                                 CODE OF VIRGINIA

 PERMIT REQUIRED; GAS, OIL, OR GEOPHYSICAL OPERATIONS; COALBED METHANE GAS
WELLS; ENVIRONMENTAL ASSESSMENT (§ 45.2-1631)

A. No person shall commence any ground-disturbing activity for a well, gathering
pipeline, geophysical exploration, or associated activity, facility, or
structure without first having obtained from the Director a permit to conduct
such activity. Every permit application or permit modification application filed
with the Director shall be verified by the permit applicant and shall contain
all data, maps, plats, plans, and other information as required by regulation or
the Director.

B. For each permit issued on or after July 1, 1996, a new permit issued by the
Director shall be issued only for the following activities: geophysical
operations, drilling, casing, equipping, stimulating, producing, reworking an
initially productive zone, plugging a well, or construction and operation of a
gathering pipeline. An application for a new permit to conduct geophysical
operations shall be accompanied by an application fee of $130. An application
for a new permit for any other activity shall be accompanied by an application
fee of $600.

C. For a permit issued prior to July 1, 1996, prior to commencing any reworking,
deepening, or plugging of a well, or other activity not previously approved on
the permitted site, a permittee shall first obtain a permit modification from
the Director. Each application for a permit modification shall be accompanied by
a permit modification fee of $300. For a permit issued on or after July 1, 1996,
prior to commencing any new zone completion, a permittee shall first obtain a
permit modification from the Director.

D. Every permit and all operations provided for under this section shall conform
to the regulations and orders of the Director and the Board. If permit terms or
conditions required or provided for under this article are in conflict with any
provision of a conservation order issued pursuant to the provisions of Article 2
(&#xA7; 45.2-1613 et seq.), the terms or conditions of the permit shall control.
In such event, the operator shall return to the Board for reconsideration of the
conservation order in light of the conflicting permit. Every permittee shall be
responsible for all operations, activities, or disturbances associated with the
permitted site.

E. No permit or permit modification shall be issued by the Director until he has
received from the applicant a written certification that (i) all notice
requirements of this article have been complied with, together with proof
thereof, and (ii) the applicant has the right to conduct the operations as set
forth in the application and operations plan.

F. A permit is required to drill any coalbed methane gas well or to convert any
methane drainage borehole into a coalbed methane gas well. In addition to the
other requirements of this section, every permit application for a coalbed
methane gas well shall include:

   1. The method that the coalbed methane gas well operator will use to stimulate
   the well.

   2. a. A signed consent from the coal operator of each coal seam that is
   located within (i) 750 horizontal feet of the proposed well location that the
   applicant proposes to stimulate or (ii) 100 vertical feet above or below a
   coal-bearing stratum that the applicant proposes to stimulate.
   				b. The consent required by this subsection may be (i) contained in a lease
   or other such agreement; (ii) contained in an instrument of title; or (iii) in
   any case where a coal operator cannot be located or identified and the
   operator has complied with &#xA7; 45.2-1618, provided by a pooling order
   entered pursuant to &#xA7; 45.2-1620 or 45.2-1622 if such order contains a
   finding that the operator has exercised due diligence in attempting to
   identify and locate the coal operator, contained in such order. The consent
   required by this subsection shall be deemed to be granted for any tract where
   title to the coal is held by multiple owners if the applicant has obtained
   consent to stimulate from the cotenants holding a majority interest in the
   tract and none of the coal cotenants has leased the tract for coal
   development. The requirement of signed consent contained in this subsection
   shall in no way be considered to impair, abridge, or affect any contractual
   rights or objections arising out of a coalbed methane gas contract or coalbed
   methane gas lease entered into prior to January 1, 1990, between the applicant
   and any coal operator or any extension or renewal thereto, and the existence
   of such lease or contractual arrangement and any extension or renewal thereto
   shall constitute a waiver of the requirement for the applicant to file an
   additional signed consent.

   3. The unit map, if any, approved by the Board.

G. No permit that is required by this chapter for an activity to be conducted
within an area of Tidewater Virginia where drilling is authorized under
subsection B of &#xA7; 45.2-1646 shall be granted until the environmental impact
assessment required by &#xA7; 45.2-1646 has been conducted and the assessment
has been reviewed by the Department.

H. The applicant for a permit for a gathering pipeline, oil or gas well, or
coalbed methane well shall identify in the permit application any cemetery, as
identified on a United States Geological Survey topographic map or located by
routine field review, within 100 feet of the permitted activity.

I. The operator of any coalbed methane well drilled within 250 feet of a
cemetery shall comply with a written request of any person owning an interest in
a private cemetery or the authorized agent of a public cemetery that the
operator of such well suspend operations for a period from two hours before to
two hours after any burial service that takes place on the surface area of such
cemetery. However, if the well operator or a mine operator determines that such
suspension of operations will have an adverse effect on the safety of the well
operations or mining operations, the operator shall be under no obligation to
comply with the request, and operation of the well shall continue.

HISTORY: 1982, c. 347, § 45.1-311; 1985, c. 601; 1987, c. 452; 1988, c. 160, §
45.1-311.1; 1990, cc. 92, 967, § 45.1-361.29; 1994, c. 957; 1995, c. 269; 1996,
c. 854; 1997, cc. 759, 765; 1998, c. 229; 2003, cc. 542, 550; 2008, c. 227;
2021, Sp. Sess. I, c. 387.