Ala. Admin. Code r. 400-3-2-.02

Current through Register Vol. 43, No. 1, October 31, 2024

Section 400-3-2-.02 - Spacing Of Wells

(1) Each well drilled in search of oil or gas shall be spaced on either (a) a drilling unit or (b) a drainage or production unit. A drilling unit is an administrative unit established by the Board to provide and allow for the drilling of a well. A drainage or production unit is the area in a pool that may be drained efficiently and economically by one well. Prior to the establishment of a field and the establishment of drainage or production units within the field, an operator may drill a well on a drilling unit. When the Board, after notice and hearing, establishes a field for a pool, special field rules apply for that field. The special field rules designate, among other things, the drainage or production units for the field. Thereafter, wells are drilled on the drainage or production units designated in the special field rules. The term "spacing unit" is used from time to time in these regulations. A spacing unit is either (a) a drilling unit or (b) a drainage or production unit. For simplicity, the term "production unit" is hereinafter used from time to time in place of the longer term "drainage and production unit." A spacing unit shall not include any part of another unit established for the same pool.

(2) The spacing for a well to be drilled to a pool or pools in an established field shall be governed by special field rules for that particular field. The spacing for gob wells and horizontal boreholes in areas designated as underground mine areas or in unitized areas shall be provided for in special field rules. With respect to a well to be drilled to a pool or pools that are not governed by special field rules, the following shall be applicable for determining the drilling unit for a well.

(a) A well shall be drilled on a drilling unit consisting of a governmental quarter-quarter section (approximately 40 acres). Such well shall be located at least three hundred thirty (330) feet from every exterior boundary of the drilling unit.

(b) The Supervisor, upon receipt of written justification from an operator, may approve a permit application under section (2)(a) for a well to be drilled on a drilling unit consisting of approximately 40 contiguous surface acres other than a governmental quarter-quarter section as set forth herein.

(c) The Supervisor may require that a well to be drilled on a drilling unit contiguous with an existing field be drilled and completed as an extension of the field, in accordance with field spacing provisions in the special field rules thereof. If, however, an operator provides written justification that such proposed well will likely be completed in a pool or pools not defined in the special field rules for said field, the Supervisor may approve the drilling and completion of such well in compliance with the spacing provisions as set forth herein.

(d) Pursuant to Section 9-17-12(c) of the Code of Ala. 1975, the Board may grant an exception to the spacing rules as may be reasonably necessary where it is shown, after notice and hearing, and the Board finds, that the unit is partly outside the pool, or for some other reason, that a well located in accordance with applicable rules would be nonproductive, would not be at the optimum position in such spacing unit for the most efficient and economic drainage of the unit, or where topographical conditions are such as to make the drilling at an authorized location on the unit unduly burdensome or where an exception is necessary to prevent confiscation of property. Provided, however, that an exceptional location order issued by the Board for a well shall expire one (1) year from the date of issuance of the order unless a well has been spudded at said exceptional location.

(e) No well shall be drilled within two hundred (200) feet of any permanent residence, unless otherwise approved by the Board.

(3) If any well drilled in conformity with the provisions of section (2) above, or in conformity with the special field rules for a particular field is completed as other than a coalbed methane gas well, said well shall not be produced other than on a test basis until authorization has been granted by the Board after notice and hearing. This rule shall not apply to vent holes drilled for safety purposes in conjunction with coal mining operations.

Ala. Admin. Code r. 400-3-2-.02

Filed August 7, 1984. Repealed and New Rule: Filed April 11, 2000; effective May 16, 2000. Amended: Filed July 6, 2010; effective August 10, 2010.

See history note at end of chapter.

Author: Marvin Rogers

Statutory Authority:Code of Ala. 1975, §§ 9-17-1, etseq.