Sec. 23. (a) A lease must provide that the lessee shall drill an offset well to a well on adjoining land that:

(1) is within three hundred thirty (330) feet of an outer boundary of the land covered by the lease; and

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Terms Used In Indiana Code 14-38-1-23

  • 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
  • petroleum: means any liquid or gaseous hydrocarbon occurring in nature beneath the surface of the earth. See Indiana Code 14-38-1-3
(2) is producing petroleum in paying quantities and draining the land covered by the lease.

     (b) The offset must be:

(1) started within ninety (90) days from the completion of the adjoining well; and

(2) drilled with due diligence to completion.

[Pre-1995 Recodification Citation: 14-4-3-19.]

As added by P.L.1-1995, SEC.31.