(1) When two (2) or more separately owned tracts, or portions thereof, are embraced within a drilling unit, or when there are separately owned interests in all or part of any such drilling unit, the operators or owners of coalbed methane owning the interests may pool their interests for the development and operation of the drilling unit by voluntary agreement. These agreements may be based on the exercise of pooling rights or rights to establish units which are granted in any gas or oil lease, coal lease, coalbed methane lease, or similar instrument.
(2) No voluntary pooling agreement between or among coalbed methane operators or owners shall be held to violate the statutory or common law of the Commonwealth which prohibits monopolies or acts, arrangements, contracts, combinations, or conspiracies in restraint of trade or commerce.

Terms Used In Kentucky Statutes 349.045

  • Coalbed methane: means gas produced from a reservoir found in a coalbed, a mined-out area, or gob. See Kentucky Statutes 349.010
  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • Drilling unit: means the maximum area in a pool which may be drained efficiently by one (1) well so as to produce the reasonable maximum recoverable coalbed methane in the area. See Kentucky Statutes 349.010
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Unit: means any tract or tracts which the department has determined are underlaid by a pool or pools of coalbed methane and are not drilling units as defined in subsection (10) of this section. See Kentucky Statutes 349.010
  • Violate: includes failure to comply with. See Kentucky Statutes 446.010

Effective: July 13, 2004
History: Created 2004 Ky. Acts ch. 65, sec. 9, effective July 13, 2004.

  Previous section
Next section  
 Chapter 349 Contents