805 KAR 1:140. Directional and horizontal wells.

      RELATES TO: KRS 353.520

      STATUTORY AUTHORITY: KRS Chapter 13A, 353.540, 353.550

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 353.550 requires the Department for Natural Resources to regulate the drilling and casing of all wells and filing of all downhole surveys. This administrative regulation identifies the requirements for permitting directional and horizontal wells.

      Section 1. Definitions. The definitions in KRS 353.510 and the following additional definitions shall apply to this administrative regulation:

      (1) "Abnormal pressure" means a reservoir pressure that exceeds the hydrostatic pressure of fresh water extending from the reservoir to the surface.

      (2) "Annulus" means the space between two (2) strings of casing or between a string of casing and the bore hole wall.

      (3) "Blow-out preventer (BOP)" means a device installed on the surface or intermediate casing to prevent the escape of pressure either in the annulus between casing and drill pipe or in the open hole without drill pipe and which is used during drilling operations.

      (4) "Casing (casing string)" means steel tubes or pipes installed in a well.

      (5) "Cement" means hydraulic cement properly mixed with water or with additives approved by the director, and which is used to fill the annulus of casing string(s) or to plug the well.

      (6) "Deep well" means any well drilled and completed below the depth of 4000 feet or, in the case of a well located east of longitude line eighty-four (84) degrees thirty (30) minutes, a well drilled and completed at a depth below 4000 feet or below the base of the lowest member of the Devonian Brown Shale, whichever is deeper.

      (7) "DES" means the State Disaster and Emergency Services Office under authority of the Department of Military Affairs in Frankfort, Kentucky, with regional offices throughout the Commonwealth.

      (8) "Directional and horizontal drilling" means the science of directing a well bore along a predetermined course to a "target" located a given distance from the vertical.

      (9) "Directional survey" means a survey taken while drilling using continuous measuring technology or a survey made through drill tools at such intervals to accurately determine the location of the deviated well bore.

      (10) "Intermediate casing" means one (1) or more strings of pipes installed in a well in addition to the surface casing in which each string is smaller in diameter than the previous.

      (11) "Intersection length" means the horizontal distance between the point at which the well penetrates the top of the intended formation and the end point within that formation.

      (12) "Long casing string" means the last casing installed in a well to be used for production or injection purposes.

      (13) "Measured depth" means the total depth measured in the well from the surface.

      (14) "Surface casing" means the first and largest diameter casing installed in a well and its primary uses are to make the bore hold stand up and to protect the fresh water zones.

      (15) "True vertical depth" means the depth of the well from any point in the well being measured to the surface of the ground above the point being measured.

      (16) "Zone" means a layer of strata capable of producing or receiving fluids.

      Section 2. Prior to drilling a directional or horizontal well, the operator shall submit the following information:

      (1) An application for a permit to drill the well, with a cover letter from the operator making a request for drilling the horizontal or directional well. The application for permit form ED-1 revised March 3, 1990, is filed and incorporated herein by reference. Copies of this form may be obtained from the Department for Natural Resources, 1025 Capital Center Drive, Suite 201, P.O. Box 2244, Frankfort, Kentucky 40602-2244, Monday through Friday, 8 a.m. to 4:30 p.m. A bond as required in KRS 353.590(5) and an application fee of $100 shall be submitted with the application.

      (2) Three (3) copies of a location plat satisfying the requirements of 805 KAR 1:030 (plan view), in addition to the following requirements:

      (a) The surface location and proposed target formation with their respective "Carter Coordinates".

      (b) The proposed course of the well.

      (c) The identification of the intersection length of the proposed well and the proposed producing formation(s). To avoid any conflicts with the spacing requirements, a dashed line shall be drawn around the intersection length with regard to the spacing requirements in KRS 353.610 or, for deep wells, 805 KAR 1:100 and KRS 353.651 and 353.652. This distance shall be clearly shown in feet.

      (3) In addition to the plan view required in this section, the operator shall submit three (3) copies of a plat which shows a vertical cross-section view of the area to be drilled by the well. This cross-section shall be prepared from the proposed "predrill hole" directional survey compiled by the contractor responsible for the directional control mechanism and certified as required by 805 KAR 1:030, Sections 2 and 6(11). The cross-section shall include the area from the well site to the target made through the proposed course of the well. The surface shall be located as zero in reference to the depth and the lateral distance from the well site and true vertical depths shall be shown for all of the following:

      (a) The kick-off point or selected depth at which the deviation is started.

