(a) (1) All producers, as defined in § 15-76-302, may make application to the Oil and Gas Commission for the establishment of brine production units and brine expansion units.(2) Each application shall be scheduled for public hearing by the commission to be held no later than the next regularly scheduled hearing of the commission that will afford proper notice to be given.
(1) All producers, as defined in § 15-76-302, may make application to the Oil and Gas Commission for the establishment of brine production units and brine expansion units.
(2) Each application shall be scheduled for public hearing by the commission to be held no later than the next regularly scheduled hearing of the commission that will afford proper notice to be given.
(b) Unless a smaller area is requested by a petitioner and established by order of the commission, a brine production unit or a brine expansion unit established by order of the commission shall comprise no fewer than one thousand two hundred eighty (1,280) contiguous surface acres which are reasonably established to be underlain by a common aquifer.
(c) (1) A proposed brine production unit shall be approved by the commission if the existing or proposed plan of development is such as to drain efficiently the area of the unit and to protect the correlative rights of each owner therein.(2) Each brine production unit as created by the commission under this subchapter shall constitute a brine production unit as long as a producing well is located therein which is capable of producing brine in paying quantities.
(1) A proposed brine production unit shall be approved by the commission if the existing or proposed plan of development is such as to drain efficiently the area of the unit and to protect the correlative rights of each owner therein.
(2) Each brine production unit as created by the commission under this subchapter shall constitute a brine production unit as long as a producing well is located therein which is capable of producing brine in paying quantities.
(d) (1) A proposed brine expansion unit shall be approved by the commission as a stand-alone brine expansion unit if the existing or proposed plan of development establishes that the operation of an existing brine production unit can be expanded, enhanced, or made more efficient by the placement of one (1) or more production wells or brine injection wells in an expanded area immediately adjacent to the existing brine production unit, if the plan of development is such as to:(A) Drain efficiently the area of the brine expansion unit; and(B) Protect the correlative rights of each owner of the brine expansion unit.(2) Each brine expansion unit as created by the commission under this subchapter shall constitute a unit as long as a producing well is located within:(A) The brine expansion unit; or(B) The adjacent brine production unit that is capable of producing brine in paying quantities.(3) (A) The operator of a brine production unit or brine expansion unit may apply to the commission to reduce the size of the unit by removing one (1) or more contiguous tracts from the unit.(B) The commission may approve the operator's application if the commission finds that:(i) The tract or tracts sought to be removed do not contain an unplugged brine production or brine disposal well;(ii) There have been no brine production wells or brine disposal wells located within one-half mile (½ mi.) of any exterior boundary of the removed tract or tracts during the time the brine production unit has been in operation; and(iii) The removed tract or tracts will not be drained or placed in imminent risk of being drained by the operations of the unit from which the tract or tracts will be removed or by any other adjacent unit.(4) (A) The operator or operators of two (2) adjacent brine production units or brine expansion units may apply to the commission to transfer one (1) or more contiguous tracts from the unit to the adjacent unit.(B) The commission shall approve the operator's application if it finds that the:(i) Operator has the right to produce brine from no less than seventy-five percent (75%) of the entire area of each immediately adjacent unit;(ii) Operation of the brine production unit receiving the transferred tract or tracts will be expanded, enhanced, or made more efficient by the proposed transfer;(iii) Transfer will drain efficiently the area within the tract or tracts so transferred; and(iv) Transfer will have no adverse impact on either the amount or the reasonably anticipated longevity of the royalty payments due to the owners of the tract or tracts so transferred and will not otherwise substantially impair the correlative rights of the owners of the tract or tracts transferred or of owners within the brine unit receiving the transferred tract.(5) Upon the commission's approval of the transfer, the transferred tract or tracts shall become a brine expansion unit adjacent to the unit to which it was transferred.
(1) A proposed brine expansion unit shall be approved by the commission as a stand-alone brine expansion unit if the existing or proposed plan of development establishes that the operation of an existing brine production unit can be expanded, enhanced, or made more efficient by the placement of one (1) or more production wells or brine injection wells in an expanded area immediately adjacent to the existing brine production unit, if the plan of development is such as to:(A) Drain efficiently the area of the brine expansion unit; and(B) Protect the correlative rights of each owner of the brine expansion unit.
(A) Drain efficiently the area of the brine expansion unit; and
(B) Protect the correlative rights of each owner of the brine expansion unit.
