PURPOSE: Production units are smallto large-scale projects designed to maximize ultimate recovery of oil and gas from the entirety of a single pool or particular portion thereof through enhanced recovery. Enhanced recovery typically involves the use of injection wells.

1. (1) No well, including, but not limited to, those used for production or injection, drilled within a production unit shall be drilled nearer than one hundred sixty-five feet (165') from the production unit boundary. Stratigraphic test wells are exempt from this requirement.

2. (2) An operator may submit to the state geologist an application for the implementation of a production unit of a specified size and shape, with a well configuration of a certain nature of operation, for the purpose of an enhanced recovery project designed to maximize the ultimate recovery of oil or gas or both from the entirety of a single pool or particular portion thereof. The state geologist may approve the application if the proposed production unit is operated by a single operator or owner. If the proposed production unit includes more than one (1) operator or owner, application shall be made to the council, according to procedures in 10 CSR 50- 4.020. Any applicant for a production unit shall provide a description of the proposed production unit area, including the following information:

   1. (A) Maps that show the unit boundary, cultural and natural surface features, areal extent of the pool, depth and thickness of the pool, location of any and all prior wells regardless of kind in the proposed unit area and those that occur within a one-half (1/2) mile-wide buffer area around the proposed unit;
   2. (B) Location of all owner tracts;
   3. (C) Location and pattern of all proposed production, injection, water supply and disposal wells that are to be drilled and operated for purpose of the proposed production unit; and
   4. (D) Location of all surface facilities associated with the proposed production unit.

AUTHORITY: section 259.100, RSMo Supp. 2015, and section 259.120, RSMo 2000.* Original rule filed Sept. 15, 2015, effective March 30, 2016.

*Original authority: 259.100, RSMo 1965, amended 1987, 2015 and 259.120, RSMo 1965, amended 1972.