(1) When necessary to prevent waste of oil or gas, to avoid the drilling of unnecessary wells or to protect correlative rights, the governing board of the State Department of Geology and Mineral Industries shall establish spacing units for a pool or field. Spacing units when established shall be of uniform size and shape for the entire pool or field, except that when found to be necessary for any of the above purposes the board is authorized to divide any pool or field into zones and establish spacing units for each zone, which units may differ in size and shape from those established in any other zone. The board may not establish spacing units for injection wells, withdrawal wells or monitoring wells drilled for the purpose of storing gas or other gaseous substances, or wells drilled for the underground disposal of fluids.
(2) The size and shape of spacing units shall be such as will result in efficient and economical development of the pool or field as a whole and the size thereof may not be smaller than the maximum area that can be efficiently drained by one well.
(3) An order establishing spacing units for a pool or field shall specify the size and shape of each unit and the location of each permitted well thereon in accordance with a reasonably uniform spacing plan. If an owner finds that a well drilled at the prescribed location would not produce in paying quantities or that surface conditions would substantially add to the burden or hazard of drilling such well, then the owner may apply to the department for permission to drill a well at a location other than that prescribed by such spacing order. The department shall notify adjacent mineral owners of such application and any such owner may request a hearing by the board to consider the application. If no request for a hearing is made in writing within 20 days, the department may issue an order approving the drilling site. Any order by the board or department under this section shall include in the order suitable provisions to prevent the production from the spacing unit of more than its just and equitable share of the oil and gas in the pool.
(4) An order establishing spacing units for a pool or field shall cover all lands determined or believed to be underlaid by such pool or field and may be modified by the board from time to time to include additional areas determined to be underlaid by such pool or field. When necessary to prevent waste of oil or gas, to protect correlative rights or to provide for more efficient drainage, an order establishing spacing units in a pool or field may be modified by the board to increase the size of spacing units for future wells in a pool or field or any zone thereof or to permit the drilling of additional wells on a reasonably uniform plan in such pool, field or zone. [Formerly 520.065; 1981 c.146 §4; 2007 c.672 §18]
Section: Previous 520.125 520.130 520.135 520.145 520.155 520.165 520.175 520.210 520.220 520.230 520.240 520.260 520.270 520.280 520.290 NextLast modified: August 7, 2008