Current through Register Vol. XLII, No. 1, January 3, 2025
Section 50-1-3 - Rules Applicable To Proceedings To Establish Drilling Units3.1. Scope. The rules in this part govern and are applicable to proceedings concerning the establishment of drilling units under Code ''22-7-9, 10 and 11. In addition to the rules contained in this part, the general rules of practice before the Board contained in Section 1 and the rules relating to hearings held by the Board contained in Section 5 are also applicable to such proceedings.
3.2. How Initiated; Notice of Meeting.(a) Upon receipt of an application to establish a drilling unit, the Chairman shall call a meeting of the Board. Such meeting shall be scheduled not less than ten (10) days nor more than twenty (20) days from receipt by the Chairman of the application to establish a drilling unit, and notice of such meeting shall be given by the Chairman at least ten (10) days in advance thereof to all parties and the remaining members of the Board.(b) The notice of each meeting called by the Chairman pursuant to subsection (a) of this section shall issue in the name of the State, shall specify the style of the proceedings and a docket number assigned by the Chairman, shall state that such meeting is being called for the purpose of holding a conference and, if necessary, a hearing concerning the application to establish a drilling unit, shall state the date, time and place of the meeting, and shall be signed by the Chairman.(c) The notice of each meeting required by subsection (a) of this section shall be given in the manner provided in Code '22-7-6. A copy of such notice, including proof of service or publication thereof, shall be retained in the record of the proceeding by the Chairman. Proof of service or publication of such notice shall be made by (i) a verified return if service was made personally, (ii) a certificate of service or return receipt if service was by certified mail, or (iii) a copy of the published notice if service was by publication.(d) The Chairman shall also mail, by regular United States mail, a copy of all notices given pursuant to subsection (a) of this section to all other persons who have specified to the Chairman an address to which all such notices may be mailed.3.3. Conference. (a) The parties shall meet with the Board at the time and place fixed by the Chairman for consideration of an application to establish a drilling unit, and the applicant shall be called upon to show that the drilling location on the proposed drilling unit has been agreed to by all of the owners of the coal seams underlying such drilling location. Failure to make such showing shall result in dismissal of the application by the Board, but such dismissal shall not prevent the applicant from later filing a similar application when the drilling location is agreed to by all of the owners of the coal seams underlying such drilling location.(b) If the Board finds that the applicant has shown that the drilling location on the proposed drilling unit has been agreed to by all owners of coal seams underlying such drilling location, then the parties shall confer with the Board concerning the boundary of the proposed drilling unit and the pooling of the separately-owned interests in the gas to be produced from the drilling unit. The parties may agree upon either the drilling unit as proposed by the applicant or as changed to satisfy all valid objections of the parties, and also may agree upon the pooling of the separately-owned interests in the gas to be produced from such drilling unit.(c) If the parties agree upon the boundary of a drilling unit and also agree upon the pooling of the separately-owned interests in the gas to be produced from such drilling unit, the Board shall determine whether the criteria provided in Code '22-7-10(c) have been met. If the board finds that such criteria are satisfied, the Board shall issue a written order specifying the boundary of the drilling unit agreed upon and approving the voluntary pooling agreement. Any change in the boundary of the drilling unit from the boundary proposed by the applicant shall be shown on the plat filed with the Board as part of the application. The original of the Board's order, together with the entire record of the proceeding, shall be filed with the Department within twenty (20) days after the conference of the Board at which the boundary of the drilling unit was agreed upon. A copy of the order shall be mailed by registered or certified mail to all parties.3.4. Hearings. (a) If the parties present or represented at the conference with the Board are unable to agree upon the boundary of the drilling unit or the pooling of the separately-owned interests in the gas to be produced from such drilling unit, then, unless the parties otherwise agree, the Board shall, without recess for more than one (1) business day, hold a hearing to consider the issues in dispute. Such hearing shall be conducted in the manner provided in Section 5 of these rules and the pertinent provisions of Article 5, Chapter 29A of the Code shall apply to and govern such hearing.(b) Within twenty (20) days after the close of such hearing, the Board shall issue and file with the Department a written order in accordance with the provisions of Code ''22-7-10 and 11. The entire record of the proceedings shall be filed with the Department simultaneously with the order, and a copy of the order shall be mailed by registered or certified mail to all parties at the time such order is filed.(c) Any member of the Board may file a separate opinion with the Department within twenty-five (25) days after the close of the hearing. A copy of any such opinion shall be mailed by registered or certified mail to all parties at the time it is filed.