      (b) The known coal seams to be intersected.

      (c) The producing interval(s).

      (d) The proposed producing formation(s).

      (e) The proposed target.

      (4) When the permit is issued, the operator shall provide verbal or written notice to the department field inspector at least forty-eight (48) hours in advance of the commencement of drilling operations.

      (5) Once the well has been drilled and completed, the following shall be submitted within ten (10) days from the date of completion.

      (a) Three (3) copies of an amended plan view of the well location plat required in subsection (2)(a), (b), and (c) of this section, with the actual course drilled, the kick-off point and the actual target superimposed on the proposed well location plat. A correction in the target Carter Coordinates, if necessary, shall then be issued by the department; and

      (b) Three (3) copies of the side or cross-sectional view plat required in subsection (3)(a) through (e) of this section shall be amended for the actual path of the well, showing the actual formation(s), coal seams, target, kick-off point; and

      (c) Copies of all directional surveys certified by the operator and the contractor responsible for the directional survey. This survey shall be submitted for the entire well bore, and the operator shall be able to identify the path or depth of the well bore at any given time during and after the drilling of the directional or horizontal well. The survey points shall be made at each tool joint or at any intervals more frequent; and

      (d) On Form ED-8, the operator shall record the lateral offset from the well in feet and the true vertical depth for the producing interval and formation and the coal seam intersections and their true vertical depth. The operator certification of formation offset and vertical depth Form ED-8, dated August 1, 1991, is filed and incorporated herein by reference. Copies of this form may be obtained from the Department for Natural Resources, 1025 Capital Center Drive, Suite 201, P.O. Box 2244, Frankfort, Kentucky 40602-2244, Monday through Friday, 8 a.m. to 4:30 p.m.

      (6) The operator shall satisfy spacing requirements of offset mineral boundary lines and between wells for the actual drilled course of the well and its end point and the intersection of the well bore and the producing formations.

      (7) All coal operators or owners affected by the drilling of a directional or a horizontal well shall be provided a copy of the predrill plat and cross-section plat described in subsections (2) and (3) of this section as required by KRS 353.050 and 353.060. Within ten (10) days after the well is drilled, the operator shall submit to the coal operator or owner the revised plats and deviation survey log required in subsection (5) of this section.

      (8) The requirements for a deep directional or horizontal well shall satisfy those requirements set out in 805 KAR 1:100 and KRS 353.651 and 353.652 regarding the application process and spacing units. Prior to the deep directional or horizontal well being drilled, a hearing shall be held before the Kentucky Oil and Gas Conservation Commission.

      Section 3. When an application for a directional or horizontal permit is submitted to the department, the operator shall prepare a detailed drilling and casing plan on Form ED-7 for the review by and the approval of the department. This casing and cementing Form Ed-7 dated August 1, 1991 is filed and incorporated herein by reference. Copies of this form may be obtained from the Department for Natural Resources, 1025 Capital Center Drive, Suite 201, P.O. Box 2244, Frankfort, Kentucky 40602-2244, Monday through Friday, 8 a.m. to 4:30 p.m. The items requested in 805 KAR 1:130, Section 2(1), (2) and (3) shall be submitted with this plan.

      Section 4. The operator shall install a blow-out prevention device capable of withstanding a working pressure of 1500 psi and a test pressure of 3000 psi. A description of this device and its installation shall be included with the drilling and casing plan required in Section 3 of this administrative regulation. This BOP equipment shall be tested at intervals necessary to maintain its ability to operate at rated capacity. The results of these tests shall be kept at the drill site and made available to department personnel at their request.

      Section 5. The requirements of 805 KAR 1:130, Sections 4, 5 and 6 shall also apply to this administrative regulation.

      Section 6. An operator in noncompliance with the requirements of this administrative regulation is subject to penalties pursuant to KRS 353.991. (18 Ky.R. 236; Am. 1023; eff. 9-25-91; TAm eff. 8-9-2007.)