Okla. Stat. tit. 52, § 52-255 — OK Code / Title 52 / Section 52-255
Controversies pending
Status: in_force

Pending the determination of any controversy before the

Corporation Commission under this act, the owner or operator of the

well or wells involved shall make available to the person entitled

thereto natural gas, as prescribed by Section 3 hereof, on such

temporary terms and conditions as the Corporation Commission may

prescribe, by order or by general rule, subject to adjustment

retroactively in accordance with the final order of the Commission.
Okla. Stat. tit. 52, § 52-549.10 — OK Code / Title 52 / Section 52-549.10
Expiration of oil and gas lien - Enforcement of lien
Status: in_force

EXPIRATION OF LIEN - ENFORCEMENT - JOINDER AND CONSOLIDATION -

COSTS - PERSONAL ACTIONS - OTHER RIGHTS AND REMEDIES

A. An oil and gas lien shall expire, as to an interest owner,

one (1) year after the last day of the month following the date

proceeds from the sale of oil or gas subject to such lien are

required by law or contract to be paid to such interest owner but

only as to the oil or gas sold during such month, unless an action

to enforce the oil and gas lien is commenced within such time in a

court of competent jurisdiction. In addition to any other court of

competent jurisdiction, an action to enforce the oil and gas lien

may be commenced in the district court of the county in which there

is located the oil and gas well from which the oil or gas is

produced, or wherever the oil or gas unpaid for or the proceeds may

Oklahoma Statutes - Title 52. Oil and Gas Page 228

be found. Notwithstanding the foregoing, the commencement of any

proceeding by or against any person claiming an interest in any

property subject to the oil and gas lien seeking to adjudicate such

person as bankrupt or insolvent, or seeking liquidation, winding up,

reorganization, arrangement, adjustment, protection, relief, or

composition of such person or such person’s debts under any law

relating to bankruptcy, insolvency or reorganization or relief of

debtors, or seeking the entry of an order for relief or the

appointment of a receiver, trustee or other similar official for

such person or for any substantial part of such person’s property

shall toll the foregoing one (1) year period in which to commence an

action to enforce the oil and gas lien for an additional period of

ninety (90) days from the earlier of:

1. The final conclusion or dismissal of such proceedings; or

2. The date final relief is obtained from the applicable

tribunal authorizing the commencement of such action.

Proceedings to enforce oil and gas liens involving more than one oil

and gas well in one county can be joined by an interest owner in the

same action. Any number of persons claiming oil and gas liens with

respect to the oil or gas from the same oil and gas well or wells

may join in the same action and where separate actions are

commenced, the district court may consolidate them. The district

court shall allow as part of the costs of the action all costs of

collection including, without limitation, reasonable attorney fees

for the prevailing party in the trial and appellate tribunals.

B. Nothing in this act shall be construed to impair or affect

the right of any interest owner to maintain a personal action to

recover the debt against any person liable for payment of the sales

price or to exercise any other rights and remedies available at law

or in equity.
Okla. Stat. tit. 52, § 52-87.1 — OK Code / Title 52 / Section 52-87.1
Common source of supply of oil - Well spacing and
Status: in_force

drilling units.

Whenever the production from any common source of supply of oil

or natural gas in this state can be obtained only under conditions

constituting waste or drainage not compensated by counterdrainage,

then any person having the right to drill into and produce from such

common source of supply may, except as otherwise authorized or in

this section provided, take therefrom only such proportion of the

oil or natural gas that may be produced therefrom without waste or

without such drainage as the productive capacity of the well or

wells of any such person considered with the acreage properly

assignable to each such well bears to the total productive

capacities of the wells in such common source of supply considered

with the acreage properly assignable to each well therein.

(a) To prevent or to assist in preventing the various types of

waste of oil or gas prohibited by statute, or any wastes, or to

protect or assist in protecting the correlative rights of interested

parties, the Corporation Commission, upon a proper application and

notice given as hereinafter provided, and after a hearing as

provided in the notice, shall have the power to establish well

spacing and drilling units of specified and approximately uniform

size and shape covering any common source of supply, or prospective

common source of supply, of oil or gas within the State of Oklahoma;

provided, that the Commission may authorize the drilling of an

additional well or wells on any spacing and drilling unit or units

or any portion or portions thereof or may establish, reestablish, or

reform well spacing and drilling units of different sizes and shapes

when the Commission determines that a common source of supply

contains predominantly oil underlying an area or areas and contains

predominantly gas underlying a different area or areas; provided

further that the units in the predominantly oil area or areas shall

be of approximately uniform size and shape, and the units in the

predominantly gas area or areas shall be of approximately uniform

size and shape, except that the units in the gas area or areas may

be of nonuniform size and shape when they adjoin the units in the

oil area or areas; provided further that the drilling pattern for

such nonuniform units need not be uniform, and provided further that

the Commission shall adjust the allowable production within the

common source of supply, or any part thereof, and take such other

action as may be necessary to protect the rights of interested

parties. Any order issued pursuant to the provisions hereof may be

entered after a hearing upon the petition of any person owning an

interest in the minerals in lands embraced within such common source

of supply, or the right to drill a well for oil or gas on the lands

embraced within such common source of supply, or on the petition of

the Conservation Officer of the State of Oklahoma. When such a

Oklahoma Statutes - Title 52. Oil and Gas Page 57

petition is filed with the Commission, the Commission shall give at

least fifteen (15) days' notice of the hearing to be held upon such

petition by one publication, at least fifteen (15) days prior to the

hearing, in some newspaper of general circulation published in

Oklahoma County, and by one publication, at least fifteen (15) days

prior to the date of the hearing, in some newspaper published in the

county, or in each county, if there be more than one, in which the

lands embraced within the application are situated. Except as to

the notice of hearing on such a petition, the procedural

requirements of Section 86.1 et seq. of this title shall govern all

proceedings and hearings provided for by this section.

(b) In case of a spacing unit of one hundred sixty (160) acres

or more, no oil and/or gas leasehold interest outside the spacing

unit involved may be held by production from the spacing unit more

than ninety (90) days beyond expiration of the primary term of the

lease.

(c) In establishing a well spacing or drilling unit for a

common source of supply thereunder, the acreage to be embraced

within each unit may include acreage from more than one governmental

section, but shall not exceed six hundred forty (640) acres for a

gas well plus ten percent (10%) tolerance, unless the unit is a

governmental section and the governmental section contains more than

six hundred forty (640) acres in which case the unit may comprise

the entire section. Provided, however, fractional sections along

the state boundary line and within the townships along the boundary

where the survey west of the Indian Meridian meets the survey east

of the Cimarron Meridian may be spaced with adjoining section unit,

and the shape thereof shall be determined by the Commission from the

evidence introduced at the hearing, and the following facts, among

other things, shall be material: (1) the lands embraced in the

actual or prospective common source of supply; (2) the plan of well

spacing then being employed or contemplated in the source of supply;

(3) the depth at which production from the common source of supply

has been or is expected to be found; (4) the nature and character of

the producing or prospective producing formation or formations; and

(5) any other available geological or scientific data pertaining to

the actual or prospective source of supply which may be of probative

value to the Commission in determining the proper spacing and well

drilling unit therefor, with due and relative allowance for the

correlative rights and obligations of the producers and royalty

owners interested therein.

The order establishing such spacing or drilling units shall set

forth: (1) the outside boundaries of the surface area included in

such order; (2) the size, form, and shape of the spacing or drilling

units so established; (3) the drilling pattern for the area, which

shall be uniform except as hereinbefore provided; and (4) the

location of the permitted well on each such spacing or drilling

Oklahoma Statutes - Title 52. Oil and Gas Page 58

unit. To such order shall be attached a plat upon which shall be

indicated the foregoing information. Subject to other provisions of

Section 86.1 et seq. of this title, the order establishing such

spacing or drilling units shall direct that no more than one well

shall thereafter be produced from the common source of supply on any

unit so established, and that the well permitted on that unit shall

be drilled at the location thereon as prescribed by the Commission,

with such exception as may be reasonably necessary where it is

shown, upon application, notice and hearing in conformity with the

procedural requirements of Section 86.1 et seq. of this title, and

the Commission finds that any such spacing unit is located on the

edge of a pool and adjacent to a producing unit, or for some other

reason that to require the drilling of a well at the prescribed

location on such spacing unit would be inequitable or unreasonable.

Whenever such an exception is granted, the Commission shall adjust

the allowable production for the spacing unit and take such other

action as may be necessary to protect the rights of interested

parties.

Except for horizontal spacing units allowed by subsection (f) of

this section, any well spacing or drilling unit for a common source

of supply thereunder which exceeds six hundred forty (640) acres for

a gas well plus ten percent (10%) tolerance or exceeds the total

amount of acreage contained in a governmental section, and is not in

production or in the process of drilling development on the

effective date of this act shall be de-spaced. However, fractional

sections along the state boundary line and within the townships

along the boundary where the survey west of the Indian Meridian

meets the survey east of the Cimarron Meridian may be spaced with

adjoining section unit, and the shape thereof shall be determined by

the Commission.

(d) The Commission shall have jurisdiction upon the filing of a

proper application therefor, and upon notice given as provided in

subsection (a) of this section, to decrease the size of the well

spacing units or to permit additional wells to be drilled within the

established units, or to increase the size or modify the shape of

the well spacing units, upon proper proof at such hearing that such

modification or extension of the order establishing drilling or

spacing units will prevent or assist in preventing the various types

of wastes prohibited by statute, or any of the wastes, or will

protect or assist in protecting the correlative rights of persons

interested in the common source of supply, or upon the filing of a

proper application therefor to enlarge the area covered by the

spacing order, if such proof discloses that the development or the

trend of development indicates that such common source of supply

underlies an area not covered by the spacing order and such proof

discloses that the applicant is an owner within the area or within a

drilling and spacing unit contiguous to the area covered by the

Oklahoma Statutes - Title 52. Oil and Gas Page 59

application. Except in the instance of reservoir dewatering as

described herein, the Commission shall not establish well spacing

units of more than forty (40) acres in size covering common sources

of supply of oil, the top of which lies less than four thousand

(4,000) feet below the surface as determined by the original or

discovery well in the common source of supply, and the Commission

shall not establish well spacing units of more than eighty (80)

acres in size covering common sources of supply of oil, the top of

which lies less than nine thousand nine hundred ninety (9,990) feet

and more than four thousand (4,000) feet below the surface as

determined by the original or discovery well in the common source of

supply. In the instance of reservoir dewatering to extract oil from

reservoirs having initial water saturations at or above fifty

percent (50%), the Commission may establish drilling and spacing

units not to exceed six hundred forty (640) acres in size.

(e) The drilling of any well or wells into any common source of

supply for the purpose of producing oil or gas therefrom, after a

spacing order has been entered by the Commission covering such

common source of supply, at a location other than that fixed by the

order is hereby prohibited. The drilling of any well or wells into

a common source of supply, covered by a pending spacing application

at a location or within location tolerance areas other than that

approved by a special order of the Commission authorizing the

drilling of such well is hereby prohibited. The operation of any

well drilled in violation of any spacing order so entered is also

hereby prohibited. Notwithstanding any provision of this section to

the contrary, the Commission, in the exercise of its authority to

prevent waste and protect correlative rights, may issue a permit to

drill any well for which notice and hearing have occurred for a

special order or an order on the merits in any type case prior to

the issuance of any such order. Any such permit shall be subject to

and conform with the final provisions of any such order when

entered. A final order from the Commission shall be required prior

to drilling for any well that falls within one (1) mile of the

certified boundary of an underground storage facility. The

Commission may issue a permit to drill any well prior to the

issuance of any such order in cases where the underground storage

operator does not object. When two or more separately owned tracts

of land are embraced within an established spacing unit, or where

there are undivided interests separately owned, or both such

separately owned tracts and undivided interests embraced within such

established spacing unit, the owners thereof may validly pool their

interests and develop their lands as a unit. Where, however, such

owners have not agreed to pool their interests and where one such

separate owner has drilled or proposes to drill a well on the unit

to the common source of supply, the Commission, to avoid the

drilling of unnecessary wells, or to protect correlative rights,

Oklahoma Statutes - Title 52. Oil and Gas Page 60

shall, upon a proper application therefor and a hearing thereon,

require such owners to pool and develop their lands in the spacing

unit as a unit. The applicant shall give all the owners whose

addresses are known or could be known through the exercise of due

diligence at least fifteen (15) days' notice by mail, return receipt

requested. The applicant shall also give notice by one publication,

at least fifteen (15) days prior to the hearing, in some newspaper

of general circulation published in Oklahoma County, and by one

publication, at least fifteen (15) days prior to the date of the

hearing, in some newspaper published in the county, or in each

county, if there be more than one, in which the lands embraced

within the spacing unit are situated. The applicant shall file

proof of publication and an affidavit of mailing with the Commission

prior to the hearing. All orders requiring such pooling shall be

made after notice and hearing, and shall be upon such terms and

conditions as are just and reasonable and will afford to the owner

of such tract in the unit the opportunity to recover or receive

without unnecessary expense the owner's just and fair share of the

oil and gas. The portion of the production allocated to the owner

of each tract or interests included in a well spacing unit formed by

a pooling order shall, when produced, be considered as if produced

by such owner from the separately owned tract or interest by a well

drilled thereon. Such pooling order of the Commission shall make

definite provisions for the payment of cost of the development and

operation, which shall be limited to the actual expenditures

required for such purpose not in excess of what are reasonable,

including a reasonable charge for supervision. In the event of any

dispute relative to such costs, the Commission shall determine the

proper costs after due notice to interested parties and a hearing

thereon. The operator of such unit, in addition to any other right

provided by the pooling order or orders of the Commission, shall

have a lien on the mineral leasehold estate or rights owned by the

other owners therein and upon their shares of the production from

such unit to the extent that costs incurred in the development and

operation upon the unit are a charge against such interest by order

of the Commission or by operation of law. Such liens shall be

separable as to each separate owner within such unit, and shall

remain liens until the owner or owners drilling or operating the

well have been paid the amount due under the terms of the pooling

order. The Commission is specifically authorized to provide that

the owner or owners drilling, or paying for the drilling, or for the

operation of a well for the benefit of all shall be entitled to

production from such well which would be received by the owner or

owners for whose benefit the well was drilled or operated, after

payment of royalty, until the owner or owners drilling or operating

the well have been paid the amount due under the terms of the

pooling order or order settling such dispute. No part of the

Oklahoma Statutes - Title 52. Oil and Gas Page 61

production or proceeds accruing to any owner of a separate interest

in such unit shall be applied toward payment of any cost properly

chargeable to any other interest in the unit.

For the purpose of this section, the owner or owners of oil and

gas rights in and under an unleased tract of land shall be regarded

as a lessee to the extent of a seven-eighths (7/8) interest in and

to the rights and a lessor to the extent of the remaining one-eighth

(1/8) interest therein, unless and until the owner or owners make an

election or are deemed to make an election not to participate under

a pooling order issued by the Commission, at which time each such

owner shall be considered a lessor, subject to the judicially

recognized implied covenant to market found to exist by the courts

of this state in oil and gas leases covering lands located in this

state, to the extent of the full royalty percentage elected under

the pooling order. Should the owners of separate tracts or

interests embraced within a spacing unit fail to agree upon a

pooling of their interests and the drilling of a well on the unit,

and should it be established by final, unappealable judgment of a

court of competent jurisdiction that the Commission is without

authority to require pooling as provided for herein, then, subject

to all other applicable provisions of this act, the owner of each

tract or interest embraced within a spacing unit may drill on his or

her separately owned tract, and the allowable production therefrom

shall be that portion of the allowable for the full spacing unit as

the area of such separately owned tract bears to the full spacing

unit.

