Pooling order operator.

WORKING DRAFT
2014
STATE OF
WYOMING
14LSO-0219

SENATE FILE
NO.

SF0099

P
ooling
order operator
.

Sponsored by:
Senator(s) Perkins and Bebout and Representative(s) Stubson

A BILL

for

AN ACT relating to
oil and gas;
providing for designation of the operator under a pooling order;
providing rulemaking authority;
and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 30
‑
5
‑
109(
f)
is
amended to read:

30
‑
5
‑
109.

Rules and regulations governing drilling units.

(f)

When two (2) or more separately owned tracts are embraced within a drilling unit, or when there are separately owned interests in all or a part of the
drilling
unit, then persons owning such interests may pool their interests for the development and operation of the drilling
unit. In the absence of voluntary pooling, the commission, upon the application of any interested person, may enter an order pooling all interests in the drilling unit for the development and operation thereof. Each such pooling order shall be made after notice and hearing and shall be upon terms and conditions that are just and reasonable. Operations incident to the drilling of a well upon any portion of a unit covered by a pooling order shall be deemed for all purposes to be the conduct of such operations upon each separately owned tract in the unit by the several owners thereof. That portion of the production allocated or applicable to each tract included in a unit covered by a pooling order shall, when produced, be deemed for all purposes to have been produced from such tract by a well drilled thereon.
The hearing on a pooling order under this subsection shall include the designation of the unit operator. The person filing the application shall be presumed to be the operator. A dispute over the designation of the operator shall be addressed by the commission at the hearing and the commission shall adopt rules and regulations necessary to designate the operator under this subsection. In addition to any other factors considered by the commission, if the applicant owns more than fifty percent (50%) of the interests in a unit, or the applicant
is the designated representative of more than fifty percent (50%) of the interests in a unit, that person shall be designated as the operator for the unit.

Section 2.

This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

1
SF0099