WELL AREA definition
WELL AREA means, with respect to any oil and gas well, the area within a particular Reservoir that can, as determined by statute and/or the appropriate governmental authority having jurisdiction, be efficiently and economically drained by such well. For purposes of the foregoing: (a) as to any particular well located in the States of Texas, the Well Area for such well shall be (i) the proration unit, if any, from time to time allocated by the governmental authority having jurisdiction to such well for the Reservoir to which such well is completed, or (ii) in the absence of such a proration unit, the spacing unit from time to time established for the Reservoir to which such well is completed by statute or by rule, regulation or order issued by the governmental authority having jurisdiction, and (b) as to any particular well located in a State other than Texas, the Well Area for such well shall be the drilling unit, spacing unit or proration unit, as the case may be, from time to time established for the Reservoir to which such well is completed by statute or by rule, regulation or order issued by the governmental authority having jurisdiction. In the absence of an applicable statute or an applicable rule or special order issued by a governmental authority having jurisdiction establishing the area within a particular Reservoir that can be efficiently and economically drained by a particular well, the Well Area within such Reservoir for such well shall be (a) 160 acres, in the event such oil and gas well is drilled and completed as a gas well in such Reservoir, and (b) 40 acres, in the event such oil and gas well is drilled and completed as an oil well in such Reservoir.
WELL AREA means an area designated on a construction permit as appropriate for the construction of a private well.