§ 458A.7 — Department shall set spacing units

Iowa § 458A.7

• Jurisdiction: Iowa
• Title XI: NATURAL RESOURCES
• Ch. 458A: OIL, GAS, AND OTHER MINERALS

Text

The department shall set spacing units as follows:
1. When necessary to prevent waste, to avoid the drilling of unnecessary wells, or to
protect correlative rights, the department shall establish spacing units for a pool. Spacing
units when established shall be of uniform size and shape for the entire pool, except that
when found to be necessary for any of the purposes above mentioned, the department may
divide any pool into zones and establish spacing units for each zone, which units may differ
in size and shape from those established in any other zone.
2. The size and shape of spacing units are to be such as will result in the efficient and
economical development of the pool as a whole.
3. An order establishing spacing units for a pool shall specify the size and shape of
each unit and the location of the permitted well thereon in accordance with a reasonably
uniform spacing plan. Upon application, if the director 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, the director is authorized to
enter an order permitting the well to be drilled at a location other than that prescribed by
such spacing order; however, the director 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 units for a pool shall cover all lands determined or believed to
be underlaid by the pool, and may be modified by the director from time to time to include
additional areas determined to be underlaid by the pool. When found necessary for the
prevention of waste, or to avoid the drilling of unnecessary wells or to protect correlative
rights, an order establishing spacing units in a pool may be modified by the director to
increase the size of spacing units in the pool or any zone of the pool, or to permit the drilling
of additional wells on a reasonable uniform plan in the pool, or any zone of the pool. Orders
of the director may be appealed to the department within thirty days.

Legislative History

[C39, §1360.02; C46, 50, 54, 58, 62, §84.2; C66, 71, 73, 75, 77, 79, 81, §84.7; 82 Acts, ch 1199, §43, 96]