Authority: IC 14-10-2-4; IC 14-37-3

Affected: IC 14-37

Sec. 6. (a) If, at the time of application, a lease immediately adjacent to a proposed drilling unit owned by a different operator has producing wells completed in the same formation that are located less than the required distance from the external boundary line of the drilling unit as set forth in sections 3 through 5 of this rule, a well on the proposed drilling unit may be located closer to the external boundary line of the drilling unit than is set forth in sections 3 through 5 of this rule, but no closer than the distance of the offsetting well to the common boundary line of the drilling unit.

(b) If, during drilling of a well, the well is lost due to collapsing hole or casing or other conditions that render continued drilling impracticable, the permittee may terminate drilling and move the rig up to thirty (30) feet from the permitted location and commence drilling operations provided:

1. (1) notification of moving the rig is provided to the oil and gas inspector within ten (10) days;
2. (2) the original lost hole is plugged according to 312 IAC 29-33; and
3. (3) a new application and fee are submitted within ten (10) days showing the new location of the well.

(Natural Resources Commission; 312 IAC 29-13-6; filed Dec 1, 2017, 10:35 a.m.: 20171227-IR-312160230FRA; readopted filed Jan 17, 2023, 1:53 p.m.: 20230215-IR-312220328RFA)