All operations, including the commencement, drilling, or operation of a well upon any portion of the unit area are deemed for all purposes the conduct of such operations upon each separately owned tract in the area by the several owners of the tracts. The portion of the unit production allocated to a separately owned tract in a unit area is, when produced, deemed, for all purposes, to have been actually produced from the tract by a well drilled on the tract.

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Source: SDC Supp 1960, § 42.0710 (8) as enacted by SL 1961, ch 211, § 1; SL 2011, ch 165, § 244.