Arizona § 27-506 Regulation of drilling in pools; notice of sale, transfer or purchase

Arizona Statutes

§ 27-506 — Regulation of drilling in pools; notice of sale, transfer or purchase

Arizona § 27-506

Title 27Arizona Revised Statutes

Ch. 4OIL AND GAS

Art. 1Production and Conservation

This text of Arizona § 27-506 (Regulation of drilling in pools; notice of sale, transfer or purchase) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 27-506 (2026).

Text

A.The commissioner shall, upon notice and hearing, regulate drilling and location of wells in any pool and the production therefrom to prevent reasonably avoidable net drainage from each developed unit so that each owner in a pool shall have the right and opportunity to recover his fair and equitable share of recoverable oil and gas in the pool.

B.A rule, regulation or order of the commissioner made under the provisions of this section shall not be of such effect as to:

1.Make it necessary for a producer from, or an owner of, a tract of land in a pool, in order to obtain his just and equitable share of the production of the pool, to drill and operate a well on the tract in addition to such wells as may without waste produce his share.

2.Occasion net drainage unless wells are drilled

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A. The commissioner shall, upon notice and hearing, regulate drilling and location of wells in any pool and the production therefrom to prevent reasonably avoidable net drainage from each developed unit so that each owner in a pool shall have the right and opportunity to recover his fair and equitable share of recoverable oil and gas in the pool.

B. A rule, regulation or order of the commissioner made under the provisions of this section shall not be of such effect as to:

1. Make it necessary for a producer from, or an owner of, a tract of land in a pool, in order to obtain his just and equitable share of the production of the pool, to drill and operate a well on the tract in addition to such wells as may without waste produce his share.

2. Occasion net drainage unless wells are drilled and operated on the tract in addition to such wells thereon as can without waste produce the tract's just and equitable share of the production of the pool.

C. Any owner of a well, any owner of land upon which a well is located, or any lessor or lessee of land upon which a well is located shall notify the commission, in writing and on such form as the commission may prescribe, of the sale, assignment, transfer, conveyance or exchange of such well, land or lease. Such notice shall be made within ten days of such sale, assignment, transfer, conveyance or exchange and shall contain:

1. The name and address of the person to whom sold, assigned, transferred, conveyed or exchanged.

2. The name and location of the well.

3. The date of the sale, assignment, transfer, conveyance or exchange.

D. Any person who acquires ownership or operation of any well, ownership of any land upon which a well is located or any lease rights to land on which a well is located, whether by purchase, assignment, transfer, conveyance, exchange or otherwise, shall, within ten days after acquiring such well, land or lease rights, notify the commission, in writing and on such form as the commission may prescribe, of his ownership or operation. Such notice shall contain:

1. The name and address of the person from whom acquired.

2. The name and location of the well.

3. The date of acquisition.

4. The date when operations are assumed or resumed by new owner.