In the event a producing well or wells are completed upon a unit

where there are, or may thereafter be, two or more separately owned

tracts, each royalty interest owner shall share in all production

from the well or wells drilled within the unit, or in the gas well

rental provided for in the lease covering such separately owned

tract or interest in lieu of the customary fixed royalty, to the

extent of such royalty interest owner's interest in the unit. Each

royalty interest owner's interest in the unit shall be defined as

the percentage of royalty owned in each separate tract by the

royalty owner, multiplied by the proportion that the acreage in each

separately owned tract or interest bears to the entire acreage of

the unit.

(f) Notwithstanding any provision of this title to the

contrary, the Corporation Commission shall have jurisdiction upon

the filing of a proper application therefor, and upon notice given

as provided in subsection (a) of this section, to establish spacing

rules for horizontally drilled oil or gas wells whereby horizontally

drilled oil or gas wells may have well spacing units established of

up to one thousand two hundred eighty (1,280) acres plus tolerances

and variances as allowed pursuant to subsection (c) of this section.

For purposes of this subsection a "horizontally drilled oil or gas

Oklahoma Statutes - Title 52. Oil and Gas Page 62

well" shall mean an oil or gas well drilled, completed or

recompleted in a manner in which the horizontal component of the

completion interval in the geological formation exceeds the vertical

component thereof and which horizontal component extends a minimum

of one hundred fifty (150) feet in the formation. The Corporation

Commission shall promulgate rules necessary for the proper

administration of this subsection. For the creation and

continuation of any horizontal spacing unit pursuant to this

subsection that exceeds six hundred forty (640) acres plus

tolerances and variances as allowed pursuant to subsection (c) of

this section:

(1) absent a showing of reasonable cause, the unit shall

include all lands within each governmental section to be included in

the horizontal spacing unit;

(2) the applicant or applicants requesting the Commission to

form the horizontal spacing unit must be the owner of an interest in

the oil, gas and other minerals in each of the governmental sections

to be included in the horizontal spacing unit;

(3) the applicant or applicants requesting the Commission to

form a horizontal spacing unit must include in the application the

basis for requesting a spacing unit size greater than six hundred

forty (640) acres plus tolerances and variances as allowed pursuant

to subsection (c) of this section. Absent a showing of reasonable

cause, the contemplated horizontal lateral length for the initial

unit well in the horizontal spacing unit shall be at least seven

thousand five hundred (7,500) feet. If the lateral length of the

initial horizontal well does not actually measure a minimum of seven

thousand five hundred (7,500) feet, the Commission shall require the

applicant to show cause as to why such spacing order should not be

modified, superseded or vacated under the circumstances; and

(4) absent a showing of reasonable cause, the drilling of a

multiunit horizontal well pursuant to Section 87.8 of this title

shall not be available as the initial unit well for a horizontal

spacing unit unless the contemplated completed portion of the

lateral for said well is to exceed ten thousand five hundred sixty

(10,560) feet.

(g) A horizontal spacing unit may be established for a common

source of supply for which there are already established

nonhorizontal drilling and spacing units. A horizontal spacing unit

formed under subsection (f) of this section may exist concurrently

with any previously formed nonhorizontal drilling and spacing unit,

or any portion thereof, such that each concurrently existing unit

may be separately developed with a well drilled into, completed in

and hydrocarbons produced from the same common source of supply in

each such concurrently existing unit, with production from each such

well to be governed by and allocated pursuant to the applicable

unit. Subject to all of the provisions of this section, a pooling

Oklahoma Statutes - Title 52. Oil and Gas Page 63

order for a horizontal spacing unit which overlies an existing,

producing nonhorizontal drilling and spacing unit, shall provide

that, if a working interest owner in such producing nonhorizontal

drilling and spacing unit does not agree to develop the horizontal

spacing unit, the owner shall relinquish its nonparticipating

working interest in the horizontal spacing unit while retaining all

other rights, including the right to concurrently develop the

producing nonhorizontal unit.

(h) Notwithstanding anything in this title or a pooling order

to the contrary, each party owning a right to participate in

development of a horizontal well described in this subsection with a

vested interest as to which there is production in the geographical

area of the spacing unit or spacing units for a proposed horizontal

well which is drilled after the effective date of this act pursuant

to a pooling order, whether the pooling order was issued before or

after the effective date of this act, shall be afforded separate

elections as set forth below, subject to the following, provided;

however, a geographic area in which there is no existing producing

unit as of the date of the filing of the application for the

governing pooling order and which is initially developed pursuant to

a multiunit horizontal well authorized under Section 87.8 of this

title, or a horizontal spacing unit which contains more than six

hundred forty (640) acres plus tolerances and variances as allowed

for pursuant to subsection (c) of this section shall not be

considered to contain existing production for purposes of this

subsection, unless the geographical area of any spacing unit covered

by the governing pooling order: is overlain by a horizontal spacing

unit greater than six hundred forty (640) acres plus tolerances and

variances as allowed for pursuant to subsection (c) of this section

which is not subject to said pooling order; has a multiunit well

drilled pursuant to Section 87.8 of this title which includes a

horizontal spacing unit which contains more than six hundred forty

(640) acres plus tolerances and variances as allowed for pursuant to

subsection (c) of this section which is subject to said pooling

order; or has a multiunit well drilled pursuant to Section 87.8 of

this title for a combination of units different than drilled by the

initial multiunit well pursuant to said pooling order:

(1) as to a multiunit horizontal well authorized under Section

87.8 of this title, each party owning a right to participate in

development of the proposed multiunit horizontal well with a vested

interest as to which there is existing production in the

geographical area of the spacing unit for the proposed multiunit

well shall be allowed, and as to the extent of their development

rights as to which there is existing production, an election as to

the targeted reservoir or targeted reservoirs covered by each

pooling order for such proposed multiunit horizontal well described

above, unless otherwise agreed to or waived in writing after the

Oklahoma Statutes - Title 52. Oil and Gas Page 64

effective date of this act. If said multiunit well is drilled in

accordance with the pooling order, the relinquished rights of an

owner who elects or is deemed to have elected not to participate

with all or any part of that owner's interest in the multiunit

horizontal well shall be limited to only the owner's

nonparticipating working interest in the common source or common

sources of supply within the targeted reservoir or targeted

reservoirs covered by said election which are actually horizontally

drilled and completed by said well. The owner shall retain all

other rights, including all rights in any existing wellbores in

which the owner has participated;

(2) as to a horizontal well authorized by the Commission for a

horizontal spacing unit created under subsection (f) of this

section, if the horizontal spacing unit contains more than six

hundred forty (640) acres plus tolerances and variances as allowed

for pursuant to subsection (c) of this section, or is comprised of

more than one governmental section, each party owning a right to

participate in development of the proposed horizontal well with a

vested interest as to which there is existing production in the

geographical area of the spacing unit for the proposed horizontal

well shall be allowed, and as to the extent of their development

rights as to which there is existing production, a separate election

as to each common source of supply or common sources of supply

covered by the pooling order for a proposed horizontal well

described above, unless otherwise agreed to or waived in writing

after the effective date of this act. If said horizontal well is

drilled in accordance with the pooling order, the relinquished

rights of an owner who elects or is deemed to have elected not to

participate with all or any part of that owner's interest in the

horizontal well shall be limited to only the owner's

nonparticipating working interest in the common source or common

sources of supply covered by said election which are actually

horizontally drilled and completed by said well. The owner shall

retain all other rights, including any rights in all existing

wellbores in which the owner has participated;

(3) as to any well which is subject to a pooling order which

was entered prior to the effective date of this act, in order to be

entitled to the rights and benefits of this subsection, the owner

must have been vested with the right to participate in the subject

well as of the effective date of this act;

(4) any relinquishment of rights under this subsection shall be

pursuant to the governing pooling order and at such fair value as

determined by the Commission; and

(5) the provisions of subsections (g) and (h) of this section

shall supplement each affected pooling order as to development of

the affected spacing unit by use of horizontal wells from and after

the effective date of this act.

Oklahoma Statutes - Title 52. Oil and Gas Page 65
Okla. Stat. tit. 52, § 52-611 — OK Code / Title 52 / Section 52-611
Injunctions
Status: in_force

The Attorney General of the State of Oklahoma or any person

entitled to institute proceedings or apply for a hearing under

Section 8 of this act may in the name of the state bring an action

in the district courts of this state for an injunction, enjoining

and prohibiting any person from violating the provisions of this act

or any order, rule or regulation of the Commission promulgated

pursuant to this act. An action for an injunction instituted under

this section shall not suspend or prohibit any proceedings

instituted by the Commission pursuant to this act.
Okla. Stat. tit. 52, § 52-296.1 — OK Code / Title 52 / Section 52-296.1
Securing of crude oil storage tanks
Status: in_force

The owner or operator who owns or has control over a production

crude oil storage tank shall be required to do one of the following:

1. Install and maintain a locking or sealing device on the

thief hatch of the tank;

2. Reduce the opening of the thief hatch to not greater than

six (6) inches in diameter; or

3. Affix and maintain a sign on or near the thief hatch which

shall meet the following specifications:

a. the size of the sign shall be no smaller than forty

(40) square inches,

b. the sign shall read "DANGER DO NOT OPEN", and

c. the word "DANGER" on the sign shall be no smaller than

two (2) inches and the words "DO NOT OPEN" shall be no

smaller than one (1) inch.

Oklahoma Statutes - Title 52. Oil and Gas Page 156
Okla. Stat. tit. 52, § 52-348 — OK Code / Title 52 / Section 52-348
Renumbered as § 142.1 of Title 40 by Laws 2014, c. 328, §
Status: in_force

14. Editorially renumbered as § 142.2 of Title 40 to avoid a

duplication in numbering.

Oklahoma Statutes - Title 52. Oil and Gas Page 180Oklahoma Statutes - Title 52. Oil and Gas Page 8
Okla. Stat. tit. 52, § 52-420.11 — OK Code / Title 52 / Section 52-420.11
Disposition of funds and fees - Annual report -
Status: in_force

Liquefied Petroleum Gas Fund - Expenditures.

A. All funds and fees, from whatsoever source derived,

collected by the Administrator under the provisions of Section 420.1

et seq. of this title, shall be deposited into the Liquefied

Petroleum Gas Fund, created in this section. Effective July 1,

2004, and for each fiscal year thereafter, the Administrator shall

deposit ten percent (10%) of the total amount collected from fees

and funds by the Administrator to the credit of the General Revenue

Fund of the State Treasury. The Administrator and the Board are

hereby vested and empowered with the authority to make any and all

necessary expenditures from the fund that in their judgment are

reasonable and required to effectuate the purposes of this act. The

Administrator shall annually file with the Governor a report of all

activities of the fund, which shall include a statement of all

receipts and disbursements.

B. There is hereby created in the State Treasury a revolving

fund for the Oklahoma Liquefied Petroleum Gas Board to be designated

the Liquefied Petroleum Gas Fund. All monies accruing to the credit

of the fund are hereby appropriated and may be budgeted and expended

by the Oklahoma Liquefied Petroleum Gas Board as provided for in

Oklahoma Statutes - Title 52. Oil and Gas Page 198

this section. Expenditures from the fund shall be made upon

warrants issued by the State Treasurer against claims filed as

prescribed by law with the Director of the Office of Management and

Enterprise Services for approval and payment.

C. Section 211 of Title 62 of the Oklahoma Statutes shall not

apply to the funds and fees collected by the Liquefied Petroleum Gas

Board.
Okla. Stat. tit. 52, § 52-94 — OK Code / Title 52 / Section 52-94
Maps and drawings - Location of pipelines and connections -
Status: in_force

Verification.

The Commission may require any and all operators in any prorated

common source of supply to file with it maps or drawings which shall

show the location of all pipelines, connections, pumps and tanks,

the size and capacities thereof used for producing or transporting

oil from each well owned by such operator in such common source of

supply, and may likewise require the takers of oil from such common

source of supply to file with the Commission maps and drawings

showing the pipelines, connections, tanks, size and capacity thereof

used by such takers in taking or transporting oil from such common

Oklahoma Statutes - Title 52. Oil and Gas Page 81

source of supply and from each and all wells therein. The

correctness of such maps and drawings shall be verified upon oath as

shall be provided by the orders, rules or regulations of the

Commission.
Okla. Stat. tit. 52, § 52-113 — OK Code / Title 52 / Section 52-113
Appeals - Power of Supreme Court - Supersedeas - Bond
Status: in_force

In the manner now provided by law for taking appeals to the

Supreme Court from orders, rules or regulations of the Commission

affecting transportation and transmission companies, appeals may be

taken to the Supreme Court from any order, rule or regulation made,

issued or promulgated by the Commission under the provisions of

Sections 84-96, inclusive, of this title, (a) by the Attorney

General, or (b) by the Conservation Attorney, or (c) by the Director

of Conservation, on behalf of the state, or (d) by any person

aggrieved by such order, rule, or regulation appealed from. On such

appeal the Supreme Court shall have power to determine the validity,

the reasonableness and justice of such order, rule, or regulation,

and should the Court find from the record that the order, rule, or

regulation appealed from is incorrect, unreasonable, unjust or

insufficient in any particular it shall amend, modify, or supplement

such order, rule or regulation so as to make the same correct,

reasonable, just or sufficient, or shall substitute therefor such

order, rule, or regulation as in the Court's opinion is warranted by

the record, is reasonable and just, and will effect the purposes and

intent of sections 84-135 of this title. On such appeals no order,

rule or regulation shall be reversed and remanded to the Commission

for a new trial thereon or for the taking of additional testimony

unless the Court shall find that the evidence introduced before the

Commission is insufficient to enable the Court to determine and make

a proper order, rule, or regulation or that the party appealing did

not have lawful notice of the hearing before the Commission, or that

the Commission refused to receive competent evidence offered by the

party appealing, which, if true, would leave the order, rule or

regulation appealed from without substantial basis in fact. In like

manner appeal may be taken to the Supreme Court from any order,

judgment or decree issued, or final action taken by the Commission

Oklahoma Statutes - Title 52. Oil and Gas Page 93

in any proceeding before it wherein it is sought to have any person

adjudged (a) guilty of direct contempt, or (b) punished as for

contempt for violation of any provision of this act or of any order,

rule or regulation of the Commission made hereunder, or (c) in which

is sought any other order of enforcement for the purpose of

enforcing the orders, rules, and regulations of the Commission made

hereunder, provided any such appeal may be taken and prosecuted only

by (a) the Attorney General, or (b) the Conservation Attorney, or

(c) the Director of Conservation, on behalf of the state, or (d) by

any person against whom any such order or decree of contempt, or as

for contempt, or other order of enforcement shall have been

rendered, or (e) by any other person whose interests are affected by

such order, judgment, decree or final action taken by the Commission

in such proceeding and who is aggrieved thereby.

No order, rule, regulation, judgment or decree or final action

of the Commission appealed from shall be superseded except by order

of the Commission or the Supreme Court. No supersedeas shall be

granted by either the Commission or the Supreme Court except upon

condition that the appellant shall file in said appeal a bond with

such surety as shall be approved by the Commission or the Supreme

Court, granting such supersedeas. Said bond shall, (a) be in such

amount, (b) contain such terms and conditions, and (c) be payable to

the state for its benefit or for the benefit of such person or

persons as shall be damaged by such appeal, if the order, rule,

regulation, judgment, decree or action of the Commission appealed

from shall be affirmed; all as shall be provided and required by the

Commission or the Supreme Court granting such supersedeas.

