259.110. Production pooling authorized. - Missouri Statutes

Production pooling authorized.

259.110. 1. When two or more separately owned tracts areembraced within a spacing unit, or when there are separatelyowned interests in all or a part of the spacing unit, then theowners and royalty owners thereof may pool their interests forthe development and operation of the spacing unit. In theabsence of voluntary pooling the council, upon the application ofany interested person, shall enter an order pooling all interestsin the spacing unit for the development and operations thereof.Each such pooling order shall be made after notice and hearing,and shall be upon terms and conditions that are just andreasonable, and that afford to the owner of each tract orinterest in the spacing unit the opportunity to recover orreceive, without unnecessary expense, his just and equitableshare. Operations incident to the drilling of a well upon anyportion of a spacing unit covered by a pooling order shall bedeemed for all purposes the conduct of such operations upon eachseparately owned tract in the drilling unit by the several ownersthereof. That portion of the production allocated to each tractincluded in a spacing unit covered by a pooling order shall, whenproduced, be deemed for all purposes to have been produced fromsuch tract by a well drilled thereon.

2. Each pooling order shall make provision for the drillingand operation of a well on the spacing unit, and for the paymentof the reasonable actual cost thereof by the owners of interestsin the spacing unit, plus a reasonable charge for supervision.In the event of any dispute as to such costs the council shalldetermine the proper costs. If one or more of the owners shalldrill and operate, or pay the expenses of drilling and operatingthe well for the benefit of others, then the owner or owners sodrilling or operating shall, upon complying with the terms ofsection 259.130, have a lien on the share of production from thespacing unit accruing to the interest of each of the other ownersfor the payment of his proportionate share of such expenses. Allthe oil and gas subject to the lien shall be marketed and soldand the proceeds applied in payment of the expenses secured bysuch lien as provided for in section 259.100.

(L. 1965 2d Ex. Sess. p. 917 § 11)