§ 23-0501. Well permits.

1. a. This section shall not apply to (1) wells drilled, deepened,
plugged back or converted in oil fields or pools which were discovered,
developed and operated prior to January first, nineteen hundred
eighty-one, and (2) wells drilled, deepened, plugged back or converted
in natural gas fields or pools which were discovered, developed and
operated prior to January first, nineteen hundred ninety-five and which
are not being extended.

b. As used in titles five, seven and nine of this article, unless the
context otherwise requires:

(1) "Statewide spacing" means spacing units for gas or oil wells that
are within ten percent of the following sizes, as applicable, unless
another percentage is specifically stated:

(i) For Medina gas pools at any depth, 40 acres with the wellbore
within the target formation no less than 460 feet from any unit
boundary, plus, if applicable, the number of additional acres necessary
and sufficient to ensure that any horizontal wellbore within the target
formation is not less than 460 feet from any unit boundary;

(ii) For Onondaga reef or Oriskany gas pools at any depth, 160 acres
with the wellbore within the target formation no less than 660 feet from
any unit boundary, plus, if applicable, the number of additional acres
necessary and sufficient to ensure that any horizontal wellbore within
the target formation is not less than 660 feet from any unit boundary;

(iii) For fault-bounded Trenton and/or Black River hydrothermal
dolomite gas pools where the majority of the pool is between 4,000 and
8,000 feet deep, 320 acres with the proposed productive section of the
wellbore within the target formation no less than one-half mile from any
other well in another unit in the same pool and no less than 1,000 feet
from any unit boundary that is not defined by a field-bounding fault but
in no event less than 660 feet from any unit boundary;

(iv) For fault-bounded Trenton and/or Black River hydrothermal
dolomite gas pools where the majority of the pool is below 8,000 feet,
within five percent of 640 acres with the proposed productive section of
the wellbore within the target formation no less than one mile from any
other well in another unit in the same pool and no less than 1,500 feet
from any unit boundary that is not defined by a field-bounding fault but
in no event less than 660 feet from any unit boundary;

(v) For shale gas pools at any depth, for a vertical well outside any
existing spacing unit for the same formation, 40 acres with the wellbore
within the target formation no less than 460 feet from any unit
boundary;

(vi) For shale gas pools at any depth, for a horizontal well outside
any existing spacing unit for the same formation and with a written
commitment from the well operator to drill infill wells pursuant to
subdivision 4 of section 23-0503 of this title, with all horizontal
infill wells in the unit to be drilled from a common well pad within
three years of the date the first well in the unit commences drilling,
notwithstanding the ten percent tolerance specified in this
subparagraph, up to 640 acres with the initial horizontal wellbore or
wellbores within the target formation approximately centered in the
spacing unit and no wellbore in the target formation less than 330 feet
from any unit boundary;

(vii) For shale gas pools at any depth, for a horizontal well outside
any existing spacing unit for the same formation and in the absence of a
written commitment from the well operator to drill infill wells pursuant
to subdivision 4 of section 23-0503 of this title, 40 acres with the
wellbore within the target formation no less than 330 feet from any unit
boundary plus the number of additional acres necessary and sufficient to
ensure that the wellbore within the target formation is not less than
330 feet from any unit boundary;

(viii) For all other gas pools where the majority of the pool is above
the depth of 4,000 feet, 80 acres with the wellbore within the target
formation no less than 460 feet from any unit boundary, plus, if
applicable, the number of additional acres necessary and sufficient to
ensure that any horizontal wellbore within the target formation is not
less than 460 feet from any unit boundary;

(ix) For all other gas pools where the majority of the pool is 4,000
to 6,000 feet deep, 160 acres with the wellbore within the target
formation no less than 660 feet from any unit boundary, plus, if
applicable, the number of additional acres necessary and sufficient to
ensure that any horizontal wellbore within the target formation is not
less than 660 feet from any unit boundary;

