77694345.1-361.21Virginia Decodedhttps://vacode.org2016Mines And MiningThe Virginia Gas And Oil ActGas And Oil ConservationPooling of interests in drilling units1982, c. 347, § 45.1-302; 1987, c. 452; 1989, c. 529; 1990, c. 92; 1995, c. 269; 1996, c. 854; 2006, c. 498.Swords Creek Land P'ship v. Belcher1315902014-09-12https://www.courtlistener.com/opinion/2732501/swords-creek-land-pship-v-belcher/ . . . . . . <abbr title="Supreme Court of Virginia">SCV</abbr>Swords Creek Land P'ship v. Belcher1315902014-09-12https://www.courtlistener.com/opinion/2742845/swords-creek-land-pship-v-belcher/ . . . . . . <abbr title="Supreme Court of Virginia">SCV</abbr>EQT Production Company v. Robert Adair13-4142014-08-19https://www.courtlistener.com/opinion/2718928/eqt-production-company-v-robert-adair/ . . . include coalbed methane . . . Court of Appeals for the Fourth Circuithttp://law.lis.virginia.gov/vacode/45.1-361.21/55-210.1Citation of chapter/55-210.1/8.01-261Category A or preferred venue/8.01-261//45.1-361.21/45.1/22.1/2/45.1-361.2145.1-361.1945.1-361.22The Board, upon application from any gas or oil owner, shall enter an order pooling all interests in the drilling unit for the development and operation thereof when:sectionAA1 Two or more separately owned tracts are embraced in a drilling unit;sectionA1A12 There are separately owned interests in all or part of any such drilling unit and those having interests have not agreed to pool their interests; orsectionA2A22 There are separately owned tracts embraced within the minimum statewide spacing requirements prescribed in § 45.1-361.17.However, no pooling order shall be entered until the notice and hearing requirements of this article have been satisfied.sectionA3A32Subject to any contrary provision contained in a gas or oil lease respecting the property, gas or oil operations incident to the drilling of a well on any portion of a unit covered by a pooling order shall be deemed to be the conduct of such operations on each tract in the unit. The portion of production allocated to any tract covered by a pooling order shall be in the same proportion as the acreage of that tract bears to the total acreage of the unit.sectionBB1All pooling orders entered by the Board pursuant to the provisions of this section shall:sectionCC1 Authorize the drilling and operation of a well, including the stimulation of all coal seams in the case of a coalbed methane well when authorized pursuant to clause (iii) of subdivision 2 b of subsection F of § 45.1-361.29, subject to the permit provisions contained in Article 3 (§ 45.1-361.27 et seq.) of this chapter;sectionC1C12 Include the time and date when such order expires;sectionC2C22 Designate the gas or oil owner who is authorized to drill and operate the well; provided, however, that except in the case of coalbed methane gas wells, the designated operators must have the right to conduct operations or have the written consent of owners with the right to conduct operations on at least 25% of the acreage included in the unit;sectionC3C32 Prescribe the conditions under which gas or oil owners may become participating operators or exercise their rights of election under subdivision 7 of this subsection;sectionC4C42 Establish the sharing of all reasonable costs, including a reasonable supervision fee, between participating operators so that each participating operator pays the same percentage of such costs as his acreage bears to the total unit acreage;sectionC5C52 Require that nonleasing gas or oil owners be provided with reasonable access to unit records submitted to the Director or Inspector;sectionC6C62 Establish a procedure for a gas or oil owner who received notice of the hearing and who does not decide to become a participating operator may elect either to (i) sell or lease his gas or oil ownership to a participating operator, (ii) enter into a voluntary agreement to share in the operation of the well at a rate of payment mutually agreed to by the gas or oil owner and the gas or oil operator authorized to drill the well, or (iii) share in the operation of the well as a nonparticipating operator on a carried basis after the proceeds allocable to his share equal the following:
sectionC7C72 In the case of a leased tract, 300 percent of the share of such costs allocable to his interest; orsectionC7aC7a3 In the case of an unleased tract, 200 percent of the share of such costs allocable to his interest.sectionC7bC7b3Any person who does not make an election under the pooling order shall be deemed to have leased his gas or oil interest to the gas or oil well operator as the pooling order may provide.sectionEE1Should a gas or oil owner be a person under a disability, the applicant for a pooling order may petition the appropriate circuit court to appoint a guardian ad litem pursuant to the provisions of § 8.01-261 for purposes of making the election provided for by this section.sectionFF1The Board shall resolve all disputes arising among gas or oil operators regarding the amount and reasonableness of well operation costs. The Board shall, by regulation, establish allowable types of costs which may be shared in pooled gas or oil operations.sectionHH1