ARSD 74:12:10:05

ARSD 74:12:10:05. Compulsory unitization -- Risk compensation if ownership interest is derived from a lease or other contract for development

Last amended: 2012Year: 2026Length: 52 wordsOfficial source

Cite as S.D. Admin. R. 74:12:10:05

If the nonparticipating owner's interest in the unit is derived from a lease or other contract for development, the risk compensation is two hundred percent of the nonparticipating owner's share of the reasonable actual unit expenses and may be recovered only out of production from the unit, exclusive of a one-eighth royalty.
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