Horizontal Well Development Pooling, Spacing and Unitization

Horizontal Well Development Pooling, Spacing and Unitization

The Interstate Oil and Gas Compact Commission Legal and Regulatory Affairs Committee has prepared this “Regulatory Toolbox” as a reference guide for state regulators and other stakeholders to address policy, regulatory, and statutory considerations related to spacing and statutory pooling (also known as integration) for horizontal well development. The Toolbox identifies key issues related to spacing and pooling for horizontal well development, and summarizes the ways in which different states have responded to these issues. Individual states have provided relevant information about state regulations, statutes, and policies through their participation with the IOGCC Legal and Regulatory Affairs Committee.

The Toolbox is organized into a summary text and two appendices. The text contains separate sections on spacing units and statutory pooling; within each section, key “Issues” and “Questions” are identified and one or more “Approaches” used by states in response to the issues are summarized. The state approaches are intended to be examples only; more complete summaries of twenty-one individual states’1 approaches to the key issues, including citations to relevant regulatory and statutory provisions are contained in Appendix A. These state summaries have been provided by representatives from each participating state. Appendix B contains copies of state statutory provisions related to spacing and pooling. Appendix B was compiled by IOGCC Staff from materials previously provided by the states to the IOGCC.

The Toolbox, of necessity, captures information at a given point in time. State regulations, policies, and statutes, on the other hand, are dynamic. Users of this Toolbox are cautioned to review pertinent regulations, statutes or policies for updates or amendments and are encouraged to confer with individual state regulators for additional information about a state’s regulatory regime.

 

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