Current through Register Vol. 24-18, September 15, 2024
The holder(s) of any oil and gas leases may apply to
the department to unite with each other or with other entities,
including lands not owned by the state, to collectively adopt and
operate under a unit plan.
(2) To implement a plan and protect
the state's interest, the commissioner may alter the terms and
conditions of the lease(s) so involved with the consent of the
leaseholder(s). Authorization by the department to include state
leases in unit plans shall be conditioned on the following
requirements:
(a) There shall be
submitted to the department a plat showing the area to be unitized,
together with geological and other information in support of the
delineation of the area.
(b) A preliminary draft of the plan
shall be submitted to the department for approval.
(c) If the plan is approved by the
department, the proponent of the plan shall deliver one copy to the
department when fully executed.
(d) Leases which are only partially
covered by unit plans shall be segregated into separate leases as to
the lands committed and not committed as of the effective date of the
unitization. The annual rental or minimum royalty shall be paid on
the leased acreage in the unit independently from other segregated
lease areas.
(e) The term
of any lease that has become the subject of a unit plan as approved
by the department shall continue in force until the termination of
such plan. In the event that such plan is terminated prior to the
expiration of any such leases, the original term of the lease shall
continue.
(f) Any
apportionment of production or royalties among the separate tracts of
land comprising the unit shall include an accounting system and the
right of the department to audit such system to protect the interests
of the state.
(g)
Operations and production under a single unit plan shall be
considered the operations and production of all leases included under
the plan. Due diligence performed on any part of an area under a unit
plan, may be credited by the department toward the requirement for
all state leases included in the unit.
(3) Agreements for a cooperative or
unit plan of development of an oil and gas pool, field or like area
or any part thereof shall comply with the provisions of RCW
78.52.370. All unit or cooperative plans containing lands leased
under the provisions of
chapter 79.14 RCW require
approval and consent by the department.
Statutory Authority:
RCW 79.14.120. 82-23-053
(Order 387), § 332-12-340, filed
11/16/82.
