Spacing of wells, exception, noncommercial gas wells.
259.100. 1. The council shall set spacing units as follows:
(1) When necessary to prevent waste, to avoid the drillingof unnecessary wells, or to protect correlative rights, thecouncil shall establish spacing units for a pool. Spacing unitswhen established shall be of uniform size and shape for theentire pool, except that when found to be necessary for any ofthe purposes above mentioned, the council is authorized to divideany pool into zones and establish spacing units for each zone,which units may differ in size and shape from those establishedin any other zone;
(2) The size and shape of spacing units are to be such aswill result in the efficient and economical development of thepool as a whole;
(3) An order establishing spacing units for a pool shallspecify the size and shape of each unit and the location of thepermitted well thereon in accordance with a reasonably uniformspacing plan. Upon application, if the state geologist findsthat a well drilled at the prescribed location would not producein paying quantities, or that surface conditions wouldsubstantially add to the burden or hazard of drilling such well,the state geologist is authorized to enter an order permittingthe well to be drilled at a location other than that prescribedby such spacing order; however, the state geologist shall includein the order suitable provisions to prevent the production fromthe spacing unit of more than its just and equitable share of theoil and gas in the pool;
(4) An order establishing units for a pool shall cover alllands determined or believed to be underlaid by such pool, andmay be modified by the state geologist from time to time toinclude additional areas determined to be underlaid by such pool.When found necessary for the prevention of waste, or to avoid thedrilling of unnecessary wells or to protect correlative rights,an order establishing spacing units in a pool may be modified bythe state geologist to increase the size of spacing units in thepool or any zone thereof, or to permit the drilling of additionalwells on a reasonable uniform plan in the pool, or any zonethereof. Orders of the state geologist may be appealed to thecouncil within thirty days.
2. The provisions of subsection 1 of this section shall notapply to noncommercial gas wells.
3. Applicants seeking a permit for a noncommercial gas wellshall file a bond or other instrument of credit acceptable to thecouncil equal to the greater of three hundred dollars or onedollar and fifty cents per well foot and meet the followingconditions and procedures: an owner of a noncommercial gas wellwith drilling rights may apply for the establishment of adrilling unit containing no less than three acres, with a wellset back of one hundred sixty-five feet on which a well no deeperthan eight hundred feet in depth may be drilled. An owner mayapply to the council for a variance to establish a drilling unitof less than three acres and/or less than one hundred sixty-fivefeet set back.
Spacing of wells, exception, noncommercial gas wells.
259.100. 1. The council shall set spacing units as follows:
(1) When necessary to prevent waste, to avoid the drillingof unnecessary wells, or to protect correlative rights, thecouncil shall establish spacing units for a pool. Spacing unitswhen established shall be of uniform size and shape for theentire pool, except that when found to be necessary for any ofthe purposes above mentioned, the council is authorized to divideany pool into zones and establish spacing units for each zone,which units may differ in size and shape from those establishedin any other zone;
(2) The size and shape of spacing units are to be such aswill result in the efficient and economical development of thepool as a whole;
(3) An order establishing spacing units for a pool shallspecify the size and shape of each unit and the location of thepermitted well thereon in accordance with a reasonably uniformspacing plan. Upon application, if the state geologist findsthat a well drilled at the prescribed location would not producein paying quantities, or that surface conditions wouldsubstantially add to the burden or hazard of drilling such well,the state geologist is authorized to enter an order permittingthe well to be drilled at a location other than that prescribedby such spacing order; however, the state geologist shall includein the order suitable provisions to prevent the production fromthe spacing unit of more than its just and equitable share of theoil and gas in the pool;
(4) An order establishing units for a pool shall cover alllands determined or believed to be underlaid by such pool, andmay be modified by the state geologist from time to time toinclude additional areas determined to be underlaid by such pool.When found necessary for the prevention of waste, or to avoid thedrilling of unnecessary wells or to protect correlative rights,an order establishing spacing units in a pool may be modified bythe state geologist to increase the size of spacing units in thepool or any zone thereof, or to permit the drilling of additionalwells on a reasonable uniform plan in the pool, or any zonethereof. Orders of the state geologist may be appealed to thecouncil within thirty days.
2. The provisions of subsection 1 of this section shall notapply to noncommercial gas wells.
3. Applicants seeking a permit for a noncommercial gas wellshall file a bond or other instrument of credit acceptable to thecouncil equal to the greater of three hundred dollars or onedollar and fifty cents per well foot and meet the followingconditions and procedures: an owner of a noncommercial gas wellwith drilling rights may apply for the establishment of adrilling unit containing no less than three acres, with a wellset back of one hundred sixty-five feet on which a well no deeperthan eight hundred feet in depth may be drilled. An owner mayapply to the council for a variance to establish a drilling unitof less than three acres and/or less than one hundred sixty-fivefeet set back.
Spacing of wells, exception, noncommercial gas wells.
259.100. 1. The council shall set spacing units as follows:
(1) When necessary to prevent waste, to avoid the drillingof unnecessary wells, or to protect correlative rights, thecouncil shall establish spacing units for a pool. Spacing unitswhen established shall be of uniform size and shape for theentire pool, except that when found to be necessary for any ofthe purposes above mentioned, the council is authorized to divideany pool into zones and establish spacing units for each zone,which units may differ in size and shape from those establishedin any other zone;
(2) The size and shape of spacing units are to be such aswill result in the efficient and economical development of thepool as a whole;
(3) An order establishing spacing units for a pool shallspecify the size and shape of each unit and the location of thepermitted well thereon in accordance with a reasonably uniformspacing plan. Upon application, if the state geologist findsthat a well drilled at the prescribed location would not producein paying quantities, or that surface conditions wouldsubstantially add to the burden or hazard of drilling such well,the state geologist is authorized to enter an order permittingthe well to be drilled at a location other than that prescribedby such spacing order; however, the state geologist shall includein the order suitable provisions to prevent the production fromthe spacing unit of more than its just and equitable share of theoil and gas in the pool;
(4) An order establishing units for a pool shall cover alllands determined or believed to be underlaid by such pool, andmay be modified by the state geologist from time to time toinclude additional areas determined to be underlaid by such pool.When found necessary for the prevention of waste, or to avoid thedrilling of unnecessary wells or to protect correlative rights,an order establishing spacing units in a pool may be modified bythe state geologist to increase the size of spacing units in thepool or any zone thereof, or to permit the drilling of additionalwells on a reasonable uniform plan in the pool, or any zonethereof. Orders of the state geologist may be appealed to thecouncil within thirty days.
2. The provisions of subsection 1 of this section shall notapply to noncommercial gas wells.
3. Applicants seeking a permit for a noncommercial gas wellshall file a bond or other instrument of credit acceptable to thecouncil equal to the greater of three hundred dollars or onedollar and fifty cents per well foot and meet the followingconditions and procedures: an owner of a noncommercial gas wellwith drilling rights may apply for the establishment of adrilling unit containing no less than three acres, with a wellset back of one hundred sixty-five feet on which a well no deeperthan eight hundred feet in depth may be drilled. An owner mayapply to the council for a variance to establish a drilling unitof less than three acres and/or less than one hundred sixty-fivefeet set back.
