ID H0050

Establishes procedures for the Oil and Gas Commission to approve unit operations of oil and gas fields or pools upon finding that unit operation is reasonably necessary to prevent waste, protect correlative rights, or maintain reservoir pressure, with estimated costs not exceeding the value of additional recovery.

Requires applicants to provide a plat map, owner contact information, proof of 60-day notice by certified mail to all mineral and working interest owners, and a proposed operating plan; owners have 21 days to file responses after service of the application.

Unit operation orders must include just and reasonable terms specifying the unit area, operation nature, operator designation, allocation of production to each tract, cost-sharing provisions, and may allow owners to recover up to 300% of costs from carried/financed owners' production shares.

Orders become effective only after signed approval by owners paying at least 55% of unit operation costs and working interest owners holding at least 55% of unit production; the commission must make a finding that the plan has received such approval.

Provides that unit operations do not transfer title to oil and gas rights, that allocated production is deemed produced from each tract, that operations fulfill lease obligations to the extent possible, and that unit formation does not violate state antitrust or monopoly laws.