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Indiana Code Title 14. Natural and Cultural Resources § 14-38-1-17

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Sec. 17. (a) If the commission finds it is in the best interest of the state for the production of petroleum, the state, a permittee, a lessee, an operator, or any person owning or controlling royalty or other interest in separate properties of the same producing or prospective petroleum field may enter into agreement among each other, subject to the approval of the commission, for the following purposes:

(1) Cooperative exploration, development, and operation of all or a part of the field or exploration, development, or operation of all or part of the field as a pool or unit.

(2) Fixing the time, location, and manner of drilling.

(3) Regulating the location, sequence, and number of exploratory wells required for permits under unit operations and leases.

(4) Operating wells for the exploration of petroleum on state and private land.

(5) The apportionment of the petroleum between the state and the owners of land embraced within the field placed in the pool, taking into consideration the following:

(A) The relative character and geological nature of the tracts of land as far as the character and nature is reasonably ascertainable.

(B) The apparent probability of producing petroleum from all or any part of the land.

(6) All other apparent factors that tend to aid in arriving at a fair, just, and equitable participation by the state and the owners in the apportionment and distribution of the petroleum that is recovered and saved.

(b) The purpose of this section is to encourage the development and exploration of petroleum upon state land by and through the unit plan of development.  If it is in the best interests of the state, the commission shall compel the adoption of unit plans of operation if state land is included in a productive pool.  If the permittee or lessee of the land fails to agree upon a plan of unit operation acceptable to the commission, the commission may fix the terms of the unit plan.  A permittee or lessee affected who fails to abide by the plan forfeits the permit or lease upon notice as provided in this chapter.

Cite this article: - Indiana Code Title 14. Natural and Cultural Resources § 14-38-1-17 - last updated June 08, 2021 |

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