Addressing Perceptions of Procedural Unfairness in Compulsory Unitization by Appointing Neutral Experts
Article from: OGEL 2 (2007), in Unitisation and JDZs
This Comment posits that mandatory appointment of neutral experts in compulsory unitization proceedings may decrease opposition to unitization by providing greater assurance that every interest owner will receive a fair share of oil production. At the heart of many of these disputes is the "allocation formula," which should apportion a fair and equitable share of production to each interest owner. While the allocation formula should be based on "pertinent engineering, geological and operating factors," it is often more influenced by the interests and bargaining power of the ...