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

Affected: IC 14-37

Sec. 7. (a) If an area larger than a drilling unit as specified in sections 3 through 5 of this rule is under common ownership or control, the division director may approve the drilling of wells at a greater density than would otherwise be permissible under this rule provided the operator demonstrates the following:

1. (1) The proposed drilling pattern within the area of common ownership or control is reasonably necessary for more efficient recovery of oil, gas, or coal bed methane.
2. (2) Waste will not occur.
3. (3) Unnecessary wells will not be drilled.
4. (4) The wells maintain the required distance from the nearest external drilling unit boundary line not under common ownership or control as specified in sections 3 through 5 of this rule.
5. (5) The wells maintain the required distance from other wells on adjacent drilling units outside the area of common ownership or control producing from the same formation.

(b) Any person with an interest in oil or gas in a lease or drilling unit, including a pool-wide unit, may petition the division director for the establishment of alternative drilling units not otherwise provided in subsection (a) based on geologic or engineering characteristics of the reservoir relative to the land survey system specified for standard drilling units under sections 3 through 5 of this rule. The petition shall include:

1. (1) the name and address of the petitioner and all owners of record of oil and gas interests within the petition area;
2. (2) the name and address of each permittee of record of active wells located in and within one-fourth (1/4) mile of the boundary of the petition area;
3. (3) the geologic or engineering basis for requesting the alternative drilling unit;
4. (4) an isopach and structure map of the reservoir showing the productive limits of the reservoir;
5. (5) a legal land description of the drilling unit sought; and

6. (6) a demonstration that the alternate drilling unit will not result in:

   1. (A) waste;
   2. (B) unreasonable drainage of oil, gas, or coal bed methane from adjacent drilling units; or
   3. (C) the drilling of unnecessary wells.

(c) Upon acceptance of a complete petition under subsection (b), the division director shall schedule an informal hearing under 312 IAC 29-3-4 to consider the request.

(Natural Resources Commission; 312 IAC 29-13-7; filed Dec 1, 2017, 10:35 a.m.: 20171227-IR-312160230FRA; readopted filed Jan 17, 2023, 1:53 p.m.: 20230215-IR- 312220328RFA)