Mich. Admin. Code R. 324.303

Current through Vol. 24-19, November 1, 2024
Section R. 324.303 - Voluntary pooling

Rule 303.

(1) The lessees or lessors, or both, of separate tracts or mineral interests that lie partially or wholly within an established drilling unit or larger area may pool or communitize the tracts or interests to form full drilling units or multiples of full drilling units and to develop the units pursuant to the provisions of these rules and the applicable orders of the supervisor.
(2) Persons who pool or communitize the tracts or interests may submit an application to the supervisor to abrogate spacing within the pooled or communitized area. The application shall include a certified copy of the pooling or communitization agreement and the plans for exploration or development. The supervisor may approve the application if all of the following conditions are satisfied:
(a) Waste is prevented.
(b) The drilling of unnecessary wells is prevented.
(c) A producing interval of a well is not located closer than 330 feet from the pooled or communitized area boundary.
(3) The lessees and lessors of separate tracts or mineral interests that lie partially or wholly within an area encompassing 2 or more full drilling units may voluntarily pool the tracts or interests to form a development unit for the purpose of receiving a permit for a well as an exception to R 324.301(1) or special spacing orders adopted pursuant to R 324.302, if the producing interval location of the well is found by the supervisor to ensure each producer is afforded the opportunity to use his or her just and equitable share of the reservoir energy and to prevent waste, including the drilling of unnecessary wells.

Mich. Admin. Code R. 324.303

1996 AACS; 2015 MR 5, Eff. March 11, 2015