§ 38-08-20 — Commingling of production - Central production facility - Metering of production - Testing of meters

production - Testing of meters.
A producer may not commingle production from two or more oil or gas wells with diverse
ownership in a storage facility without prior approval of the commission after notice and
opportunity for hearing. If the commingling of production is for the express purpose of
separating, metering, holding, and marketing of production, the owner of the wells shall apply to
the commission for approval of the proposed commingling of production at a storage facility. If
wells producing into a centralized storage facility have diverse ownership, the production from
each well must be measured by meters approved and tested by or under the direction of the
commission or production must be measured by some other method the commission has
approved after notice and opportunity for hearing. If wells producing into a centralized storage
facility have common ownership, including the common ownership of the working interest, the
common ownership of the royalty ownership, and the common ownership of any overriding
royalty owners, the production from each well need not be measured on meters approved by the
commission if the owner of the wells demonstrates to the commission that the production from
each well can be accurately determined at reasonable intervals by other means.