The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
DISCLAIMER
This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
27-559 - Development of water for use in operations; taking over well which yields fresh water
27-559. Development of water for use in operations; taking over well which yields fresh water
A. A lessee shall have the right to develop water for use in its operations subject to the applicable laws of the state pertaining to drilling water wells and using water produced therefrom.
B. If any well drilled for oil or gas on a lease issued pursuant to this article fails to develop oil or gas in paying quantities but develops fresh water, the department shall have the option to take over the well if the lessee determines to abandon it as an oil or gas well upon payment by the department to the lessee of the reasonable value of the well casing and other materials necessary to be left in the well, and the lessee shall thereupon be relieved of all further obligations with respect to the well, its completion and abandonment.