Section 23-0701. Voluntary integration and unitization in oil and natural gas pools and fields


Latest version.
  • 1. Voluntary integration and unitization in oil pools or fields and in
      natural gas pools or fields shall be subject to the provisions  of  this
      section.  When two or more separately owned tracts are embraced within a
      spacing unit, or when there are separately owned interests in all  or  a
      part  of  a  spacing  unit,  the  interested persons may integrate their
      tracts or interests for the development and  operation  of  the  spacing
      unit.  An  agreement for the unit or for the cooperative development and
      operation of a field, pool, or part thereof, may  be  submitted  to  the
      department  for  approval  as being in the public interest or reasonably
      necessary to prevent waste. Such approval shall  constitute  a  complete
      defense  to  any  suit  charging  violation of any statute of this state
      relating to trusts and monopolies on account thereof or  on  account  of
      operations  conducted  pursuant  thereto.  Failure  to  submit  such  an
      agreement to the department for approval shall not for that reason imply
      or constitute  evidence  that  the  agreement  or  operations  conducted
      pursuant  thereto  are  in  violation  of  laws  relating  to trusts and
      monopolies.
        2. Upon twenty-one days notice to  the  fee  owners  of  oil  and  gas
      interests  under  lease in a spacing unit, a well operator may record as
      to each tract for which notice has been given a declaration of voluntary
      integration. The declaration of voluntary integration shall include  the
      acreage  applicable  to each tract so integrated and the proportion such
      acreage bears to the entire spacing unit. The declaration  of  voluntary
      integration shall be final and binding upon all persons and their heirs,
      successors  and  assigns, and all persons who take title by operation of
      law.