§ 38-08-09.3 — Matters to be found by commission - Requisites of petition

North Dakota § 38-08-09.3

• Jurisdiction: North Dakota
• Title 38: Mining and Gas and Oil Production
• Ch. 38-08: Control of Gas and Oil Resources

Text

If upon the filing of a petition therefor and after notice and hearing, all in the form and
manner and in accordance with the procedure and requirements hereinafter provided, the
commission shall find:
1. That the unitized management, operation, and further development of a common
source of supply of oil and gas or portion thereof is reasonably necessary in order to
effectively carry on pressure-maintenance or repressuring operations, cycling
operations, water flooding operations, or any combination thereof, or any other form of
joint effort calculated to substantially increase the ultimate recovery of oil and gas from
the common source of supply;
2. That one or more of said unitized methods of operation as applied to such common
source of supply or portion thereof are feasible, will prevent waste, and will with
reasonable probability result in the increased recovery of substantially more oil and
gas from the common source of supply than would otherwise be recovered;

3. That the estimated additional cost, if any, of conducting such operations will not
exceed the value of the additional oil and gas so recovered; and
4. That such unitization and adoption of one or more of such unitized methods of
operation is for the common good and will result in the general advantage of the
owners of the oil and gas rights within the common source of supply or portion thereof
directly affected,
it shall make a finding to that effect and make an order creating the unit and providing for the
unitization and unitized operation of the common source of supply or portion thereof described
in the order, all upon such terms and conditions, as may be shown by the evidence to be fair,
reasonable, equitable, and which are necessary or proper to protect, safeguard, and adjust the
respective rights and obligations of the several persons affected, including royalty owners,
owners of overriding royalties, oil and gas payments, carried interests, mortgagees, lien
claimants, and others, as well as the lessees. The petition must set forth a description of the
proposed unit area with a map or plat thereof attached, must allege the existence of the facts
required to be found by the commission as hereinabove provided and must have attached
thereto a proposed plan of unitization applicable to such proposed unit area and which the
petitioner or petitioners consider to be fair, reasonable, and equitable.