§ 45.1-361.20. Field rules and drilling units for wells; hearings and orders.
A. In order to prevent the waste of gas or oil, the drilling of unnecessarywells, or to protect correlative rights, the Board on its own motion or uponapplication of the gas or oil owner shall have the power to establish ormodify drilling units. Drilling units, to the extent reasonably possible,shall be of uniform shape and size for an entire pool. Any gas, oil, orroyalty owner may apply to the Board for the establishment of field rules andthe creation of drilling units for the field. Unless such motion is made oran application is received at least thirty days prior to the next regularlyscheduled monthly meeting of the Board, it shall not be heard by the Board atsuch meeting and shall be heard at the next meeting of the Board thereafter.
B. At any hearing of the Board regarding the establishment or modification ofdrilling units, the Board shall make the following determinations:
1. Whether the proposed drilling unit is an unreasonable or arbitraryexercise of a gas or oil owner's right to explore for or produce gas or oil;
2. Whether the proposal would unreasonably interfere with the present orfuture mining of coal or other minerals;
3. The acreage to be included in the order;
4. The acreage to be embraced within each drilling unit and the shape thereof;
5. The area within which wells may be drilled on each unit; and
6. The allowable production of each well.
C. In establishing or modifying a drilling unit for coalbed methane gaswells, and in order to accommodate the unique characteristics of coalbedmethane development, the Board shall require that drilling units conform tothe mine development plan, if any, and if requested by the coal operator,well spacing shall correspond with mine operations, including the drilling ofmultiple coalbed methane gas wells on each drilling unit.
D. If an order to establish or modify a drilling unit will allow a well to bedrilled into or through a coal seam, any coal owner within the area to becovered by the drilling unit may object to the establishment of the drillingunit. Upon a coal owner's objection, and without superseding, impairing,abridging or affecting any contractual rights or obligations existing betweencoal and gas owners, the Board shall make its determination in accordancewith the provisions of §§ 45.1-361.11 and 45.1-361.12.
E. The Board may continue a hearing to its next meeting to allow for furtherinvestigation and the gathering and taking of additional data and evidence.If at the time of a hearing there is not sufficient evidence for the Board todetermine field boundaries, drilling unit size or shape, or allowableproduction, the Board may enter a temporary order establishing provisionaldrilling units, field boundaries, and allowable production for the orderlydevelopment of the pool pending receipt of the information necessary todetermine the ultimate pool boundaries, spacing of wells for the pool, andallowable production. Upon additional findings of fact, the boundaries of apool, drilling units for the pool, and allowable production may be modifiedby the Board.
F. Unless otherwise provided for by the Board, after an application for ahearing to establish or modify drilling units or pool boundaries has beenfiled, no additional wells shall be permitted in the pool until the Board'sorder establishing or modifying the pool or units has been entered.
G. After the Board issues a field or pool spacing order which createsdrilling units or a pattern of drilling units for a pool, should a gas or oilowner apply for a permit or otherwise indicate his desire to drill a welloutside of such drilling units or pattern of drilling units and therebypotentially extend the pool, the Board may, on its own motion or the motionof any interested person, require that the well be located and drilled incompliance with the provisions of the order affecting the pool.
(1982, c. 347, § 45.1-301; 1987, c. 452; 1989, c. 529; 1990, c. 92.)
§ 45.1-361.20. Field rules and drilling units for wells; hearings and orders.
A. In order to prevent the waste of gas or oil, the drilling of unnecessarywells, or to protect correlative rights, the Board on its own motion or uponapplication of the gas or oil owner shall have the power to establish ormodify drilling units. Drilling units, to the extent reasonably possible,shall be of uniform shape and size for an entire pool. Any gas, oil, orroyalty owner may apply to the Board for the establishment of field rules andthe creation of drilling units for the field. Unless such motion is made oran application is received at least thirty days prior to the next regularlyscheduled monthly meeting of the Board, it shall not be heard by the Board atsuch meeting and shall be heard at the next meeting of the Board thereafter.
B. At any hearing of the Board regarding the establishment or modification ofdrilling units, the Board shall make the following determinations:
1. Whether the proposed drilling unit is an unreasonable or arbitraryexercise of a gas or oil owner's right to explore for or produce gas or oil;
2. Whether the proposal would unreasonably interfere with the present orfuture mining of coal or other minerals;
3. The acreage to be included in the order;
4. The acreage to be embraced within each drilling unit and the shape thereof;
5. The area within which wells may be drilled on each unit; and
6. The allowable production of each well.
C. In establishing or modifying a drilling unit for coalbed methane gaswells, and in order to accommodate the unique characteristics of coalbedmethane development, the Board shall require that drilling units conform tothe mine development plan, if any, and if requested by the coal operator,well spacing shall correspond with mine operations, including the drilling ofmultiple coalbed methane gas wells on each drilling unit.
