Section R. 324.301 - Drilling unit; well location; exceptionsRule 301.
(1) The following provisions specify requirements for the location and spacing of wells to be drilled for oil or gas, or for wells for oil and gas where a change of well status or stimulation of the well will result in changes to the producing interval, except for injection wells and wells to be drilled in gas storage reservoirs, liquid petroleum gas storage reservoirs, unitized areas, and other specifically designated areas or geological formations where special spacing orders, rules, or determinations are in effect: (a) The drilling unit for wells for oil or gas shall be a legal subdivision of 40 acres, more or less, defined as a governmental surveyed quarter-quarter section of land. The drilling unit shall conform to 1 of the quarter-quarters of a governmental surveyed section of land, with allowances being made for the differences in the size and shape of sections as indicated by official governmental survey plats.(b) The producing interval of a well for oil or gas shall be not less than 330 feet from the drilling unit boundary.(c) For purposes of interpreting requirements for the location and spacing of wells under these rules, the producing interval location of a well that is not intentionally drilled directionally or horizontally shall be presumed to be directly beneath the well location.(d) A permit may be issued on a drilling unit that is not totally leased, pooled, or communitized subject to the following conditions: (i) The application for permit shall be accompanied by a certified statement establishing that a good faith effort had been made to obtain the lease or leases or to obtain a communitization agreement to form a full drilling unit and that such effort failed.(ii) No portion of the well bore shall transect any tract prior to such time as the tract is leased, pooled, or communitized.(iii) The permittee of the well shall not construct or operate any portion of the well, drill pad, access road, pipeline, or other drilling operations or well completion operations subject to the permit on any tract that is not leased unless the permittee has obtained the necessary rights to construct or operate under a surface access agreement or other applicable instrument.(iv) Before the well is placed on regular production, a pooled drilling unit shall be formed by voluntary agreement or statutory pooling pursuant to R 324.304.(2) The well surface location and associated surface facilities for wells drilled and constructed after September 20, 1996 shall be located not less than 300 feet from existing recorded fresh water wells and reasonably identifiable fresh water wells utilized for human consumption and existing structures used for public or private occupancy.(3) The well separators, storage tanks, and treatment equipment installed or constructed after September 20, 1996 shall be located not less than 2,000 feet from type I and IIa public water supply wells and not less than 800 feet from type IIb and III public water supply wells, as defined in the safe drinking water act, 1976 PA 399, MCL 325.1001 to 325.1023.(4) Exceptions to the location and spacing of wells may be granted in the following instances: (a) The supervisor or authorized representative of the supervisor issues a permit for an off-pattern or nonconforming drilling unit well after a hearing to determine the need or desirability of issuing the permit. The wells shall be subject to the restricted or adjusted allowables that the supervisor considers necessary to ensure that the owners shall be afforded the opportunity to produce their just and equitable share of the oil and gas from the reservoir and to prevent waste.(b) The supervisor or authorized representative of the supervisor issues a permit for a well where the surface location is closer than 300 feet from all existing recorded fresh water wells and reasonably identifiable fresh water wells utilized for human consumption and existing structures used for public or private occupancy upon presentation, to the supervisor, of written consent signed by the owner or owners of all existing fresh water wells and reasonably identifiable fresh water wells utilized for human consumption and existing structures used for public or private occupancy.(c) The supervisor determines the well surface location or location of associated surface facilities will prevent waste, protect environmental values, and not compromise public safety after a hearing pursuant to part 12 of these rules.(d) The supervisor approves an application to pool or communitize tracts or mineral interests pursuant to R 324.303(2).Mich. Admin. Code R. 324.301
1996 AACS; 2015 MR 5, Eff. March 11, 2015