Posted March 2, 2016 (not likely to be updated in the future).
38-08-07. COMMISSION SHALL SET SPACING UNITS.
The commission shall set
spacing units as follows:
1. When necessary to prevent waste, to
avoid the drilling of unnecessary wells, or to
protect correlative rights, the commission shall establish spacing units for a pool.
Spacing units when established must be of uniform size and shape for the entire pool,
except that when found to be necessary for any of the purposes above mentioned, the
commission is authorized to divide any pool
into zones and establish spacing units
for each zone, which units may differ in size
and shape from those established in any
other zone.
2. The size and shape of spacing units are to
be such as will result in the efficient and
economical development of the pool as a whole.
3. An order establishing spacing units for a pool
must specify the size and shape of each
unit and the location of the permitted well thereon in accordance with a reasonably
uniform spacing plan. Upon application, if
the commission finds that a well drilled at
the prescribed location would not produce in paying quantities, that surface
conditions would substantially add to the
burden or hazard of drilling such well, or
that the drilling of such well at a location other than the prescribed location is
otherwise necessary either to protect correlative rights, to prevent waste, or to effect
greater ultimate recovery of oil and gas,
the commission is authorized to enter an
order permitting the well to be drilled at a location other than that prescribed by such
spacing order; however, the commission shall
include in the order suitable provisions
to prevent the production from the spacing unit of more than its just and equitable
share of the oil and gas in the pool.
4. An order establishing units for a pool must cover all lands determined or believed
to be underlaid by such pool, and may be
modified by the commission from time to
time to include additional areas determined to be underlaid by such pool. When
found necessary for the prevention of waste,
or to avoid the drilling of unnecessary
wells, or to protect correlative rights, an
order establishing spacing units in a pool
may be modified by the commission to in
crease or decrease the size of spacing
units in the pool or any zone thereof, or
to permit the drilling of additional wells on
(I-17) 08/2015
a reasonably uniform plan in the pool, or
any zone thereof, or an additional well on
any spacing unit thereof.
Source: N.D. Century Code.
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