THE OPERATOR REASONABLY DETERMINES TO BE ATTRIBUTABLE TO
EACH UNIT. THE OPERATOR MAY ALLOCATE PRODUCTION ON AN
ACREAGE BASIS FOR MULTIPLE UNITS PROVIDED THE ALLOCATION
HAS A REASONABLE CORRELATION TO THE HORIZONTAL WELLBORE
IN EACH UNIT.
(ii) the THE traversing well is not expressly
prohibited by the terms of a lease.
(2) THE 330-FOOT LOCATION REQUIREMENT IN SECTION 6 OF
THE ACT OF JULY 25, 1961 (P.L.825, NO.359), KNOWN AS THE OIL
AND GAS CONSERVATION LAW, SHALL NOT APPLY TO UNIT LINES
TRAVERSED BY A CONSERVATION WELL.
(2) Nothing in this subsection shall be construed to
authorize an operator to drill an oil or gas well that is not
subject to a valid lease or royalty agreement.
(3) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO:
(I) AUTHORIZE AN OPERATOR TO DRILL AN OIL OR GAS
WELL THAT IS NOT SUBJECT TO A VALID LEASE OR ROYALTY
AGREEMENT; AND
(II) AUTOMATICALLY EXPAND OR DIMINISH THE CURRENT
SURFACE RIGHTS OF AN OPERATOR TO INCLUDE OPERATIONS
RELATED TO ANY EXISTING UNIT OR ANY WELL DRILLED BETWEEN
EXISTING UNITS.
Section 2. This act shall take effect in 60 days.
Section 1. The act of July 20, 1979 (P.L.183, No.60), known
as the Oil and Gas Lease Act, is amended by adding a section to
read:
Section 2.2. Cross unit drilling for unconventional wells.
(a) General rule.--If an operator has the right to drill an
oil or gas well on separate units, the operator may drill and
produce a well that traverses, by horizontal drilling, more than
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