Indiana Code 14-38-1-22. Development considerations
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Sec. 22. (a) After the issuance of a petroleum lease the lessee shall proceed to develop the petroleum in the land through the drilling of the wells that will efficiently extract the petroleum. The development must take into account the following:
(2) The depth at which the producing horizon occurs.
(1) The productiveness of the producing horizon.
Terms Used In Indiana Code 14-38-1-22
- 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
- petroleum: means any liquid or gaseous hydrocarbon occurring in nature beneath the surface of the earth. See Indiana Code 14-38-1-3
(3) The average cost of wells.
(4) The market requirements obtaining at any given time.
(5) The maintenance of proper oil and gas ratios.
(b) The commission shall determine, either by rule or by inclusion in the terms of a lease, the rapidity and extent of development of the oil, gas, or other petroleum field covered by the lease.
[Pre-1995 Recodification Citation: 14-4-3-18.]
As added by P.L.1-1995, SEC.31.