Current through Register Vol. XLI, No. 50, December 13, 2024
Section 39-1-6 - Special Field Rules6.1. Any operator intending to apply for special field rules, shall, along with the application which shall show applicant's name and address and describe the area for which a spacing order is requested, send a notice of a prehearing conference to the Commission and the operators of any lands directly or immediately affected by the proposal. The prehearing notice shall include a list of the names and addresses of all operators to whom it was sent, a statement that a diligent effort has been made to determine to whom the notice must be sent, a statement that opponents to the application must file written notice with the Commission within ten (10) days or the conference will not be held, and the evidence required in Section 6.2. The Commission shall set a day, time and place for the prehearing conference to be not less than twenty (20) days following the date of the prehearing notice. If no written opposition to the application is received by the Commission within the ten (10) days after the date of the prehearing notice, the Commission will advise all persons to whom the prehearing notice was sent that a conference will not be held. If any operator relates in writing to the Commission opposition to the applicant's proposal, within ten (10) days, a conference will be held. Any operator may attend and participate in the conference even though he did not request it. Opponents to the application shall present evidence, as required of an applicant in this section, indicating where there is disagreement with the applicant, sufficient to permit all operators to attempt to resolve the difference.6.1.1. The Commission shall assign the application a cause number and enter the proceeding along with its date of filing on a separate page of the docket. Notice of the docket and the time and place of the hearing shall be in accordance with the provisions of the statute. Hearing shall be not less than twenty (20) days and not more than forty-five (45) days after receipt of the application except under emergency hearing rules as defined herein.6.1.2. Any person desiring to protest the granting of the application, shall, at least five (5) days prior to the date of the hearing, file a statement of opposition and a counter plan with the Commission and all operators of lands directly and immediately affected and state briefly the issues.6.2. The Commission, in all proceedings relating to the determination of special field rules for the conservation of oil and gas in the State of West Virginia, shall, in addition to the provisions of W. Va. Code § 22C-9-10, require evidence from an applicant as follows: 6.2.1. A topographic map at a scale of 1 inch equal to 2,000 feet with an outline of the area for which special field rules are requested;6.2.2. Known lease ownership of the area for which special field rules are requested by plat at a scale of 1 inch equal to 2,000 feet and/or a tabulation of such ownership;6.2.3. Geological mapping, records and testimony relevant to the area to be spaced;6.2.4. Reservoir data anticipated for an average proposed drilling unit within the spaced area; and6.2.5. A comparative economic evaluation of spacing patterns based on estimated production and rate of production of oil and/or gas of the average proposed drilling unit within the spaced area.6.3. The applicant will open the hearing and present the testimony and exhibits offered in support of the application. The applicant's witnesses will be subject to cross-examination by the Commission or any interested parties. The Commission shall determine the order of the appearances of the other participants in the hearing. Each interested party affected by the application who has complied with the requirements of this section, may present testimony and exhibits in support of or in opposition to the applicant's proposals. The applicant or interested parties may request to enter as evidence information of a proprietary nature. Proprietary information is defined as information that is not readily available in the public domain. If objections arise concerning the proprietary nature of evidence, the Commission may hear arguments with regard to the validity of the request and rule prior to the submission of evidence. If the evidence is found to be of a proprietary nature the Commission will issue a protective order restricting the use of that evidence to the hearing and in deliberations of the Commission. A copy of all proprietary evidence shall be sealed and held by the Commission. All other copies utilized in the hearing shall be returned to the submitting parties. All witnesses shall be subject to cross-examination as previously set forth. 6.3.1. The applicant may offer rebuttal testimony and exhibits, but the witnesses will again be subject to cross-examination. Rebuttal testimony and exhibits and subsequent testimony and exhibits may be permitted at the discretion of the Commission.6.3.2. Closing statements and statements of position may be made by the participants and all other interested persons before the hearing is closed or at such time as designated by the Commission. No order shall be made which is not supported by competent legal evidence.6.3.3. The Commission shall enter a spacing order or dismiss the application therefore within forty-five (45) days after the application for a spacing order has been filed.6.4. In the absence of special field rules and in order to protect correlative rights, an operator may apply to the Commission for the pooling of interests and the formation of a drilling unit. A drilling unit may be established prior to or after completion of a deep well. The interests shall be pooled according to W. Va. Code § 22C-9-7(b). The applicant shall adhere to the notice and prehearing conference provisions as provided for in subsection 6.1 of this rule. With regard to reservoir characteristics and well spacing, the applicant shall meet evidence requirements set out in W. Va. Code § 22C-9-7(a). After notice and hearing the Commission may enter an order pooling the interests of the effected parties. If, subsequent to an order being entered pooling the interests of the effected parties, additional information is obtained warranting a different drainage area, the pooling order may be revised at the request of an interested party. The pooling order may be revised only after notice and hearing as set forth above.6.5. Upon receipt by the commission of a request for pooling or special field rules the commission may issue an order requiring the operator of a well or wells in question to establish an interest-bearing escrow account for the deposit of proceeds attributable to conflicting working interests and/or royalty interests where a conflict exists as to ownership or where ownership cannot be determined. The pooling order shall require the operator to submit a monthly report to the commission detailing the funds deposited in the escrow account. The order shall require the operator to obtain approval from the commission for the release or disbursement of funds from the escrow account. The order is subject to the appeal provisions of § 22C-9-11. After the time frame for an appeal has expired, the operator shall seek approval from the commission to release those funds required to be disbursed.