Arizona Laws 27-503. Waste of oil or gas prohibited; powers of commissioner to prevent waste
A. Waste of oil or gas is unlawful and is prohibited.
Terms Used In Arizona Laws 27-503
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- commissioner: means the oil and gas conservation commission. See Arizona Laws 27-501
- Gas: means natural gas, casinghead gas, all other hydrocarbons not defined as oil, carbon dioxide and helium or other substances of a gaseous nature. See Arizona Laws 27-501
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Oil: means crude petroleum oil and all other hydrocarbons, regardless of gravity, which are produced at a well in liquid form by ordinary production methods and which are not the result of condensation of gas. See Arizona Laws 27-501
- Pool: means an underground reservoir containing a common accumulation of oil or gas, or both, and includes each zone of a general structure completely separated from any other zone in the structure. See Arizona Laws 27-501
- Property: includes both real and personal property. See Arizona Laws 1-215
- Waste: includes :
(a) Physical waste, as that term is generally understood in the oil and gas industry. See Arizona Laws 27-501
B. The commissioner shall make inquiries he deems proper to determine whether waste exists or is imminent. In the exercise of such power the commissioner may:
1. Collect data.
2. Make investigations and inspections.
3. Examine property, leases, papers, books and records, including drilling records and logs.
4. Examine, check, test and gauge oil and gas wells, tanks, refineries and modes of transportation.
5. Hold hearings.
6. Require keeping of records and making of reports.
7. Take action he deems necessary to enforce and effectuate the provisions of this article.
C. The commissioner may in order to prevent waste and avoid drilling unnecessary wells, permit the cycling of gas in any pool or portion thereof or the introduction of gas or other substance into an oil or gas reservoir for the purpose of repressuring the reservoir, maintaining pressure or carrying on secondary recovery operations of any type. The commissioner shall permit the pooling or integration of separate tracts when reasonably necessary in connection with the operations.