All appeals under the provisions of this act must be taken by

filing in the Supreme Court a petition in error within thirty (30)

days from the date on which the order, rule, regulation, judgment,

decree or final action of the Commission appealed from shall have

been made, rendered or taken by the Commission; and except as

otherwise provided in this act, the hearing and determination

thereof by the Supreme Court, and the enforcement of its judgment

and decree therein, and against the sureties upon the supersedeas

bond therein, shall be governed by the provisions of law now in

force applicable to appeals in proceedings for contempt and other

proceedings for the violation of orders, rules and regulations of

the Commission affecting transportation companies; and to the extent

possible under existing laws the Supreme Court shall give precedence

to all such appeals in the hearing and disposition thereof. The

time limit prescribed herein for filing the petition in error may

not be extended. The Supreme Court shall prescribe by rules the

manner in which the record of the proceedings sought be reviewed

shall be prepared and the time for its completion.
Okla. Stat. tit. 52, § 52-87.6 — OK Code / Title 52 / Section 52-87.6
Short title - Extended Horizontal Well Development Act -
Status: in_force

Definitions.

A. Sections 87.6 through 87.9 of this title shall be known and

may be cited as the "Extended Horizontal Well Development Act".

B. As used in the Extended Horizontal Well Development Act:

1. "Adjacent common source of supply" means a common source of

supply which is immediately adjacent to and adjoining the targeted

reservoir or targeted reservoirs in a multiunit horizontal well

being drilled pursuant to Section 87.8 of this title or a well being

drilled in a horizontal well unitization pursuant to Section 87.9 of

this title and which is inadvertently encountered in the drilling of

the lateral of a multiunit horizontal well or a well pursuant to a

horizontal well unitization when such well is drilled out of or

exits, whether on one or multiple occasions, the targeted reservoir

or targeted reservoirs, and which is not the primary target of the

subject well and shall not be included in the relinquished rights

pursuant to subsection (h) of Section 87.1 of this title. In the

event that an adjacent common source of supply may be inadvertently

encountered in the drilling of the lateral of a multiunit horizontal

well or a well pursuant to a horizontal well unitization when such

well is drilled out of or exits, whether on one or multiple

occasions, the targeted reservoir or targeted reservoirs, then said

inadvertently entered adjacent common source of supply shall be

included as part of the targeted reservoir only for the purpose of

the inadvertent penetrations, and any subsequent completion,

commingling and production of said adjacent common source of supply

with the targeted reservoir or targeted reservoirs, but not for

future development of said adjacent common source of supply;

2. "Allocation factor" means the percentage of costs,

production or proceeds allocated to a unit affected by a multiunit

horizontal well;

3. "Application" means a written request filed by an owner of

the right to drill seeking approval to drill, complete and produce a

multiunit horizontal well or to create a horizontal well

unitization;

4. "Commission" means the Corporation Commission;

5. "Completion interval" means, for an open hole completion in

a horizontal well, the interval from the point of entry to the

terminus and, for a cased and cemented completion in a horizontal

well, the interval from the first perforations to the last

perforations;

6. "Horizontal well" means a well drilled, completed, or

recompleted with one or more laterals which, for at least one

lateral, the horizontal component of the completion interval exceeds

Oklahoma Statutes - Title 52. Oil and Gas Page 69

the vertical component of the completion interval and the horizontal

component extends a minimum of one hundred fifty (150) feet in the

formation;

7. "Horizontal well unitization" means a unitization for a

targeted reservoir created pursuant to Section 87.9 of this title;

8. "Horizontal component" means the calculated horizontal

distance from the point of entry to the terminus;

9. "Lateral" means the portion of the wellbore of a horizontal

well from the point of entry to the terminus;

10. "Multiunit horizontal well" means a horizontal well in a

targeted reservoir or targeted reservoirs wherein the completion

interval of the well is located in more than one unit formed for the

same targeted reservoir, with the well being completed in and

producing from such targeted reservoir in two or more of such units;

11. "Plan of development" means the proposed plan for

developing the targeted reservoir unitized pursuant to Section 87.9

of this title, which plan, based upon the information and knowledge

then available to the applicant, shall include:

a. a map or maps indicating the location of each existing

well in the proposed unit and the anticipated location

of each horizontal well proposed to be drilled in the

proposed unit that is anticipated to be necessary,

based upon the information and knowledge then

available to the applicant, for the full and efficient

development and operation of the proposed unit for the

recovery of oil and gas from the targeted reservoir

within the proposed unit,

b. any applicable proposed allocation factor or factors

for allocating the costs, production and proceeds from

the proposed unit,

c. the anticipated timing and anticipated sequence of

drilling of each horizontal well in the proposed unit,

and

d. any other specific terms, provisions, conditions and

requirements set forth in Section 87.9 of this title

or determined by the Commission to be reasonably

necessary or proper to effectuate or accomplish the

purpose of Section 87.9 of this title;

12. "Point of entry" means the point at which the borehole of a

horizontal well first intersects the top of the targeted reservoir;

13. "PRSA" means the Production Revenue Standards Act;

14. "Targeted reservoir" means one or more common sources of

supply which will be encountered by the horizontal lateral portion

of a horizontal well, and which has been designated by the

Commission as part of an order, rule or emergency rule as

potentially suited for development for the applied for multiunit

horizontal well pursuant to Section 87.8 of this title or a

Oklahoma Statutes - Title 52. Oil and Gas Page 70

horizontal well unitization pursuant to Section 87.9 of this title.

Provided, however, that more than one common source of supply may

only be granted by the Commission and included in the targeted

reservoir upon a showing of reasonable cause by the applicant

requesting the multiunit well in the application requesting

authority for the multiunit well prior to the drilling of said

multiunit well that the inclusion of the additional common source(s)

of supply shall prevent waste and protect the correlative rights of

all of the owners of the oil and gas rights;

15. "Terminus" means the end point of the borehole of a

horizontal well in the targeted reservoir;

16. "Wellbore royalty interest" means, for each separate

multiunit horizontal well, the sum of resulting products of each

affected unit's royalty share for that unit, as defined by the PRSA,

multiplied by that unit's allocation factor for production and

proceeds;

17. "Wellbore royalty proceeds" means the proceeds or other

revenue derived from or attributable to any production of oil and

gas from the multiunit horizontal well multiplied by the wellbore

royalty interest;

18. "Unit" means a drilling and spacing unit for a single

common source of supply created pursuant to Section 87.1 of this

title or a horizontal well unitization created pursuant to Section

87.9 of this title;

19. "Unit's royalty contribution factor" means the royalty

share for an affected unit, as defined by PRSA, multiplied by that

unit's allocation factor, then divided by the total wellbore royalty

interest; and

20. "Vertical component" means the calculated vertical distance

from the point of entry to the terminus.
Okla. Stat. tit. 52, § 52-549.2 — OK Code / Title 52 / Section 52-549.2
Definitions
Status: in_force

DEFINITIONS

As used in the Oil and Gas Owners’ Lien Act of 2010:

1. “Affiliate” means any person:

a. who is controlled, directly or indirectly, by a first

purchaser, or

b. who controls, directly or indirectly, a first

purchaser.

“Control” or “controlled by” means the possession, directly or

indirectly, of the power to direct or cause the direction of the

management and policies of a person, whether through ownership, by

contract or otherwise;

2. “Agreement to sell” means any enforceable agreement, whether

express or implied, whether oral or written, by which an interest

owner, either directly or through a representative, agrees to sell

or is deemed by applicable contract or law to have agreed to sell

oil or gas upon or after severance to a first purchaser;

3. “Article 9” means Article 9 of the Oklahoma Uniform

Commercial Code in effect as of the relevant date or a comparable

Oklahoma Statutes - Title 52. Oil and Gas Page 221

article under the uniform commercial code of another state to the

extent applicable;

4. “First purchaser” means the first person that purchases oil

or gas from an interest owner, either directly or through a

representative, under an agreement to sell;

5. “Gas” means natural gas and casinghead gas and all

constituent parts thereof both before and after processing but prior

to the time at which a first purchaser transfers title, possession

or control thereof to a purchaser;

6. “Interest owner” means a person owning an interest of any

kind or nature in oil and gas rights before the acquisition thereof

by a first purchaser. Interest owner includes a representative and

a transferee interest owner;

7. “Oil” means oil and condensate and all constituent parts

thereof whether before or after processing but prior to the time at

which a first purchaser transfers title, possession or control

thereto to a purchaser;

8. “Oil and gas lien” means the lien granted by the Oil and Gas

Owners’ Lien Act of 2010;

9. a. “Oil and gas rights” means, as to any lands within the

State of Oklahoma, any right, title or interest,

whether legal or equitable, in and to:

(1) oil,

(2) gas,

(3) proceeds,

(4) an oil and gas lease,

(5) a pooling order, and

(6) an agreement to sell.

b. By way of illustration and not limitation, oil and gas

rights include, but are not limited to:

(1) oil or gas in place prior to severance,

(2) oil or gas production, or the right to receive a

portion of the proceeds, upon severance,

(3) proceeds owed for oil and gas drilling and

development,

(4) proceeds from the acquisition of oil and gas

rights including but not limited to a lease bonus

or pooling bonus,

(5) proceeds from an unfulfilled contract or

agreement for the purchase of mineral rights,

(6) any interest or estate in, by, through or under

an oil and gas lease,

(7) rights acquired under a pooling order insofar as

such rights relate to: ownership of oil and gas,

the right to proceeds or the right to enter into

an agreement to sell,

Oklahoma Statutes - Title 52. Oil and Gas Page 222

(8) a legal or equitable right to receive

consideration of whatsoever nature under an

agreement to sell, or

(9) a mortgage lien or security interest in any of

the foregoing;

10. “Operator” means a person engaged in the severance of oil

or gas for that person alone, for other persons only, or for that

person and others;

11. “Permitted lien” means any of the following liens or

security interests:

a. a mortgage lien or security interest granted by a

first purchaser in favor of a person not an affiliate

of the first purchaser which mortgage lien or security

interest secures payment under a written instrument of

indebtedness signed by the first purchaser and

accepted in writing by the payee thereof prior to

April 19, 2010, with a principal amount and a fixed

maturity stated therein; provided, however, a

permitted lien does not include a mortgage lien or

security interest which:

(1) secures payment of any indebtedness incurred from

and after April 19, 2010,

(2) secures payment under a written instrument of

indebtedness not signed by a first purchaser and

accepted in writing by the payee thereof prior to

April 19, 2010,

(3) secures payment under a written instrument of

indebtedness modified, amended or restated from

or after April 19, 2010, which modification,

amendment or restatement increases the principal

amount which was owing on April 19, 2010,

(4) secures payment under a written instrument of

indebtedness modified, amended or restated from

or after April 19, 2010, which modification,

amendment or restatement extends the stated

maturity thereof which was in effect on April 19,

2010, or

(5) is not validly perfected with a first priority

against the claims of all persons under

applicable law other than persons holding a

statutory or regulatory lien as to which first

priority is granted by statute or regulation, or

b. a validly perfected and enforceable lien created by

statute or by rule or regulation of a governmental

agency for storage or transportation charges,

including terminal charges, tariffs, demurrage,

insurance, labor or other charges, owed by a first

Oklahoma Statutes - Title 52. Oil and Gas Page 223

purchaser in relation to oil or gas originally

purchased under an agreement to sell; provided,

however, a permitted lien does not include any such

lien:

(1) which is in favor of an affiliate of a first

purchaser unless such lien is authorized by the

statute, rule or regulation creating such lien,

or

(2) which is for charges in excess of ninety (90)

days from the time the first purchaser delivers

such oil or gas for such storage or

transportation;

12. “Person” means any individual, executor, administrator,

estate, agent, trust, trustee, institution, receiver, business

trust, firm, corporation, partnership, limited liability company,

cooperative, joint venture, governmental entity or agency,

association or any other group or combination acting as a unit;

13. “Pooling order” means an order issued by the Corporation

Commission that requires the owners of the right to drill for oil or

gas in a drilling and spacing unit to pool their interests for the

development of such drilling and spacing unit;

14. “Proceeds” means any of the following when paid or to be

paid in consideration of, or as a consequence of, the sale of oil or

gas under an agreement to sell: oil or gas on or after severance;

inventory of raw, refined or manufactured oil or gas after

severance; rights to or products of any of the foregoing; cash

proceeds; accounts; chattel paper; instruments; documents; or

payment intangibles with respect to any of the foregoing;

15. “Purchaser” means a person which is not an affiliate of a

first purchaser and which takes, receives or purchases oil or gas

from a first purchaser;

16. “Representative” means any person who is authorized, either

expressly or by implication, including, without limitation, an

operator or a broker so authorized, to sell oil or gas on behalf of,

or for the benefit of, an interest owner under an agreement to sell

or to receive on behalf of an interest owner the consideration under

an agreement to sell;

17. “Sales price” means the proceeds a first purchaser agrees

to pay an interest owner or representative under an agreement to

sell;

18. “Security interest” means a security interest governed by

Article 9;

19. “Severance” means that point in time at which oil or gas is

reduced to possession at the mouth of the wellbore of an oil and gas

well;

20. “Transferor interest owner” means an interest owner that

transfers or conveys oil and gas rights, in whole or in part; and

Oklahoma Statutes - Title 52. Oil and Gas Page 224

21. “Transferee interest owner” means a person that acquires

oil and gas rights from a transferor interest owner.
Okla. Stat. tit. 52, § 52-320 — OK Code / Title 52 / Section 52-320
"Growing crops" defined
Status: in_force

As respects exploration and drilling for oil or gas, plugging or

repair of oil or gas wells and provisions in contracts for either,

the term "growing crops" shall be construed to include but not be

limited to native grasses and trees.
Okla. Stat. tit. 52, § 52-241 — OK Code / Title 52 / Section 52-241
Enforcement of act - Hearings before Corporation
Status: in_force

Commission.

Any person, firm or corporation, or the Attorney General, on

behalf of the state may institute proceedings before the Corporation

Commission, or apply for a hearing before said Commission, upon any

question relating to the enforcement of this act; and jurisdiction

is hereby conferred upon said Commission to hear and determine the

same, said Commission shall set a time and place when such hearing

shall be had and give reasonable notice thereof to all persons or

classes interested therein by publication in some newspaper or

newspapers having general circulation in the state, and shall in

addition thereto cause notice to be served in writing upon any

person, firm or corporation, complained against in the manner now

provided by law for serving summons in civil actions. In the

exercise and enforcement of such jurisdiction said Commission is

authorized to summon witnesses, make ancillary orders, and use such

mesne and final process including inspection and punishment as for

contempt, analogous to proceedings under its control over public

service corporations as now provided by law.
Okla. Stat. tit. 52, § 52-420.30 — OK Code / Title 52 / Section 52-420.30
Certain programs not preempted - Designation of funds for payment of certain
Status: in_force

Oklahoma Statutes - Title 52. Oil and Gas Page 9

Oklahoma Statutes - Title 52. Oil and Gas Page 10for payment of certain programs.

Nothing in the Oklahoma Liquefied Petroleum Gas Research,

Marketing and Safety Act may be construed to preempt or supersede

any other program relating to LP gas promotion or marketing

organized and operated under the law of the State of Oklahoma or the

United States. The provisions of the Oklahoma Liquefied Petroleum

Gas Research, Marketing and Safety Act applicable to the rules shall

be applicable to amendments to the rules. In the event of the

establishment of a national program for an assessment on propane

sales, the Commission, by majority vote, may elect to designate up

to a maximum of twenty percent (20%) of the funds collected pursuant

to the Oklahoma Liquefied Petroleum Gas Research, Marketing and

Safety Act to the national program in lieu of an additional

assessment as may be required by the national program.
Okla. Stat. tit. 52, § 52-87.2 — OK Code / Title 52 / Section 52-87.2
Protest of applications relating to spacing units -
Status: in_force

Proper parties - Intervention - Report by Corporation Commission.

