Arkansas Code § 15-76-311 - Contents of Order

The order requiring the operation of an area as a brine production unit or a brine expansion unit shall include:

(1) A description of the area included within such a brine production unit or a brine expansion unit;

(2) The surface area of each tract in the proposed unit;

(3) A provision for any credits and charges to be made in the adjustment among the owners in the unit for their allocated costs of the total investment in each well within the unit, pipelines, pumps, machinery, materials, and equipment required by the brine operation;

(4) A statement of the tangible and intangible expenses of the development and operation of the unit, including capital investments required in the development and operation of the brine production unit or the brine expansion unit, exclusive of the plant of the producer, to be charged to each owner in the unit in the same proportion as the owner's net material interest in brine production from the brine production unit or the brine expansion unit;

(5) The time and manner in which all owners in the unit who may desire to pay their share of the costs outlined in subdivision (4) of this section and participate in the operations of the unit may elect to do so;

(6) (A) The time at which the unit operation shall commence and the approval by the Oil and Gas Commission of the plan of development and operation of the unit, including, but not limited to, the number and proposed location of each well to be drilled within such unit for production and injection or disposal purposes and the approximate date upon which the proposed plan of development is to be commenced and completed.

(B) However, the commission shall have no authority to allow wells or other installations on the surface of lands without the consent of the surface owner;

(7) The name of the operator who shall drill, complete, or operate the well or wells within the unit; and

(8) Those additional provisions which are consistent with this subchapter and which the commission determines to be appropriate for the prevention of waste and the protection of correlative rights.

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Last modified: November 15, 2016