Wyoming Administrative Code
Agency 055 - Oil and Gas Conservation Commission
Sub-Agency 0001 - General Agency, Board or Commission Rules
Chapter 3 - OPERATIONAL RULES, DRILLING RULES
Section 3-7 - Drilling Units
Universal Citation: WY Code of Rules 3-7
Current through September 21, 2024
(a) This section reserved.
(b) This section reserved.
(c) Compulsory Pooling.
(i) When two (2) or more separately owned
tracts or separately owned interests are embraced within a drilling and spacing
unit that are not voluntarily pooled, the Commission may enter an order pooling
all interests in the drilling and spacing unit for development and may
authorize cost recovery and risk penalties against nonconsenting owners for a
specific well.
(A) A pooling order shall
expire twelve (12) months after issuance if a well is not spud in the drilling
and spacing unit. The interests in the drilling and spacing unit shall remain
pooled for all future development if a well is spud under a valid pooling
order.
(B) A pooling order may
authorize cost recovery and risk penalties for a specific well in the drilling
and spacing unit as authorized by Wyoming Statute §
30-5-109. The cost recovery and risk penalty
authorization will expire twelve (12) months after issuance of the pooling
order if the specific well has not been spud.
(ii) At a minimum, an application for pooling
shall provide:
(A) A certificate of service
containing all persons that have a royalty interest or are Owners inside the
drilling and spacing unit.
(B) The
applicant's interest type in the drilling and spacing unit.
(C) The legal description of the lands and
the Commission's docket number establishing the drilling and spacing unit
sought to be pooled.
(D) A
statement that two (2) or more separately owned tracts or separately owned
interests in the drilling and spacing unit have not voluntarily pooled their
interests and any valid pooling order for the drilling and spacing
unit.
(E) The API # of the well
subject to the application, if requesting cost recovery and/or risk
penalties.
(F) A list of all
nonconsenting Owners in the well, at the time of filing the application, that
the applicant is seeking cost recovery and risk penalties against.
(G) The cost recovery and risk penalties the
applicant is requesting, if any.
(iii) At a minimum, an applicant shall
provide at hearing:
(A) A copy of the election
letter, well proposal, and authorization for expenditure sent to the Owners in
the drilling and spacing unit.
(B)
The names and interests of all nonconsenting Owners and unleased nonconsenting
Owners in the well.
(C) An acreage
weighted average royalty calculation if there are unleased nonconsenting
Owners.
(D) Evidence to justify the
application of a risk penalty.
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