§ 523. Pooling

(a) When two or more separately owned tracts are embraced within an exploratory or development drilling unit, or when there are separately owned interests in all or part of a unit, the persons owning such tracts or interests may pool their tracts or interests. In the absence of voluntary pooling and upon application by any person owning a tract or interest within an exploratory or development drilling unit, the Board may enter an order pooling all tracts and interests within the unit.

(b) All operations, including the commencement, drilling, operation, or production of a well upon any portion of a pooled unit shall be deemed for all purposes the commencement, drilling, operation, or production of a well upon each separately owned tract or upon each separately owned interest in the unit by the several owners. That portion of the production allocated to a separately owned tract or separately owned interest included in a unit shall be deemed to have been produced from such tract or interest.

(c) Each pooling order of the Board shall specify which owner will drill, complete, and operate a well on the pooled unit. All owners shall share in the reasonable costs of drilling, completing, and operating the well. Any owner whose tract or interest has been involuntarily pooled shall be permitted, at his or her option, to pay his or her share of costs out of production, plus a supervision, risk, and interest assessment not to exceed 300 percent of that owner's share of the costs.

(d) Production and costs associated with a pooled unit shall be allocated among the owners in the same proportion each owner's acreage in the unit bears to the total acreage in the unit or in any other manner agreed to by the owners and approved by the Board. (Added 1981, No. 240 (Adj. Sess.), § 2, eff. April 28, 1982.)