Washington Code 78.52.255 – Operations on development unit deemed operations on each tract — Production allocated to tract deemed produced from each tract — Shut-in well considered on each tract — Lease on part of tract excluded from unit
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(1) Operations incident to the drilling of a well upon any portion of a development unit covered by a pooling order shall be deemed, for all purposes, the conduct of such operations upon each separately-owned tract in the development unit by the several owners thereof. That portion of the production allocated to each separately-owned tract included in a development unit covered by a pooling order shall, when produced, be deemed for all purposes, including the payment of royalty, to have been produced from each separately-owned tract by a well drilled thereon. If an oil or gas well on a pooled unit is shut-in, it shall be considered that the shut-in well is on each separately-owned tract in the pooled unit.
Terms Used In Washington Code 78.52.255
- Development unit: means the maximum area of a pool which may be drained efficiently and economically by one well. See Washington Code 78.52.010
- Gas: means all natural gas, all gaseous substances, and all other fluid or gaseous hydrocarbons not defined as oil in subsection (12) of this section, including but not limited to wet gas, dry gas, residue gas, condensate, and distillate, as those terms are generally understood in the petroleum industry. See Washington Code 78.52.010
- 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 hydrocarbons, regardless of gravity, that are in the liquid phase in the original reservoir conditions and are produced and recovered at the wellhead in liquid form. See Washington Code 78.52.010
- Pooling: means the integration or combination of two or more tracts into an area sufficient to constitute a development unit of the size for one well as prescribed by the department. See Washington Code 78.52.010
- Royalty: means a right to or interest in oil or gas or the value from or attributable to production, other than the right or interest of a lessee, owner, or operator, as defined herein. See Washington Code 78.52.010
(2) If only part of the tract is included in the unit, operations on, production from, or a shut-in well on the unit shall maintain an oil and gas lease on the tract as to the part excluded from the unit only if the lease would be maintained had the unit been created voluntarily under the lease.
[ 1983 c 253 § 21.]