Current through Supplement No. 392, April, 2024
In the absence of an order by the commission setting spacing
units for a pool:
1.
a. Vertical or directional oil wells
projected to a depth not deeper than the Mission Canyon formation must be
drilled upon a governmental quarter-quarter section or equivalent lot, located
not less than five hundred feet [152.4 meters] to the boundary of such
governmental quarter-quarter section or equivalent lot. No more than one well
shall be drilled to the same pool on any such governmental quarter-quarter
section or equivalent lot, except by order of the commission, nor shall any
well be drilled on any such governmental quarter-quarter section or equivalent
lot containing less than thirty-six acres [14.57 hectares] except by order of
the commission.
b. Vertical or
directional oil wells projected to a depth deeper than the Mission Canyon
formation must be drilled on a governmental quarter section or equivalent lots,
located not less than six hundred sixty feet [201.17 meters] to the boundary of
such governmental quarter section or equivalent lots. No more than one well
shall be drilled to the same pool on any such governmental quarter section or
equivalent lots, except by order of the commission, nor shall any well be
drilled on any such governmental quarter section or equivalent lots containing
less than one hundred forty-five acres [58.68 hectares] except by order of the
commission.
2.
a. Horizontal wells with a horizontal
displacement of the well bore drilled at an angle of at least eighty degrees
within the productive formation of at least five hundred feet [152.4 meters],
projected to a depth not deeper than the Mission Canyon formation, must be
drilled upon a drilling unit described as a governmental section or described
as two adjacent governmental quarter sections within the same section or
equivalent lots, located not less than five hundred feet [152.4 meters] to the
outside boundary of such tract. The horizontal well proposed to be drilled
must, in the director's opinion, justify the creation of such drilling unit. No
more than one well may be drilled to the same pool on any such tract, except by
order of the commission.
b.
Horizontal wells with a horizontal displacement of the well bore drilled at an
angle of at least eighty degrees within the productive formation of at least
five hundred feet [152.4 meters], projected to a depth deeper than the Mission
Canyon formation, must be drilled upon a drilling unit described as a
governmental section, located not less than five hundred feet [152.4 meters] to
the outside boundary of such tract. The horizontal well proposed to be drilled
must, in the director's opinion, justify the creation of such drilling unit. No
more than one well may be drilled to the same pool on any such tract, except by
order of the commission.
3.
a. Gas
wells projected to a depth not deeper than the Mission Canyon formation shall
be drilled upon a governmental quarter section or equivalent lots, located not
less than five hundred feet [152.4 meters] to the boundary of such governmental
quarter section or equivalent lots. No more than one well shall be drilled to
the same pool on any such governmental quarter section or equivalent lots,
except by order of the commission, nor shall any well be drilled on any such
governmental quarter section or equivalent lot containing less than one hundred
forty-five acres [58.68 hectares] except by order of the commission.
b. Gas wells projected to a depth deeper than
the Mission Canyon formation shall be drilled upon a governmental quarter
section or equivalent lots, located not less than six hundred sixty feet
[201.17 meters] to the boundary of such governmental quarter section or
equivalent lots. No more than one well shall be drilled to the same pool on any
such governmental quarter section or equivalent lots, except by order of the
commission, nor shall any well be drilled on any such governmental quarter
section or equivalent lot containing less than one hundred forty-five acres
[58.68 hectares] except by order of the commission.
4. Within thirty days, or a reasonable time
thereafter, following the discovery of oil or gas in a pool not then covered by
an order of the commission, a spacing hearing shall be docketed. Following such
hearing the commission shall issue an order prescribing a temporary spacing
pattern for the development of the pool. This order shall continue in force for
a period of not more than three years at the expiration of which time a hearing
shall be held at which the commission may require the presentation of such
evidence as will enable the commission to determine the proper spacing for the
pool.
During the interim period between the discovery and the
issuance of the temporary order, no permits shall be issued for the drilling of
an offset well to the discovery well, unless approved by the director. Approval
shall be consistent with anticipated spacing for the orderly development of the
pool.
Any well drilled within one mile [1.61 kilometers] of an
established field shall conform to the spacing requirements in that field
except when it is apparent that the well will not produce from the same common
source of supply. In order to assure uniform and orderly development, any well
drilled within one mile [1.61 kilometers] of an established field boundary
shall conform to the spacing and special field rules for the field, and for the
purposes of spacing and pooling, the field boundary shall be extended to
include the spacing unit for such well and any intervening lands. The foregoing
shall not be applicable if it is apparent that the well will not produce from
the same common source of supply as wells within the field.
5. If the director denies an application for
permit, the director shall advise the applicant immediately of the reasons for
denial. The decision of the director may be appealed to the
commission.
General Authority: NDCC
38-08-04,
38-08-07
Law Implemented: NDCC
38-08-04,
38-08-07
