Application of Koch Exploration Co.

HERTZ, Acting Justice.

STATEMENT OF FACTS

This appeal involves the propriety of the Board of Minerals and Environment’s (Board) grant of appellee Koch Exploration Company’s (Koch) application for unitization of a portion of the Buffalo Oil Field located in Harding County, South Dakota. We affirm.

In order to understand the nature of this appeal it is helpful to be cognizant that when oil is initially discovered, it flows or is pumped to the surface via wells, assisted by natural pressure existing in the subsurface. This process is termed “primary” recovery of oil. As the natural pressure…