, when any permit to drill a well nearer than [1,000 feet] THE
REQUIRED MINIMUM DISTANCE to the boundary has been applied for, the
Department shall notify every landowner, royalty owner, or leaseholder within [1,000
feet] THE REQUIRED MINIMUM DISTANCE 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] THE REQUIRED
MINIMUM DISTANCE to the boundary, it may issue the permit. If a permit is issued,
any landowner, royalty owner, or leaseholder within [1,000 feet] THE REQUIRED
MINIMUM DISTANCE 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 to the
courts stays the authority granted under the permit until final determination of the
issued permit is made.
(c) The Department, by rule or regulation, shall prescribe the distance
between any two wells on any property.
14-113.
On completion of a well producing gas or oil on any leased lands included under
a unit operation agreement, royalties from the producing well shall be paid on all
lands originally included within the unit operation agreement. Within six months
after the completion of the producing well, the lands within the unit operation
agreement not included as "in pool" acreage and on which no royalties are payable,
shall be released, UNLESS THE OWNER OF THE LANDS HAS OTHERWISE AGREED IN
WRITING. This section does not extend to any leases and unit operation agreements in
effect on June 1, 1956.
14-121.
(A) THE DEPARTMENT MAY MAKE INSPECTIONS AS IT DETERMINES
NECESSARY TO ENSURE COMPLIANCE WITH THIS SUBTITLE.
- 3406 -
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