A. Except as provided in subsection B of this section, only

those persons, or the duly authorized agent, representative or

attorney of those persons, who are mineral owners or owners of the

right to drill a well for oil and gas on the lands embraced within

the subject area of an application or the owners of correlative

rights within the common source of supply or supplies embraced

within an application to the extent such owners are directly

affected by such application, shall be proper parties to:

1. protest any application to establish, reestablish, or reform

a spacing unit,

2. protest any application requesting authority for an

additional well or wells within an established spacing unit brought

pursuant to the provisions of paragraph (a) or (d) of Section 87.1

of Title 52 of the Oklahoma Statutes, or

3. present testimony or evidence at any hearing arising

thereunder or relating thereto.

B. No other person shall be entitled to notice of such

proceeding or shall be entitled to appear as a party of record

therein, except that the Corporation Commission may permit persons

other than those specified in subsection A of this section leave to

intervene in a proceeding upon a finding, based upon clear and

convincing evidence, that such person has a substantial right

intended to be protected by Section 87.1 of Title 52 of the Oklahoma

Statutes which may adversely be affected by the outcome of such

proceeding. Any finding required by this section shall be made by

the Corporation Commission, sitting en banc, within ten (10) days of

the filing of a motion to intervene by such person and such

proceeding shall be stayed during such ten-day period.

C. At the end of each calendar quarter the Corporation

Commission shall file a written report with the Office of the

Governor, the Speaker of the Oklahoma House of Representatives, and

Oklahoma Statutes - Title 52. Oil and Gas Page 66

the President Pro Tempore of the Oklahoma State Senate describing

all such findings made by the Corporation Commission pursuant to

this section during such period.Oklahoma Statutes - Title 52. Oil and Gas Page 2
Okla. Stat. tit. 52, § 52-288.4 — OK Code / Title 52 / Section 52-288.4
Board - Composition - Qualifications - Terms - Vacancies
Status: in_force

- Additional members - First meeting - Compensation and expenses.

A. The Oklahoma Energy Resources Board shall be composed of at

least eighteen (18) members. The eighteen members shall be

independent oil or natural gas producers, or representatives of

major oil companies which do business in the state, six to be

appointed by the Governor, six to be appointed by the President Pro

Tempore of the Senate and six to be appointed by the Speaker of the

House of Representatives. The Governor, President Pro Tempore and

Speaker of the House of Representatives shall make appointments of

independent producers from a list of names of independent producers

which do business in the state submitted by qualified independent

producer associations.

B. The members of the Board shall:

1. Be at least twenty-five (25) years of age; and

2. Have at least five (5) years of active experience in the oil

or natural gas industry.

C. The initial term of office for independent producer members

of the Board shall be as follows: six members for one (1) year, six

members for two (2) years and six members for three (3) years.

For the initial appointments of independent producers, each

appointing authority shall make two appointments for one-year terms,

two appointments for two-year terms and two appointments for three-

year terms. Thereafter, the terms of the independent producer

members shall be for three (3) years.

D. The six independent producer members of the Board whose

initial term of office is for one (1) year shall serve until October

1, 1993, at which time their terms shall expire and will be replaced

by the members appointed to three-year terms under subsection E of

this section.

E. On October 1, 1993, six members shall be appointed to the

Board who represent major oil companies which do business in the

state, two to be appointed by the Governor, two to be appointed by

the President Pro Tempore of the Senate and two to be appointed by

the Speaker of the House of Representatives. After October 1, 1993,

Oklahoma Statutes - Title 52. Oil and Gas Page 144

the Board shall be composed of eighteen (18) members, twelve of

which shall be independent producers and six shall be

representatives of major oil companies.

F. Vacancies shall be filled for the unexpired term of office

in the same manner as the original appointment. The appointed

members may be removed from office by a majority vote of the three

appointing authorities in a manner as provided by law.

G. After October 1, 1993, the independent producer and major

oil company members of the Board appointed pursuant to subsection A

of this section may by majority vote appoint a maximum of three

representatives from each of the following producer-related areas to

serve as members of the Board: one member from a royalty owner

association and two members representing crude oil purchasing

companies. These additional members shall have full voting rights

and privileges and will serve three-year terms. They may be removed

from the Board by a majority vote of the independent producer and

major oil company members of the Board appointed pursuant to

subsection A of this section.

H. The Board shall at its first meeting elect one of its

members as chairperson, who shall preside over meetings of the Board

and perform such other duties as may be required by the Board. The

first meeting of the Board shall be called by the Governor.

I. No member of the Board shall receive a salary for duties

performed as a member of the Board however, members are eligible to

receive reimbursement for expenses and travel reimbursement as

provided for in the State Travel Reimbursement Act.

J. Members serving on the Board shall be eligible to serve on

any other state board or commission if such member is otherwise

qualified to hold such appointed office, notwithstanding the

provisions of Section 6 of Title 51 of the Oklahoma Statutes.
Okla. Stat. tit. 52, § 52-310 — OK Code / Title 52 / Section 52-310
Leaking wells - Entry upon land to plug, replug or repair
Status: in_force

- Emergencies.

A. If, after notice and hearing, the Corporation Commission

finds that:

1. A well drilled for the exploration, development, or

production of oil or gas, or as an injection or disposal well, is

abandoned and unplugged or improperly plugged or is causing or is

likely to cause surface or subsurface pollution of any fresh water

or is purging or is likely to purge salt water, oil, gas, or other

deleterious substances onto the surface of the land in the vicinity

of the well; and

2. The operator of the well or any other person responsible for

plugging, replugging, or repairing the well in such manner as is

necessary to prevent further or future pollution cannot be found or

is financially unable to pay the cost of performing the work, the

Commission or any person authorized by the Commission may enter upon

the land upon which the well is located and plug, replug, or repair

the well as may be reasonably required to remedy the condition. If

an emergency exists or if it otherwise appears to the Commission

that irreparable injury will result if immediate remedial action is

not taken, such entry upon the land may be made or authorized by the

Commission without notice or hearing, for the purpose of taking such

temporary remedial action as the Commission considers necessary to

prevent or minimize the injury, pending the giving of notice and

hearing. The operation shall be conducted in the manner prescribed

by the Commission.

B. For the purpose of immediately responding to emergency

situations within the Commission's jurisdiction having potentially

critical environmental or public safety impact, the Commission may

take whatever necessary action, without notice and hearing,

including the expenditure of monies from the Corporation Commission

Plugging Fund, to promptly respond to the emergency. Such emergency

expenditure shall be made pursuant to the provisions of the Oklahoma

Central Purchasing Act upon such terms and conditions established by

the Office of Management and Enterprise Services to accomplish the

purposes of this section. Thereafter, the Commission shall seek

reimbursement from the responsible person, firm or corporation for

all expenditures made from the Corporation Commission Plugging Fund.

Any monies received as reimbursement shall be deposited to the

credit of the Corporation Commission Plugging Fund.

Oklahoma Statutes - Title 52. Oil and Gas Page 159

C. In the event that a well on the Commission's orphaned wells

list has measurable methane, pursuant to the American Carbon

Registry standards or pursuant to the standards of other carbon

registries chosen by the Commission, the Commission may test and

record the measurements of such emissions from the well pursuant to

the requirements of the American Carbon Registry or pursuant to the

standards of other carbon registries chosen by the Commission and

obtain any carbon credits that may be available for the measured

emissions. The Commission may use proceeds received from the sale

of carbon credits, which shall be deposited into the Oil and Gas

Division Revolving Fund, to offset the cost of administering the

program and testing for methane. The Commission may hire an

administrator to assist in facilitating the program. All funds

remaining after testing, administration, and the cost to market and

secure the credits value shall be placed in the Corporation

Commission Plugging Fund. Nothing in this section shall prohibit

the Commission from transferring an orphaned well, and all

associated potential carbon credits, pursuant to the Commission's

well transfer program. The Commission may promulgate rules as

needed to effectuate the capture of emissions and obtaining of

credits under this section.

D. If, at any time, the monies in the Corporation Commission

Plugging Fund are insufficient to cover the cost of remedial action

for all wells eligible for plugging, replugging or repair under this

statute, the Commission shall prioritize expenditures according to

degree of actual or potential environmental harm.
Okla. Stat. tit. 52, § 52-10 — OK Code / Title 52 / Section 52-10
Pipeline companies may cross highways, bridges, etc. -
Status: in_force

Supplying gas to landowner.

Every gas pipeline corporation or individual in this state is

hereby given authority to build, construct and maintain gas

pipelines, over, under, across or through all highways, bridges,

streets, or alleys in this state, or any public place therein, under

the supervision of the inspector of oil and gas as to where and how

in said highways, bridges, streets, alleys and public places said

pipe lines shall be laid, subject to the control of the local

municipalities as to how the business of distribution in that

municipality shall be conducted, and subject to responsibility as

otherwise provided by law; provided, however, that whenever any gas

pipeline crosses the land or premises of anyone outside of a

municipality, said corporation shall, by request of the owner of

said premises, connect said premises with a pipe line and furnish

gas to said consumer at the same rate as charged in the nearest city

or town.
Okla. Stat. tit. 52, § 52-277 — OK Code / Title 52 / Section 52-277
Appeals to Supreme Court - Effect on orders
Status: in_force

Appellate jurisdiction is hereby conferred upon the Supreme

Court in this state to review the action of said Commission in

making any order, or orders, under this act. Such appeal may be

Oklahoma Statutes - Title 52. Oil and Gas Page 131

taken by any person, firm or corporation, shown by the record to be

interested therein, in the same manner and time as appeals are

allowed by law from other orders of the Corporation Commission.

Said orders so appealed from shall not be superseded by the mere

fact of such appeal being taken, but shall be and remain in full

force and effect until legally suspended or set aside by the Supreme

Court.
Okla. Stat. tit. 52, § 52-420.52 — OK Code / Title 52 / Section 52-420.52
Renumbered as § 130.12 of Title 74 by Laws 1991, c
Status: in_force

235, § 24, eff. July 1, 1991.
Okla. Stat. tit. 52, § 52-394 — OK Code / Title 52 / Section 52-394
Selling under false mark or name
Status: in_force

It shall be unlawful for any person, firm or corporation to

expose for sale, offer for sale or sell under a trademark, trade

name, or any other distinguishing mark, any liquid fuels,

lubricating oils, greases or other like products other than those

manufactured or distributed by the manufacturer or distributor,

marketing liquid fuels, lubricating oils, greases, or other like

product, under such trademark, trade name, or name or other

distinguishing mark.
Okla. Stat. tit. 52, § 52-46.4 — OK Code / Title 52 / Section 52-46.4
Rules and regulations
Status: in_force

The Oklahoma Corporation Commission shall make such reasonable

rules and regulations as may be necessary to administer this act.
Okla. Stat. tit. 52, § 52-47.5 — OK Code / Title 52 / Section 52-47.5
Determination of hazardous transportation system -
Status: in_force

Corrective action - Emergencies.

A. The Commission may find a transportation system to be

hazardous if:

1. the facts and circumstances indicate the particular system

is hazardous to life or property; or

2. the transportation system or a component thereof has been

constructed or operated with any equipment, material, or technique

which the Commission determines is hazardous to life or property.

B. In determining a transportation system to be hazardous, the

Commission shall consider the following, if relevant:

1. the characteristics of the pipe and other equipment used in

the transportation system, including the age, manufacturer, physical

properties, and its resistance to corrosion and deterioration of

said equipment, and the method of manufacture, construction, or

assembly; and

2. the nature of the materials transported by said system,

including their corrosive and deteriorative qualities, the sequence

in which the materials are transported, and the pressure required

for said transportation; and

3. the aspects of the areas in which the transportation system

is located, including the climatic and geologic conditions, the soil

characteristics, and the population, population density, and growth

patterns of said areas; and

4. such other factors as the Commission may consider

appropriate.

C. If the Commission finds, after reasonable notice and an

opportunity for a hearing, that any transportation system is

hazardous to life or property, the Commission, by order, shall

require the person operating the facility to take necessary

corrective action. Said corrective action may include suspended or

restricted use of the facility, physical inspection, testing,

repair, replacement, or other appropriate action.

D. Whenever the Commission finds that an emergency exists

requiring immediate action in order to protect the public health and

welfare, the Commission may issue an order, without notice or

hearing, stating the existence of said emergency and requiring that

action be taken as the Commission deems necessary to meet the

emergency. The order shall be effective immediately upon issuance.

Any person to whom the order is directed shall comply immediately

with the provisions of the order, but, upon application to the

Oklahoma Statutes - Title 52. Oil and Gas Page 41

Commission, shall be afforded a hearing within ten (10) days of the

issuance of the order. On the basis of said hearing, the Commission

shall continue the order in effect, revoke it, or modify it.
Okla. Stat. tit. 52, § 52-86.7 — OK Code / Title 52 / Section 52-86.7
Definitions – Purpose – Property rights – Operator rights
Status: in_force

and responsibilities – Liability - Disposal.

A. As used in the Oil and Gas Produced Water and Waste

Recycling and Reuse Act:

1. “Commission” means the Oklahoma Corporation Commission;

2. “Constituent elements” means salts, metals, elements and

other mineralized substances that are naturally occurring and

dissolved, entrained or suspended in subterranean water in situ and

after extraction from the ground, suspended in the oil and gas

produced water and waste or as part of the brine, as defined in

paragraph 4 of Section 502 of Title 17 of the Oklahoma Statutes;

3. “Nonoperator” means persons, other than the operator,

contributing to the cost and expense of drilling and completing or

operating a well for the intended development and production of oil,

gas or other hydrocarbons, regardless of whether the well is

completed or produces any oil or gas;

4. “Oil and gas produced water and waste” means the fluid

containing salt or other mineralized substances, hydraulic

fracturing fluid, flowback water, formation water, injection water

and any chemicals added downhole, associated with the drilling

completion or production of an oil or gas well, incidental to or

extracted from hydrocarbon-bearing strata during the drilling. Oil

and gas produced water and waste shall also include hydrogen sulfide

and carbon oxides emissions produced as a byproduct of natural gas

production. Except as provided in Section 86.8 of this title, oil

and gas produced water and waste, including its constituent

Oklahoma Statutes - Title 52. Oil and Gas Page 52

elements, shall not be considered brine for purposes of the Oklahoma

Brine Development Act;

5. “Operator” means the person authorized by the Corporation

Commission to drill, complete and operate a well for the intended

development and production of oil, gas or other hydrocarbons,

regardless of whether the well is completed or produces any;

6. “Person” means any individual, partnership, corporation,

limited liability company or any type of association;

7. “Recycled water” means oil and gas produced water and waste

that has been reconditioned or treated by mechanical, chemical,

thermal, or any other commercially viable technological processes

available into a reusable form; and

8. “Treated constituents” means any chemical, compound or other

byproduct naturally occurring in the subterranean water that is

removed from oil and gas produced water and waste through

reconditioning or treating of the fluid by mechanical, chemical,

thermal, or any other commercially viable technological processes

available.

B. The Legislature finds that oil and gas produced water and

waste has minimal or no intrinsic value without substantial

expenditures to process, treat or recycle the oil and gas produced

water and waste and declares it desirable, necessary and in the

public interest to designate the parties who shall own and be

responsible for the handling, transfer and disposition of the oil

and gas produced water and waste. The Legislature recognizes that

it has imposed upon the operator of an oil and gas lease a duty to

safely dispose of oil and gas produced water and waste, as defined

in the Oil and Gas Produced Water and Waste Recycling and Reuse Act.

