Minnesota Affidavit As to Acreage Assigned to Spacing / Proration Units Around Producing Wells by Lessee
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FAQ
Code §3.39(a). 15 - Smith & Weaver, supra note 3, at §9.3(B). Under Statewide Rule 38, the drilling unit size for wells subject to state- wide rules is 40 acres, though special field rules may set different density requirements.
Definitions of proration. the proportional limitation of production or distribution of something (e.g. crude oil or natural gas) to some fractional part of the total capacity of each producer.
Retained Acreage ? A clause that provides that a lease will continue after the expiration of the primary term as to a certain number of acres associated with each of the wells drilled under the lease.
1. n. [Oil and Gas Business] The amount of acreage, determined by governmental authority that can be efficiently and economically drained by a well at a particular depth or horizon. See: communitization, pooling, unitization.
? Proration Unit = Acreage assigned to a well for the purpose of: ? Assigning allowables. ? Allocating allowable production to a well. ? A tool to allocate ? distribute/divide - production from oil and gas wells across an entire reservoir or geographic area.