(2) Each brine expansion unit as created by the commission under this subchapter shall constitute a unit as long as a producing well is located within:(A) The brine expansion unit; or(B) The adjacent brine production unit that is capable of producing brine in paying quantities.
(A) The brine expansion unit; or
(B) The adjacent brine production unit that is capable of producing brine in paying quantities.
(3) (A) The operator of a brine production unit or brine expansion unit may apply to the commission to reduce the size of the unit by removing one (1) or more contiguous tracts from the unit.(B) The commission may approve the operator's application if the commission finds that:(i) The tract or tracts sought to be removed do not contain an unplugged brine production or brine disposal well;(ii) There have been no brine production wells or brine disposal wells located within one-half mile (½ mi.) of any exterior boundary of the removed tract or tracts during the time the brine production unit has been in operation; and(iii) The removed tract or tracts will not be drained or placed in imminent risk of being drained by the operations of the unit from which the tract or tracts will be removed or by any other adjacent unit.
(A) The operator of a brine production unit or brine expansion unit may apply to the commission to reduce the size of the unit by removing one (1) or more contiguous tracts from the unit.
(B) The commission may approve the operator's application if the commission finds that:(i) The tract or tracts sought to be removed do not contain an unplugged brine production or brine disposal well;(ii) There have been no brine production wells or brine disposal wells located within one-half mile (½ mi.) of any exterior boundary of the removed tract or tracts during the time the brine production unit has been in operation; and(iii) The removed tract or tracts will not be drained or placed in imminent risk of being drained by the operations of the unit from which the tract or tracts will be removed or by any other adjacent unit.
(i) The tract or tracts sought to be removed do not contain an unplugged brine production or brine disposal well;
(ii) There have been no brine production wells or brine disposal wells located within one-half mile (½ mi.) of any exterior boundary of the removed tract or tracts during the time the brine production unit has been in operation; and
(iii) The removed tract or tracts will not be drained or placed in imminent risk of being drained by the operations of the unit from which the tract or tracts will be removed or by any other adjacent unit.
(4) (A) The operator or operators of two (2) adjacent brine production units or brine expansion units may apply to the commission to transfer one (1) or more contiguous tracts from the unit to the adjacent unit.(B) The commission shall approve the operator's application if it finds that the:(i) Operator has the right to produce brine from no less than seventy-five percent (75%) of the entire area of each immediately adjacent unit;(ii) Operation of the brine production unit receiving the transferred tract or tracts will be expanded, enhanced, or made more efficient by the proposed transfer;(iii) Transfer will drain efficiently the area within the tract or tracts so transferred; and(iv) Transfer will have no adverse impact on either the amount or the reasonably anticipated longevity of the royalty payments due to the owners of the tract or tracts so transferred and will not otherwise substantially impair the correlative rights of the owners of the tract or tracts transferred or of owners within the brine unit receiving the transferred tract.
(A) The operator or operators of two (2) adjacent brine production units or brine expansion units may apply to the commission to transfer one (1) or more contiguous tracts from the unit to the adjacent unit.
(B) The commission shall approve the operator's application if it finds that the:(i) Operator has the right to produce brine from no less than seventy-five percent (75%) of the entire area of each immediately adjacent unit;(ii) Operation of the brine production unit receiving the transferred tract or tracts will be expanded, enhanced, or made more efficient by the proposed transfer;(iii) Transfer will drain efficiently the area within the tract or tracts so transferred; and(iv) Transfer will have no adverse impact on either the amount or the reasonably anticipated longevity of the royalty payments due to the owners of the tract or tracts so transferred and will not otherwise substantially impair the correlative rights of the owners of the tract or tracts transferred or of owners within the brine unit receiving the transferred tract.
(i) Operator has the right to produce brine from no less than seventy-five percent (75%) of the entire area of each immediately adjacent unit;
(ii) Operation of the brine production unit receiving the transferred tract or tracts will be expanded, enhanced, or made more efficient by the proposed transfer;
(iii) Transfer will drain efficiently the area within the tract or tracts so transferred; and
(iv) Transfer will have no adverse impact on either the amount or the reasonably anticipated longevity of the royalty payments due to the owners of the tract or tracts so transferred and will not otherwise substantially impair the correlative rights of the owners of the tract or tracts transferred or of owners within the brine unit receiving the transferred tract.
(5) Upon the commission's approval of the transfer, the transferred tract or tracts shall become a brine expansion unit adjacent to the unit to which it was transferred.