Bill Text: IN HB1404 | 2011 | Regular Session | Introduced
Bill Title: Coal bed methane.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-01-31 - Representative Battles added as coauthor [HB1404 Detail]
Download: Indiana-2011-HB1404-Introduced.html
Citations Affected: IC 14-37; IC 32-23-7.
Synopsis: Coal bed methane. Requires the natural resources
commission (commission) to: (1) regulate coal bed methane wells; (2)
establish alternative spacing, unit, and bonding requirements for coal
bed methane wells; (3) maintain a public record containing certain
information on coal bed methane wells; and (4) adopt rules requiring
the notification of a property owner before property is entered for oil
and gas or coal bed methane purposes. Allows an owner or holder of
mineral rights to coal to file an affidavit identifying a minable coal
resource. Provides for regulation of coal bed methane wells and other
gas wells in a similar manner. Requires the division of oil and gas
(division) to post applications for coal bed methane permits on its web
site. Prohibits the issuance of a permit less than 15 days after the
posting, and establishes other conditions to permit issuance. Allows the
commission to require an owner or operator to modify the location for
the drilling of a well for oil and gas or coal bed methane purposes
under certain circumstances. Amends the well plugging requirements.
Allows an owner or operator of a coal mine to vent coal bed methane
under certain circumstances. Provides for the establishment of an estate
in land with respect to coal bed methane comparable to an estate that
may be established under current law with respect to oil and gas. Limits
the exercise of rights in certain circumstances under a coal bed
methane estate if the exercise would affect miner safety or coal
resources. Provides that a conveyance or reservation of rights to coal
or oil and gas will not be considered as including the rights to coal bed
methane unless there has been a specific grant. Provides that a coal
operator's venting of coal bed methane gas in connection with mining
operations is not considered to be a waste or diminution of resources.
Effective: July 1, 2011.
January 18, 2011, read first time and referred to Committee on Natural Resources.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
natural and cultural resources.
(1) unmined coal seams, either naturally or as a result of stimulation of the coal seam;
(2) the void created by mining out coal seams; or
(3) the gob created by longwall or other extraction methods of coal mining.
(1) Regulate coal bed methane wells and compliance with IC 32-23-7.
(2) Establish alternative spacing, survey, unit, and bonding
requirements for coal bed methane wells.
(3) Maintain a public record of the following:
(A) The location of each coal bed methane well that has
been drilled, including exploration wells.
(B) The current status of each coal bed methane well.
(C) The date of plugging and detailed information
concerning the plugging of each coal bed methane well.
(b) The commission shall adopt rules under IC 4-22-2:
(1) requiring that a property owner be notified before the owner's property may be entered to survey, explore for, or extract oil and gas or coal bed methane; and
(2) establishing procedures for the notification required under subdivision (1).
(1) this article; and
(2) the rules adopted under this article;
the commission shall issue a permit.
(b) The division shall post on the web site maintained by the division a listing of all complete permit applications submitted under this chapter with respect to oil and gas or coal bed methane. The posting must include at least the following for each permit application:
(1) The location, type, and depth of the proposed well.
(2) The coal seam, if any, affected by the proposed well.
(c) The commission may not issue a permit under this chapter until:
(1) the applicant has received written consent from:
(A) the owner of the property subject to the permit application;
(B) the owners of all property that is adjacent to the property subject to the permit application; and
(C) any owner or holder of mineral rights to the coal on the property subject to the permit application; or
(2) all of the following requirements are satisfied:
(A) At least fifteen (15) days have elapsed since the permit application was included in the list posted under subsection (b).
(B) The commission has taken into consideration any comments received from any affected interested party during the period referred to in clause (A).
(C) The applicant has submitted to the director documentation demonstrating that at least fifteen (15) days have elapsed since the applicant sent written notification of the permit application to the following:
(i) The owner of the property subject to the permit application.
(ii) The owners of all property that is adjacent to the property subject to the permit application.
(iii) Any owner or holder of mineral rights to the coal on the property subject to the permit application.
(D) The director has issued a finding that the requirements of clauses (A) through (C) have been met.
(d) The commission may require the applicant to make reasonable modifications to the specific location for the proposed drilling of a well for oil and gas or coal bed methane purposes if:
(1) the modifications are necessary to protect the health and safety of coal miners; or
(2) the modifications:
(A) are necessary to protect minable coal resources;
(B) do not violate the drilling unit, well spacing, or other requirements of this article; and
(C) do not result in waste.
(b) The division of reclamation shall:
(1) keep the affidavit and map confidential; and
(2) use the affidavit and map solely for the purpose of determining the owner or holder of mineral rights to coal in an area for which a permit application has been filed under IC 14-37-4.
(c) Upon receipt of a permit application under IC 14-37-4, the division shall request the division of reclamation to determine
whether the location of the well proposed in the permit application
is in an area underlain by coal identified in an affidavit and map
filed under subsection (a).
(d) The division of reclamation shall report its determination
under subsection (c) in writing to the division.
