Arkansas Code
Subchapter 3 - Pools and Drilling Units
§ 15-72-317. Findings to support order requiring salt water disposal unit operation

(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 salt water disposal unit operation in accordance with the terms of the proposed unit operating agreement:
(1) The proposed salt water disposal 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 and 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 and gas produced from the entire unit area;
(2) Salt water disposal unit operation of the pool 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 and gas to be recovered from the proposed unit area as a result of the proposed salt water disposal unit operation will exceed the additional cost incident to conducting the operation.

(b) The order and the provisions of the salt water disposal unit operating agreement shall, thereafter, 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 mortgage or deed of trust the right to execute such a unit agreement, the grantor shall for this purpose be deemed the record owner.

Structure Arkansas Code

Arkansas Code

Title 15 - Natural Resources and Economic Development

Subtitle 6 - Oil, Gas, and Brine

Chapter 72 - Oil and Gas Production and Conservation

Subchapter 3 - Pools and Drilling Units

§ 15-72-301. Applicability of §§ 15-72-307 — 15-72-314

§ 15-72-302. Just and equitable shares — Preventing waste, avoiding risks, etc. — Drilling units

§ 15-72-303. Authority to integrate production in drilling units

§ 15-72-304. Integration orders generally

§ 15-72-305. Allocation of production and cost following integration order — Procedure

§ 15-72-306. Limitation on production if no integration

§ 15-72-307. Formation of units not in restraint of trade

§ 15-72-308. Petition for unit operation — Hearing

§ 15-72-309. Findings to support order requiring unit operation — Issuance

§ 15-72-310. Order requiring unit operation — Contents

§ 15-72-311. Obligation or liability of owners for expenses

§ 15-72-312. Operator's lien

§ 15-72-313. New unit operation order in pool established by previous order

§ 15-72-314. Unit area oil and gas — Product of tract

§ 15-72-315. Unitization of entire pool as one operating unit

§ 15-72-316. Salt water disposal unit operation of a pool — Petition

§ 15-72-317. Findings to support order requiring salt water disposal unit operation

§ 15-72-318. Order requiring salt water disposal unit operation — Contents

§ 15-72-319. Salt water disposal unit operation — Expenses

§ 15-72-320. Salt water disposal unit — Operator's lien

§ 15-72-321. Enlarged operation of salt water disposal unit established by previous order

§ 15-72-322. Oil and gas from salt water disposal unit — Product of tract

§ 15-72-323. Notice of public hearings

§ 15-72-324. Limitation on production