N.Y. Environmental Conservation Law 23-0701 – Voluntary integration and unitization in oil and natural gas pools and fields
§ 23-0701. Voluntary integration and unitization in oil and natural gas
Terms Used In N.Y. Environmental Conservation Law 23-0701
- Department: means the department of environmental conservation. See N.Y. Environmental Conservation Law 23-0101
- 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.
- Field: means the general area underlaid by one or more pools. See N.Y. Environmental Conservation Law 23-0101
- Gas: means all natural, manufactured, mixed, and byproduct gas, and all other hydrocarbons not defined as oil in this section. See N.Y. Environmental Conservation Law 23-0101
- 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
- Oil: means crude petroleum oil and all other hydrocarbons, regardless of gravity, that are produced at the wellhead in liquid form by ordinary production methods and that are not the result of condensation of gas. See N.Y. Environmental Conservation Law 23-0101
- Pool: means an underground reservoir containing a common accumulation of oil or gas or both; each zone of a structure which is completely separated from any other zone in the same structure is a pool. See N.Y. Environmental Conservation Law 23-0101
- Statute: A law passed by a legislature.
- Waste: means
a. See N.Y. Environmental Conservation Law 23-0101 - Well operator: means the applicant for a permit to drill, deepen, plug back or convert a well subject to this title and titles 7 and 9 of this article, or the actual operator of the well if the well is not operated by the original applicant. See N.Y. Environmental Conservation Law 23-0501
pools and fields.
1. Voluntary integration and unitization in oil pools or fields and in natural gas pools or fields shall be subject to the provisions of this section. When two or more separately owned tracts are embraced within a spacing unit, or when there are separately owned interests in all or a part of a spacing unit, the interested persons may integrate their tracts or interests for the development and operation of the spacing unit. An agreement for the unit or for the cooperative development and operation of a field, pool, or part thereof, may be submitted to the department for approval as being in the public interest or reasonably necessary to prevent waste. Such approval shall constitute a complete defense to any suit charging violation of any statute of this state relating to trusts and monopolies on account thereof or on account of operations conducted pursuant thereto. Failure to submit such an agreement to the department for approval shall not for that reason imply or constitute evidence that the agreement or operations conducted pursuant thereto are in violation of laws relating to trusts and monopolies.
2. Upon twenty-one days notice to the fee owners of oil and gas interests under lease in a spacing unit, a well operator may record as to each tract for which notice has been given a declaration of voluntary integration. The declaration of voluntary integration shall include the acreage applicable to each tract so integrated and the proportion such acreage bears to the entire spacing unit. The declaration of voluntary integration shall be final and binding upon all persons and their heirs, successors and assigns, and all persons who take title by operation of law.