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15-72-310. Order requiring unit operation — Contents.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-310. Order requiring unit operation — Contents.
The order requiring unit operation shall be fair and reasonable under all circumstances and shall include:
(1) A description of the unit area;
(2) An allocation upon the basis agreed upon by the provisions of the unit operating agreement to each separately owned tract that for all purposes of this section and §§ 15-72-308, 15-72-309, and 15-72-311 — 15-72-322 may be a previously established drilling unit if the unit operating agreement so provides in the unit area its fair share of all of the oil and gas produced from the unit area and not required or consumed in the conduct of the operation of the unit area or unavoidably lost. No allocation formula shall be adopted by the Oil and Gas Commission and put into effect unless it is based on the relative contribution to the unit operation, other than physical equipment, made by each separately owned tract or previously established drilling unit;
(3) A provision for the credits and charges to be made in the adjustment among the owners of the unit area for their respective investments in wells, tanks, pumps, machinery, materials, and equipment contributed to the unit operation. The net amount charged against the owner or owners of a separately owned tract shall be considered expenses of unit operation chargeable against the tract;
(4) A provision that a part of the expenses of unit operation, including capital investments, be charged to each separately owned tract in the same proportion that the tract shares in the unit production. The expenses chargeable to a tract shall be paid by the person or persons who in the absence of unit operation would be responsible for the expense of developing and operating the tract;
(5) The time at which the unit operation shall
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-310
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:15-72-310
Source file: gov.ar.code.title.15.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1bce19d6a62b8bd3aca49610065cb7c5aa63b66ad89c385ea29021e03d461418
Source location: content.xml paragraph 24263
Stored source content
15-72-310. Order requiring unit operation — Contents.
The order requiring unit operation shall be fair and reasonable under all circumstances and shall include:
(1) A description of the unit area;
(2) An allocation upon the basis agreed upon by the provisions of the unit operating agreement to each separately owned tract that for all purposes of this section and §§ 15-72-308, 15-72-309, and 15-72-311 — 15-72-322 may be a previously established drilling unit if the unit operating agreement so provides in the unit area its fair share of all of the oil and gas produced from the unit area and not required or consumed in the conduct of the operation of the unit area or unavoidably lost. No allocation formula shall be adopted by the Oil and Gas Commission and put into effect unless it is based on the relative contribution to the unit operation, other than physical equipment, made by each separately owned tract or previously established drilling unit;
(3) A provision for the credits and charges to be made in the adjustment among the owners of the unit area for their respective investments in wells, tanks, pumps, machinery, materials, and equipment contributed to the unit operation. The net amount charged against the owner or owners of a separately owned tract shall be considered expenses of unit operation chargeable against the tract;
(4) A provision that a part of the expenses of unit operation, including capital investments, be charged to each separately owned tract in the same proportion that the tract shares in the unit production. The expenses chargeable to a tract shall be paid by the person or persons who in the absence of unit operation would be responsible for the expense of developing and operating the tract;
(5) The time at which the unit operation shall commence; and
(6) Those additional provisions, not in conflict with or inconsistent with the unit operating agreement, which the commission determines to be appropriate for the prevention of waste and the protection of all interested parties.
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Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-308. Petition for unit operation — Hearing.
(a) Upon the filing of a petition as provided in this section, the Oil and Gas Commission after notice shall hold a public hearing to consider the need for the operation as a unit of an entire pool or any portion thereof to prevent waste, to increase ultimate recovery of oil and gas, and to protect correlative rights.
(b) The petition shall contain the following:
(1) A description of the proposed unit area;
(2) A statement of the nature of the proposed unit operation; and
(3) A conformed copy of the proposed unit operating agreement, which may be a composite of executed counterparts of the agreement.
(c) The petition may be filed by one (1) or more persons authorized in the unit operating agreement to file it with the commission.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-308
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 15-72-308. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-309. Findings to support order requiring unit operation — Issuance.
(a) If after hearing and considering the petition and evidence offered in support thereof the Oil and Gas Commission makes the following findings, it shall issue an order requiring unit operation in accordance with the terms of the proposed unit operating agreement:
(1) The proposed unit agreement has, or counterparts thereof have, been executed by persons who at the time of filing of the petition owned of record legal title to at least an undivided seventy-five percent (75%) interest in the right to drill into and produce oil or gas from the total proposed unit area and by persons who at that time owned of record legal title to seventy-five percent (75%) of royalty and overriding royalty payable with respect to oil or gas produced from the entire unit area;
(2) Unit operation of the pool or any portion thereof proposed to be unitized is reasonably necessary to prevent waste, to increase ultimate recovery of oil or gas, and to protect correlative rights; and
(3) The value of the additional oil or gas to be recovered from the proposed unit area as a result of the proposed unit operation will exceed the additional cost incident to conducting the operation.
(b) Thereafter, the order and the provisions of the unit operating agreement shall be effective as to and binding upon each person owning an interest in the unit area or in oil or gas produced therefrom or the proceeds thereof.
(c) With respect to an interest which is encumbered of record with a mortgage or deed of trust both the grantor and grantee therein shall for the purposes of subdivision (a)(1) of this section be considered as the record owner of legal title thereto. However, when the instrument gives the grantor in the mortgage
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-309
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 15-72-309. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-311. Obligation or liability of owners for expenses.
The obligation or liability of each owner in the several separately owned tracts for the payment of unit expenses shall at all times be several and not joint or collective. In no event shall an owner of the oil or gas rights in the separately owned tract be chargeable with, obligated, or directly or indirectly liable for more than the amount apportioned, assessed, or otherwise charged to his or her interest in such separately owned tract pursuant to the plan of unitization.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-311
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 15-72-311. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
15-72-322. Oil and gas from salt water disposal unit — Product of tract.
The portion of oil and gas produced from the salt water disposal unit and allocated to a separately owned tract shall be deemed, for all purposes, to have been actually produced from the tract. Operations for the production of oil and gas from any part of the unit area, conducted pursuant to the order of the Oil and Gas Commission, shall be deemed, for all purposes, to be operations for the production of oil and gas from each separately owned tract in the unit area.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-72-322
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 15-72-322. This identifies an authority to review, not proof of applicability.