Utah § 40-6-6 - Drilling units -- Establishment by board -- Modifications -- Prohibitions.
Full text of Utah Utah Code § 40-6-6 — Drilling units -- Establishment by board -- Modifications -- Prohibitions., with citation guidance and answers to common questions.
§ 40-6-6. Drilling units -- Establishment by board -- Modifications -- Prohibitions.
Effective 5/9/2017 40-6-6.
Drilling units -- Establishment by board -- Modifications -- Prohibitions.
(1)
The board may order the establishment of drilling units for a pool.
(2)
Within each drilling unit, only one well may be drilled for production from the common source of supply, except as provided in Subsections (6) and (7).
(3)
A drilling unit may not be smaller than the maximum area that can be efficiently and economically drained by one well.
(4)
(a)
Each drilling unit within a pool shall be of uniform size and shape, unless the board finds that it must make an exception due to geologic, geographic, or other factors.
(b)
If the board finds it necessary to divide a pool into zones and establish drilling units for each zone, drilling units may differ in size and shape for each zone.
(5)
An order of the board that establishes drilling units for a pool shall:
(a)
be made upon terms and conditions that are just and reasonable;
(b)
include all lands determined by the board to overlay the pool;
(c)
specify the acreage and shape of each drilling unit as determined by the board; and
(d)
specify the location of the well in terms of distance from drilling unit boundaries and other wells.
(6)
The board may establish a drilling unit and concurrently authorize the drilling of more than one well in a drilling unit if the board finds that:
(a)
engineering or geologic characteristics justify the drilling of more than one well in that drilling unit; and
(b)
the drilling of more than one well in the drilling unit will not result in waste.
(7)
The board may modify an order that establishes drilling units for a pool to provide for:
(a)
an exception to the authorized location of a well;
(b)
the inclusion of additional areas which the board determines overlays the pool;
(c)
the increase or decrease of the size of drilling units; or
(d)
the drilling of additional wells within drilling units.
(8)
(a)
An order of the board that establishes a drilling unit may be made effective retroactively to the date of first production of an existing well located within the drilling unit if no party to the board's proceeding objects to the retroactive application.
(b)
An order made retroactive under this section is binding upon a party owning an interest in the drilling unit who receives proper notice of the board's proceeding.
(9)
(a)
After an order establishing drilling units has been entered by the board, the drilling of a well into the pool at a location other than that authorized by the order is prohibited.
(b)
The operation of a well drilled in violation of an order fixing drilling units is prohibited.
Section 40-6-6 ("Drilling units -- Establishment by board -- Modifications -- Prohibitions.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 40-6-6?
A common citation format is "Utah Code § 40-6-6" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 40-6-6 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
