55-1317. Unitization without KCC order, when. - Kansas Statutes

55-1317

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

      55-1317.   Unitization without KCC order,when.(a) As used in this section, terms have the meaningsprovidedbyK.S.A. 55-1302, and amendments thereto.

      (b)   Subject to the provisions of subsection (c), if all mineral androyaltyowners and notless than 90% of the working interest owners approve, in writing, a contractfor the unit operationof a pool or part thereof, such unit operations shall become effective withoutapplication to ororder by the state corporation commission.

      (c)   Before a contract for the unit operation of a pool or part thereof shallbecome effectivepursuant to subsection (b), the person or persons wishing to provide for theunit operation shallfile a copy of the contract with the state corporation commission and shallnotify all workinginterest owners of the intention to conduct the unit operation. Such noticeshall be in the mannerprovided by law for notice of an application requesting an order for the unitoperation of a poolor part thereof. The notice shall inform the working interest owner of theright to instituteproceedings within 30 days after receipt of the notice to have the matterdetermined by the statecorporation commission. Any working interest owner, within 30 days afterreceipt of the notice,may institute proceedings before the state corporation commission to determinethe matter inaccordance with the provisions of K.S.A. 55-1301 et seq., and amendmentsthereto. If no suchproceedings are instituted, the contract shall become effective upon expirationof the 30-dayperiod.

      (d)   This section shall be part of and supplemental to the provisions ofarticle 13 of chapter55 of the Kansas Statutes Annotated, and amendments thereto.

      History:   L. 2004, ch. 115, § 3; July 1.