27-531. Integration of interests and spacing units
285 words·~1 min read·
/az/title-27/27-531A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. To prevent or to assist in preventing waste, to insure a greater recovery of oil and gas, and to protect the correlative rights of persons owning interests in the tracts of lands affected, such persons may validly integrate their interests to provide for the unitized management, development and operation of such tracts of land as a unit. Where, however, such persons have not agreed to so integrate their interests, the commission, upon proper petition, after notice and hearing as provided in section 27-516 shall be vested with the jurisdiction and authority, and it shall be its duty to make and enforce such orders and do such things as may be necessary or proper to carry out and effectuate the purposes of this article.
B. The commission shall make an order providing for the unitized operation of a pool or part thereof if, after proper petition and notice and hearing it finds that:
1. The unitized management, operation and further development of a pool or portion thereof is reasonably necessary in order to effectively carry on pressure control, pressure-maintenance or repressuring operations, cycling operations, water flooding operations, or any combination thereof, or any other form of joint effort calculated to substantially increase the ultimate recovery of oil and gas from the pool; and
2. One or more of the unitized methods of operation as applied to such pool or portion thereof are feasible, will prevent waste and will, with reasonable probability, result in the increased recovery of substantially more oil and gas from the pool than would otherwise be recovered; and
3. The estimated additional cost, if any, of conducting such operations will not exceed the value of the additional oil and gas so recovered.