After the discovery of oil or gas in a pool not covered by an order of the board, the operator or other interested person shall file a petition for a contested case hearing requesting a specified spacing pattern and proposed field name. The petition must comply with § 74:09:01:01. After notice, and hearing if held, the board or secretary, as appropriate shall issue an order prescribing a spacing pattern for the development of the pool and the name of the field.
During the interim period between the discovery and the issuance of the order, no permits may be issued for the drilling of offsets to the discovery well unless there is a showing of good cause that may include lease expiration.
S.D. Admin. R. 74:12:02:06
General Authority: SDCL 45-9-13.
Law Implemented: SDCL 45-9-25.