82-11-124. Requirements relating to waste prevention. Subject to the administrative control of the department under 2-15-121, the board shall, for the purpose of preventing waste:

Terms Used In Montana Code 82-11-124

  • Board: means the board of oil and gas conservation provided for in 2-15-3303. See Montana Code 82-11-101
  • Department: means the department of natural resources and conservation provided for in Title 2, chapter 15, part 33. See Montana Code 82-11-101
  • Gas: means all natural gases and all other fluid hydrocarbons, including methane gas or any other natural gas found in any coal formation, as produced at the wellhead and not defined as oil in subsection (3). See Montana Code 82-1-111
  • Person: means any natural person, corporation, association, partnership, receiver, trustee, executor, administrator, guardian, fiduciary, or other representative of any kind and includes any agency or instrumentality of the state or any governmental subdivision of the state. See Montana Code 82-11-101
  • Waste: means :

    (i)physical waste, as that term is generally understood in the oil and gas industry;

    (ii)the inefficient, excessive, or improper use of or the unnecessary dissipation of reservoir energy;

    (iii)the location, spacing, drilling, equipping, operating, or producing of any oil or gas well or wells in a manner which causes or tends to cause reduction in the quantity of oil or gas ultimately recoverable from a pool under prudent and proper operations or which causes or tends to cause unnecessary or excessive surface loss or destruction of oil or gas; and

    (iv)the inefficient storing of oil or gas. See Montana Code 82-11-101

(1)regulate the drilling, producing, and plugging of wells, the shooting and chemical treatment of wells, the spacing of wells, operations voluntarily entered into to increase ultimate recovery such as cycling of gas, the maintenance of pressure, and the introduction of gas, water, or other substances into producing formations; and

(2)fix, upon application made by any interested person after hearing, efficient gas-oil and water-oil ratios for any particular well or wells.