Section 312IAC16-5-3. Exceptions to well spacing and drilling unit requirements

   (a) Exceptions to the spacing requirements established under this section shall be made only after an informal hearing conducted under 312 IAC 16-2-3.

  (b) In order to avoid locating a well in a ditch, stream, or other impracticable location, the division director may modify the location of any well not more than fifty (50) feet from the location shown in the survey or the plat in the permit application.

  (c) The division director may grant exceptions for wells varying not more than ten percent (10%) from the acreage or distances otherwise required under this article when the exceptions will not:

(1) create a greater well density than required under sections 1 through 2 of this rule; and

(2) leave isolated tracts not contiguous to another unit.

  (d) Twin wells may be drilled on the same drilling unit to different reservoirs, allocating the acreage in the drilling unit for each producing reservoir as provided in section 2 of this rule.

  (e) The following are exempt from spacing and drilling unit requirements:

(1) Class II wells.

(2) Gas storage wells.

(3) Gas storage observation wells.

(4) Noncommercial gas wells.

(5) Geological or structure test wells.

However, a noncommercial gas well must not be located to cause an existing well for oil and gas purposes to violate sections 1 through 2 of this rule. (Natural Resources Commission; 312 IAC 16-5-3; filed Feb 23, 1998, 11:30 a.m.: 21 IR 2338; readopted filed Nov 17, 2004, 11:00 a.m.: 28 IR 1315; readopted filed Mar 25, 2010, 2:57 p.m.: 20100421-IR-312100033RFA; readopted filed Sep 30, 2015, 12:13 p.m.: 20151028-IR-312150224RFA)