7 LONG TITLE
8 General Description:
9 This bill amends provisions relating to drilling units.
10 Highlighted Provisions:
11 This bill:
12 ▸ allows the Board of Oil, Gas, and Mining to allow more than one well to be drilled
13 in a drilling unit under certain circumstances; and
14 ▸ makes technical changes.
15 Money Appropriated in this Bill:
17 Other Special Clauses:
19 Utah Code Sections Affected:
21 40-6-6, as repealed and reenacted by Laws of Utah 1992, Chapter 34
23 Be it enacted by the Legislature of the state of Utah:
24 Section 1. Section 40-6-6 is amended to read:
25 40-6-6. Drilling units -- Establishment by board -- Modifications -- Prohibitions.
26 (1) The board may order the establishment of drilling units for [
27 (2) Within each drilling unit, only one well may be drilled for production from the
28 common source of supply, except as provided in [
29 (3) A drilling unit may not be smaller than the maximum area that can be efficiently
30 and economically drained by one well.
31 (4) (a) Each drilling unit within a pool shall be of uniform size and shape, unless the
32 board finds that it must make an exception due to geologic, geographic, or other factors.
33 (b) If the board finds it necessary to divide a pool into zones and establish drilling units
34 for each zone, drilling units may differ in size and shape for each zone.
35 (5) An order of the board that establishes drilling units for a pool shall:
36 (a) be made upon terms and conditions that are just and reasonable;
37 (b) include all lands determined by the board to overlay the pool;
38 (c) specify the acreage and shape of each drilling unit as determined by the board; and
39 (d) specify the location of the well in terms of distance from drilling unit boundaries
40 and other wells.
41 (6) The board may establish a drilling unit and concurrently authorize the drilling of
42 more than one well in a drilling unit if the board finds that:
43 (a) engineering or geologic characteristics justify the drilling of more than one well in
44 that drilling unit; and
45 (b) the drilling of more than one well in the drilling unit will not result in waste.
47 provide for:
48 (a) an exception to the authorized location of a well;
49 (b) the inclusion of additional areas which the board determines overlays the pool;
50 (c) the increase or decrease of the size of drilling units; or
51 (d) the drilling of additional wells within drilling units.
53 drilling of [
55 (b) The operation of [
Legislative Review Note
as of 2-10-15 9:40 AM
Office of Legislative Research and General Counsel