Utah Admin. Code R649-3-40 - Conflicting Operations on Overlapping Drilling Units
1. Operators of overlapping drilling units
may enter into a written agreement outlining the timing and sequence of
drilling and the number and locations of wells if the contractual arrangement
will result in the greatest ultimate recovery of oil and gas from each drilling
unit, prevent waste, minimize surface impact, and protect correlative
rights.
2. The division, upon
request of a designated operator, may assist and mediate negotiations to
facilitate such an agreement.
3. In
the event the designated operators cannot reach agreement, or having entered
into such an agreement, a dispute or disagreement on the application of the
terms and provisions occur, any affected designated operator may file a request
for agency action with the board for an order establishing delineation of the
respective rights and obligations of the designated operators as to each
overlapping drilling unit, including the drilling schedule or sequence of
drilling, the number, density, and location of authorized wells, or a
determination of any other related and relevant matter.
Notes
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