(b) If a well is drilled through an area containing minable coal, the plugging standards applying to the well must be more stringent than the standards for the methods approved under subsection (a) to the extent that the federal Mine Safety and Health Administration requires the more stringent standards in order to permit coal mining through the area of the plugged well.
(c) For areas to which subsection (b) does not apply, mud-laden fluid, cement, or mechanical plugs
(1) The venting is necessary to protect coal miners' safety.
(2) It is not economical to market the coal bed methane.
(b) The term does not include coal bed methane.
(1) if used in reference to an oil and gas estate in land, the owner of a beneficial interest in the oil and gas estate in land; or
(2) if used in reference to coal bed methane, the owner of a beneficial interest in the coal bed methane estate in land;
whether the interest is held for life, for a term of years, or in fee.
(b) The term includes a lessee, licensee, or duly qualified agent of the owner.
(c) The term does not include a mortgagee or security assignee of the owner if the mortgagee or security assignee does not have a right to the control or operation of the premises for:
(1) oil and gas, if the term is used in reference to an oil and gas estate in land or oil and gas; or
(2) coal bed methane, if the term is used in reference to a coal bed methane estate in land or coal bed methane.
(1) A person in interest in the oil and gas estate in land may enter the land for the purpose of:
(A) exploring, prospecting, testing, surveying, or otherwise investigating the land to determine the potential of the land for oil or gas production; or
(B) otherwise conducting operations for oil and gas on the land;
whether or not the person is also the owner, lessee, or licensee of an owner of an interest in the surface rights in the land.
(2) A person in interest in the oil and gas estate in land in Indiana may enter the land to drill a well or test well on the land for the production or attempted production of oil and gas regardless of whether the:
(A) person is also the owner, lessee, or licensee of an owner of an interest in the surface rights in the land; and
(B) owner of the remaining rights in the land consents to the entrance and drilling.
A person that drills a well under this subdivision shall provide an accounting to the remaining or nonparticipating persons in interest in the oil and gas estate in the land, for their respective proportionate shares of the net profits arising from the operations conducted upon the land for oil or gas. In calculating the profits, a reduction may not be made from the gross proceeds of the production of oil and gas, except for expenses that are reasonably or necessarily incurred in connection with the drilling, completion, equipping, and operation of the wells drilled upon the premises during the period in which the relationship of cotenancy
existed between the person drilling the well and the person whose
interest is sought to be charged with the respective proportionate
part of the cost of the drilling.
(3) A person who may enter and enters land in Indiana for the
purpose of exploring, prospecting, testing, surveying, or otherwise
investigating the potential of the land for oil and gas, or for the
purpose of conducting operations on the land for the production
of oil and gas, is accountable to the owner of the surface of the
land for the actual damage resulting from the person's activities
on the land to:
(A) the surface of the land;
(B) improvements to the land; or
(C) growing crops on the land.
However, a person who enters land under this subdivision is not
liable for punitive damages. Actual damage includes actual
damage to agricultural land, woodlands, or crops, including
compaction of the soil, inability to plant crops, damage to
drainage or erosion control systems, and causing flooding or
soil erosion. This subdivision does not increase damages between
a lessor and a lessee in a valid and subsisting oil and gas lease
that specifies damages if damages are not due other than damages
that are expressly provided by contract between cotenants or the
lessees of cotenants of a like estate in the land. This section does
not authorize the location of a well for oil and gas nearer than two
hundred (200) feet to an existing house, barn, or other structure
(except fences) without the express consent of the owner of the
structure.
(4) The right to conduct operations for oil and gas upon land
located in Indiana includes the right to:
(A) install and maintain physical equipment on the land; and
(B) use the portion of the surface of the land that is reasonably
necessary for the operations;
subject to the payment of damages resulting from the installation
only of the equipment specified in this subdivision.
(1) Interests in oil and gas.
(2) Interests in coal bed methane.
(1) for life;
(2) for a term of years; or
(3) in fee;
in the manner and to the extent that other interests in real estate and title are created.
(1) sole ownership;
(2) tenancy in common;
(3) joint tenancy;
(4) tenancy by the entireties; or
(5) another manner recognized under Indiana law.
(1) to the extent permitted by; and
(2) in a manner consistent with;
the nature of the estate in law as specified under this chapter.
(b) This chapter
(c) This chapter does not affect the rights or powers of any commission, board, or authority duly constituted for the regulation of the oil and gas industry or the coal bed methane industry in Indiana.
(b) Nothing in this section affects a coal operator's right to vent coal bed methane gas in connection with mining operations. A coal operator's venting of coal bed methane gas in connection with mining operations is not considered to be a waste or diminution of resources for purposes of any action.
(c) This section does not affect:
(1) the settlement of any dispute concerning the ownership or development of coal bed methane gas that was entered into before July 1, 2011; or
(2) any judgment or order of a governmental agency concerning the ownership or development of coal bed methane gas that was entered before July 1, 2011.