D. If an order to establish or modify a drilling unit will allow a well to bedrilled into or through a coal seam, any coal owner within the area to becovered by the drilling unit may object to the establishment of the drillingunit. Upon a coal owner's objection, and without superseding, impairing,abridging or affecting any contractual rights or obligations existing betweencoal and gas owners, the Board shall make its determination in accordancewith the provisions of §§ 45.1-361.11 and 45.1-361.12.
E. The Board may continue a hearing to its next meeting to allow for furtherinvestigation and the gathering and taking of additional data and evidence.If at the time of a hearing there is not sufficient evidence for the Board todetermine field boundaries, drilling unit size or shape, or allowableproduction, the Board may enter a temporary order establishing provisionaldrilling units, field boundaries, and allowable production for the orderlydevelopment of the pool pending receipt of the information necessary todetermine the ultimate pool boundaries, spacing of wells for the pool, andallowable production. Upon additional findings of fact, the boundaries of apool, drilling units for the pool, and allowable production may be modifiedby the Board.
F. Unless otherwise provided for by the Board, after an application for ahearing to establish or modify drilling units or pool boundaries has beenfiled, no additional wells shall be permitted in the pool until the Board'sorder establishing or modifying the pool or units has been entered.
G. After the Board issues a field or pool spacing order which createsdrilling units or a pattern of drilling units for a pool, should a gas or oilowner apply for a permit or otherwise indicate his desire to drill a welloutside of such drilling units or pattern of drilling units and therebypotentially extend the pool, the Board may, on its own motion or the motionof any interested person, require that the well be located and drilled incompliance with the provisions of the order affecting the pool.
(1982, c. 347, § 45.1-301; 1987, c. 452; 1989, c. 529; 1990, c. 92.)
§ 45.1-361.20. Field rules and drilling units for wells; hearings and orders.
A. In order to prevent the waste of gas or oil, the drilling of unnecessarywells, or to protect correlative rights, the Board on its own motion or uponapplication of the gas or oil owner shall have the power to establish ormodify drilling units. Drilling units, to the extent reasonably possible,shall be of uniform shape and size for an entire pool. Any gas, oil, orroyalty owner may apply to the Board for the establishment of field rules andthe creation of drilling units for the field. Unless such motion is made oran application is received at least thirty days prior to the next regularlyscheduled monthly meeting of the Board, it shall not be heard by the Board atsuch meeting and shall be heard at the next meeting of the Board thereafter.
B. At any hearing of the Board regarding the establishment or modification ofdrilling units, the Board shall make the following determinations:
1. Whether the proposed drilling unit is an unreasonable or arbitraryexercise of a gas or oil owner's right to explore for or produce gas or oil;
2. Whether the proposal would unreasonably interfere with the present orfuture mining of coal or other minerals;
3. The acreage to be included in the order;
4. The acreage to be embraced within each drilling unit and the shape thereof;
5. The area within which wells may be drilled on each unit; and
6. The allowable production of each well.
C. In establishing or modifying a drilling unit for coalbed methane gaswells, and in order to accommodate the unique characteristics of coalbedmethane development, the Board shall require that drilling units conform tothe mine development plan, if any, and if requested by the coal operator,well spacing shall correspond with mine operations, including the drilling ofmultiple coalbed methane gas wells on each drilling unit.
D. If an order to establish or modify a drilling unit will allow a well to bedrilled into or through a coal seam, any coal owner within the area to becovered by the drilling unit may object to the establishment of the drillingunit. Upon a coal owner's objection, and without superseding, impairing,abridging or affecting any contractual rights or obligations existing betweencoal and gas owners, the Board shall make its determination in accordancewith the provisions of §§ 45.1-361.11 and 45.1-361.12.
E. The Board may continue a hearing to its next meeting to allow for furtherinvestigation and the gathering and taking of additional data and evidence.If at the time of a hearing there is not sufficient evidence for the Board todetermine field boundaries, drilling unit size or shape, or allowableproduction, the Board may enter a temporary order establishing provisionaldrilling units, field boundaries, and allowable production for the orderlydevelopment of the pool pending receipt of the information necessary todetermine the ultimate pool boundaries, spacing of wells for the pool, andallowable production. Upon additional findings of fact, the boundaries of apool, drilling units for the pool, and allowable production may be modifiedby the Board.
F. Unless otherwise provided for by the Board, after an application for ahearing to establish or modify drilling units or pool boundaries has beenfiled, no additional wells shall be permitted in the pool until the Board'sorder establishing or modifying the pool or units has been entered.
G. After the Board issues a field or pool spacing order which createsdrilling units or a pattern of drilling units for a pool, should a gas or oilowner apply for a permit or otherwise indicate his desire to drill a welloutside of such drilling units or pattern of drilling units and therebypotentially extend the pool, the Board may, on its own motion or the motionof any interested person, require that the well be located and drilled incompliance with the provisions of the order affecting the pool.
(1982, c. 347, § 45.1-301; 1987, c. 452; 1989, c. 529; 1990, c. 92.)
