This law allows for the grouping together of pieces of land to be managed as a single unit. The purpose is to prevent waste and improve the extraction and recovery of oil and gas from the land.

This law explains that when landowners come together to manage, develop, and operate multiple pieces of land as a single unit, they can create an agreement on how to share the benefits and costs. These agreements become official and binding only for those who agree to them and can be submitted for approval to a supervisor. However, if an agreement is not approved, or if someone does not consent to it, then their rights cannot be affected by the agreement.

This section explains that if owners of at least 75% of the working and royalty interests in a land area agree to a unit operation plan, they can file this agreement with a supervisor. This filing is done alongside a petition that seeks approval of the plan.

This law section outlines the criteria for approving a unit agreement for oil and gas field operations. Firstly, the proposed area must include all necessary tracts and exclude unnecessary ones according to good oilfield practices. Secondly, at least three-fourths of working interest and royalty interest owners must agree to the proposal. Thirdly, the agreement must facilitate operations like pressure maintenance or gas injection to boost oil and gas recovery. Fourthly, the financial benefits of increased recovery must outweigh the operation costs. Fifthly, the agreement should ensure fair distribution of resources and benefits to all tract owners. Additionally, it should optimize and consolidate surface facilities to prevent land waste and allow for future productive use. It should be deemed fair and reasonable in all other aspects, and receive approval from the State Lands Commission if involving state lands.

This law explains how to determine a fair share of oil and gas production for a piece of land within a larger production unit. The value is based on each tract's potential for producing oil and gas, compared to other tracts in the same unit. Factors include the estimated primary production value from the land without secondary recovery efforts, and the expected value if enhanced recovery techniques are used. The measurement considers how much recoverable oil and gas lies beneath the land, and if exact data isn't available, estimates are made using established engineering methods. All other factors that affect the land's production value are considered as well.

This law states that once a unit agreement is approved, an order for unit operations must be issued. This order requires that the agreement be recorded in every county with land in the unit area and that everyone's interests in that area are bound by the agreement as if they agreed. The order becomes effective on a specified date but only after all sale offers in the unit area are bought or those offers end.

This section outlines what a supervisor's order for unit operation must include. First, it specifies when all parcels of land not already included in the unit must start unit operations, which cannot start before the month after the order's effective date. Second, the order should provide financial arrangements for people unable to meet their financial obligations, including allowing interest charges. Finally, the order should include any other necessary provisions to fairly incorporate lands or interests not previously committed to the unit agreement.

If you own a share in oil or gas land subject to a unit agreement and haven't agreed to the deal, you can sell your interest 60 days after a supervisor orders the agreement. Those who did agree can buy your share based on their production shares. If no one buys, the agreement doesn't take effect.

If the price of your interest is disputed, either party can ask for a three-person arbitration committee to set a fair value. The committee's decision is final unless a court challenge is made within 30 days. Costs for the arbitration are paid by consenting interest owners if the agreement proceeds or by those who requested the valuation if it doesn't.

If you own surface land that is being used as part of a collective agreement for resource extraction or similar activities, you have the right to be compensated for its use. The compensation should reflect the reasonable value of using your surface land.

This section deals with changes to approved agreements for oil or gas extraction areas, known as unit agreements. Any changes must be reviewed and approved by the supervisor, and can't affect how production is distributed unless everyone impacted agrees in writing. The supervisor will approve modifications if, after a public hearing, the change is agreed upon by owners of at least three-fourths of the total working and royalty interests, follows existing agreement rules, aligns with the chapter's purpose, and is fair and reasonable. Once approved, the changes must be documented in the county recorder's office and apply to everyone involved in the unit area, just as if they all agreed to it. The law does not apply to any changes made solely by working interest owners.

If there's already an order combining properties for oil or gas extraction and it's found that new areas should be included, the landowners involved can ask for more land to be added to the existing unit. They do this by filing a request with a supervisor, who will then hold a public hearing to consider the matter.

This law gives a supervisor the authority to issue an order making additional land areas part of a unit operation for oil and gas extraction. This can happen if certain conditions are met: the land contains part of a pool already under a unit operation, at least three-fourths of the landowners and royalty interest holders agree, and the expansion is necessary to prevent waste or improve oil and gas recovery.

This law describes how oil and gas production is divided among different landowners when a production unit is expanded. When new land areas are added, the production is first allocated to the previously established unit as if it were a single piece of land. Then, the production is divided among the new and old lands based on their value for oil and gas extraction. This value considers the land's potential to produce oil and gas through primary methods or secondary recovery techniques like extracting from permeable underground layers. If exact data isn't available, estimations can use prudent engineering methods. Other factors that impact a land's value for production are also considered.

If people who own parts of a shared resource, like an oil pool, can't agree on how it should be managed together, they can ask a supervisor to review the disagreement and make a decision.

If you're filing a petition to get a unit agreement approved, it must include a request for approval, a copy of the agreement, and detailed reports with engineering and geological data. Additionally, you need to provide proof that the necessary number of working interest owners and royalty interest owners agree to this unit agreement. If someone disputes your proof, you will have to provide more evidence.

This law says that if a supervisor makes a decision that impacts someone, that person can challenge or appeal the decision in court. They have 60 days to do so unless another rule in this article sets a different deadline.

This section explains how to calculate the three-fourths interests among working and royalty interest owners involved in a unit agreement. First, all tracts of land under the unit agreement are given a total value that combines primary and secondary tract assignments. Each working interest owner gets a share based on the value of the tracts they own and their share of that ownership. Similarly, royalty interest owners get a share based on the tracts they own and their fractional share. If no royalties are outstanding, working interest owners are treated as if they also hold the royalty interests in the same proportion as their working interests.

This law section states that a unit agreement approved by a supervisor cannot cause any change in ownership or title of land or mineral rights under that land. In other words, such agreements won't transfer ownership from one person or party to another.

This law section states that when a well is drilled or operated within a unit area, it's treated as if operations are happening on each separately owned piece of land within that area. The oil or gas produced is allocated to each piece of land as if it’s coming directly from a well drilled on that land.

This law states that once a supervisor issues an order regarding a section of land with oil and gas, it applies to everyone with a stake in that land or the resources from it, starting from the order's effective date. Even if someone didn't agree to the unit agreement, they are still bound by it and have the right to enforce its terms, such as production rates.

Before holding a public hearing about using land for a unit operation, the supervisor has to give written notice to anyone with an interest, like landowners, according to tax assessor records. They also need to notify any city or county where the land is located. During the hearing, the city, county, or any interested person is allowed to present relevant testimony and evidence for the supervisor to consider.