WILLIAM DONALD SCHAEFER, Governor Ch. 777
(C) A HOLDER OF A PERMIT TO DRILL FOR GAS OR OIL MAY:

(1)  POST THE PERFORMANCE BOND UNDER SUBSECTION (A)(5)
OF THIS SECTION IN:

(I)  CASH;

(II)  CERTIFICATES OF DEPOSIT;

(III)  LETTERS OF CREDIT FROM ANY BANK OR OTHER
SAVINGS INSTITUTION; OR

(IV)  ANY OTHER GOOD AND SUFFICIENT SECURITY;
AND

(2)  PROVIDE FOR THEIR OWN LIABILITY INSURANCE UNDER
SUBSECTION (A)(6) OF THIS SECTION.

6-106.

(a)  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.

(b)  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 well 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 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.

6-107.

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

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