It is further found to be in the public interest to foster,

encourage and promote the development of methods and means to

economically process, treat and recycle oil and gas produced water

and waste for beneficial uses, including the commercial extraction

of constituent elements from the oil and gas produced water and

waste and to ensure appropriate disposal in accordance with

Corporation Commission rules.

C. Prior to its extraction from the ground, subterranean water,

including its constituent elements, is the property of the owner of

the surface estate, as defined in paragraph 9 of Section 802 of this

title and shall be subject to the right of the mineral owner or the

oil and gas lessee of the mineral owner, or both, to extract the

subterranean water as part of the oil and gas produced water and

waste as is reasonably necessary for, or incident to, the

exploration, exploitation or extraction of hydrocarbons. Nothing

contained in the Oil and Gas Produced Water and Waste Recycling and

Reuse Act shall be construed to:

1. Prevent the owner of the surface estate from being

considered the brine owner, as defined by paragraph 5 of Section 502

Oklahoma Statutes - Title 52. Oil and Gas Page 53

of Title 17 of the Oklahoma Statutes, for purposes of Section 86.8

of this title or the Oklahoma Brine Development Act; or

2. Limit the ability of the owner or owners of the surface

estate to enter into any legally binding contract with persons for

the payment of money or other valuable consideration for the

extraction of subterranean water, including the constituent elements

contained therein, or brine, as defined in paragraph 4 of Section

502 of Title 17 of the Oklahoma Statutes, from the property of the

owner or owners. However, if said extraction of subterranean water

or brine is to be done as part of oil and gas operations, the

contract shall be entered into prior to the filing of the drilling

permit of the oil and/or gas well. If the contract is entered into

after the filing of the drilling permit of the oil and/or gas well,

the contract shall be with the operator, or with the consent of the

operator, any other person or persons. The operator shall not

withhold consent unreasonably. Any such contract and the use or

disposal of oil and gas produced water and waste, shall be subject

to the requirements and limitations set forth in Section 86.8 of

this title and subject to any and all applicable governmental laws,

rules and regulations and subordinate to any preexisting, legally

binding, arms-length contracts relating to the use or disposal of

oil and gas produced water and waste. Provided, however, that the

contracts shall not result in additional costs or delays to the

rights of the operator to extract subterranean water reasonably

necessary for, or incident to, the exploration, exploitation or

extraction of hydrocarbons. Evidence, in the form of an affidavit,

of any contract entered into under the terms of the Oil and Gas

Produced Water and Waste Recycling and Reuse Act may be filed in the

office of the county clerk for the county in which the lands

described in the contract are located. The affidavit shall set out

the names and address of each party to the contract, the legal

description of the lands covered by the contract and the effective

date of the contract. Once filed, the affidavit shall serve as

constructive notice of the contract under the Oil and Gas Produced

Water and Waste Recycling and Reuse Act.

D. 1. Subject to the requirements and limitations set forth in

subsection C of this section and Section 86.8 of this title and

unless otherwise provided by Corporation Commission order, an oil or

gas lease, brine lease, recycling agreement, surface use agreement,

contract, bill of sale or another legally binding document:

a. the operator or operators, and the nonoperator or

nonoperators, of an oil and/or gas well shall be the

owner or owners of the oil and gas produced water and

waste extracted from the ground through the borehole

of the oil or gas well, and

b. the operator or operators, and the nonoperator or

nonoperators, shall have the right to use, possess,

Oklahoma Statutes - Title 52. Oil and Gas Page 54

handle, dispose of, transfer, sell, convey, transport,

process, recycle, reuse or treat the produced water

and waste and shall also have the exclusive right to

obtain proceeds for any of the uses of the oil and gas

produced water and waste or some portion thereof,

including recycled water and treated constituents.

2. Subject to the requirements and limitations set forth in

subsection C of this section and Section 86.8 of this title and

unless otherwise provided by Corporation Commission order, oil or

gas lease, brine lease, recycling agreement, surface use agreement,

contract, bill of sale or another legally binding document, until

there is a transfer to another person, the operator or operators,

and the nonoperator or nonoperators, shall be responsible for the

use, disposition, transfer, sale, conveyance, transport, recycling,

reuse, treatment or disposal of the transferred oil and gas produced

water and waste, recycled water and treated constituents or any

other byproducts.

3. Subject to the requirements and limitations set forth in

subsection C of this section and Section 86.8 of this title and

unless otherwise provided by Corporation Commission order, an oil or

gas lease, brine lease, recycling agreement, surface use agreement,

contract, bill of sale or another legally binding document:

a. when oil and gas produced water and waste is

transferred to a person for the purpose of processing

or treating for subsequent beneficial use, disposal or

both, the transferred material, recycled water and

treated constituents shall be the property of that

person until such time that the person disposes of the

produced water and waste in accordance with Commission

rules or there is a transfer of the material to a

subsequent person, and

b. transferred oil and gas produced water and waste shall

be the property of such transferee and the transferees

shall have control of and responsibility for the

substance, including the right to use, possess,

handle, dispose of, transfer, sell, convey, transport,

process, recycle, reuse or treat the produced water

and waste and to obtain proceeds for any uses of the

substance or any portion thereof, including recycled

water and treated constituents.

E. Except as provided in paragraph 1 of subsection D of this

section, a person is not liable in tort for consequences of

subsequent use of recycled water or treated constituents if that

person:

1. Processes oil and gas produced water and waste in order to

produce recycled water or treated constituents that are generally

considered in the oil and gas industry to be suitable for use in

Oklahoma Statutes - Title 52. Oil and Gas Page 55

connection with drilling, completion or production operations of oil

and gas or both;

2. Transfers the recycled water or treated constituents, or

both, to another person for use in connection with oil and gas

drilling, completion or production operations; or

3. Captures or sequesters hydrogen sulfides and carbon oxides

in connection with natural gas production for the purpose of

protecting the environment.

This subsection shall not be construed to affect the liability

of a person in possession of oil and gas produced water and waste,

recycled water or treated constituents, or both, in an action

brought by a person for damages for personal injury, death or

property damage arising from a release of or exposure to any of

these substances.

F. A person who acquires possession of oil and gas produced

water and waste for the purpose of recycling it for subsequent

beneficial use may dispose of the oil and gas produced water and

waste, including recycled water, treated constituents or other

byproducts of the recycling process, in his or her permitted

disposal well or wells, regardless of the source or prior ownership

of the oil and gas produced water and waste. The disposal shall not

require a commercial disposal well permit from the Corporation

Commission but shall otherwise be subject to any other permit

restrictions applicable to disposal wells.
Okla. Stat. tit. 52, § 52-549.7 — OK Code / Title 52 / Section 52-549.7
Relative priority of oil and gas lien
Status: in_force

PRIORITY RELATIVE TO OTHER LIENS OR SECURITY INTERESTS

Except for a permitted lien, an oil and gas lien is a lien that

takes priority over any other lien, whether arising by contract,

law, equity or otherwise, or any security interest.
Okla. Stat. tit. 52, § 52-614 — OK Code / Title 52 / Section 52-614
Application of act
Status: in_force

This act shall apply to any transfer consummated after the

effective date of this act.
Okla. Stat. tit. 52, § 52-9 — OK Code / Title 52 / Section 52-9
Domestic pipeline companies - Erection of pumping stations
Status: in_force

All domestic gas pipeline corporations in this state are hereby

authorized to build and operate, and for that purpose to acquire,

whether by purchase or the exercise of eminent domain, sites for the

Oklahoma Statutes - Title 52. Oil and Gas Page 16

erection of pumping stations in this state wherever the same may be

necessary, due consideration being had for the size, capacity,

pressure, facilities and powers of all other gas pipeline

corporations and gas consumers and gas producers, in the same gas

district which may be affected by the use of said pumps.

R.L. 1910, § 4302.
Okla. Stat. tit. 52, § 52-149 — OK Code / Title 52 / Section 52-149
Conservation Division - Creation - Personnel - Duties -
Status: in_force

Qualifications.

Oklahoma Statutes - Title 52. Oil and Gas Page 109

There is hereby created within the Corporation Commission of

Oklahoma, herein called "Commission", a Conservation Division, the

duties and functions of which, subject to the supervision and

direction of the Commission, shall be to aid the Commission in the

administration and performance of the powers, duties and functions

of the Commission with respect to oil and gas conservation and the

prevention of pollution resulting from oil and gas production and

transportation. The Conservation Division so created shall consist

of the following personnel:

1. A Director of Conservation, who, in addition to the duties

and functions now or hereafter prescribed for such officer in this

title, shall have overall responsibility, supervision and direction

of the activities of the Conservation Division and the

administration and enforcement of the rules, regulations and orders

of the Commission relating to oil and gas conservation and the

prevention of pollution. The Director of Conservation shall be a

graduate of an accredited college or university with a Bachelor's

Degree and shall have five (5) years' experience in a supervisory

capacity in an administrative or personnel management position;

2. A Manager of Pollution Abatement, whose duties and functions

shall be to direct and supervise the activities of the Conservation

Division with respect to the prevention of pollution. The Manager

of Pollution Abatement shall be a graduate of an accredited college

or university with a Bachelor of Science Degree in petroleum, civil

or mechanical engineering, geology, environmental science or a

related field and shall have at least five (5) years' practical or

regulatory experience in the production of oil and gas, three (3)

years of which must have been in an administrative or supervisory

capacity;

3. A Manager of Field Operations, whose duties and functions

shall be to direct, supervise and coordinate the activities of the

district offices and all the field activities of the Conservation

Division with respect to both oil and gas conservation and the

prevention of pollution. The Manager of Field Operations shall be a

graduate of an accredited college or university with a Bachelor of

Science Degree in petroleum, civil or mechanical engineering,

geology, environmental science or a related field and at least five

(5) years' practical or regulatory experience in the production of

oil and gas, three (3) years of which must have been in an

administrative or supervisory capacity or an equivalent combination

of education and experience, substituting one (1) additional year of

qualifying experience for each year of the required degree;

4. A Deputy Director of Conservation, whose duties and

functions shall be the administrative management of the various

offices of the Conservation Division including, but not limited to,

office services and procedures, coordinating personnel

administration, processing of expense statements, budget preparation

Oklahoma Statutes - Title 52. Oil and Gas Page 110

and cost accounting, procurement and use of supplies, files,

records, and other professional and clerical services, computer

services, with other divisions of the Commission and providing

technical assistance as necessary. The Deputy Director of

Conservation shall be a graduate of an accredited college or

university with a Bachelor of Science Degree in petroleum, civil or

mechanical engineering, geology, environmental science or a related

field and shall have five (5) years' practical or regulatory

experience in the production of oil and gas, three (3) years of

which must have been in an administrative or supervisory capacity;

5. A Manager of Technical Services, whose duties and functions

shall be to direct, supervise and coordinate the technical

activities of the Conservation Division with respect to oil and gas

conservation, prevention of waste and prevention of pollution. The

Manager of Technical Services shall be a graduate of an accredited

college or university, with a Bachelor of Science Degree in

petroleum, civil or mechanical engineering, geology, environmental

science or a related field and at least five (5) years' practical or

regulatory experience in the production of oil and gas, three (3)

years of which must have been in an administrative or supervisory

capacity;

6. District Managers, whose duties and functions shall be to

supervise and direct the district offices and all field activities

of the Conservation Division, including both oil and gas

conservation and the prevention of pollution in the respective

districts to which they are assigned. A District Manager shall be a

graduate of an accredited college or university with a Bachelor of

Science Degree in petroleum, civil or mechanical engineering,

geology, environmental science or a related field and shall have

five (5) years' practical or regulatory experience in the production

of oil and gas, three (3) years of which must have been in an

administrative or supervisory capacity or an equivalent combination

of education and experience, substituting one (1) year of practical

or regulatory experience in the production of oil and gas for each

year of the required degree;

7. Assistant District Managers, whose duties and functions

shall be to supervise, direct and coordinate the activities of field

and office personnel and who shall be under the supervision of the

District Managers. An Assistant District Manager shall be a

graduate from an accredited college or university with a Bachelor of

Science degree in petroleum, civil or mechanical engineering,

geology, environmental science or related field and shall have four

(4) years' practical or regulatory experience in the production of

oil and gas, one (1) year of which must have been in a supervisory

capacity or an equivalent combination of education and experience,

substituting one (1) year of practical or regulatory experience in

the production of oil and gas for each year of the required degree;

Oklahoma Statutes - Title 52. Oil and Gas Page 111

8. Oil and Gas Field Inspectors, whose duties and functions,

subject to the direction and supervision of the Oil and Gas Field

Inspector Supervisor of the respective district to which they are

assigned, shall be to make inspections and investigations, witness

tests, and generally serve as enforcement officers and

representatives of the Commission in the administration and

enforcement of the rules, regulations and orders of the Commission

relating to both oil and gas conservation and the prevention of

pollution. An Oil and Gas Field Inspector shall have four (4)

years' practical experience in oil field production and drilling

operations;

9. Assistant Manager of Field Operations, who under the general

direction of the Manager of Field Operations, shall direct,

supervise and coordinate office personnel and the activities of the

district office and other field programs. An Assistant Manager of

Field Operations shall be a graduate of an accredited college or

university with a Bachelor of Science Degree in petroleum, civil or

mechanical engineering, geology, environmental science or related

fields and shall have five (5) years' practical or regulatory

experience in the production of oil and gas or an equivalent

combination of education and experience, substituting one (1) year

of practical or regulatory experience in the production of oil and

gas for each year of the required degree;

10. Oil and Gas Safety Specialist, who, under the general

direction of the Assistant District Manager of the respective

district to which they are assigned, shall be trained in Hydrogen

Sulfide Gas control and safety and in hazardous chemical detection

and shall investigate incidents of public safety concerns. An Oil

and Gas Safety Specialist shall have five (5) years' regulatory

experience in the production of oil and gas or a Bachelor of Science

Degree in Industrial Safety and one (1) year of regulatory

experience in the production of oil and gas;

11. Senior Field Inspector, who, under the general direction of

the Oil and Gas Field Inspector Supervisor of the respective

district to which they are assigned, shall perform detailed

inspections and investigations and provide expert testimony

concerning the enforcement of rules of the Corporation Commission.

A Senior Field Inspector shall have four (4) years' practical and

two (2) years' regulatory experience in the production of oil and

gas; and

12. Oil and Gas Inspector Supervisor, who, under the

supervision of the Assistant District Manager of the respective

district to which they are assigned, shall supervise and perform

field inspection activities related to tests, surveys and

investigations of oil and gas production, pollution control and

environmental protection. An Oil and Gas Inspector Supervisor shall

Oklahoma Statutes - Title 52. Oil and Gas Page 112

have four (4) years' practical and three (3) years' regulatory

experience in the production of oil and gas.

The employees of the Commission who at the effective date of

this act are holding positions or performing functions corresponding

to those herein prescribed but who do not have the qualifications

required by this act for such positions or functions shall not, for

that reason, be disqualified to continue in such positions or to

perform such functions, but at such time as there is a vacancy in

such position it shall be filled by an employee having the

qualifications herein prescribed.
Okla. Stat. tit. 52, § 52-148 — OK Code / Title 52 / Section 52-148
Court procedure
Status: in_force

The exercise of the rights of eminent domain shall be in the

same manner and by like proceedings as provided for railroad

corporations of this state, and all costs, fees and awards shall be

paid by the person instituting such action, and title to the rights-

of-way easements shall be taken in the name of such person.
Okla. Stat. tit. 52, § 52-395 — OK Code / Title 52 / Section 52-395
Mixing or blending
Status: in_force

It shall be unlawful for a person, firm or corporation to mix,

blend or compound, the liquid fuels, lubricating oils, greases or

similar products of any manufacturer or any distributor with the

products of any other manufacturer or distributor or to adulterate

the same and expose the same for sale, offer for sale or sell the

same under the trademark, trade name, name or other distinguishing

mark of either said manufacturer or distributor or as the

unadulterated product of such manufacturers or distributors;

provided, however, that nothing herein shall be construed to prevent

the lawful owner thereof from applying his or its own trademark,

trade name or symbols, to any product or material.

