PURPOSE: The oil and gas in a subsurface reservoir constitute a common source of supply to any and all wells drilled into that reservoir. One well can drain a large area and is not limited by the surface survey lines that define separate tracts. While the petroleum is divided, the right to a share of the petroleum is divided. Thus, the petroleum in place in a reservoir must be divided and shared among the separate owners who exercise their rights by drilling into that reservoir. Pooling for well spacing eliminates property lines within the spacing unit, thereby eliminating the drilling of unnecessary wells. Maximum conservation can be obtained if this principle is extended to consolidate all the separately owned tracts within a reservoir into one unit. This is referred to as unitization. This rule establishes procedures for voluntary unitization of a field or pool or for statutory unitization of a pool or field through an order of the council.

An application for an order by the council for the authorization of a unit or cooperative development and operation of a field or pool shall be in compliance with the statute as stated in section 259.120, RSMo.

AUTHORITY: section 259.120, RSMo 1986.* Original rule filed Sept. 12, 1973, effective Sept. 22, 1973.

*Original authority: 259.120, RSMo 1965, amended 1972.