45-9-39. Order of board for unit operation of a pool--Terms and conditions--Prescribing plan of operation--Essential elements of plan.
The order for unit operation shall be upon terms and conditions that are just and reasonable and shall prescribe a plan for unit operations that shall include:
(1)A description of the pool or pools or parts thereof to be so operated, termed the unit area;
(2)A statement of the nature of the operations contemplated;
(3)An allocation to the separately owned tracts in the unit area of the oil and gas that is produced from the unit area and is saved, being the production that is not used in the conduct of operations on the unit area or not unavoidably lost. The allocation shall be in accord with the agreement, if any, of the interested parties. If there is no such agreement, the Board of Minerals and Environment shall determine the relative value, from evidence introduced at the hearing, of the separately owned tracts in the unit area, exclusive of physical equipment, for development of oil and gas by unit operations, and the production allocated to each tract shall be the proportion that the relative values of each tract so determined bears to the relative value of all tracts in the unit area;
(4)A provision for the credits and charges to be made in the adjustment among the owners in the unit area for their respective investments in wells, tanks, pumps, machinery, materials, and equipment contributions to the unit operations;
(5)A provision providing how the costs of unit operations, including capital investments, shall be determined and charged to the separately owned tracts and how said costs shall be paid, including a provision when, how, and by whom the unit production allocated to an owner who does not pay the share of the cost of unit operations charged to such owner, or the interest of such owner, may be sold and the proceeds applied to the payment of such costs;
(6)A provision, if necessary, for carrying or otherwise financing any person who elects to be carried or otherwise financed, allowing a reasonable interest charge for such service payable out of such person's share of the production;
(7)A provision for the supervision and conduct of the unit operations in respect to which each person shall have a vote with a value corresponding to the percentage of the costs of unit operations chargeable against the interest of such person;
(8)The time when the unit operations shall commence, and the manner in which, and the circumstances under which, the unit operations shall terminate; and
(9)Such additional provisions that are found to be appropriate for carrying on the unit operations, and for the protection of correlative rights.
Source: SDC Supp 1960, §42.0710 (3) as enacted by SL 1961, ch 211, §1.
Structure South Dakota Codified Laws
Title 45 - Mining, Oil and Gas
Chapter 09 - Oil And Gas Conservation
Section 45-9-1 - Purpose of chapter--Development of oil and gas resources.
Section 45-9-2 - Definition of terms.
Section 45-9-5 - Identification of ownership of facilities for producing oil or gas.
Section 45-9-6 - Testing of oil and gas wells.
Section 45-9-7 - Separation of production from wells--Gaseous and liquid hydrocarbons--Measurement.
Section 45-9-8 - Classification of wells.
Section 45-9-9 - Metering or measuring of oil, gas, or product.
Section 45-9-10 - Operation of wells with inefficient gas-oil or water-oil ratios.
Section 45-9-11 - Operations for production of oil or gas, regulation by board.
Section 45-9-12 - Production of oil and gas from field, pool, or area where physical waste created.
Section 45-9-15 - Plugging and performance bond for wells--Amount--Conditions.
Section 45-9-15.2 - Application date of bond requirements.
Section 45-9-15.3 - Supplemental plugging and performance bond--Idle wells--Amount.
Section 45-9-17 - Reports or plats--Filing with board.
Section 45-9-19 - False representations as perjury--Drilling without permit as misdemeanor.
Section 45-9-20 - Spacing units for a pool--Purposes--Establishment by board--Exception.
Section 45-9-24 - Spacing units of different sizes or shapes--Adjustment of allowable production.
Section 45-9-27 - Drilling of well at other than prescribed location when authorized by secretary.
Section 45-9-32 - Operation of well--Rights of owners to participate--Payment of expenses.
Section 45-9-37 - Operation as unit of one or more pools--Consideration of need--Hearing.
Section 45-9-38 - Findings of board requiring order for unit operation of a pool.
Section 45-9-41 - Supplemental hearing on approval of plan for unit operation.
Section 45-9-43 - Amendment of order for unit operations--Conditions.
Section 45-9-49 - Order for unit operations does not transfer title.
Section 45-9-53 - Lands to which chapter applies.
Section 45-9-54 - Enforcement of chapter--Jurisdiction of board.
Section 45-9-55 - Investigations by board.
Section 45-9-56 - Authority of board to act--Upon its own motion--Petition of interested person.
Section 45-9-58 - Notice of hearing--Service by mail or publication--Proof of service.
Section 45-9-59 - Witnesses--Production of books and records.
Section 45-9-60 - Noncompliance with subpoena--Refusal of witness to testify--Court order--Contempt.
Section 45-9-69 - Action by attorney general to recover civil penalties--Venue.