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74:12:10:05Compulsory

Section · Administrative Rules of South Dakota · View on sdlegislature.gov ↗

unitization -- Risk compensation if ownership interest is derived from a lease or other contract for development. If the nonparticipating owner's interest in the unit is derived from a lease or other contract for development, the risk compensation is two 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