Arkansas § 15-76-308 - Formation of brine production units.

§ 15-76-308. Formation of brine production units.

All producers, as defined in § 15-76-302, may make application to the Oil and Gas Commission for the establishment of brine production units and brine expansion units. Each application shall be scheduled for public hearing by the commission to be held no later than the next regularly scheduled hearing of the commission that will afford proper notice to be given. Unless a smaller area is requested by a petitioner and established by order of the commission, a brine production unit or a brine expansion unit established by order of the commission shall comprise no fewer than one thousand two hundred eighty (1,280) contiguous surface acres which are reasonably established to be underlain by a common aquifer. A proposed brine production unit shall be approved by the commission if the existing or proposed plan of development is such as to drain efficiently the area of the unit and to protect the correlative rights of each owner therein. Each brine production unit as created by the commission under this subchapter shall constitute a brine production unit as long as a producing well is located therein which is capable of producing brine in paying quantities. A proposed brine expansion unit shall be approved by the commission as a stand-alone brine expansion unit if the existing or proposed plan of development establishes that the operation of an existing brine production unit can be expanded, enhanced, or made more efficient by the placement of one (1) or more production wells or brine injection wells in an expanded area immediately adjacent to the existing brine production unit, if the plan of development is such as to: Drain efficiently the area of the brine expansion unit; and Protect the correlative rights of each owner of the brine expansion unit. Each brine expansion unit as created by the commission under this subchapter shall constitute a unit as long as a producing well is located within: The brine expansion unit; or The adjacent brine production unit that is capable of producing brine in paying quantities.