Utah Administrative Code
Topic - Natural Resources
Title R649 - Oil, Gas and Mining; Oil and Gas
Rule R649-3 - Drilling and Operating Practices
Section R649-3-40 - Conflicting Operations on Overlapping Drilling Units

Universal Citation: UT Admin Code R 649-3-40

Current through Bulletin 2024-18, September 15, 2024

1. Operators of overlapping drilling units may enter into a written agreement outlining the timing and sequence of drilling and the number and locations of wells if the contractual arrangement will result in the greatest ultimate recovery of oil and gas from each drilling unit, prevent waste, minimize surface impact, and protect correlative rights.

2. The division, upon request of a designated operator, may assist and mediate negotiations to facilitate such an agreement.

3. In the event the designated operators cannot reach agreement, or having entered into such an agreement, a dispute or disagreement on the application of the terms and provisions occur, any affected designated operator may file a request for agency action with the board for an order establishing delineation of the respective rights and obligations of the designated operators as to each overlapping drilling unit, including the drilling schedule or sequence of drilling, the number, density, and location of authorized wells, or a determination of any other related and relevant matter.

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