1. A. The Corporation Commission shall have jurisdiction to increase the size of an existing brine production unit or produced water unit area where it is shown, upon proper application, notice and hearing that:

   1. 1. Land adjacent to the existing unit is underlain by the same brine common source of supply as that found within the unit area;

   2. 2. Inclusion of the additional land will either:

      1. a. increase unit efficiency,
      2. b. result in greater ultimate recovery of brine or produced water, or
      3. c. prevent waste;
   3. 3. Inclusion of the additional land is fair, just and reasonable, both to parties owning brine or produced water interests in the additional land and to parties owning interests in the existing unit; and
   4. 4. The requirements of Section 508 of this title have been met.

2. B. The Commission shall have jurisdiction to decrease the size of an existing brine production unit or produced water unit where it is shown, upon proper application, notice and hearing, that the land to be excluded is of no value to the unit because:

   1. 1. It is not underlain by the brine common source of supply;
   2. 2. Its presence does not contribute to more efficient unit operations, by providing the site for an injection well or wells, or by assisting in the conduct of waterflood operations, or by otherwise increasing unit efficiency; and
   3. 3. Exclusion of the land is fair, just and reasonable.

Laws 1990, SB 263, c. 255, § 11, eff. September 1, 1990; Amended by Laws 2026, HB 4338, c. 341, § 9, emerg. eff. May 12, 2026 (superseded document available).