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Session Laws, 1953
Volume 606, Page 1146   View pdf image (33K)
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1146 LAWS OF MARYLAND [CH. 613

be necessary for any of the purposes above mentioned, the
Department is authorized to divide any pool into zones and
establish spacing units for each zone, which units may
differ in size from those established in any other zone.

(b) The size of spacing units is to be such as will result
in the efficient and economical development of the pool as
a whole.

(c) An order establishing spacing units for a pool shall
specify the size of each unit. The Department will issue
drilling permits in accordance with the specified well spac-
ing plan established by the Department.

(d) An order establishing units for a pool shall cover
all lands determined or believed to be underlaid by such
pool, and may be modified by the Department from time
to time to include or exclude areas determined to be under
-
laid or outside of such pool. When found necessary for
the prevention of waste, or to avoid the drilling of unnec-
essary wells, or to protect correlative rights, an order
establishing spacing units and a well spacing plan in a
pool may be modified by the Department to increase the
size of spacing units in the pool or any zone thereof, or to
permit the drilling of additional wells on a reasonably
uniform plan in the pool, or any zone, thereof.

45F. When it is proposed by any party owning an
interest, including lessee interests, in the oil and gas in a
proposed spacing unit to include two or more separately
owned tracts of land or two or more separately owned
interests in a spacing unit and any such party applies to
the Department for a drilling permit to drill a well on such
unit and the owners of said tracts of land or interests will
not agree to the inclusion of their tracts of land or interests
in the spacing unit, the Department shall, within twenty
(20) days after demand made therefor by any party own-
ing an interest in the oil and gas in said proposed spacing
unit and after proper notice, as hereinafter provided in
this sub-title, has been served on all parties owning an
interest in the oil and gas in said proposed spacing unit,
conduct a hearing to determine whether or not the spacing
unit shall be formed and the drilling permit issued. If as
a result of the hearing the Department determines that
the formation of the spacing unit is necessary to prevent
waste, the drilling of unnecessary wells and to protect the
correlative rights of all owners of oil and gas in the pool
it will cause an order to be issued forming the spacing unit
and will issue the requested drilling permit with such
directives as may be required with respect to participation



 

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Session Laws, 1953
Volume 606, Page 1146   View pdf image (33K)
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