Added by 1933, c. 165, p. 382, § 5, emerg. eff. May 1, 1933.
Okla. Stat. tit. 52, § 52-46.3 — OK Code / Title 52 / Section 52-46.3
Eminent domain
Status: in_force

All companies authorized by the Oklahoma Corporation Commission

to operate under Section 1 of this act shall have and exercise the

right of eminent domain in the same manner and by like proceedings

as provided for railroad corporations by the laws of this state.
Okla. Stat. tit. 52, § 52-21 — OK Code / Title 52 / Section 52-21
Businesses and persons subject to act - Vested rights
Status: in_force

excepted.

Every corporation, joint-stock company, limited copartnership,

partnership or other person, now, or hereafter exercising or

claiming the right to carry or transport natural gas by or through

pipeline or lines, for hire, compensation or otherwise, or now or

hereafter exercising or claiming the right to engage in the business

of producing, piping or transporting natural gas, or any other

person or persons, now or hereafter engaging in the business of

buying, selling in or transporting natural gas within the limits of

this state, shall not have or possess the right to conduct or engage

in said business or operations, in whole or in part, as above

described, or have or possess the right to locate, maintain, or

operate the necessary pipelines, fixtures and equipment thereto

belonging, or use in connection therewith, concerning the said

business of carrying or transporting natural gas as aforesaid, on,

over, along, across, through, in or under any present or future

highway, or part thereof, within the state, or to have or possess

the right of eminent domain, or any other right or rights,

concerning said business or operation, in whole or in part, except

as authorized by and subject to the provisions of this act, except,

Oklahoma Statutes - Title 52. Oil and Gas Page 17

further, and only such right or rights as may already exist which

are valid, vested, and incapable of revocation by any law of this

state or of the United States.
Okla. Stat. tit. 52, § 52-61 — OK Code / Title 52 / Section 52-61
Eminent domain, who may have - Foreign corporations
Status: in_force

All persons, natural or artificial, except foreign corporations,

shall have the right of eminent domain, and any right or privilege

hereby conferred, when necessary to make effective the purposes of

Oklahoma Statutes - Title 52. Oil and Gas Page 46

this article and the rights thereby conferred. Foreign corporations

organized under the laws of any other state, or the United States,

and doing or proposing to do business in this state, and which shall

have become a body corporate pursuant to or in accordance with the

laws of this state, and which, as hereby provided, shall have

registered its acceptance of the terms hereof, shall receive all the

benefits provided by this article.

R.L. 1910, § 4313.
Okla. Stat. tit. 52, § 52-553 — OK Code / Title 52 / Section 52-553
Mineral Owner's Fund
Status: in_force

There is hereby created in the State Treasury the "Mineral

Owner's Fund" the principal of which shall constitute a trust fund

for persons claiming any interest in monies delivered to this state

under this act. The fund shall be invested and shall not be

expended except as provided in this act. All monies received under

this act shall be promptly deposited into the Mineral Owner's Fund.
Okla. Stat. tit. 52, § 52-523 — OK Code / Title 52 / Section 52-523
Negotiations by receiver - Deposit of funds - Discharge -
Status: in_force

Costs.

Oklahoma Statutes - Title 52. Oil and Gas Page 217

Such receiver shall proceed immediately to enter into

negotiations with prospective purchasers and shall sell an oil and

gas lease on the interest of the defendant or defendants, said lease

to be for a primary term of not to exceed five (5) years from date

and as long thereafter as oil and gas, or either of them, is

produced in paying quantities from said land by the lessee. Said

lease shall not be sold for less than the minimum bonus, rentals and

royalties specified in the order of the court. All monies paid to

the receiver shall be by him deposited in the registry of the court

for the use and benefit of the defendants and thereupon the court

shall immediately discharge such receiver, and any future payments

paid under said oil and gas lease shall be paid directly into the

registry of the court and held for the use and benefit of the

defendant or defendants. The cost of the receiver and the court

cost shall be affixed by the court and shall be paid by the

plaintiff.
Okla. Stat. tit. 52, § 52-420.9 — OK Code / Title 52 / Section 52-420.9
Specifications for commercial propane, butane and
Status: in_force

mixtures - Identification of vehicles - Motor carriers -

Transportation out of state - Retail deliveries.

A. All liquefied petroleum gases designated as commercial

propane, commercial butane or mixtures thereof, sold for consumption

in this state, shall, when subjected to the test methods of the GPA

Midstream Association, meet applicable specifications adopted as

tentative standards by the Association for the particular product

sold.

B. All vehicles used in hauling or transporting liquefied

petroleum gases upon the highways of this state shall be identified

in such manner as the Administrator may, by rule, prescribe.

C. The Department of Public Safety of the State of Oklahoma

shall cooperate with the Administrator in the enforcement of the

provisions of this section, and the rules promulgated thereunder.

D. Transport trucks transporting liquefied petroleum gases

intrastate which are owned or operated by a person subject to and

licensed by the Oklahoma Liquefied Petroleum Gas Regulation Act

shall not be required to obtain or possess an intrastate motor

carrier or private carrier license issued by the Oklahoma

Corporation Commission.

Oklahoma Statutes - Title 52. Oil and Gas Page 197

E. Containers shall be filled or used only upon authorization

of the fee simple owner. The name of the fee simple owner, if other

than the consumer, shall be conspicuously shown on the container.

F. At least one attendant shall remain close to the transfer

connection from the time the connections are first made until they

are finally disconnected, during the transfer of the product.

During the actual transfer of liquids into containers at domestic

type dwellings and installations, the attendant shall not enter into

any type of enclosure including but not limited to truck cabs,

dwellings and barns and shall maintain visual contact with the

liquid level gauge at all times.
Okla. Stat. tit. 52, § 52-245 — OK Code / Title 52 / Section 52-245
Mine Inspector - Duties unchanged
Status: in_force

Nothing contained in this act shall be construed to interfere

with any duties now imposed by law upon the Chief Mine Inspector of

the state or his deputies.
Okla. Stat. tit. 52, § 52-420.3 — OK Code / Title 52 / Section 52-420.3
Oklahoma Liquefied Petroleum Gas Board
Status: in_force

A. There is hereby re-created the Oklahoma Liquefied Petroleum

Gas Board, hereinafter sometimes referred to as "LP-Gas Board" or

"Board". The Board shall be composed of seven (7) members, one each

from the southeastern, northeastern, northwestern and southwestern

quarters of the state, one from central Oklahoma, and two from the

state at large. Each appointment shall be made by the Governor,

from a list of three or more nominees who have certified in writing

their willingness to serve, to be submitted to him by the persons,

firms or corporations required to be registered pursuant to the

provisions of Sections 420.1 through 420.15 of this title, or by

their representatives, and shall be subject to confirmation by the

Senate.

B. No person shall be appointed as a member of the Board unless

at the time of his or her appointment he or she has been a legal

resident of the State of Oklahoma for at least five (5) years

preceding the date of his or her appointment and, except for the two

members at large, shall have actively engaged in the retail

distribution of liquefied petroleum gas in Oklahoma for a period of

one (1) year, or more. One of the members at large shall be engaged

in and representative of the container and appliance phases of the

LPG business in Oklahoma, and the other shall have a general

familiarity with the regulatory problems of the industry and the

consuming public. Provided, however, that the appointment of such

public member shall not be subject to the aforementioned list which

is required to be submitted to the Governor. Members shall be

eligible for reappointment for successive terms, and shall be

Oklahoma Statutes - Title 52. Oil and Gas Page 185

removable for cause by the Governor. A member shall automatically

be disqualified to hold such office in event he or she ceases to be

a legal resident of the State of Oklahoma or ceases to be actively

engaged in the LPG business in Oklahoma.

C. Re-creation shall not alter existing membership or terms of

office. Members shall serve until their successors in office are

duly appointed and qualified. Initial appointments of those members

of the Board from the designated geographical areas of the state

shall be for terms ranging from one (1) to five (5) years, the

Governor to designate same, and the initial terms of office of the

members at large on the Board shall be for one (1) and two (2)

years, respectively, as designated by the Governor. Thereafter, the

terms of all members shall be for four (4) years. In the event of

the death, resignation, disqualification or incapacity of one or

more members of the Board, a recess appointment for the unexpired

term of each such member may be made by the Governor as hereinabove

provided. Members of the Board shall be entitled to be reimbursed

for necessary travel expenses as provided in the State Travel

Reimbursement Act.

D. The Board shall organize by electing one of its members as

chairman and one member as vice-chairman. The Board shall hold

regular meetings. The date, time and place of any regular meeting

shall be as designated by vote of the majority of the membership.

Four members of the Board shall constitute a quorum for all

purposes. The chairman or vice-chairman may, upon approval of a

majority of the members present and voting at any meeting, designate

the time, place and date of any scheduled special meeting, and the

chairman or vice-chairman shall have the power to call an

unscheduled special meeting of the Board upon not less than five (5)

days' notice in writing to each member thereof.

E. The standards for the storage and handling of liquefied

petroleum gases adopted by the National Fire Protection Association

and published in Pamphlet No. 58 including current and subsequent

editions and any subsequent changes and/or additions to the

pamphlet, and the standards for the installation of gas appliances

and gas piping adopted by the National Fire Protection Association

and published in Pamphlet No. 54 including the current and any

subsequent editions and any subsequent changes and/or additions to

the pamphlet shall be the accepted standards for this state. The

Board is hereby empowered and authorized, and it shall be its duty

to prescribe, adopt and promulgate, in the manner set forth in

Section 420.1 et seq. of this title, rules relating to safety in the

storage, distribution, dispensing, transporting and utilization of

LPG in this state and in the manufacture, fabrication, assembly,

sale, installation or use in this state of LPG systems, containers,

apparatus or appliances, and reasonable rules governing the issuance

of such permits and operations thereunder, and not inconsistent with

Oklahoma Statutes - Title 52. Oil and Gas Page 186

the Oklahoma Liquefied Petroleum Gas Regulation Act, as it shall

deem just and reasonable, and to revoke, amend or supersede such

supplementary rules.

F. The Administrator shall administer and enforce all rules

formulated and adopted by the Board and administer and enforce the

safety rules prescribed, adopted or promulgated by the Board under

and by virtue of the provisions of the Oklahoma Liquefied Petroleum

Gas Regulation Act, and incur all necessary expenditures in

effectuating the purposes of this subsection. The Administrator

shall serve as secretary to the Board, and shall be subject to

confirmation by the Senate.

G. Before any rules are revised, amended, adopted or

promulgated hereunder, the Administrator, acting on behalf of the

Board, shall give ten (10) days' notice to all Class I and Class II

permit holders under the Oklahoma Liquefied Petroleum Gas Regulation

Act, by mailing to the permit holders a written notice, signed by

the Administrator, on behalf of the Board, containing either a

statement of the terms or substance of the intended action, a

description of the subjects and issues involved, or an accurate copy

of the new, revised or amended rules which the Board proposes to

adopt and promulgate, stating the date, time and place of a public

hearing at which oral or written objections to such proposals shall

be heard and considered. Notice shall also be given as required by

the Administrative Procedures Act. Nothing in this subsection shall

prevent the furnishing of such other or additional notice as the

Board shall direct.

H. At any hearing held under this section, not less than a

quorum of the Board shall be present and shall preside; provided,

however, that by unanimous vote and resolution, the Board may

authorize the Administrator to preside at any or all such hearings,

and in such event no Board member need be present. After any such

hearing the Board may, by majority vote, adopt any proposed new,

revised or amended rules with such amendments and modifications

thereof as the the Board shall deem just and reasonable, and a

certificate reciting such adoption and the effective date thereof

shall be signed by the members comprising the majority of the Board.
Okla. Stat. tit. 52, § 52-24.4 — OK Code / Title 52 / Section 52-24.4
Definitions
Status: in_force

For the purposes of this act:

1. “Gathering” is the transportation of natural gas through a

pipeline for hire, compensation or otherwise, or transporting

natural gas through a pipeline, in whole or in part, for such

person’s own account, whether in connection with the purchase and

resale of natural gas, or in connection with the processing of

natural gas or otherwise, performed by a person other than a local

distribution company, intrastate transmission pipeline or interstate

pipeline. Gathering includes those activities or processes

performed between the delivery points and the redelivery points,

which shall include and be limited to only transportation,

measurement, conditioning, compressing, pressure regulation,

recompressing, cleaning and treating of such gas and the fuel or gas

loss associated with such foregoing activities. The terms

“conditioning, cleaning and treating” as used herein shall include

those processes of separation, dehydration, removal of all

contaminants and inerts and filtering. Gathering specifically shall

not include processing or the extraction of natural gas liquids and

products;

2. "Gatherer" shall mean any person who performs the activities

or processes defined as gathering;

3. "Person" shall mean any individual, corporation, firm,

partnership, master limited partnership, limited liability company,

association, venture, trust, institution, or federal, state, or

local governmental instrumentality, or any legal entity however

organized;

4. "Shipper" shall mean any person who owns or controls natural

gas that seeks or receives gathering service from a gatherer;

Oklahoma Statutes - Title 52. Oil and Gas Page 20

5. "Terms and conditions of service" shall include all factors

defining the obligations between the gatherer and shipper respecting

any gathering activities or process, including, but not limited to,

nominations, deductions for fuel, accounting for imbalances,

imbalance penalties, assessments, charges or makeup provisions,

costs, charges and fees for connection or maintaining connections,

duration of gathering service, location of receipt and delivery

points, quality specifications of natural gas, minimum and maximum

pressures, and measurement;

6. “Delivery point(s)” shall mean the point where the

possession or control of the gas stream transfers from a shipper to

a gatherer;

7. “Redelivery point(s)” shall mean the point at which the

gatherer relinquishes possession or control of the gas stream;

8. “Similarly situated shipper” shall mean any person so

designated by the Commission, after application and hearing, wherein

the Commission determines that such applicant should receive the

benefits and obligations specified in a previously issued Commission

order under this act. In determining whether a person is a

similarly situated shipper, the Commission shall consider all

relevant conditions and factors including those utilized in fixing

the fee or terms and conditions of service in the previous order.

Similarly situated shipper status shall be limited to applicant’s

interest in the well(s) covered by the previous order; and

9. “Spread fee” shall mean the monthly difference obtained by

subtracting the value received by the gatherer for the natural gas

liquids attributable to shipper from the value of the heating

content of the natural gas converted to natural gas liquids

attributable to the shipper, established by the cost of natural gas

purchased by the gatherer to specifically replace such heating

content or, if no actual purchases were made, by the value received

by gatherer for natural gas sold at the plant tailgate; provided,

however, in any month that the result of this calculation generates

a value of zero or less, there shall be deemed to be no spread fee.
Okla. Stat. tit. 52, § 52-144 — OK Code / Title 52 / Section 52-144
Provisions supplemental - Exceptions
Status: in_force

The provisions of this act shall not repeal, but are

supplemental to any and all other provisions of law having for their

purpose the prevention of the pollution of surface or subsurface

waters in this state; provided, however, the provisions of this act

and any order issued hereunder shall not be supplemental to Section

287.1 through Section 287.15 of this title, and nothing in this act

shall affect the operators' civil or criminal responsibility, or

authorize the creation or perpetuation, or a public or private

nuisance, and nothing in this act shall prevent the Department of

Wildlife Conservation from policing and patrolling the lakes and

Oklahoma Statutes - Title 52. Oil and Gas Page 108

streams of Oklahoma, and enforcing the provisions of Section 7-401

of Title 29 of the Oklahoma Statutes.
Okla. Stat. tit. 52, § 52-5.2 — OK Code / Title 52 / Section 52-5.2
Deposit of monies collected in Corporation Commission
Status: in_force

Revolving Fund.

