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§ 27-503 Waste of oil or gas prohibited; powers of commissioner to prevent waste

AZ Rev Stat § 27-503 (2019) (N/A)
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27-503. Waste of oil or gas prohibited; powers of commissioner to prevent waste

A. Waste of oil or gas is unlawful and is prohibited.

B. The commissioner shall make inquiries he deems proper to determine whether waste exists or is imminent. In the exercise of such power the commissioner may:

1. Collect data.

2. Make investigations and inspections.

3. Examine property, leases, papers, books and records, including drilling records and logs.

4. Examine, check, test and gauge oil and gas wells, tanks, refineries and modes of transportation.

5. Hold hearings.

6. Require keeping of records and making of reports.

7. Take action he deems necessary to enforce and effectuate the provisions of this article.

C. The commissioner may in order to prevent waste and avoid drilling unnecessary wells, permit the cycling of gas in any pool or portion thereof or the introduction of gas or other substance into an oil or gas reservoir for the purpose of repressuring the reservoir, maintaining pressure or carrying on secondary recovery operations of any type. The commissioner shall permit the pooling or integration of separate tracts when reasonably necessary in connection with the operations.

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§ 27-504 Drilling units; rules and regulations; exceptions