In a recent hearing held on October 16, 2024, at the Department of Natural Resources Building in Salt Lake City, the Utah Board of Oil, Gas, and Mining reviewed multiple requests for agency action from Ovintiv USA Inc. and XCL Resources LLC regarding the compulsory pooling of interests in various drilling units.

The proceedings, which saw no public opposition, included sworn declarations and live testimonies from expert witnesses. The hearing examiner, John Bozza, concluded that Ovintiv had provided adequate notice to the parties involved, who failed to participate in the proceedings and should thus be classified as non-consenting parties. He recommended the imposition of a 300% non-consent penalty, which he deemed fair given the economic and geological conditions associated with the drilling operations.

The board unanimously approved the hearing examiner's recommendations, allowing Ovintiv to proceed with its plans to pool interests for the production of oil and gas from the lower Green River and Wasatch formations in Duchesne County.

Similarly, XCL Resources presented its case for compulsory pooling, with the hearing examiner affirming that proper notice was given and that the proposed Joint Operating Agreement (JOA) terms were just and reasonable. The board also approved XCL's request, imposing the same 300% non-consent penalty.

Throughout the hearings, the division of Oil, Gas, and Mining expressed support for the requests, highlighting the collaborative nature of the proceedings and the professionalism exhibited by all parties involved. The board's decisions reflect a commitment to facilitating responsible resource management while ensuring compliance with legal requirements.