Matter of SAM Oil, Inc.

DURHAM, Justice:

SAM Oil, Inc., seeks a writ of review of a decision of the Utah Board of Oil, Gas and Mining (“the Board”) in favor of BHP Petroleum, Inc. (“BHP”), which ruled that SAM Oil is not entitled to receive any revenue from BHP because SAM Oil’s revenue in a certain oil and gas well is subject to offset by a 300 percent nonconsent penalty. SAM Oil also challenges the Board’s denial of a petition for rehearing. The case raises questions regarding the imposition of a nonconsent penalty on SAM Oil, subsequent to its ratification of a voluntary operating agreement.

BHP is the suboperator…