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

(1) The board may order the establishment of drilling units for any pool.

(2) Within each drilling unit, only one well may be drilled for production from the common source of supply, except as provided in Subsection (6).

(3) A drilling unit may not be smaller than the maximum area that can be efficiently and economically drained by one well.

(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.

(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:

(a) be made upon terms and conditions that are just and reasonable;

(b) include all lands determined by the board to overlay the pool;

(c) specify the acreage and shape of each drilling unit as determined by the board; and

(d) specify the location of the well in terms of distance from drilling unit boundaries and other wells.

(6) The board may modify an order that establishes drilling units for a pool to provide for:

(a) an exception to the authorized location of a well;

(b) the inclusion of additional areas which the board determines overlays the pool;

(c) the increase or decrease of the size of drilling units; or

(d) the drilling of additional wells within drilling units.

(7)

(a) After an order establishing drilling units has been entered by the board, the drilling of any well into the pool at a location other than that authorized by the order is prohibited.

(b) The operation of any well drilled in violation of an order fixing drilling units is prohibited.

Repealed and Re-enacted by Chapter 34, 1992 General Session