SECTION 165:10-1-22. Drilling and spacing units

(a)   The commission may establish drilling and spacing units in any common source of supply as provided by law, and the special orders creating drilling and spacing units shall supersede the provisions of 165:10-1-21. It shall be the responsibility of any operator who proposes to drill a well to ascertain the existence and provisions of special spacing orders.

(b)   The drilling of a well or wells into a common source of supply in an area covered by an application pending before the commission seeking the establishment of drilling and spacing units is prohibited except by special order of the commission. However, if an Intent to Drill (Form 1000) has been approved by the commission and operations commenced prior to the filing of a spacing application, the operator shall be permitted to drill and complete the well without a special order of the Commission.

(c)   Standard drilling and spacing units shall be either approximately square or rectangular; if rectangular, the drilling and spacing unit shall consist of two approximately square tracts.

(d)   Standard square drilling and spacing units shall be those containing approximately 10, 40, 160, or 640 acres; standard rectangular units shall contain approximately 20, 80, or 320 acres.

(e)   The drilling and spacing units within any common source of supply of oil or gas shall be of approximately uniform size and shape. In a combination reservoir, the drilling and spacing units within the oil portion of the reservoir shall be of approximately uniform size and shape, and the drilling and spacing units within the gas portion of the reservoir shall be of approximately uniform size and shape; provided, however, the drilling and spacing units within the gas portion of a combination reservoir along the gas-oil contact line or transition zone may be of nonuniform size and shape.

[Source: Amended at 9 Ok Reg 2337, eff 6-25-92]