§ 458A.8 — Integration of fractional tracts

Iowa § 458A.8

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

Text

1. Whentwoormoreseparatelyownedtractsareembracedwithinaspacingunit,orwhen
there are separately owned interests in all or a part of the spacing unit, then the owners and
royalty owners of the tracts may pool their interests for the development and operation of
the spacing unit. In the absence of voluntary pooling, the department, upon the application
of any interested person, shall enter an order pooling all interests in the spacing unit for the
development and operations of the unit. Each pooling order shall be made after notice and
hearing, and shall be upon terms and conditions that are just and reasonable, and that afford
to the owner of each tract or interest in the spacing unit the opportunity to recover or receive,
without unnecessary expense, a just and equitable share. Operations incident to the drilling
of a well upon any portion of a spacing unit covered by a pooling order shall be deemed for all
purposes to be the conduct of the operations upon each separately owned tract in the drilling
unit by the several owners of the unit. That portion of the production allocated to each tract
included in a spacing unit covered by a pooling order shall, when produced, be deemed for
all purposes to have been produced from the tract by a well drilled on it.
2. Each pooling order shall make provision for the drilling and operation of a well on the
spacing unit, and for the payment of the reasonable actual cost of the well by the owners
of interests in the spacing unit, plus a reasonable charge for supervision. In the event of
any dispute as to such costs, the department shall determine the proper costs. If an owner
§458A.8, OIL, GAS, AND OTHER MINERALS 6
shall drill and operate, or pay the expenses of drilling and operating the well for the benefit
of others, then, the owner so drilling or operating shall, upon complying with the terms of
section 458A.10, have a lien on the share of production from the spacing unit accruing to the
interest of each of the other owners for the payment of a proportionate share of the expenses.
All the oil and gas subject to the lien shall be marketed and sold and the proceeds applied in
payment of the expenses secured by the lien as provided for in section 458A.10.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §84.8; 82 Acts, ch 1199, §44, 96]