Washington Code 78.52.245 – Pooling order — Allocation of production
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A pooling order shall be upon terms and conditions that are fair and reasonable and that afford to each owner and royalty owner his or her fair and reasonable share of production. Production shall be allocated as follows:
Terms Used In Washington Code 78.52.245
- Department: means the department of natural resources. See Washington Code 78.52.010
- Owner: means the person who has the right to develop, operate, drill into, and produce from a pool and to appropriate the oil or gas that he or she produces therefrom, either for that person or for that person and others. See Washington Code 78.52.010
- Pooling: means the integration or combination of two or more tracts into an area sufficient to constitute a development unit of the size for one well as prescribed by the department. See Washington Code 78.52.010
- Royalty: means a right to or interest in oil or gas or the value from or attributable to production, other than the right or interest of a lessee, owner, or operator, as defined herein. See Washington Code 78.52.010
(1) For the purpose of determining the portions of production owned by the persons owning interests in the pooled unit, the production shall be allocated to the respective tracts within the unit in the proportion that the surface acres in each tract bear to the number of surface acres included in the entire unit.
(2) Notwithstanding subsection (1) of this section, if the department finds that allocation on a surface acreage basis does not allocate to each tract its fair share, the department shall allocate the production so that each tract will receive its fair share.