Requirements for Applying for a Spacing Exception Under Rule 303 (2) 

In general, R 324.303 (2) may be used to abrogate spacing in a development unit thereby providing greater flexibility for locating wells.  R 324.303 (2)may be used to drill one or more wells in the development unit.  In all cases, the development unit must be formed by combining 2 or more full drilling units.

Include the following items when applying for an administrative spacing exception pursuant to R 324.303(2):

1.       Name of applicant, well name, and permit number of well(s) included in the proposed unit.  Identify the applicable spacing provision for the objective formation and area.

2.       Describe the proposed unit area and identify the number of acres in it.

3.       List the names of all mineral and working interest owners in the proposed unit.

4.       Provide a copy of the Declaration of Pooling, which comprises or includes all of the unit area.

5.       Describe how the proposed plan of development meets the criteria required in R 303 (2):

(a)     Waste is prevented.

(b)     The drilling of unnecessary wells is prevented.

(c)     A well is not closer than 330 feet from the unit boundary and is not closer than 660 feet from adjacent wells.

(d)     The distance between wells prevents interference.

6.       A copy of pooling ratifications (if required to pool leases e.g. for state-owned minerals)

- AND/OR - a certified statement from a knowledgeable person that all mineral interests within the unit are leased and controlled by the applicant and that these interests have been voluntarily pooled.

7.       Enclose a large-scale project map (e.g. 1"=1000'), drawn to scale, of the proposed unit.  Identify all drilled, permitted, and proposed wells.  Identify all wells in drilling units adjoining the proposed development unit.

8.       Identify what the development plans for the unit will be.   Are wells beyond what are currently proposed likely to be drilled?

Mail the application to: 
Office of Geological Survey, DEQ
P.O. Box 30256
Lansing, MI  48909-7756
Attn: Tom Godbold

If you have questions please contact Dave Davis at 517-241-1529