Current through Register Vol. 30, No. 38, September 20, 2024
A. Every well
drilled for oil shall be located on a drilling unit consisting of approximately
80 contiguous surface acres within two governmental quarter-quarter sections or
lots having one side in common, upon which there is not located, and of which
no part is attributed to, any other well completed in or drilling to, the same
pool.
1. In areas not covered by United States
Public Land Surveys, the oil drilling unit shall consist of an area bounded by
four sides intersecting at angles of not less than 85 degrees or more than 95
degrees. The unit shall contain at least 76 contiguous surface acres and its
maximum dimension shall not exceed 3,000 feet.
2. No well drilled for oil shall be located
closer than 330 feet to any boundary of the drilling unit or closer than 330
feet to the shortest center line of the drilling unit.
3. No well drilled for oil shall be located
within a quarter-quarter section or lot having one side in common with another
quarter-quarter section or lot upon which there is located a well completed in
or drilling to the same pool.
B. Every well drilled for gas shall be
located on a drilling unit consisting of approximately 640 but not less than
600 contiguous surface acres within one governmental section upon which there
is not located, and of which no part is attributed to, any other well completed
in or drilling to the same pool.
1. In areas
not covered by United States Public Land Surveys, the gas drilling unit shall
consist of an area bounded by four sides intersecting at angles of not less
than 85 degrees or more than 95 degrees. The unit shall contain at least 600
contiguous surface acres and its maximum dimension shall not exceed 8,500
feet.
2. No well drilled for gas
shall be located closer than 1,660 feet from any boundary of the drilling
unit.
C. Every well
drilled for geothermal resources shall be located on a drilling unit approved
or as modified by the Commission. The Commission may require modification to
minimize well interference and provide the necessary volume of geothermal
resources for the intended use, to protect correlative rights, and to protect
the environment.
D. If the operator
drills a horizontal segment, that horizontal segment shall be located:
1. At least 330 feet from the boundary of the
spacing unit in the case of an oil well;
2. At least 1,660 feet from the boundary of
the spacing unit in the case of a gas well; and
3. As approved or modified by the Commission
in the case of a geothermal well.
E. The Commission may grant exceptions to the
regular locations specified in subsections (A), (B), and (C) only after notice
and hearing.
1. Applications for exception
shall fully state the reasons why the exception is necessary and shall include
a plat prepared and certified by a registered surveyor bearing the surveyor's
certificate number showing all other completed, drilling, and permitted wells
on the property and all adjoining surrounding properties and wells.
2. Exceptions shall be granted only after the
operator provides by certified mail a copy of the application to all adjoining
lessees, and only after the Commission deter mines in a duly noted public
hearing that the application is valid.
3. The Commission may grant an exception
location without notice or hearing when topography prohibits drilling at a
regular location on the drilling unit.
4. If an existing well's classification
changes due to its recompletion or due to a change in the nature of the product
being produced, the Commission may approve an irregular location application
with supporting data and ten days' notice and hearing, provided that the
operator furnish the Commission with proof of mailing of a copy of the
application to all operators within a one-mile radius of the acreage to be
dedicated.
F. In order
to prevent waste, the Commission may, after notice and hearing, fix different
spacing requirements and require lesser or greater acreage for drilling units
in any specific oil, gas, or geothermal resource pool notwithstanding the
provisions of subsections (A), (B), and (C).
G. The Commission may order pooling and
integration of interests pursuant to A.R.S. §§
27-505 and
27-666.
