Montana Code Annotated 2019

TITLE 82. MINERALS, OIL, AND GAS

CHAPTER 11. OIL AND GAS CONSERVATION

Part 2. Unit Operations

Board Order For Unit Operation -- Criteria

82-11-205. (Temporary) Board order for unit operation -- criteria. The board shall make an order providing for the unit operation of a pool or pools or part thereof if it determines, based on evidence presented at the hearing, that:

(1) such operation is reasonably necessary to increase the ultimate recovery of oil or gas;

(2) the value of the estimated additional recovery of oil or gas less royalties or, as to gas pools only, the value of the economies to be effected, exceeds the estimated additional cost incident to conducting such operations; and

(3) the full areal extent of the pool or pools or part thereof has been reasonably defined and determined by drilling operations.

82-11-205. (Effective on occurrence of contingency) Board order for unit operation -- criteria. The board shall make an order providing for the unit operation of a pool or pools or part of the pools or of a geologic storage reservoir if it determines, based on evidence presented at the hearing, that:

(1) the operation is reasonably necessary to increase the ultimate recovery of oil or gas or the operation is necessary for the long-term storage of carbon dioxide;

(2) the value of the estimated additional recovery of oil or gas less royalties or, as to gas pools only, the value of the economies to be effected, exceeds the estimated additional cost incident to conducting the operations; and

(3) (a) the full areal extent of the pool or pools or part of the pools has been reasonably defined and determined by drilling operations; or

(b) in the case of a geologic storage reservoir, the full areal extent of the project has been reasonably defined and determined by drilling operations, geologic interpretation, seismic information, or other information acceptable to the board.

History: En. Sec. 2, Ch. 33, L. 1969; amd. Sec. 2, Ch. 150, L. 1971; amd. Sec. 62, Ch. 253, L. 1974; R.C.M. 1947, 60-131.2; amd. Sec. 25, Ch. 474, L. 2009.