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15-72-306. Limitation on production if no integration.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-306. Limitation on production if no integration.
Should the owners of separate tracts embraced within a drilling unit fail to agree upon the integration of the tracts and the drilling of a well on the unit and should it be established that the commission is without authority to require integration as provided by §§ 15-72-303 — 15-72-305, then subject to all other applicable provisions of this act, the owner of each tract embraced within the drilling unit may drill on his or her tract. However, the allowable production from the tract shall be the proportion of the allowable for the full drilling unit as the area of the separately owned tract bears to the full drilling unit.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-306
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:15-72-306
Source file: gov.ar.code.title.15.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 34121d359d905f4237cbd7f2ed4e42f22524c406630a136613bb263ae902cfb1
Source location: content.xml paragraph 24208
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15-72-306. Limitation on production if no integration.
Should the owners of separate tracts embraced within a drilling unit fail to agree upon the integration of the tracts and the drilling of a well on the unit and should it be established that the commission is without authority to require integration as provided by §§ 15-72-303 — 15-72-305, then subject to all other applicable provisions of this act, the owner of each tract embraced within the drilling unit may drill on his or her tract. However, the allowable production from the tract shall be the proportion of the allowable for the full drilling unit as the area of the separately owned tract bears to the full drilling unit.
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Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-303. Authority to integrate production in drilling units.
(a) When two (2) or more separately owned tracts are embraced within an established drilling unit, when there are separately owned interests in all or part of the drilling unit, or when there are separately owned tracts and separately owned interests in all or part of such a drilling unit, the owners thereof may voluntarily pool, combine, and integrate their tracts or interests for the development or operation of that drilling unit.
(b) When the owners fail or refuse voluntarily to integrate their interests, upon the application of any such owner or operator, the commission, for the prevention of waste or to avoid the drilling of unnecessary wells, shall enter its order integrating all tracts and interests in the drilling unit for the development or operation of the drilling unit and the sharing of production from the drilling unit.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-303
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 15-72-303. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-305. Allocation of production and cost following integration order — Procedure.
(a)(1) The order of the Oil and Gas Commission creating a drilling unit shall provide that effective as of the commencement of the drilling of a well upon the drilling unit or, if a well capable of producing oil and gas in commercial quantities has already been completed upon some part of the lands included within the drilling unit, all royalty, overriding royalty, production payment, or similar interests in the drilling unit shall be integrated without the necessity of any additional order or action by the commission or owners. In the event any unit includes an unleased mineral interest upon the effective date thereof, one-eighth (1/8) of the unleased mineral interest shall be deemed as royalty for the purposes of this subsection.
(2) For the purpose of making distribution to the owners of royalty, overriding royalty, production payment, or similar interests, there shall be allocated to each tract in the established drilling unit that percentage of the total production from such drilling unit, except any part thereof unavoidably lost or used for production or development purposes, which the area of each tract bears to the total area of the drilling unit. The interests shall be paid or delivered to each owner thereof in conformance with the provisions of the appropriate lease, agreement, or contract creating it, but computed upon the production allocated to each tract as hereinabove provided, rather than upon the actual production therefrom.
(3) One-eighth (1/8) of all gas sold on or after the first day of the calendar month next ensuing after March 6, 1985, from any such unit shall be considered royalty gas, and the net proceeds received from the sale thereof shall be distribute
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-305
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 15-72-305. This identifies an authority to review, not proof of applicability.