§ 40-6-6 — Drilling units -- Establishment by board -- Modifications -- Prohibitions.

Utah § 40-6-6

• Jurisdiction: Utah
• Title 40: Mines and Mining
• Ch. 40-6: Board and Division of Oil, Gas, and Mining

Text

(1) The board may order the establishment of drilling units for a pool.
(2) Within each drilling unit, only one well may be drilled for production from the common source of supply, except as provided in Subsections (6) and (7).
(3) A drilling unit may not be smaller than the maximum area that can be efficiently and economically drained by one well.
(4) (4)(a) Each drilling unit within a pool shall be of uniform size and shape, unless the board finds that it must make an exception due to geologic, geographic, or other factors.
(4)(b) If the board finds it necessary to divide a pool into zones and establish drilling units for each zone, drilling units may differ in size and shape for each zone.
(5) An order of the board that establishes drilling units for a pool shall:

(5)(a) be made upon terms and conditions that are just and reasonable;
(5)(b) include all lands determined by the board to overlay the pool;
(5)(c) specify the acreage and shape of each drilling unit as determined by the board; and
(5)(d) specify the location of the well in terms of distance from drilling unit boundaries and other wells.
(6) The board may establish a drilling unit and concurrently authorize the drilling of more than one well in a drilling unit if the board finds that:

(6)(a) engineering or geologic characteristics justify the drilling of more than one well in that drilling unit; and
(6)(b) the drilling of more than one well in the drilling unit will not result in waste.
(7) The board may modify an order that establishes drilling units for a pool to provide for:

(7)(a) an exception to the authorized location of a well;
(7)(b) the inclusion of additional areas which the board determines overlays the pool;
(7)(c) the increase or decrease of the size of drilling units; or
(7)(d) the drilling of additional wells within drilling units.
(8) (8)(a) An order of the board that establishes a drilling unit may be made effective retroactively to the date of first production of an existing well located within the drilling unit if no party to the board's proceeding objects to the retroactive application.
(8)(b) An order made retroactive under this section is binding upon a party owning an interest in the drilling unit who receives proper notice of the board's proceeding.
(9) (9)(a) After an order establishing drilling units has been entered by the board, the drilling of a well into the pool at a location other than that authorized by the order is prohibited.
(9)(b) The operation of a well drilled in violation of an order fixing drilling units is prohibited.

Legislative History

Amended by Chapter 220, 2017 General Session