CHAPTER 3.5. Unit Operation [3630. - 3690.]

Chapter 3.5 added by Stats. 1971, Ch. 1673.

§§ 3630–3690 · 41 sections

1. ARTICLE 1. Declaration of Policy §§ 3630–3631 · 2 sections

   • § 3630 The Legislature hereby finds and declares that the management, development, and operation of lands as a unit for the production of oil and gas aids in…
   • § 3631 Nothing in this chapter shall be construed in such a manner as to conflict with the provisions of Article 2 (commencing with Section 6826) of Chapter 3 of Part…
2. ARTICLE 2. Definitions §§ 3635–3637.3 · 14 sections

   • § 3635 Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
   • § 3635.1 “Person” means any natural person, corporation, association, partnership, limited liability company, joint venture, receiver, trustee, executor, administrator,…
   • § 3635.2 “Land” means both surface and mineral rights.
   • § 3635.3 “Pool” means an underground reservoir containing, or appearing at the time of determination to contain, a common accumulation of crude petroleum oil or natural…
   • § 3635.4 “Field” means the same general surface area which is underlaid or reasonably appears to be underlaid by one or more pools.
   • § 3635.5 “Tracts of land” means land areas under separate ownership which are all of the following: (a) Contiguous either on the surface or in the subsurface. (b)…
   • § 3636 “Unit agreement” means and includes, in addition to the unit agreement entered into pursuant to the provisions of Article 3 (commencing with Section 3640) of…
   • § 3636.1 “Unit area” means all lands included within an area subject to a unit agreement entered into pursuant to the provisions of Article 3 (commencing with Section…
   • § 3636.2 “Unit production” means all oil, gas, and other hydrocarbon substances produced from a unit area from the effective date of a unit agreement approved by the…
   • § 3636.3 “Unit operator” means the person or persons designated by the working interest owners as operator or operators of the unit area.
   • § 3637 “Working interest” means an interest held in lands by virtue of fee title, including lands held in trust, a lease, operating agreement, or otherwise, under…
   • § 3637.1 “Working interest owner” means a person owning a working interest.
   • § 3637.2 “Royalty interest” means a right to or interest in oil and gas produced from any lands or in the proceeds of the first sale thereof other than a working…
   • § 3637.3 “Royalty interest owner” means a person owning a royalty interest.
3. ARTICLE 3. Unit Agreements §§ 3640–3659 · 21 sections

   • § 3640 Tracts of land may be unitized as provided in this article to provide for the management, development, and operation thereof as a unit to prevent, or to assist…
   • § 3641 An agreement for the management, development, and operation of two or more tracts of land in the same field or in the same producing or prospective pool as a…
   • § 3642 Any proposed agreement for unit operation of tracts of land which has been consented to by persons who own title to working interests which aggregate at least…
   • § 3643 The unit agreement shall be approved, if, after a public hearing, the supervisor finds all of the following: (a) The unit area of the proposed agreement for…
   • § 3644 A tract of land’s fair, equitable, and reasonable share of the unit production shall be measured by the value of such tract for oil and gas purposes and its…
   • § 3645 Upon giving his approval to the unit agreement pursuant to Section 3643, the supervisor shall issue an order directing unit operations of the unit area in…
   • § 3646 The supervisor’s order shall include fair and reasonable provisions for all of the following: (a) The date when all tracts of land not theretofore committed to…
   • § 3647 The owner of any working interest or royalty interest in a tract which is the subject of a unit agreement who did not consent to the proposed unit agreement…
   • § 3648 Any unit agreement approved by the supervisor shall contain a provision under which a party whose surface land is being utilized for the benefit of the unit…
   • § 3649 Any proposed modification of an approved unit agreement shall be submitted by the unit operator to the supervisor for his review and approval. No modification…
   • § 3650 If at any time after the entry of an order of unitization issued pursuant to Section 3645, it develops that all or a portion of a further tract or tracts of…
   • § 3651 The supervisor shall issue his order that such further tract or tracts of land insofar as they contain the pool or pools, or portions thereof, and the…
   • § 3652 The supervisor’s order issued pursuant to Section 3651 shall contain a fair basis for allocating production to such further tract or tracts of land and make…
   • § 3653 Any disagreement with respect to the unit operation between persons owning any interest in the pool or pools, or portions thereof, subject to the unit…
   • § 3653.5 A petition requesting approval of a unit agreement and each copy thereof shall contain or have attached to it: (a) A request that the supervisor approve the…
   • § 3654 Any and all decisions or determinations made by the supervisor under the provisions of this chapter shall be appealable to any court of competent jurisdiction…
   • § 3655 The three-fourths interests referred to in Sections 3642, 3649, and 3651 shall be determined as follows: (a) A total value, composed of the combined value of…
   • § 3656 No unit agreement approved by the supervisor pursuant to the provisions of this chapter shall effect or result in, or be construed to effect or result in, the…
   • § 3657 Operations incident to the drilling, producing, or operating of a well or wells on any portion of a unit area under a unit agreement approved by the supervisor…
   • § 3658 Any order of the supervisor issued pursuant to this article shall, from and after its effective date, be effective as to, and be binding upon, each person…
   • § 3659 Prior to any public hearing held by the supervisor pursuant to this chapter, the supervisor shall give reasonable written notice of the hearing to all persons…
4. ARTICLE 4. Liens §§ 3680–3681 · 2 sections

   • § 3680 A person to whom another is indebted for expenses incurred in carrying on unit operations may, in order to secure payment of the amount due, fix a lien upon…
   • § 3681 The lien shall be a first lien on the production and otherwise shall be of the same nature and subject to foreclosure in the same manner and within the same…
5. ARTICLE 5. Regulations § 3685 · 1 section

   • § 3685 Within three months after the effective date of this chapter, the supervisor shall, after one or more public hearings, adopt regulations governing the…
6. ARTICLE 6. Preemption § 3690 · 1 section

   • § 3690 This chapter shall not be deemed a preemption by the state of any existing right of cities and counties to enact and enforce laws and regulations regulating…