(1) For the purpose of properly conserving the natural resources of any single oil or gas pool or field, lessees under ORS § 274.705 to 274.860 and their representatives may unite with each other jointly or separately, or jointly or separately with others owning or operating lands not belonging to the state, in collectively adopting and operating under a cooperative or unit plan of development or operation of the pool or field, whenever it is determined by the Department of State Lands to be necessary or advisable in the public interest.

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Terms Used In Oregon Statutes 520.240

  • Field: means the general area underlaid by one or more pools. See Oregon Statutes 520.005
  • Gas: means all natural gas and all other fluid hydrocarbons not defined as oil in subsection (5) of this section, including condensate originally in the gaseous phase in the reservoir. See Oregon Statutes 520.005
  • Oil: means crude petroleum oil and all other hydrocarbons, regardless of gravity, that are produced in liquid form by ordinary production methods, but does not include liquid hydrocarbons that were originally in a gaseous phase in the reservoir. See Oregon Statutes 520.005
  • Pool: means an underground reservoir containing a common accumulation of oil and natural gas. See Oregon Statutes 520.005

(2) The Department of State Lands may, with the consent of the holders of the leases involved, establish, alter, change and revoke any drilling and production requirements of such leases, and make such regulations with reference to such leases, with like consent on the part of the lessees, in connection with the institution and operation of any such cooperative or unit plan, as the Department of State Lands deems necessary or proper to secure the proper protection of the interests of the state. [1961 c.619 § 33]