§ 38-08-09.9 — Enlargement of area - Creation of new units - Amendment of plan

North Dakota § 38-08-09.9

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

Text

The unit area of a unit may be enlarged at any time by the commission, subject to the
limitations provided in this chapter to include adjoining portions of the same common source of
supply, including the unit area of another unit, and a new unit created for the unitized
management, operation, and further development of the enlarged unit area, or the plan of
unitization may be otherwise amended, all in the same manner, upon the same conditions and
subject to the same limitations as provided with respect to the creation of a unit in the first
instance, except, that where an amendment to a plan of unitization relates only to the rights and
obligations as between lessees, or the amendment to a plan of unitization or the enlargement of
a unit area is found by the commission to be reasonably necessary in order to effectively carry
on the joint effort, to prevent waste, and to protect correlative rights, and that such will result in
the general advantage of the owners of the oil and gas rights within the unit area and the
proposed enlarged unit area, and the persons and owners in the proposed added unit area have
ratified or approved the plan of unitization as required by section 38-08-09.5, then the
amendment to a plan of unitization or the enlargement of a unit area need not be ratified or
approved by royalty owners of record in the existing unit area provided that written notice
thereof is mailed to the royalty owners by the operator of a unit not more than forty days nor less
than thirty days prior to the commission hearing. The notice must describe the plan for the unit
amendment or enlargement together with the participation factor to be given each tract in the
unit area and in the proposed area and must contain the time and place of the commission
hearing. An affidavit of mailing verifying the notice must be filed with the commission. The notice
must further provide that in the event ten percent of the royalty interests or working interests in
the existing unit area file with the commission at least ten days prior to the commission
proceeding an objection to the plan of enlargement, the commission shall require that the unit

amendment or enlargement be approved by more than fifty-five percent of all royalty interests
and working interests in the existing and proposed areas.