Sec. 3.5. (a) For purposes of this section, “waste” means locating, spacing, drilling, equipping, operating, or producing a well for oil and gas purposes in a manner that unreasonably reduces or tends to unreasonably reduce the quantity of commercially minable coal resources ultimately to be recovered from a mine.

     (b) Except as provided in subsection (c), the division may require an owner or operator to make reasonable modifications to the specific location for the drilling of a well for oil and gas purposes as required by this section if the modifications:

(1) are necessary to protect commercially minable coal resources from waste;

(2) do not violate the drilling unit, well spacing, or other requirements of this article; and

(3) are necessary to protect the health and safety of miners.

     (c) Subsection (b) does not apply if the coal owner or coal lessee authorizes the drilling under IC 14-37-4-8.5(d)(2).

     (d) If an owner or operator proposes to drill a well for oil and gas purposes:

(1) on land within the permit boundaries of an active underground mine permitted under IC 14-34;

(2) on land underlaid by an inactive underground mine permitted under IC 14-34; or

(3) on land:

(A) associated with a mine referred to in subdivision (1) or (2) that is projected by the owner or operator to be mined; and

(B) on which a commercially minable coal resource is located;

the owner or operator shall provide notice of the intent to drill the well to the permittee of the mine under IC 14-34 or, in the case of an inactive underground mine, to the person that has the right to develop the coal resource.

     (e) Except as provided in subsection (f), not more than fifteen (15) days after receipt of the notice required by subsection (d), the permittee of the mine under IC 14-34 or other person with the right to develop the coal resources shall state in writing whether the specific location selected for the drilling of the well is likely to result in either or both of the following:

(1) A significant waste of the volume of coal ultimately to be recovered from the underground mine.

(2) Endangerment of the health and safety of miners.

     (f) Subsection (e) does not apply if the permittee of the mine under IC 14-34 consents in writing to the placement of the well.

     (g) A person that makes an affirmative determination under subsection (e) shall:

(1) promptly provide a copy of the determination to the owner or operator and the director; and

(2) identify alternative well locations that would:

(A) reduce or avoid waste of the volume of coal ultimately to be recovered from the underground mine;

(B) eliminate the likelihood of endangerment of the health and safety of miners;

(C) not violate the drilling unit, well spacing, or other requirements of this article; and

(D) not result in waste.

     (h) If:

(1) the permittee of a mine under IC 14-34 or other person with the right to develop the coal resources; and

(2) the owner or operator;

are unable to agree on a suitable location for the well that is not likely to result in endangerment of the health and safety of miners, the parties may request an informal hearing. Subject to subsection (i), the director shall conduct, within thirty (30) days after a request is made, an informal hearing under IC 14-37-3-16 to gather information to identify an alternative well location as described in subsection (g)(2).

     (i) The information that the director gathers under subsection (h) may include the following:

(1) Whether the location is in an active, inactive, abandoned, or projected underground coal mine.

(2) Whether the location is in an unsealed inactive area or a sealed area of a coal mine with the potential for introducing oxygen into the area from drilling or the well.

(3) The proximity and size of coal pillars in an alternative location that might be drilled through, including whether in a panel or support for a submain or main entries.

(4) The equipment technology and operating or drilling experience history of the operator.

     (j) If:

(1) after the informal hearing under subsection (h), the director does not identify a suitable location for the well that is not likely to result in endangerment of the health and safety of miners; and

(2) the location for the well for which notice was provided under subsection (d) is not likely to result in endangerment of the health and safety of miners;

the owner or operator is not required to modify the location of the proposed well and may proceed with the submittal of the permit application to the department under this article.

     (k) An owner or holder of mineral interests shall comply with the requirements under IC 32-23-7-6.5.

As added by P.L.140-2011, SEC.8.