As determined by competent geological, geophysical, engineering, or other scientific testimony, data, and evidence, the committee shall fix development units for the pool:

(1) No development unit in pool, deemed by the committee to be an oil reservoir, shall be larger than 160 acres (65 hectares) nor shall the well be located closer than 500 feet (152 meters) to the lease line nor closer than 1,000 feet (305 meters) to the nearest well drilling to or capable of producing from the same pool. The committee shall have the right to waive these limits in accordance with RCW 78.52.210.

(2) No development unit in a pool, deemed by the committee to be a gas reservoir, shall be larger than 640 acres (261 hectares) nor shall the well be located closer than 1,000 feet (305 meters) to the lease line nor closer than 2,000 feet (610 meters) to the nearest well drilling to or capable of producing from the sale pool. The committee shall have the right to waive these limits in accordance with RCW 78.52.210.

(3) If upon application, and after notice and hearing, the committee shall find that a well drilled at the location prescribed by any applicable rule of the committee would not produce in paying quantities or that surface conditions would substantially add to the burden or hazard of such well, the committee may enter an order permitting the well to be drilled at a location on which the applicant prima facie owns an ownership or contractual right to drill, other than that prescribed and shall include in such order suitable provisions to prevent the production from that well of more than its just and equitable share of the oil and gas in the pool. Application for an exception shall set forth the names of the lessees or owners of contiguous or cornering properties and shall be accompanied by a plat or sketch map drawn to the scale of not smaller than one inch equalling 2,000 feet (610 meters) or as otherwise required, accurately showing to scale the property for which the exception is sought and accurately showing to scale all other completed and drilling wells on this property and accurately showing to scale all contiguous or cornering surrounding properties and wells. The application shall be verified by some person acquainted with the facts, stating that all facts therein stated are within the knowledge of the affiant and are true, and that the accompanying plat is accurately drawn to scale and correctly reflects pertinent and required data. Upon the filing of such application, the committee shall give notice of such filing by certified mail to all lessees and owners of lands towards whom the well is being moved, if closer to the proposed well than offset distances set forth in subsections (1) and (2) of this section.

(4) In filing a Form-1 (Application to drill, redrill, or deepen), the surface distance must be shown between the proposed location and other wells within a radius of 1,000 feet (305 meters) for oil tests, and 3,000 feet (914 meters) for gas tests.

(5) When a well completion report, Form-2, has been submitted to the department, and such well is not intended to be plugged or abandoned the department shall determine if a discovery has been made. The department shall forward its determination to the committee. If the department or the committee has determined a discovery has occurred the committee shall hold a hearing pursuant to RCW 78.52.205.