Washington Code 78.52.257 – Dissolution of pooling order — Interests covered by terminated lease — Modification or termination of pooling order — Extension of dissolution of pooling order
Current as of: 2023 | Check for updates
|
Other versions
(1) An order pooling a development unit shall automatically dissolve:
Terms Used In Washington Code 78.52.257
- Department: means the department of natural resources. See Washington Code 78.52.010
- Development unit: means the maximum area of a pool which may be drained efficiently and economically by one well. See Washington Code 78.52.010
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Operator: means the person who operates a well or unit or who has been designated or accepted by the owners to operate the well or unit, and who is responsible for compliance with the department's rules and policies. See Washington Code 78.52.010
- Pooling: means the integration or combination of two or more tracts into an area sufficient to constitute a development unit of the size for one well as prescribed by the department. See Washington Code 78.52.010
(a) One year after its effective date if there has been no production of commercial quantities or drilling operations on lands within the unit;
(b) Six months after completion of a dry hole on the unit; or
(c) Six months after cessation of production of commercial quantities from the unit, unless, prior to the expiration of such six-month period, the operator shall, in good faith, commence drilling or reworking operations in an effort to restore production.
(2) Upon the termination of a lease pooled by order of the department under authority granted in this chapter, interests covered by the lease are considered pooled as unleased mineral interests.
(3) Any party to a pooling order is entitled, after due notice to all parties, to a hearing to modify or terminate a previously entered pooling order upon presenting new evidence showing that the previous determination of reservoir conclusions are substantially incorrect.
(4) The department, after notice and hearing, may grant additional time, for good cause shown, before a pooling order is automatically dissolved as provided in subsection (1) of this section. In no case may such an extension be longer than six months.