(2) The size and shape of spacing units shall be such as will result in efficient and economical development of the pool or field as a whole and the size thereof may not be smaller than the maximum area that can be efficiently drained by one well.
(3) An order establishing spacing units for a pool or field shall specify the size and shape of each unit and the location of each permitted well thereon in accordance with a reasonably uniform spacing plan. If an owner finds that a well drilled at the prescribed location would not produce in paying quantities or that surface conditions would substantially add to the burden or hazard of drilling such well, then the owner may apply to the department for permission to drill a well at a location other than that prescribed by such spacing order. The department shall notify adjacent mineral owners of such application and any such owner may request a hearing by the board to consider the application. If no request for a hearing is made in writing within 20 days, the department may issue an order approving the drilling site. Any order by the board or department under this section shall include in the order suitable provisions to prevent the production from the spacing unit of more than its just and equitable share of the oil and gas in the pool.
(4) An order establishing spacing units for a pool or field shall cover all lands determined or believed to be underlaid by such pool or field and may be modified by the board from time to time to include additional areas determined to be underlaid by such pool or field. When necessary to prevent waste of oil or gas, to protect correlative rights or to provide for more efficient drainage, an order establishing spacing units in a pool or field may be modified by the board to increase the size of spacing units for future wells in a pool or field or any zone thereof or to permit the drilling of additional wells on a reasonably uniform plan in such pool, field or zone. [Formerly 520.065; 1981 c.146 §4; 2007 c.672 §18]
Structure 2021 Oregon Revised Statutes
Volume : 14 - Drugs and Alcohol, Fire Protection, Natural Resources
Chapter 520 - Conservation of Gas and Oil
Section 520.005 - Definitions.
Section 520.017 - Fees; rules; disposition of fees.
Section 520.027 - Information holes; holes drilled as part of seismic program; trade secrets.
Section 520.045 - Determination of waste of oil or gas.
Section 520.055 - General jurisdiction and authority of board; tidal lands; rules.
Section 520.095 - Rules and orders; bond.
Section 520.097 - Abandonment or completion of well; well logs and records; trade secrets.
Section 520.125 - Authority of board to summon witnesses and require production of evidence.
Section 520.175 - Injunctions to restrain violation or threatened violation of chapter.
Section 520.210 - Establishment of spacing units for pool or field; purpose; scope; effect.
Section 520.220 - Integrating interests or tracts within spacing unit.
Section 520.260 - Hearing to determine need for unitization of operations; required findings; order.
Section 520.270 - Plan for unit operations.
Section 520.280 - Allocation of production under plan; ownership.
Section 520.290 - When unitization order to become effective; supplemental hearings.
Section 520.300 - Amending unitization order.
Section 520.350 - Property rights in underground reservoirs for natural gas storage.