ORS 520.270¹
Plan for unit operations

An order issued pursuant to ORS 520.260 (Hearing to determine need for unitization of operations) shall be upon terms and conditions that are just and reasonable, and shall prescribe a plan for unit operations that includes the following:

(1) A description of the pool or pools or parts thereof to be so operated.

(2) A statement of the nature of the operations contemplated.

(3) An allocation to the separately owned tracts in the unit area of all the oil and gas that is produced from the unit area and is saved, being the production that is not used in the conduct of operations on the unit area or not unavoidably lost.

(4) A provision for the credits and charges to be made in the adjustment among the owners in the unit area for their respective investments in wells, tanks, pumps, machinery, materials and equipment contributed to the unit operations.

(5) A provision stating how the costs of unit operations, including capital investments, shall be determined and charged to the separately owned tracts and how these costs shall be paid, including a provision stating when, how and by whom the unit production allocated to an owner who does not pay the share of the cost of unit operations charged to such owner, or the interest of such owner, may be sold and the proceeds applied to the payment of such costs.

(6) A provision, if necessary, for carrying or otherwise financing any person who elects to be carried or otherwise financed, allowing a reasonable interest charge for such service payable out of that person’s share of the production.

(7) A provision for the supervision and conduct of the unit operations, in respect to which each person shall have a vote with a value corresponding to the percentage of the costs of unit operations chargeable against the interest of that person.

(8) The time when the unit operations shall commence, and the manner in which, and the circumstances under which, the unit operations shall terminate.

(9) Additional provisions that are found appropriate for carrying on the unit operations, and for the protection of correlative rights. [1961 c.671 §3]

Chapter 520

Atty. Gen. Opinions

Power of Depart­ment of Environ­mental Quality to regulate recovery of oil resources, (1972) Vol 35, p 1100; require­ments for exploring for or produc­tion of geothermal or oil or gas resources, (1974) Vol 37, p 68

Law Review Cita­tions

13 WLJ 305 (1977)

1 Legislative Counsel Committee, CHAPTER 520—Conservation of Gas and Oil, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors520.­pdf (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 520, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­520ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information