Wells drilled in search of oil or gas in areas not covered by field rules shall
not be located nearer than three hundred thirty (330) feet from every lease
boundary. Wells drilled in search of oil shall not be located nearer than nine
hundred (900) feet from any other well completed in, drilling to, or for which
a permit has been granted to drill to, the same pool. Wells drilled in search
of gas shall not be located nearer than two thousand (2,000) feet from any
other well completed in, drilled to, or for which a permit has been granted, to
drill to the same pool.
The Commission may grant exceptions to the general spacing
requirement if the applicant can demonstrate that such exception is justified.
Any well at an exceptional location shall be allowed to produce on a test basis
until the Commission creates a drilling unit for said exceptional
Spacing requirements as required in this section shall not apply
to wells for the purpose of fluid injection or disposal.
B. If a well is completed as a producer, the
Commission, as specified in 121-8.20, shall consider, at a public hearing, the
establishment of temporary field rules. Those rules shall include the
establishment of the allowable, the production unit, if applicable, well
spacing requirements, and other matters incidental to hydrocarbon production,
as soon as is reasonably possible after sufficient technical data become
available to establish such temporary field rules. A public hearing to
establish temporary field rules shall be called either by the Commission or
upon application by any interested person. Prior to the establishment of
temporary field rules, drilling of permitted exploratory wells within the pool
area may continue, and wells may produce according to temporary allowables
established by the Commission. Temporary field rules may be changed by the
Commission on the basis of sufficient technical information after notice and
C. The Commission may
grant exceptions to established field rules if the Commission determines, after
notice and public hearing, that such exceptions are necessary to prevent the
waste of oil or gas or to protect correlative rights.