74:12:10:06.  Compulsory unitization -- Risk compensation if ownership interest is not subject to a lease or other contract for development. If the nonparticipating owner's interest in the unit is not subject to a lease or other contract for development, the risk compensation is one hundred percent of the nonparticipating owner's share of the reasonable actual unit expenses and may be recovered only out of production from the unit, exclusive of a one-eighth royalty.

          Source: 38 SDR 117, effective January 12, 2012.

          General Authority: SDCL 45-9-11, 45-9-13.

          Law Implemented: SDCL 45-9-37 to 45-9-52, inclusive.