Section 81-09-03-02 - DefinitionsAs used in these sections and for the administration of North Dakota Century Code chapter 57-51.1, unless the context requires otherwise, the following definitions apply:
1. "Completion" or "completed" means an oil well will be considered completed when the first oil is produced through wellhead equipment after production casing has been run.2. "Drilled" means the spudding of a well.3. "Incremental production" means the oil which has been classified as incremental by the industrial commission under subsections 5 and 6 of North Dakota Century Code section 57-51.1-03. 4. "New well" means a well initially drilled and originally completed after April 27, 1987, to a separate and distinct reservoir as recognized by the industrial commission.5. "Nonincremental production" means the oil which has not been classified as incremental by the industrial commission.6. "Reservoir" means a common source of supply as defined by the industrial commission.7. "Test oil" means oil recovered during and after drilling but before normal completion of a well.8. "Unit" means the total area of land that results from the combining of interests in all or parts of two or more leases or fee interests in order to operate the reservoir as a single production unit subject to a single operating interest. A unit may be formed by an agreement between the mineral interest owners (voluntary unitization) or by order of an agency of the state or federal government (compulsory unitization). A unit does not include "poolings" resulting from the enforcement of spacing requirements. This definition is only effective for periods prior to April 27, 1987.N.D. Admin Code 81-09-03-02
Effective August 1, 1986; amended effective October 1, 1987; March 1, 1990; June 1, 1992; April 1, 1996; April 1, 2006.Amended by Administrative Rules Supplement 2016-361, July 2016, effective 7/1/2016.General Authority: NDCC 57-51-21, 57-51.1-05
Law Implemented: NDCC 57-51.1-01(3)(4)(5)(8), 57-51.1-03(3)