Ariz. Admin. Code § 12-7-107

Current through Register Vol. 30, No. 49, December 6, 2024

Section R12-7-107 - Spacing of Wells

A. Every well drilled for oil shall be located on a drilling unit consisting of approximately 80 contiguous surface acres within two governmental quarter-quarter sections or lots having one side in common, upon which there is not located, and of which no part is attributed to, any other well completed in or drilling to, the same pool.

1. In areas not covered by United States Public Land Surveys, the oil drilling unit shall consist of an area bounded by four sides intersecting at angles of not less than 85 degrees or more than 95 degrees. The unit shall contain at least 76 contiguous surface acres and its maximum dimension shall not exceed 3,000 feet.

2. No well drilled for oil shall be located closer than 330 feet to any boundary of the drilling unit or closer than 330 feet to the shortest center line of the drilling unit.

3. No well drilled for oil shall be located within a quarter-quarter section or lot having one side in common with another quarter-quarter section or lot upon which there is located a well completed in or drilling to the same pool.

B. Every well drilled for gas shall be located on a drilling unit consisting of approximately 640 but not less than 600 contiguous surface acres within one governmental section upon which there is not located, and of which no part is attributed to, any other well completed in or drilling to the same pool.

1. In areas not covered by United States Public Land Surveys, the gas drilling unit shall consist of an area bounded by four sides intersecting at angles of not less than 85 degrees or more than 95 degrees. The unit shall contain at least 600 contiguous surface acres and its maximum dimension shall not exceed 8,500 feet.

2. No well drilled for gas shall be located closer than 1,660 feet from any boundary of the drilling unit.

C. Every well drilled for geothermal resources shall be located on a drilling unit approved or as modified by the Commission. The Commission may require modification to minimize well interference and provide the necessary volume of geothermal resources for the intended use, to protect correlative rights, and to protect the environment.

D. If the operator drills a horizontal segment, that horizontal segment shall be located:

1. At least 330 feet from the boundary of the spacing unit in the case of an oil well;

2. At least 1,660 feet from the boundary of the spacing unit in the case of a gas well; and

3. As approved or modified by the Commission in the case of a geothermal well.

E. The Commission may grant exceptions to the regular locations specified in subsections (A), (B), and (C) only after notice and hearing.

1. Applications for exception shall fully state the reasons why the exception is necessary and shall include a plat prepared and certified by a registered surveyor bearing the surveyor's certificate number showing all other completed, drilling, and permitted wells on the property and all adjoining surrounding properties and wells.

2. Exceptions shall be granted only after the operator provides by certified mail a copy of the application to all adjoining lessees, and only after the Commission deter mines in a duly noted public hearing that the application is valid.

3. The Commission may grant an exception location without notice or hearing when topography prohibits drilling at a regular location on the drilling unit.

4. If an existing well's classification changes due to its recompletion or due to a change in the nature of the product being produced, the Commission may approve an irregular location application with supporting data and ten days' notice and hearing, provided that the operator furnish the Commission with proof of mailing of a copy of the application to all operators within a one-mile radius of the acreage to be dedicated.

F. In order to prevent waste, the Commission may, after notice and hearing, fix different spacing requirements and require lesser or greater acreage for drilling units in any specific oil, gas, or geothermal resource pool notwithstanding the provisions of subsections (A), (B), and (C).

G. The Commission may order pooling and integration of interests pursuant to A.R.S. §§ 27-505 and 27-666.

Ariz. Admin. Code § R12-7-107

Former Rule 106; Former Section R12-7-107 renumbered and amended as Section R12-7-108, former Section R12-7-106 renumbered and amended as Section R12-7-107 effective September 29, 1982 (Supp. 82-5). Correction, paragraph (1) "No well drilled for oil shall be located within the bounds of a quarter-quarter section or lot . . ." (Supp. 82-6). Amended effective January 19, 1994 (Supp. 94-1).