Md. Code Regs. 26.19.01.09

Current through Register Vol. 51, No. 19, September 20, 2024

Section 26.19.01.09 - Criteria for Approval of Drilling and Operating Permit

A. The Department may not issue a drilling and operating permit for drilling in the waters or tributaries of the Chesapeake Bay.

B. The Department may not issue a drilling and operating permit to drill in the Chesapeake Bay Critical Area unless the applicant has obtained written approval from the Critical Area Commission.

C. Except as provided in §D of this regulation, the Department may not issue a permit to drill a well closer than 1,000 feet to the boundary of any property adjoining the tract on which the well is situated except by written agreement with the landowners and royalty owners of that property.

D. The Department may issue a permit to drill a well closer than 1,000 feet to a well site tract boundary or pooled unit boundary if:

(1) The Department determines that a well location at a distance less than 1,000 feet to adjacent lands is necessary due to site constraints; and

(2) The applicant has notified all landowners and royalty owners within 2,000 feet of the proposed well by registered mail, return receipt requested, of the location of the proposed well.

E. The Department may not issue a permit to drill and complete a gas well closer than 2,000 feet to an existing gas well in the same reservoir unless the Department is provided with credible geologic evidence of reservoir separation to warrant granting a spacing exception.

F. The Department may not issue a permit to drill and complete an oil well closer than 1,320 feet to an existing oil well in the same reservoir unless the Department is provided with credible geologic evidence of reservoir separation to warrant granting a spacing exception.

G. The Department may not issue a drilling and operating permit if the well location is closer than 1,000 feet to a school, church, drinking water supply, wellhead protection area, or an occupied dwelling unless written permission of the owners is submitted with the application and approved by the Department.

H. The Department may deny a drilling and operating permit if the Department determines that the proposed drilling or well operation poses a substantial threat to public safety or a risk of environmental damage particularly to:

(1) The Chesapeake Bay Critical Area;

(2) Tidal or nontidal wetlands;

(3) Endangered or threatened species, or species in need of conservation or their habitat;

(4) Historic properties as provided for in Article 83B, §5-618, Annotated Code of Maryland; or

(5) Populated areas.

I. The Department may issue a permit for directional drilling when:

(1) It is necessary to protect specific features including:

(a) A water body;

(b) Chesapeake Bay Critical Area;

(c) A park;

(d) A building;

(e) A highway, or other developed or natural features; or

(2) Required for proper geologic evaluation.

J. The Department may not issue a drilling and operating permit when the proposed drilling or well operation would result in physical and preventable loss of oil and gas through inefficient or careless operating practices, such as:

(1) Operating or producing any oil or gas well in a manner that would result in a reduction of the ultimate quantity of oil or gas to be recovered from a pool;

(2) Inefficient storing or improper handling of oil causing excessive evaporative loss, spillage on the surface, or leakage into the subsurface;

(3) Producing oil or gas in a manner causing unnecessary water channeling or coning;

(4) Permitting gas produced from a gas well to escape into the air;

(5) Flaring of gas from a well producing both oil and gas; or

(6) Creating fire hazards.

K. The Department may issue a permit limited to exploration for operations determined to be a wildcat well and may deny production until additional data is submitted and approved including:

(1) An impact analysis of production operations to the surrounding area;

(2) A waste disposal plan; and

(3) A transportation plan for the produced product.

Md. Code Regs. 26.19.01.09

Regulation .09K amended effective February 15, 1993 (20:3 Md. R. 258)