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Well Spacing and Integration Conditions

Spacing and Integration Conditions for Wells Subject to Article 23, Title 5 of the Environmental Conservation Law

1. Spacing unit - The spacing unit established for this well is [acreage] acres in size and is valid only for [permitting staff will select and insert one of below options to complete this statement]:

-For conforming units:
• (40-acre unit) gas production from a shale or Medina pool at any depth.

• (80-acre unit) gas production from one or more pools other than shale, Medina, fault-bounded Trenton and/or Black River hydrothermal dolomite, where the majority of the productive pool(s) are above 4,000 feet.

• (160-acre unit) gas production from an Onondaga reef and/or Oriskany pool at any depth, or gas production from one or more pools other than other than shale, Medina or fault-bounded Trenton and/or Black River hydrothermal dolomite, where the majority of the productive pool(s) are 4,000 to 6,000 feet deep.

• (320-acre unit) gas production from a fault-bounded Trenton and/or Black River hydrothermal dolomite pool, the majority of which is between 4,000 and 8,000 feet deep, or gas production from one or more pools other than shale, Medina, Onondaga reef or Oriskany where the majority of the productive pool(s) are 6,000 to 8,000 feet deep.

.
• (640-acre unit) gas production from one or more pools other than shale, Medina, Onondaga reef or Oriskany where the majority of the productive pool(s) are below 8,000 feet.
-For non-conforming units:

• gas production from the zone(s) and/or depth(s) specified in the spacing order issued on [date].

2. Plugging back or deepening - This permit does not authorize operations which involve permanently plugging back or deepening the well to another formation, or drilling directionally to another bottom-hole location, in the absence of any required additional well permit. The application for any such required additional permit must include a proposed spacing unit for the primary formation(s) and/or depth(s) targeted for production, unless the spacing unit described by Condition 1 is valid or a proposed spacing unit is not required pursuant to ECL §23-0501(1)(a).

3. Multiple, shallower or deeper completions that do not require an additional well permit - The operator may not commence operations to complete the well in any formation(s) and/or depth(s) for which a spacing unit is required pursuant to ECL §23-0501, but for which the spacing unit described by Condition 1 is not valid, until after the well operator has submitted a proposed spacing unit for the formation(s) and/or depth(s) proposed for completion and the Department has authorized the proposed operations.

4. Production from any formation prior to an integration order - If integration is required and the well commences production prior to issuance of an integration order, then the well operator shall hold the entire production proceeds attributable to uncontrolled spacing unit acreage in an interest-bearing account until the integration order is issued.

5. Wellbores which penetrate uncontrolled acreage, per ECL §23-0501(2)(b)
This permit is not effective until an integration order has been issued. The permit shall expire 180 days after the effective date of the integration order.

Permit Conditions for Wells NOT Initially Subject to Title 5 Because They Are in Old Fields:

1. Multiple, shallower or deeper completions that require a proposed spacing unit - The operator may not commence operations to complete the well in any formation(s) and/or depth(s) for which a spacing unit is required pursuant to ECL §23-0501 until after the well operator has submitted a proposed spacing unit for the formation(s) and/or depth(s) proposed for completion and the Department has authorized the proposed operations.

2. Plugging back or deepening - This permit does not authorize operations which involve permanently plugging back or deepening the well to another formation, or drilling directionally to another bottom-hole location, in the absence of any required additional well permit. The application for any such required additional permit must include a proposed spacing unit for the primary formation(s) and/or depth(s) targeted for production, unless a proposed spacing unit is not required pursuant to ECL §23-0501(1)(A).

Permit Condition for Well Types Other than Oil or Gas:

1. Conversion - This well is permitted as a [well type] well. Conversion for any other use under the jurisdiction of the Oil, Gas and Solution Mining Law is not authorized until after the well operator has submitted an application to convert the well and the Department has issued a permit to convert the well. Any application to convert the well for oil or gas production from any formation(s) and/or depth(s) for which a spacing unit is required pursuant to ECL §23-0501 must include a proposed spacing unit for the formation(s) and/or depth(s) proposed for production.


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