055-3 Wyo. Code R. § 3-7 - Drilling Units

(a) This section reserved.

(b) This section reserved.

(c) Compulsory Pooling.

(i) When two (2) or more separately owned tracts or separately owned interests are embraced within a drilling and spacing unit that are not voluntarily pooled, the Commission may enter an order pooling all interests in the drilling and spacing unit for development and may authorize cost recovery and risk penalties against nonconsenting owners for a specific well.

(A) A pooling order shall expire twelve (12) months after issuance if a well is not spud in the drilling and spacing unit. The interests in the drilling and spacing unit shall remain pooled for all future development if a well is spud under a valid pooling order.

(B) A pooling order may authorize cost recovery and risk penalties for a specific well in the drilling and spacing unit as authorized by Wyoming Statute § 30-5-109. The cost recovery and risk penalty authorization will expire twelve (12) months after issuance of the pooling order if the specific well has not been spud.

(ii) At a minimum, an application for pooling shall provide:

(A) A certificate of service containing all persons that have a royalty interest or are Owners inside the drilling and spacing unit.

(B) The applicant's interest type in the drilling and spacing unit.

(C) The legal description of the lands and the Commission's docket number establishing the drilling and spacing unit sought to be pooled.

(D) A statement that two (2) or more separately owned tracts or separately owned interests in the drilling and spacing unit have not voluntarily pooled their interests and any valid pooling order for the drilling and spacing unit.

(E) The API # of the well subject to the application, if requesting cost recovery and/or risk penalties.

(F) A list of all nonconsenting Owners in the well, at the time of filing the application, that the applicant is seeking cost recovery and risk penalties against.

(G) The cost recovery and risk penalties the applicant is requesting, if any.

(iii) At a minimum, an applicant shall provide at hearing:

(A) A copy of the election letter, well proposal, and authorization for expenditure sent to the Owners in the drilling and spacing unit.

(B) The names and interests of all nonconsenting Owners and unleased nonconsenting Owners in the well.

(C) An acreage weighted average royalty calculation if there are unleased nonconsenting Owners.

(D) Evidence to justify the application of a risk penalty.

Notes

055-3 Wyo. Code R. § 3-7

Amended, Eff. 6/3/2015. Reserved, Eff. 1/19/2016. Reserved, Eff. 4/1/2016. Amended, Eff. 12/20/2019. Reserved, Eff. 12/9/2020. Amended, Eff. 6/22/2022.