All monies collected by the Corporation Commission under the

provisions of Section 1 et seq. of this title shall be deposited

with the State Treasurer to the credit of the Corporation Commission

Revolving Fund and shall be used to pay the compensation of the

personnel, expenses, supplies and equipment authorized by Section 5

of this title. Whenever any employee whose salary is payable from

the General Revenue or other funds also performs services under the

above act, his salary and expenses may be apportioned so that each

fund shall bear its proportionate part thereof as determined by the

Corporation Commission.
Okla. Stat. tit. 52, § 52-62 — OK Code / Title 52 / Section 52-62
Commission may extend time for filing plats
Status: in_force

Upon a sworn statement of the necessities which would justify a

judicial continuance, the Corporation Commission is authorized to

extend the time for the filing of the said plats, not, however, to

exceed sixty (60) days.

R.L. 1910, § 4314.
Okla. Stat. tit. 52, § 52-7 — OK Code / Title 52 / Section 52-7
Necessity of incorporation
Status: in_force

No person, firm or association or corporation shall ever be

permitted to transmit or transport natural gas by pipelines in this

state or in this state construct or operate a pipeline for the

transmission of natural gas, except such persons, firms,

associations, or corporations be incorporated as in this article

provided, except as provided in the preceding section.

R.L. 1910, § 4300.
Okla. Stat. tit. 52, § 52-272 — OK Code / Title 52 / Section 52-272
Production and sale regulated - Corporation Commission,
Status: in_force

authority of.

The taking of crude oil or petroleum from any oil-bearing sand

or sands in the State of Oklahoma at a time when there is not a

market demand therefor at the well at a price equivalent to the

actual value of such crude oil or petroleum is hereby prohibited,

and the actual value of such crude oil or petroleum at any time

shall be the average value as near as may be ascertained in the

United States at retail of the by-products of such crude oil or

petroleum when refined less the cost and a reasonable profit in the

business of transporting, refining and marketing the same, and the

Corporation Commission of this state is hereby invested with the

authority and power to investigate and determine from time to time

the actual value of such crude oil or petroleum by the standard

herein provided, and when so determined said Commission shall

promulgate its findings by its orders duly made and recorded, and

publish the same in some newspaper of general circulation in the

state.
Okla. Stat. tit. 52, § 52-103 — OK Code / Title 52 / Section 52-103
Contempt - Proceedings - How commenced - Complaint -
Status: in_force

Citation.

Proceedings as for contempt for disobedience or violation of the

provisions of this act or of the orders, rules, regulations and

judgments of the Commission made, issued and/or rendered under the

provisions of this act, may be commenced by the filing with the

Commission by (a) the Attorney General, or (b) the Proration

Attorney, or (c) the Proration Umpire, or (d) Assistant Proration

Umpire, or (e) by any producer of oil or taker in the state, of a

complaint which shall, when filed by any producer of oil or taker,

be verified upon information and belief. Said complaint by

whomsoever filed shall state, (a) the name of the person, firm,

trust, corporation, or association against whom the complaint is

made; (b) the order or orders, rule or rules, regulation or

regulations and judgment or judgments of the Commission, violation

of which is charged; (c) and briefly in general terms the acts or

omissions of the defendant constituting the violation of which

complaint is made. Any such complaint may charge against any

defendant one or more violations of the provisions of this act

and/or of any rule, order or regulation of the Commission made

hereunder; provided, that the acts or omissions of the defendant

constituting each violation charged shall be briefly stated in

general terms in separately numbered paragraphs or counts of such

complaint. Upon the filing of any such complaint the Secretary of

the Commission shall issue in the name of the state by him as

Secretary of the Commission, addressed to the defendant or

defendants, a citation to the defendant or defendants in said

complaint, to which shall be attached a copy of said complaint. Said

citation shall state (a) the date on which and by whom said

complaint was filed and the name of the complainant, (b) a brief

general description of the nature of the complaint, (c) a reference

to copy of the complaint which shall be attached to said notice,

(d) the date on which said complaint is set for hearing, which shall

not be earlier than ten (10) days from the date of such citation,

and (e) a statement that unless the defendant shall on or before

said date for hearing file his or its pleadings to such complaints,

allegations and charges therein contained, the same shall be taken

as confessed. Service of said citation in such proceedings for

contempt shall be had and return thereof made as hereinafter

provided.
Okla. Stat. tit. 52, § 52-204 — OK Code / Title 52 / Section 52-204
Terms and provisions of compact
Status: in_force

An Interstate Compact to Conserve

Oil and Gas

ARTICLE I.

This agreement may become effective within any compacting state

at any time as prescribed by that state, and shall become effective

within those states ratifying it whenever any three of the states of

Texas, Oklahoma, California, Kansas, and New Mexico have ratified

and Congress has given its consent. Any oil-producing state may

become a party hereto as hereinafter provided.

ARTICLE II.

The purpose of this Compact is to conserve oil and gas by the

prevention of physical waste thereof from any cause.

ARTICLE III.

Each state bound hereby agrees that within a reasonable time it

will enact laws, or if laws have been enacted, then it agrees to

continue the same in force, to accomplish within reasonable limits

the prevention of:

(a) The operation of any oil well with an inefficient gas-oil

ratio.

Oklahoma Statutes - Title 52. Oil and Gas Page 116

(b) The drowning with water of any stratum capable of producing

oil or gas, or both oil and gas, in paying quantities.

(c) The avoidable escape into the open air or the wasteful

burning of gas from a natural gas well.

(d) The creation of unnecessary fire hazards.

(e) The drilling, equipping, locating, spacing or operating of a

well or wells so as to bring about physical waste of oil or gas or

loss in the ultimate recovery thereof.

(f) The inefficient, excessive or improper use of the reservoir

energy in producing any well.

The enumeration of the foregoing subjects shall not limit the

scope of the authority of any state.

ARTICLE IV.

Each state bound hereby agrees that it will, within a reasonable

time, enact statutes, or if such statutes have been enacted then

that it will continue the same in force, providing in effect that

oil produced in violation of its valid oil and/or gas conservation

statutes or any valid rule, order or regulation promulgated

thereunder, shall be denied access to commerce; and providing for

stringent penalties for the waste of either oil or gas.

ARTICLE V.

It is not the purpose of this Compact to authorize the states

joining herein to limit the production of oil or gas for the purpose

of stabilizing or fixing the price thereof, or create or perpetuate

monopoly, or to promote regimentation, but is limited to the purpose

of conserving oil and gas and preventing the avoidable waste thereof

within reasonable limitations.

ARTICLE VI.

Each state joining herein shall appoint one representative to a

commission hereby constituted and designated as THE INTERSTATE OIL

COMPACT COMMISSION, the duty of which said Commission shall be to

make inquiry and ascertain from time to time such methods,

practices, circumstances and conditions as may be disclosed for

bringing about conservation and the prevention of physical waste of

oil and gas, and at such intervals as said Commission deems

beneficial it shall report its findings and recommendations to the

several states for adoption or rejection.

The Commission shall have power to recommend the coordination of

the exercise of the police powers of the several states within their

several jurisdictions to promote the maximum ultimate recovery from

the petroleum reserves of said states, and to recommend measures for

the maximum ultimate recovery of oil and gas. Said Commission shall

organize and adopt suitable rules and regulations for the conduct of

its business.

No action shall be taken by the Commission except: (1) by the

affirmative votes of the majority of the whole number of the

compacting states, represented at any meeting, and (2) by a

Oklahoma Statutes - Title 52. Oil and Gas Page 117

concurring vote of a majority in interest of the compacting states

at said meeting, such interest to be determined as follows: Such

vote of each state shall be in the decimal proportion fixed by the

ratio of its daily average production during the preceding calendar

half-year to the daily average production of the compacting states

during said period.

ARTICLE VII.

No state by joining herein shall become financially obligated to

any other state, nor shall the breach of the terms hereof by any

state subject such state to financial responsibility to the other

states joining herein.

ARTICLE VIII.

This Compact shall expire September 1, 1937. But any state

joining herein may, upon sixty (60) days' notice, withdraw herefrom.

The representatives of the signatory states have signed this

agreement in a single original which shall be deposited in the

archives of the Department of State of the United States, and a duly

certified copy shall be forwarded to the Governer of each of the

signatory states.

This compact shall become effective when ratified and approved

as provided in Article I. Any oil-producing state may become a

party hereto by affixing its signature to a counterpart to be

similarly deposited, certified and ratified.

Done in the City of Dallas, Texas, this sixteenth day of

February, 1935.

E. W. MARLAND

THE GOVERNOR OF THE STATE OF OKLAHOMA

JAMES V. ALLRED

THE GOVERNOR OF THE STATE OF TEXAS

R. L. PATTERSON

FOR THE STATE OF CALIFORNIA

FRANK VESELY

E. H. WELLS

HUGH BURCH

HIRAM M. DOW

FOR THE STATE OF NEW MEXICO

The following representatives recommend to their respective

Governors and Legislatures the ratification of the foregoing

agreement:

JOHN W. OLVEY

OF ARKANSAS

WARWICK M. DOWNING

OF COLORADO

WILLIAM BELL

OF ILLINOIS

GORDON F. VAN EENANAAM

GERALD COTTER

Oklahoma Statutes - Title 52. Oil and Gas Page 118

OF MICHIGAN

RALPH J. PRYOR

E. B. SHAWVER

T. C. JOHNSON

OF KANSAS.
Okla. Stat. tit. 52, § 52-238 — OK Code / Title 52 / Section 52-238
Conservation of gas
Status: in_force

Whenever natural gas in commercial quantities, or a gas-bearing

stratum, known to contain natural gas in such quantity, is

encountered in any well drilled for oil or gas in this state, such

gas shall be confined to its original stratum until such time as the

same can be produced and utilized without waste, and all such strata

shall be adequately protected from infiltrating waters. Any

unrestricted flow of natural gas in excess of two million

(2,000,000) cubic feet per twenty-four (24) hours shall be

considered a commercial quantity thereof; provided, that if in the

opinion of the Corporation Commission, gas of a lesser quantity

shall be of commercial value, said Commission shall have authority

to require the conservation of said gas in accordance with the

provisions of this act; and provided, further, the gauge of the

capacity of any gas well shall not be taken until such well has been

allowed an open flow for the period of three (3) days.
Okla. Stat. tit. 52, § 52-235 — OK Code / Title 52 / Section 52-235
Misappropriation of gas - Felony of grand larceny
Status: in_force

Any person or agent of a corporation, who takes gas, or aids or

abets in the taking of gas, except as herein provided, either

directly or indirectly, as an individual, officer, agent, or

employee of any corporation, shall be guilty of the Class D1 felony

offense of grand larceny, and, upon conviction thereof, shall be

sentenced as provided for in subsections B through F of Section 20N

of Title 21 of the Oklahoma Statutes.
Okla. Stat. tit. 52, § 52-296 — OK Code / Title 52 / Section 52-296
Refuse from wells - Disposition
Status: in_force

No inflammable product from any oil or gas well shall be

permitted to run into any tank, pool or stream used for watering

stock; and all waste of oil and refuse from tanks or wells shall be

drained into proper receptacles at a safe distance from the tanks,

wells or buildings, and be immediately burned or transported from

the premises, and in no case shall it be permitted to flow over the

land. Salt water shall not be allowed to flow over the surface of

the land.
Okla. Stat. tit. 52, § 52-420.4 — OK Code / Title 52 / Section 52-420.4
Registration permits - Fees - Insurance requirements
Status: in_force

A. No person, firm or corporation shall manufacture, fabricate,

assemble or install in this state any system, container, apparatus

or appliance used or to be used in this state in or for the

transportation, storage, dispensing or utilization of LPG, nor shall

any transporter, distributor or retailer of LPG store, dispense or

transport over the highways of this state any LPG intended for use

in this state in any such system, container, apparatus or appliance,

without having first applied for and obtained a registration permit

to do so. A permit shall not be required by any person, firm or

corporation engaged in the production or manufacture of LPG, or

selling or reselling LPG to transporters, gas processors,

distributors or retailers, nor by any person, firm or corporation

selling or delivering motor vehicles or tractors which are factory

equipped with an LPG system, container, apparatus or appliance for

the utilization of LPG as motor fuel. The provisions of this

section shall not prevent an individual from installing in his or

her own single-unit residence any system, container, apparatus or

appliance which uses or will utilize LPG, provided that such

individual has secured an inspection of the installation by the

Administrator or someone designated by the Administrator or by a

person duly licensed to make such an installation prior to the use

of the system, container, apparatus or appliance. Applications for

Oklahoma Statutes - Title 52. Oil and Gas Page 188

registration permits shall be in writing, on a form provided by the

Board, and shall contain such pertinent information as is required

by the Board. Upon approval of each application and receipt of the

certificates of insurance or securities required by the provisions

of this section, the Administrator shall issue to the applicant a

permit to engage in the phase of the LPG industry in this state to

which such permit applies. No permit other than the Class I Dealer

Permit shall be transferable. The Board is authorized to establish

a fee for the transfer of a Class I Permit. Nothing in Sections

420.1 through 420.15 of this title shall be construed to regulate

the manufacturing, fabrication, assembling, selling or installing of

any system, container, apparatus or appliance having a fuel

container with a maximum individual water capacity of less than two

and one-half (2 1/2) pounds.

B. 1. The Board is authorized to establish an annual permit

fee for the issuance of each class of permit listed in subsection C

of this section.

2. All such registration permits shall expire annually with no

permit extending longer than one (1) calendar year. The expiration

dates shall be set by the Board in the rules. The Administrator may

issue a semiannual permit to applicants engaging in the business

within six (6) months or less of the annual renewal date. A

semiannual permit shall expire on the following annual expiration

date. The fee for a semiannual permit shall be one-half (1/2) that

of the fee of the annual permit. All registration permits required

pursuant to the provisions of this section shall be renewed upon

payment of the annual fees on or before the expiration of the

registration permit, and upon fulfilling all insurance requirements.

The Board is authorized to establish necessary penalty provisions

required to ensure prompt payment of the annual fees.

3. The Board is authorized to establish specifications which

set forth the scope of authority for each class of permits.

4. The Board is authorized to establish an initial permit fee

for the issuance of Class I and Class II permits to any person, firm

or corporation for the first time.

C. Persons, firms and corporations required to be registered

pursuant to the provisions of Sections 420.1 through 420.15 of this

title, at the time of issuance of each permit, shall pay to the

Administrator the initial permit fee, if applicable, and any annual

fee that is applicable to the following permit classes:

1. Class I - Dealer Permit;

2. Class II - Truck Transporter Permit;

3. Class III - DOT Cylinder Transporter Permit;

4. Class IV - Installer Permit;

5. Class IV-D - Driver/Installer Permit;

6. Class VI - DOT Cylinder and/or LPG Motor Fuel Station;

7. Class VI-A - LPG Dispensing Permit;

Oklahoma Statutes - Title 52. Oil and Gas Page 189

8. Class VII - Cylinder Exchange Program Permit;

9. Class VIII – Unodorized LPG Permit;

10. Class IX - LPG Container Sales Permit;

11. Class IX-A - Manufactured Homes and Recreation Sales

Permit; and

12. Class X - Manager's Permit.

D. 1. Each person, firm or corporation holding a permit

authorizing the use of an LPG bulk delivery truck or trailer shall

owe at the time of inspection an annual inspection fee in an amount

as established by the Board for each delivery truck or trailer

belonging to the person, firm or corporation. Each person, firm or

corporation who does not hold a permit issued by the Board

authorizing the use of an LPG bulk delivery truck or trailer in the

state shall pay an annual inspection fee in an amount as established

by the Board for each such truck or trailer belonging to person,

firm or corporation being used to dispense or transport LPG in the

state.

