ABSTRACT

Act 157 of 1940 by the Louisiana Legislature granted statutory authority to the Commissioner of Conservation to accomplish forced unitization in Louisiana. By law the Commissioner is required to establish drilling and production units for each reservoir in the State of Louisiana. This action has resulted in orderly development of reservoirs, eliminating unnecessary wells, and more efficient recovery of hydrocarbons within each reservoir. However, there are some problems that often arise such as controversy over unit participation, revision of units, and well cost adjustment of unit wells. A clearer understanding of the procedures, methods and techniques of forming oil and gas units in South Louisiana can eliminate many of the pitfalls of forced unitization, allowing participants in units to better protect their interest and allowing operators to avoid delays in placing wells on production.