78.52.255 - Operations on development unit deemed operations on each tract -- Production allocated to tract deemed produced from each tract -- Shut-in well considered on each tract -- Lease on part of

Operations on development unit deemed operations on each tract — Production allocated to tract deemed produced from each tract — Shut-in well considered on each tract — Lease on part of tract excluded from unit.

(1) Operations incident to the drilling of a well upon any portion of a development unit covered by a pooling order shall be deemed, for all purposes, the conduct of such operations upon each separately-owned tract in the development unit by the several owners thereof. That portion of the production allocated to each separately-owned tract included in a development unit covered by a pooling order shall, when produced, be deemed for all purposes, including the payment of royalty, to have been produced from each separately-owned tract by a well drilled thereon. If an oil or gas well on a pooled unit is shut-in, it shall be considered that the shut-in well is on each separately-owned tract in the pooled unit.

     (2) If only part of the tract is included in the unit, operations on, production from, or a shut-in well on the unit shall maintain an oil and gas lease on the tract as to the part excluded from the unit only if the lease would be maintained had the unit been created voluntarily under the lease.

[1983 c 253 § 21.]