Authority: IC 14-37-3

Affected: IC 14-34; IC 14-37

Sec. 3. (a) This section establishes requirements for the locating and permitting of wells for oil and gas purposes in areas underlain by commercially minable coal resources identified under this rule.

(b) For purposes of this section, "waste of the volume of coal" means locating, spacing, drilling, equipping, operating, or producing a well for oil and gas purposes that unreasonably reduces or tends to unreasonably reduce the quantity of commercially minable coal resources ultimately to be recovered from a mine.

(c) Unless the coal owner or coal lessee authorized the drilling of a coal bed methane well, the division of reclamation may require an owner or operator to make reasonable modifications to the specific location for the drilling of a well for oil and gas purposes if a finding is made that the modifications:

1. (1) are necessary to protect commercially minable coal resources from waste;
2. (2) do not violate the drilling unit, well spacing, or other requirements of IC 14-37; and
3. (3) are necessary to protect the health and safety of miners.

(d) Before submitting an application for a well for oil and gas purposes to the division of reclamation, the applicant should determine whether the proposed well location is underlain by any of the following commercially minable coal resources:

1. (1) A coal seam on land within the permit boundary of an active underground mine permitted under IC 14-34 as described in section 1(a)(1) of this rule.
2. (2) A coal seam on land within the permit boundary of an inactive underground mine permitted under IC 14-34 as described in section 1(a)(2) of this rule.
3. (3) A coal seam associated with a mine permitted under subdivision (1) or (2) that is projected to be mined and identified as required under section 1(c)(1)(E) of this rule.

(e) The owner or operator of a well proposed to be drilled on lands identified under subsection (d) must provide notice of the intent to drill a well:

1. (1) to the permittee of the mine; or
2. (2) for an inactive mine, to the person with the right to develop the coal resource.

(f) The notice required under subsection (e) is not required if the permittee of the mine consents in writing to the placement of the well.

(g) The notice required under subsection (e) must follow a format prescribed by the division of reclamation and must be accompanied by a plat showing the specific location of the proposed well.

(h) The permittee of the mine or other person with the right to develop the coal resource must respond within fifteen (15) days of receipt of the notice whether the specific location for the drilling of the well is likely to result in either or both of the following:

1. (1) A significant waste of the volume of coal ultimately to be recovered from the underground mine.
2. (2) Endangerment of the health and safety of miners.

(i) A person that makes an affirmative determination under subsection (h) with respect to waste of the volume of coal or the endangerment of the health and safety of miners must:

1. (1) promptly provide a copy of the determination to the owner or operator of the proposed well and to the division of reclamation; and

2. (2) identify alternative well locations that would:

   1. (A) reduce or avoid waste of the volume of coal ultimately to be recovered from the underground mine;
   2. (B) eliminate the likelihood of endangerment of the health and safety of miners;
   3. (C) not violate the drilling unit, well spacing, or other requirements of IC 14-37 or this article; and
   4. (D) not result in waste of oil and gas resources.

(j) If the permittee (or other owner of the right to mine the coal resource) fails to respond within the specified fifteen (15) day period provided under subsection (h), the owner or operator may file a permit application for the specified location.

(k) If the permittee (or other owner of the right to mine the coal resource) and the owner or operator of the proposed well agree on a suitable alternate location, the owner or operator may file a permit application for the specified alternate location.

(l) If the permittee (or other owner of the right to mine the coal resource) and the owner or operator of the proposed well are unable to agree on a suitable location for the well, which is not likely to result in endangerment of the health and safety of miners, any of them may request an informal hearing under 312 IAC 29-3-4.

(m) Within thirty (30) days after receipt of a request for an informal hearing, the division director must conduct the informal hearing for the purposes of gathering the following information:

1. (1) Whether the proposed well location is in an active, inactive, abandoned, or projected underground coal mine permit area.
2. (2) Whether the proposed well location is in an unsealed inactive area or a sealed area of an active coal mine with the potential for the drilling of the well to introduce oxygen into the area.
3. (3) The proximity and size of coal pillars in an alternate location that might be drilled through, including whether the alternate location is in a panel or in a support for a submain or main entries.
4. (4) The equipment technology, operating, and drilling experience history of the owner or operator.

(n) Within fifteen (15) days after the conclusion of the informal hearing and the submittal of any follow-up information that the division director requests from the participants, the division director shall determine whether:

1. (1) a suitable alternate well location can be identified that is not likely to result in endangerment of the health and safety of miners; and
2. (2) the location for the well for which notice was provided under subsection (e) is not likely to result in endangerment of the health and safety of miners.

(o) If after the informal hearing the division director:

1. (1) is unable to identify a suitable alternate location for the well that is not likely to result in endangerment of the health and safety of miners; and
2. (2) determines the location for the well for which notice was provided under subsection (e) is not likely to result in endangerment of the health and safety of miners;

the owner or operator is not required to modify the location of the proposed well and may submit a permit application to the division of reclamation for processing under IC 14-37 and this article.

(Natural Resources Commission; 312 IAC 29-17-3; filed Dec 1, 2017, 10:35 a.m.: 20171227-IR-312160230FRA; readopted filed Jan 17, 2023, 1:53 p.m.: 20230215-IR-312220328RFA; errata filed Mar 18, 2026, 9:59 a.m.: 20260325-IR-312260094ACA)