Summary
This rule is basically the same except for the following changes: In Section R850-21-175, changes refine the definitions to be consistent with industry terminology and current agency practices. A definition of the term �spud� was added. In Section R850-21-300, changes were made to make this rule consistent with the current statute. In Subsection R850-21-500(1)(b), a substantive change of minimum annual rental from $40 to $500 is made. In Subsection R850-21-500(3)(d), for oil and gas leases committed to a unit, the provision providing for an automatic extension is deleted. In Subsection R850-21-500(3)(e), leases currently in an active unit that terminates or contracts on or before 01/01/2021, will be entitled to an automatic two-year lease extension. Leases that are committed to a new unit formed after the effective date of these proposed rule amendments will not be entitled to an automatic extension. In Subsection R850-21-500(4), changes were made to the definitions and procedures related to a shut-in gas well's status as a well capable of producing in paying quantities. In Section R850-21-600, changes are made to be consistent with the new definitions in Section R850-21-175.