74:12:10:03Compulsory

pooling -- Risk compensation if ownership interest is not subject to a lease or other contract for development. If the nonparticipating owner's interest in the spacing 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 costs of drilling, reworking, side-tracking, deepening, plugging back, testing, completing and recompleting the well and the costs of newly acquired equipment in the well including the wellhead connection. Risk compensation may be recovered only out of production from the pooled spacing unit, exclusive of a one-eighth royalty as provided for in SDCL 45-9-35.

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