Arizona Laws 27-559. Development of water for use in operations; taking over well which yields fresh water
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A. A lessee shall have the right to develop water for use in its operations subject to the applicable laws of the state pertaining to drilling water wells and using water produced therefrom.
Terms Used In Arizona Laws 27-559
- Department: means the state land department. See Arizona Laws 27-551
- Lessee: means the holder of an oil and gas lease issued pursuant to this article and includes any assignee of an original lessee. See Arizona Laws 27-551
- oil or gas: includes oil, gas, other hydrocarbon substances, and helium or other substances of a gaseous nature. See Arizona Laws 27-551
- Produced: includes the words "procured and produced". See Arizona Laws 27-551
B. If any well drilled for oil or gas on a lease issued pursuant to this article fails to develop oil or gas in paying quantities but develops fresh water, the department shall have the option to take over the well if the lessee determines to abandon it as an oil or gas well upon payment by the department to the lessee of the reasonable value of the well casing and other materials necessary to be left in the well, and the lessee shall thereupon be relieved of all further obligations with respect to the well, its completion and abandonment.