# A.R.S. § 27-504: 27-504 Drilling units; rules and regulations; exceptions

> Arizona · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S504

## Section

- **Citation:** A.R.S. § 27-504
- **Heading:** 27-504 Drilling units; rules and regulations; exceptions
- **Jurisdiction:** Arizona
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Arizona Code / Title 27 / Chapter 4 / Article 1 / Section 504

## Text

27-504. Drilling units; rules and regulations; exceptions

A. For the prevention of waste, to protect and enforce the correlative rights of owners in a pool, and to avoid augmentation and accumulation of risks arising from drilling an excessive number of wells, or reduced recovery which might result from too small a number of wells, the commission shall, after a hearing, establish a drilling unit or units for each pool. The establishment of a unit for gas shall be limited to the production of gas.

B. Each well permitted to be drilled on a drilling unit shall be drilled under the applicable rules and regulations and in accordance with the applicable spacing pattern prescribed by the commission. Exceptions to the rules and spacing pattern may be granted where it is shown, after notice and hearing, that the unit is partly outside the pool or, for some other reason, a well so located on the unit would be non-productive. Exceptions permitting a proposed well to be drilled on an unorthodox location may be granted on the basis of topography or terrain without notice or hearing.

C. If an exception is granted, the commission shall take action which will offset any advantage which the person securing the exception may have over other producers by reason of drilling the well as an exception, and so that drainage from developed units to the tract with respect to which the exception is granted will be prevented or minimized, and the producer of the well drilled as an exception will be allowed to produce no more than a just and equitable share of the oil and gas in the pool.

## Nearby sections

- [A.R.S. § 27-501 27-501 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S501.md)
- [A.R.S. § 27-502 27-502 Declaration of policy](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S502.md)
- [A.R.S. § 27-503 27-503 Waste of oil or gas prohibited; powers of commissioner to prevent waste](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S503.md)
- [A.R.S. § 27-504 27-504 Drilling units; rules and regulations; exceptions](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S504.md)
- [A.R.S. § 27-505 27-505 Pooling of interests](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S505.md)
- [A.R.S. § 27-506 27-506 Regulation of drilling in pools; notice of sale, transfer or purchase](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S506.md)
- [A.R.S. § 27-507.01 27-507.01 Common purchaser of crude oil and petroleum; duties; ratable taking; discrimination prohibited](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S507.01.md)
- [A.R.S. § 27-508.01 27-508.01 Common purchaser of gas; duties; ratable taking; discrimination prohibited](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S508.01.md)
- [A.R.S. § 27-509 27-509 Certificate of compliance](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S509.md)
- [A.R.S. § 27-510 27-510 Certificate of clearance](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S510.md)
- [A.R.S. § 27-511 27-511 Confiscation proceedings](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S511.md)
- [A.R.S. § 27-512 27-512 Sale of illegal oil or gas or illegal products](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S512.md)
- [A.R.S. § 27-513 27-513 Permit to drill well](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S513.md)
- [A.R.S. § 27-513.01 27-513.01 Appointment by drilling permittee of attorney upon whom to serve process](https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S513.01.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_AZ_T27_C4_A1_S504. Check the current official text before relying on it. Not legal advice.