APPLICATION OF KOCH EXPLORATION CO.

Nos. 14853, 14854.

387 N.W.2d 530 (1986)

In the Matter of the Application of KOCH EXPLORATION COMPANY For an Order Providing For the Unit Operation of the South Buffalo Red River Unit, Harding County, South Dakota: and To Amend the Board's Oil and Gas Order No. 2-78 and All Previous Board Orders Pertaining To Spacing in Buffalo Field, Harding County, South Dakota, To Provide For One Hundred Sixty (160) Acre Spacing Units For the South Buffalo Red River Unit, Harding County, South Dakota: Oil and Gas Order No. 1-83.

Supreme Court of South Dakota.

Decided May 14, 1986.


Attorney(s) appearing for the Case

Roxanne Giedd, Asst. Atty. Gen., Pierre, for South Dakota Board of Minerals and Environment; Mark V. Meierhenry, Atty. Gen., Pierre, on brief.

Jon Mattson of Driscoll, Mattson, Rachetto & Christensen, Deadwood, for appellants Dave Penn, Sherman Teigen, John Mattson, William C. Kirkwood, d/b/a Kirkwood Oil Co. and Viable Resources, Inc.

Reed C. Richards of Richards & Richards, Deadwood, for appellants Kathryn Ann Hight and Alyce Smolnikar.

Scott Sumner and Robert D. Buettner of Banks & Johnson, Rapid City, for appellee Koch Exploration Co.


HERTZ, Acting Justice.

STATEMENT OF FACTS

This appeal involves the propriety of the Board of Minerals and Environment's (Board) grant of appellee Koch Exploration Company's (Koch) application for unitization of a portion of the Buffalo Oil Field located in Harding County, South Dakota. We affirm.

In order to understand the nature of this appeal it is helpful to be cognizant that when oil is initially discovered, it flows or is pumped to the surface...

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