Michigan Compiled Laws
451-1994-III-3-2-617 - Part 617 Unitization (324.61701...324.61738)
Section 324.61718 - Lien for Costs; Responsibility for Costs; Subrogation.

Sec. 61718.
Subject to reasonable limitations as set out in the plan of unitization, the unit shall have a first and prior lien for costs incurred pursuant to the plan of unitization upon the leasehold estate and other oil and gas rights, exclusive of a 1/8 share of gross production that is attributable to a lessor's royalty interest, in and to each separately owned tract, and the interest of the owners thereof in and to the unit production and equipment in possession of the unit, in the form and manner as provided in Act No. 146 of the Public Acts of 1937, being sections 570.251 to 570.266 of the Michigan Compiled Laws. The interest of the person who by lease, contract, or otherwise is responsible for the cost of developing and operating a given portion of the unit area in the absence of unitization is primarily responsible for costs as allocated by the plan of unitization, and resort may be had to the entire 7/8 of gross production, including, but not limited to, overriding royalties, oil and gas payments, and royalty interests in excess of 1/8 of gross production but which would not otherwise be responsible for allocated costs, only if the person primarily responsible fails to pay the allocated costs pursuant to the unit plan. Persons whose allowable share of production is made secondarily responsible under this section to the extent that their interest is foreclosed are subrogated to all of the rights of the unit to the interest or interests primarily responsible.
History: Add. 1995, Act 57, Imd. Eff. May 24, 1995 Popular Name: Act 451Popular Name: NREPA

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 324 - Natural Resources and Environmental Protection

Act 451 of 1994 - Natural Resources and Environmental Protection Act (324.101 - 324.90106)

Article III - Natural Resources Management (324.30101...324.83109)

451-1994-III-3 - Chapter 3 Management of Nonrenewable Resources (324.60101...324.64111)

451-1994-III-3-2 - Subchapter 2 Regulation of Oil and Gas Wells (324.61001...324.62103)

451-1994-III-3-2-617 - Part 617 Unitization (324.61701...324.61738)

Section 324.61701 - Definitions.

Section 324.61702 - Supervisor of Wells; General Duties; Fees.

Section 324.61703 - Petition; Filing; Contents.

Section 324.61704 - Notice to Interested Persons; Contents; Notice of Protest; Order.

Section 324.61705 - Order for Unit Operations; Terms and Conditions; Plan for Operations.

Section 324.61706 - Effective Date of Order; Finding.

Section 324.61707 - Supplemental Hearings and Orders; Ineffective Order; Time.

Section 324.61708 - Amendment of Orders; Approval; Limitations.

Section 324.61709 - Signed Writings; Admissible as Evidence.

Section 324.61710 - Unit Area Embracing Previously Established Area.

Section 324.61711 - Unit Area Less Than Whole Pool.

Section 324.61712 - Operations Upon Unit Area Considered Operation on Separate Tracts.

Section 324.61713 - Lease Obligations; Effect on Unit Operation.

Section 324.61714 - Order for Unit Operation Not to Affect Title; Property; Acquisition.

Section 324.61715 - Unit; Legal Powers; Operator of Unit; Powers.

Section 324.61716 - Operation of Well Without Authority Prohibited.

Section 324.61717 - Property Rights as Amended or Modified.

Section 324.61718 - Lien for Costs; Responsibility for Costs; Subrogation.

Section 324.61719 - Lessee's Obligation; Liability.

Section 324.61720 - Allocation of Unit Production.

Section 324.61721 - Division Order or Contract Not Affected by Unit Order.

Section 324.61722 - Unit Production or Proceeds Not Income of Unit; Unit as Administrative Agent Only.

Section 324.61723 - Agreements in Restraint of Trade Prohibited.

Section 324.61724 - Consent to or Participation in Plan or Program of Unitization by Governmental Subdivision or Agency.

Section 324.61725 - Rules, Regulations, or Orders; Public Hearings; Notice.

Section 324.61726 - Hearings; Jurisdictional Requirements of Notice.

Section 324.61727 - Service of Notice; Filing Receipts; Filing Undelivered Notices; Filing Affidavit of Service.

Section 324.61728 - Compliance With MCL 24.201 to 24.328; Persons Authorized to Conduct Hearings and Other Actions.

Section 324.61729 - Appellant to Comply With Order, Rule, or Regulation; Bond.

Section 324.61730 - Judicial Review.

Section 324.61731 - Subpoena of Witnesses and Documentary Evidence; Incriminating Evidence; Perjury.

Section 324.61732 - Failure or Refusal to Comply With Subpoena; Refusal to Testify or Answer; Penalty.

Section 324.61733 - Fees and Travel Expense of Witnesses.

Section 324.61734 - Witnesses; False Swearing or Affidavit; Penalty.

Section 324.61735 - Enforcement of Part.

Section 324.61736 - Violation of Part; Penalty.

Section 324.61737 - Violation of Part; Aiding or Abetting; Penalty.

Section 324.61738 - Orders of Supervisor; Recording; Notice.