82-11-207. Approval of plan for unit operations by persons paying costs. An order of the board providing for unit operations may not become effective unless the plan for unit operations prescribed by the board has been approved in writing by those persons who under the board's order will be required to pay at least 70% of the costs of the unit operations and also by the persons owning at least 60% of the production or proceeds of the unit operations that will be credited to interests that are free of cost, such as royalties, overriding royalties, and production payments, and the board has made a finding, either in the order providing for unit operations or in a supplemental order, that the plan for unit operations has been approved. However, if one owner who is obligated to pay costs of the unit operation owns 70% or more but less than 100%, the approval of that owner and at least one other owner is required, and if one person entitled to production or proceeds of the production that will be credited to interests that are free of costs owns 60% or more but less than 100%, the approval of that person and at least one other owner is required. If the plan for unit operations has not been approved at the time the order providing for unit operations is made, the board shall, upon application and notice, hold supplemental hearings that may be required to determine if and when the plan for unit operations has been approved. If the requisite number of owners and persons and the requisite percentage of interests in the unit area do not approve the plan for unit operations within a period of 6 months from the date on which the order providing for unit operations is made, the board shall revoke the order unless, for good cause shown, the board extends the time.
History: En. Sec. 4, Ch. 33, L. 1969; amd. Sec. 64, Ch. 253, L. 1974; R.C.M. 1947, 60-131.4; amd. Sec. 1, Ch. 311, L. 2009.
Structure Montana Code Annotated
Title 82. Minerals, Oil, and Gas
Chapter 11. Oil and Gas Conservation
82-11-201. Establishment of well spacing units
82-11-202. Pooling of interest within spacing unit
82-11-203. Pooling agreements not in violation of antitrust laws
82-11-204. Hearing on operation of pool as unit
82-11-205. Board order for unit operation -- criteria
82-11-206. Terms and conditions of plan for unit operations
82-11-207. Approval of plan for unit operations by persons paying costs
82-11-208. Board orders -- amendment
82-11-209. Units established by previous order
82-11-210. Unit operations -- less than whole of pool
82-11-211. Operations considered as done by all owners in unit
82-11-212. Property rights and operator's lien
82-11-213. Contract not terminated by board order
82-11-214. Title to oil and gas rights not affected by board order
82-11-215. Unit operation not restraint of trade
82-11-216. No creation of relationship between parties in unit