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

Affected: IC 4-21.5; IC 14-37

Sec. 2. (a) An applicant for a permit for a well for oil and gas purposes proposed to be drilled in or within one-half (1/2) mile of an underground gas storage or underground petroleum storage reservoir identified under section 1 of this rule must provide notice of the intent to drill a well to the owner or operator of the underground storage reservoir. The notice shall include a plat showing the location of the proposed well and a plan depicting the proposed construction of the well including hole and casing sizes and cementing plans.

(b) The notice required under subsection (a) is not required if the owner or operator of the underground gas or petroleum storage reservoir consents in writing to the drilling of the well.

(c) An owner or operator of the underground gas or petroleum storage reservoir who objects to the issuance of the permit must respond within fifteen (15) days of receipt of notice identifying:

1. (1) the basis for the objection;
2. (2) the anticipated adverse effect of the proposed well upon the underground gas or petroleum storage reservoir; and
3. (3) those measures, if any, that the applicant for the permit for a well for oil and gas purposes may take to reduce the adverse impact upon the underground gas or petroleum storage reservoir.

(d) If an objection is not filed under subsection (c), the application for a permit for a well for oil and gas purposes shall be approved upon finding that the application meets the applicable requirements under IC 14-37 and this article.

(e) If an objection is filed under subsection (c) the application will be determined as follows:

1. (1) If the applicant and the owner or operator of the underground gas or petroleum storage reservoir agree on an alternative well location or alternative well construction requirements and the application meets the applicable requirements under IC 14-37 and this article, the application shall be approved.
2. (2) If the applicant and the owner or operator of the underground gas or petroleum storage reservoir do not agree on an alternative well location or alternative well construction requirements the division director shall conduct an informal hearing under 312 IAC 29-3-4 and make a determination with respect to the permit application and any protective measures that may be necessary to prevent waste and adverse effects upon the underground gas or petroleum storage reservoir.

(f) A determination under this section is subject to IC 4-21.5.

(Natural Resources Commission; 312 IAC 29-18-2; filed Dec 1, 2017, 10:35 a.m.: 20171227-IR-312160230FRA; readopted filed Jan 17, 2023, 1:53 p.m.: 20230215-IR-312220328RFA)