(x) For all other gas pools where the majority of the pool is 6,000 to
8,000 feet deep, 320 acres with the wellbore within the target formation
no less than 1,000 feet from any unit boundary, plus, if applicable, the
number of additional acres necessary and sufficient to ensure that any
horizontal wellbore within the target formation is not less than 1,000
feet from any unit boundary;

(xi) For all other gas pools where the majority of the pool is below
8,000 feet, within five percent of 640 acres with the wellbore within
the target formation no less than 1,500 feet from any unit boundary,
plus, if applicable, the number of additional acres necessary and
sufficient to ensure that any horizontal wellbore within the target
formation is not less than 1,500 feet from any unit boundary;

(xii) For oil pools in the Bass Island, Trenton, Black River, Onondaga
reef or other oil-bearing reefs at any depth, 40 acres with the wellbore
within the target formation no less than 460 feet from any unit
boundary, plus, if applicable, the number of additional acres necessary
and sufficient to ensure that any horizontal wellbore within the target
formation is not less than 460 feet from any unit boundary; and

(xiii) For all other oil pools at any depth, the wellbore within the
target formation shall be no less than 165 feet from any lease boundary.

Wells completed under a well permit issued pursuant to clause (xii) or
(xiii) of this subparagraph that do not produce oil may not commence
production of natural gas prior to modification of the spacing unit
pursuant to applicable provisions of this title.

(2) "Well operator" means the applicant for a permit to drill, deepen,
plug back or convert a well subject to this title and titles 7 and 9 of
this article, or the actual operator of the well if the well is not
operated by the original applicant.

(3) "Permit" or "well permit" means a permit to drill, deepen, plug
back or convert a well for production of oil or gas.

2. Every person who applies for a permit to drill an oil or gas well
or deepen or plug back a well to a different pool after the effective
date of this section, notwithstanding prior orders, shall control
through fee ownership, voluntary agreement, or integration pursuant to
section 23-0701 or 23-0901 of this article no less than sixty percent of
the acreage within the proposed spacing unit for such well and shall
provide the department with:

a. A map in a format specified by the department depicting the
proposed spacing unit for the well, the surface and bottom hole
locations of the well, the location of the wellbore in the target
formation, the location of any field-bounding faults within the proposed
spacing unit, the acreage of the proposed spacing unit, and the
boundaries of each tract wholly or partially within the proposed spacing
unit as may be evidenced by tax identification numbers; and

b. A demonstration that the applicant controls the oil or gas rights,
as applicable, in the target formation to be penetrated by the wellbore,
provided that, if the applicant does not control such oil or gas rights,
the department shall issue a permit that is conditional upon the
applicant completing the integration process required by section 23-0901
of this article before the applicant can exercise the right to drill,
deepen, plug back or convert under the permit.

3. (a) No permits shall be issued authorizing an applicant to drill,
deepen, plug back, or convert wells that use high-volume hydraulic
fracturing to complete or recomplete natural gas or oil resources. For
purposes of this section, high-volume hydraulic fracturing shall be
defined as the stimulation of a well using three hundred thousand or
more gallons of water as the base fluid for hydraulic fracturing for all
stages in a well completion, regardless of whether the well is vertical
or directional, including horizontal.

(b) There shall be a moratorium on the department taking actions on
applications filed after the effective date of the chapter of the laws
of 2020 which added this subdivision to drill, deepen, plug back, or
convert wells that use gelled propane hydraulic fracturing to complete
or recomplete natural gas or oil resources until the department
completes an analysis of the potential impacts of gelled propane
fracturing and makes the analysis publicly available. The scope of the
department's analysis shall reflect the potential for development of oil
and gas wells using gelled propane hydraulic fracturing and shall
disclose the potential adverse impacts to the environment. For purposes
of this section, gelled propane hydraulic fracturing shall be defined as
the stimulation of a well using gelled propane or liquefied petroleum
gas as the base fluid for hydraulic fracturing for all stages in a well
completion, regardless of whether the well is vertical or directional,
including horizontal.

4. In furtherance of the policy objectives of this article, the
department shall take all actions required by it under this title and
titles 7 and 9 of this article as expeditiously as possible.