55-1304. Matters to be found by the commission precedent to issuance of unitization order; hearings. - Kansas Statutes

55-1304

Chapter 55.--OIL AND GAS Article 13.--UNITIZATION

      55-1304.   Matters to be found by the commissionprecedent to issuanceof unitization order; hearings.The commission may make an order providing for the unitization and unitoperation of such pool or part thereof sought to be unitized, if, uponapplication of any working interest owner and after notice andhearing inaccordance with the provisions of the Kansas administrative procedureact, the commission finds all ofthe following conditions exist:

      (a) (1)   The primary production from a pool or apart thereof sought to be unitized has reached a low economic level and,without introduction of artificial energy, abandonment of oil or gas wellsis imminent; or (2) the unitized management, operation and furtherdevelopmentof the pool or the part thereof sought to be unitized is economicallyfeasible and reasonably necessary to prevent waste within the reservoir andthereby increase substantially the ultimate recovery of oil or gas;

      (b)   the value of the estimated additional recovery of oil or gassubstantially exceeds the estimated additional cost incident to conductingsuch operations; and

      (c)   the proposed operation is fair and equitable to all interestowners.

      History:   L. 1967, ch. 299, § 4;L. 1988, ch. 356, § 175;L. 2000, ch. 15, § 1; Mar. 30.