After Sustained Unit Production in Paying Quantities begins, Unit Operations shall be maintained with lapses of no more than 90 days per lapse between operations. The lapse may be longer if suspension of operations or production has been ordered or approved by the Commissioner. Approved Unit Plans may provide for a suspension of Unit Operations.
After Sustained Unit Production in Paying Quantities begins, the Operator will maintain production with lapses no longer than 90 days. The lapse may be longer if a suspension of operations or production has been ordered or approved by the Commissioner. An unapproved lapse in Sustained Unit Production of more than 90 days is cause for default. If production from a Participating Area, but not the Unit as a whole, ceases and is not resumed within 90 days, then within 120 days of ceasing production from that Participating Area, the Operator will submit a plan of operations amendment that sets forth a rehabilitation plan for that Participating Area. The rehabilitation plan may address any continued use of improvements in the Participating Area for Unit Operations. Unit Production will be maintained. If production should production cease, the Operator will progress diligent operations to restore Unit Production with lapses of no more than 90 days. After giving written notice to the Unit Operator and an opportunity to be heard, DNR may require the Unit Operator to modify from time-to-time, the rate of prospecting and development and the quantity and rate of production. Participating Areas and allocation of production The Unit Operator will submit a request for approval of a proposed Participating Area to DNR for approval 90 days before the commencement of Sustained Unit Production from the proposed Participating Area. A proposed Participating Area must be supported by an approved Unit Plan committing to Sustained Unit Production. Unless another date is established by DNR, the effective date of a Participating Area will be no later than the date of first Sustained Unit Production. Unitized Substance produced from one Participating Area (originating Participating Area) may be injected into another unit Participating Area (receiving Participating Area) for repressuring, recycling, storage, enhanced recovery, or other purposes only if DNR has approved the operation. The State will be paid royalty upon production from the originating Participating Area unless DNR approves payment of royalties when the Unitized Substances injected are produced and sold from the receiving Participating Area under the following conditions: The first Unitized Substances produced and sold from the receiving Participating Area will be considered to have been the injected Unitized Substances until a volume of Unitized Substances equal to the volume of injected Unitized Substances is produced and sold from the receiving Par...
