(1)  An agreement for repressuring or pressure maintenance operations, cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas, or for carrying on any other methods of unit or cooperative development or operation of a field or pool or a part of either, is authorized and may be performed, and shall not be held or construed to violate any statutes relating to trusts, monopolies, or contracts and combinations in restraint of trade, if the agreement is approved by the board as being in the public interest and promotes conservation, increases ultimate recovery and prevents waste of oil or gas provided the agreement protects the correlative rights of each owner or producer.

Terms Used In Utah Code 40-6-7

  • Board: means the Board of Oil, Gas, and Mining. See Utah Code 40-6-2
  • Correlative rights: means the opportunity of each owner in a pool to produce the owner's just and equitable share of the oil and gas in the pool without waste. See Utah Code 40-6-2
  • Gas: means natural gas, as defined in Subsection (10), natural gas liquids, as defined in Subsection (11), other gas, as defined in Subsection (17), or any mixture of them. See Utah Code 40-6-2
  • Natural gas: includes coalbed methane gas. See Utah Code 40-6-2
  • Oil: includes tar sands produced at the wellhead in liquid form through enhanced recovery operations authorized by the board in accordance with Subsection 40-6-5(3)(c). See Utah Code 40-6-2
  • Owner: means a person who has the right:
(a) to drill into and produce from a reservoir; and
(b) to appropriate the oil and gas produced for that person or for that person and others. See Utah Code 40-6-2
  • Pool: means an underground reservoir containing a common accumulation of oil or gas or both. See Utah Code 40-6-2
  • Producer: means the owner or operator of a well capable of producing oil and gas. See Utah Code 40-6-2
  • Waste: means :
    (a) the inefficient, excessive, or improper use or the unnecessary dissipation of oil or gas or reservoir energy;
    (b) the inefficient storing of oil or gas;
    (c) the locating, drilling, equipping, operating, or producing of any oil or gas well in a manner that causes:
    (i) a reduction in the quantity of oil or gas ultimately recoverable from a reservoir under prudent and economical operations;
    (ii) unnecessary wells to be drilled; or
    (iii) the loss or destruction of oil or gas either at the surface or subsurface; or
    (d) the production of oil or gas in excess of:
    (i) transportation or storage facilities; or
    (ii) the amount reasonably required to be produced as a result of the proper drilling, completing, testing, or operating of a well or otherwise utilized on the lease from which it is produced. See Utah Code 40-6-2
    (2)  A plan for the development and operation of a pool or field shall be presented to the board and may be approved after notice and hearing.

    Enacted by Chapter 205, 1983 General Session

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