Statutes, codes, and regulations
South Dakota Administrative Rules
Title 74 - Department of Environment And Natural ResourcesArticle 74:12 - Oil and gas conservation
Chapter 74:12:10 - Risk compensation in compulsory pooling and unitization orders
Section 74:12:10:02 - Compulsory pooling - Risk compensation if ownership interest is derived from a lease or other contract for development

S.D. Admin. R. 74:12:10:02

Download
PDF
Current through Register Vol. 51, page 67, December 16, 2024
Section 74:12:10:02 - Compulsory pooling - Risk compensation if ownership interest is derived from a lease or other contract for development

If the nonparticipating owner's interest in the spacing unit is derived from a lease or other contract for development, the risk compensation is two-hundred percent of the nonparticipating owner's share of the reasonable actual costs of drilling, reworking, side-tracking, deepening, plugging back, testing, completing and recompleting the well and the costs of newly acquired equipment in the well including the wellhead connection. Risk compensation may be recovered only out of production from the pooled spacing unit, exclusive of a one-eighth royalty as provided for in SDCL 45-9-35.

S.D. Admin. R. 74:12:10:02

38 SDR 117, effective 1/12/2012

General Authority: SDCL 45-9-11, 45-9-13.

Law Implemented: SDCL 45-9-30 to 45-9-36, inclusive.