2005 Idaho Code - 47-321 — SPACING UNITS

                                  TITLE  47
                               MINES AND MINING
                                  CHAPTER 3
                        OIL AND GAS WELLS -- GEOLOGIC
                     INFORMATION, AND PREVENTION OF WASTE
    47-321.  SPACING UNITS. (a) The commission shall promptly establish
spacing units for each pool except in those pools that have been developed to
such an extent that it would be impracticable or unreasonable to establish
spacing units at the existing stage of development.
    (b)  An order establishing spacing units shall specify the size and shape
of the units, which shall be such as will, in the opinion of the commission,
result in the efficient and economical development of the pool as a whole. The
size of the spacing units shall not be smaller than the maximum area that can
be efficiently and economically drained by one (1) well; provided, that if, at
the time of a hearing to establish spacing units there is not sufficient
evidence from which to determine the area that can be efficiently and
economically drained by one (1) well, the commission may make an order
establishing temporary spacing units for the orderly development of the pool
pending the obtaining of the information required to determine what the
ultimate spacing should be.
    (c)  Except where circumstances reasonably require, spacing units shall be
of approximately uniform size and shape for the entire pool. The commission
may establish spacing units of different sizes or shapes for different parts
of a pool or may grant exceptions to the size or shape of any spacing unit or
units or may change the sizes or shape of one or more existing spacing units.
    (d)  An order establishing spacing units shall direct that no more than
one well shall be drilled to and produced from the common source of supply on
any unit, and shall specify the location for the drilling of a well thereon,
in accordance with a reasonably uniform spacing pattern, with necessary
exceptions for wells drilled or drilling at the time of the filing of the
application. If the commission finds that a well drilled at the prescribed
location would not be likely to produce in paying quantities, or that surface
conditions would substantially add to the burden or hazard of drilling such
well, or for other good cause shown, the commission is authorized to make an
order permitting the well to be drilled at a location other than that
prescribed by such spacing order. Application for an exception shall be filed
with the director of the Idaho department of lands and may be granted by him
where it is shown that good cause for such exception exists and that consent
to such exception has been given by the owners of all drilling units directly
or diagonally offsetting the drilling unit for which an exception is
requested, and, as to the lands upon which drilling units have not been
established, by the owners of those lands which would be included in directly
or diagonally offsetting drilling units under said order, if said order were
extended to include such additional lands. Where an exception is not granted
by the director or where an objection to the action of said director is filed
with the commission within ten (10) days after he has granted or denied the
application no well shall be drilled on said drilling unit except in
accordance with the order establishing drilling units, unless and until the
commission shall, after notice and hearing upon the application, grant such
exception.
    (e)  An order establishing spacing units for a pool shall cover all lands
determined or believed to be underlaid by such pool, and may be modified by
the commission from time to time to include additional lands determined to be
underlaid by such pool or to exclude lands determined not to be underlaid by
such pool.
    (f)  An order establishing spacing units may be modified by the commission
to change the size or shape of one or more spacing units, or to permit the
drilling of additional wells on a reasonably uniform pattern.
    (g)  Upon the filing of an application to establish spacing units, no
additional well shall be commenced for production from the pool until the
order establishing spacing units has been made, unless the commencement of the
well is authorized by order of the commission.