1. (a)

   1. (1) An application for the purpose of establishing field rules, and well spacing and drilling units for a new reservoir or pool, except within the covered lands specified in 15 CAR § 275-230 or 15 CAR § 275-231, shall be submitted, in accordance with 15 CAR §§ 275-101 and 275-102, and applicable hearing procedures, to the Oil and Gas Commission within six (6) months after the initial completion of the discovery well in a pool or reservoir or after the drilling of three (3) wells, whichever occurs first.
   2. (2) Prior to receipt of an application, no further permits to drill more than three (3) wells in the same source of supply in the exploratory area as defined by the Director of Production and Conservation shall be issued.

2. (b)

   1. (1) Upon receipt by the commission of an application for public hearing to establish field rules, well spacing, and drilling units for a reservoir, additional permits beyond the initial three (3) wells may be issued to that reservoir or pool, provided the well permit applications comply with the drilling unit size and well location provision as contained in the application.
   2. (2) Permits may continue to be issued until a hearing is held and a decision rendered.
3. (c) The commission may, after notice and hearing in accordance with 15 CAR §§ 275-101 and 275-102 and other applicable hearing procedures, grant exceptions to this section, provided such exceptions will create neither waste nor hazards conducive to waste.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Source: 1992 rule book; amended September 16, 2006; amended August 17, 2008)"