2. The inspection fee shall increase to an amount established

by the Board per vehicle if the inspection is not completed within

sixty (60) days of the expiration date, or at a later date at the

discretion of the Administrator.

E. Any LPG bulk delivery truck or trailer failing to be

approved at its annual inspection shall be assessed a fee in an

amount as established by the Board at the time that it is

reinspected.

F. The fees provided for in this section shall be applicable to

residents and nonresidents of Oklahoma.

G. The Board is authorized to approve or disapprove

applications for registration permits to distributors and retailers

of LPG and managers of LPG establishments. The Administrator is

authorized to approve or disapprove all other applications for

registration permits that may be issued pursuant to the provisions

of this section.

1. No application shall be approved by the Administrator unless

the Administrator is satisfied that the applicant by written

examination has shown a working knowledge of the safety requirements

provided by the rules of the Board.

2. No application shall be approved by the Board unless the

Board is satisfied by adequate written examination of the applicant,

or the individual who is or shall be directly responsible for

actively supervising the operations of such applicant which is a

partnership, firm or corporation, that the applicant or such

individual has a working knowledge of the safety requirements

provided by the rules of the Board. The Board shall cause to be

held public hearings in the months of January, April, July and

October of each year on all applications for new registration

permits required by the provisions of this section, or upon such

Oklahoma Statutes - Title 52. Oil and Gas Page 190

other occasions as the Board may deem necessary. Notice of each

hearing shall be mailed to each such applicant and shall be posted

in a conspicuous place in the Office of the Administrator in

Oklahoma City, Oklahoma, at least thirty (30) days prior to the date

of the hearing. The notice shall include the name, address, permit

class and business location of each applicant whose application is

to be considered at the hearing. The applicant, or the individual

who is or shall be directly responsible for and actively supervising

the operations of the applicant, may be present at the hearing. If,

after the public hearing, an applicant is found by the Board to have

a working knowledge of the safety requirements provided by the rules

and regulations of the Board, the Board shall cause an order to that

effect to be entered upon its records and the application shall be

approved. In the event an applicant fails to qualify, the fact

shall be entered upon the Board's records.

3. The Board shall charge a fee, in an amount established by

the Board, for testing materials and the expense of holding the

examinations provided for in this section. The fee shall be paid

upon filing an application for any permit.

H. A registration permit shall not be issued to any applicant

unless the Administrator has received certificates of insurance or

security as required by this section.

I. Except as otherwise provided for in this section, all

persons, firms or corporations engaged in the business of

manufacturing, fabricating, assembling or installing any LPG system,

container, apparatus or appliance in this state, and required to be

registered pursuant to the provisions of Sections 420.1 through

420.15 of this title, shall file with the Administrator a

certificate indicating liability insurance coverage for the

manufacturer and contractor. The Board is authorized to establish

coverage amounts for each class of permit, provided coverage shall

be for an amount of not less than Twenty-five Thousand Dollars

($25,000.00) to Fifty Thousand Dollars ($50,000.00) for bodily

injury and limits of not less than Twenty-five Thousand Dollars

($25,000.00) for property damage, and shall be in full force and

effect, covering the plant, equipment and motor vehicles used in

such business, and the operations of the business.

J. Except as otherwise provided for in this section, all

transporters, distributors, or retailers of LPG in this state,

required to be registered pursuant to Sections 420.1 through 420.15

of this title, shall file with the Administrator a certificate

indicating that public liability and property damage insurance

coverage has been issued. The Board is authorized to establish

coverage amounts for each class of permit, provided coverage shall

be for an amount of not less than Twenty-five Thousand Dollars

($25,000.00) to Fifty Thousand Dollars ($50,000.00) for bodily

injury and limits of not less than Twenty-five Thousand Dollars

Oklahoma Statutes - Title 52. Oil and Gas Page 191

($25,000.00) for property damage has been issued, and is in full

force and effect, covering the plant, equipment, and motor vehicles

used in such business, and the operations of the business.

K. Insurance pursuant to the provisions of this section shall

be maintained in full force and effect during the operation of the

business for which the coverage was issued. Except as otherwise

provided for in this section, or in administrative rules promulgated

by the Board, no registration permit shall be issued until the

certificate is filed with the Administrator. No insurance coverage

shall be canceled or terminated without thirty (30) days prior

written notice of cancellation or termination to the Administrator.

L. The Board is authorized, upon proof of or a satisfactory

showing that any person, firm or corporation is financially able to

pay or satisfy any judgment, claim or demand against the person,

firm or corporation, to waive the insurance coverage required by

this section. The Board, in lieu of the certificate, may require

the deposit, with the Administrator, of securities, or satisfactory

indemnity bond, in an amount and of a kind designated by the Board,

to secure the liability of such person, firm or corporation to pay

any judgment, claim or demand. The security shall not be in excess

of the limits set forth in this section. If the Board deems the

financial status of such person, firm or corporation to be impaired

so as to reduce the ability of such person, firm or corporation to

make payment or to satisfy any judgment, claim or demand, the Board

may revoke the waiver and require the person, firm or corporation to

file certificates required by this section within thirty (30) days

after written notice is sent by the Board to the person, firm or

corporation.
Okla. Stat. tit. 52, § 52-570.11 — OK Code / Title 52 / Section 52-570.11
Division orders
Status: in_force

A division order is an instrument for the purpose of directing

the distribution of proceeds from the sale of oil, gas, casinghead

gas or other related hydrocarbons which warrants in writing the

division of interest and the name, address and tax identification

number of each interest owner with a provision requiring notice of

change of ownership. A division order is executed to enable the

first purchaser of the production or holder of proceeds to make

remittance of proceeds directly to the owners legally entitled

thereto and does not relieve the lessee of any liabilities or

obligations under the oil and gas lease. Terms of a division order

which conflict with the terms of any oil and gas lease are invalid,

unless previously agreed to by the affected parties. This

subsection shall only apply to division orders executed on or after

July 1, 1989.
Okla. Stat. tit. 52, § 52-29 — OK Code / Title 52 / Section 52-29
Production levels of gas wells - Rulemaking - Hardship
Status: in_force

wells - Field rules.

A. Every corporation, joint stock company, limited

copartnership, partnership or other person now or hereafter claiming

or exercising the right to produce natural gas within the limits of

this state, as owner, lessee, licensee, or by virtue of any other

right or claim is hereby prohibited from producing from any gas well

an amount in excess of that prescribed by the Oklahoma Corporation

Commission.

B. Except as otherwise provided in this section, the

Corporation Commission shall have the power and authority to

promulgate production rules from time to time for all natural gas

wells producing within this state, or for such categories of natural

gas wells producing within this state as the Commission may deem

appropriate, establishing levels of production upon a finding that

the levels of production so established will be sufficient to

prevent waste as the same is defined in Section 86.3 of this title

and will protect the interests of the public against production of

the natural gas reserves underlying this state in amounts in excess

of the reasonable market demand therefor.

C. For thirty (30) months from the date of first production, a

discovery gas well, as defined in this subsection, subject to the

provisions of this section, shall have a production allowable which

shall be the greater of one thousand three hundred (1,300) MCFD or

sixty-five percent (65%) of the absolute open flow (AOF) as

specified by the Corporation Commission. Such discovery well

allowable shall not be available for any discovery gas well wherein

two (2) or more separate common sources of supply are commingled and

one (1) common source of supply would not qualify a new gas well as

a discovery gas well, as defined in this section.

Oklahoma Statutes - Title 52. Oil and Gas Page 29

Drilling and spacing units which are downspaced after June 1,

1997, shall not qualify for the discovery gas well allowable.

For purposes of this subsection, "discovery gas well" shall mean

a new gas well, which is not an off-pattern well, which is the first

well completed in a common source of supply within a drilling and

spacing unit and is at least one (1) mile from all existing gas

wells which are completed in the same common source of supply. In

the absence of spacing, a discovery well shall be the first well in

the governmental section completed in a common source of supply,

provided that the discovery gas well shall not be drilled closer

than one thousand three hundred twenty (1,320) feet from the

boundaries of the governmental section and is at least one (1) mile

from all existing gas wells which are completed in the same common

source of supply.

Allowables shall not apply, regardless of unit size, in the

instance of production of gas by reservoir dewatering to extract

said gas from reservoirs having initial water saturations at or

above fifty percent (50%).

D. The authority granted to the Corporation Commission by this

section is in addition to that provided for in Section 239 of this

title.

E. The Corporation Commission may, for good cause shown under

the exigencies of a particular case and after appropriate notice and

hearing, establish a production level different from the levels

provided by this section or established by rule promulgated by the

Corporation Commission.

F. Production rules promulgated by the Corporation Commission

pursuant to the authority granted in subsection B of this section

shall be promulgated pursuant to Article I of the Administrative

Procedures Act, Sections 250.3 through 308.2 of Title 75 of the

Oklahoma Statutes, including the provisions contained therein

prescribing the required notice and hearing for rulemaking.

G. The provisions of subsection A of this section and

production rules promulgated by the Corporation Commission pursuant

to subsection B of this section shall not supersede or invalidate

the provisions of any rule or order of the Corporation Commission

establishing production levels for natural gas from a well which has

been expressly authorized by Corporation Commission order to produce

at a specified rate applicable only to that well where the basis for

the rate established is based upon a determination by the

Corporation Commission that reasonable cause exists to expect that

production below the rate would damage the well and cause waste, a

so-called "hardship well", or establishing field rules under Section

239 of this title governing the taking of gas from a specified

common source of supply or field.
Okla. Stat. tit. 52, § 52-51 — OK Code / Title 52 / Section 52-51
Oil companies must comply with statute - "Petroleum"
Status: in_force

defined.

Every corporation, joint stock company, partnership or other

person, exercising or claiming the right to carry or transport crude

oil or petroleum, or any of the products thereof, by or through

pipelines, for hire or otherwise, or exercising or claiming the

right to engage in the business of producing crude oil or petroleum,

or of refining it, or manufacturing any of the products thereof, or

of storing crude oil or petroleum produced by it, or any other

person, or engaging in the business of buying, selling or dealing in

crude oil or petroleum, within the limits of this state, shall not

have or possess the right to conduct or engage in said business or

operation, in whole or in part, as above described, or have or

possess the right to locate, maintain, or operate the necessary

pipelines, fixtures and equipment thereunto belonging, or used in

connection therewith, concerning the said business of carrying or

transporting crude oil or petroleum as aforesaid, on, over, along,

across, through, in or under any present or future highway, or part

thereof, within this state, or have or possess the right of eminent

domain, or any other rights, concerning said business or operations,

in whole or in part, except as authorized by and subject to the

provisions of this article, and except such rights as may already

exist which are valid, vested, and incapable of revocation by any

law of this state or of the United States. The word "petroleum" as

used herein means all crude oil and its manufactured products, not

including natural gas.

R.L. 1910, § 4304.
Okla. Stat. tit. 52, § 52-526 — OK Code / Title 52 / Section 52-526
Irrigation pumps - Providing natural gas - Price -
Status: in_force

Installation of lines - Cessation of delivery.

Subject to prior contractual rights, every person, firm or

corporation owning or operating a natural gas gathering pipeline

located on lands in a proven natural gas field, shall furnish to

owners or operators of natural gas engines used for pumping

irrigation water on such lands and to these same owners or operators

of irrigation wells, if requested to do so, natural gas for the

operation of engines used for pumping irrigation water. The price

charged to the owner or operator of such irrigation wells shall not

be more than twenty-five percent (25%) above the prevailing wellhead

price. The owners or operators of such gathering line shall make

connection and furnish the gas meter, but all costs of installation,

including this cost of the gas meter, shall be borne by the owner or

operator of such irrigation well. Provided, however, that the owner

or operator of the pipeline may cease deliveries of gas upon fifteen

(15) days' written notice if the person requesting delivery fails to

make payments for delivered gas within forty-five (45) days after

billing is made by the owner or operator. The owner or operator

shall be permitted a reasonable surcharge for the cost of meter

maintenance, determination of volumes, accounting and other

operational costs incurred by the owner and operator in connection

with the furnishing of the gas.
Okla. Stat. tit. 52, § 52-287.1 — OK Code / Title 52 / Section 52-287.1
Legislative finding
Status: in_force

The Legislature finds and determines that it is desirable and

necessary, under the circumstances and for the purposes hereinafter

set out, to authorize and provide for unitized management, operation

and further development of the oil and gas properties to which this

act is applicable, to the end that a greater ultimate recovery of

oil and gas may be had therefrom, waste prevented, and the

correlative rights of the owners in a fuller and more beneficial

enjoyment of the oil and gas rights, protected.
Okla. Stat. tit. 52, § 52-96 — OK Code / Title 52 / Section 52-96
Verification of reports, statements, maps and drawings
Status: in_force

When by an order, rule or regulation of the Commission made in

pursuance of this act, any report, statement, map or drawing duly

verified, is required to be filed with the Commission or any other

officer, by any firm, trust, association or corporation, such

Oklahoma Statutes - Title 52. Oil and Gas Page 82

report, statement, map or drawing shall be verified by (a) such

member, agent or employee of such firm, trust or association, and

(b) such officer or officers, agent or employee of such corporation

as shall be provided or required by order, rule or regulation of the

Commission.
Okla. Stat. tit. 52, § 52-149.3 — OK Code / Title 52 / Section 52-149.3
Teleconference hearings
Status: in_force

The Corporation Commission shall establish and maintain a system

providing telephonic capability for hearing of matters assigned to

the conservation docket so that testimony at unprotested hearings

may be offered by telephone and parties and witnesses need not be

present in the courtroom. Where hearings are protested, testimony

may also be offered by telephone with the consent of all parties and

the administrative law judge assigned to hear the case. The cost of

telephonic communication shall be paid by the person or persons

requesting its use. The Commission shall promulgate rules

implementing the provisions of this section.
Okla. Stat. tit. 52, § 52-420.7 — OK Code / Title 52 / Section 52-420.7
Inspections - Proving metering systems - Display of
Status: in_force

permit - Complaints and arrests - Condemnation of systems and

appliances - Duties of Attorney General.

A. It shall be the duty of the Administrator to inspect, or to

provide for the inspection of, any LPG systems, containers,

apparatus, or appliances installed in this state, and any LPG bulk-

delivery trucks or trailers used in this state, whenever in the

discretion of the Administrator, any deputy, or any safety code

enforcement officer such inspection is necessary to effectuate the

purposes of this act. The Administrator and any deputy or safety

code enforcement officer are hereby severally empowered and

authorized to enter upon any premises where any such installation is

being or has been made to conduct such inspection.

B. The Administrator, under the direction of the Board, shall

require proving of metering system to determine the accuracy to be

within the manufacturer's tolerance not to exceed plus or minus one

percent (1%) at any time. The LPG liquid meter system shall be

designed and constructed to provide for applying lead-and-wire seals

in such a manner that no modifications or adjustments which would

affect the accuracy of deliveries, can be made without mutilating

the seal or seals.

Oklahoma Statutes - Title 52. Oil and Gas Page 195

C. Every person to whom the Board or the Administrator issues a

registration permit as herein provided shall have immediate

possession of the permit at all times when engaged in that phase of

the LPG business for which the same was issued and shall display the

same upon demand of the Administrator, the chief deputy

administrator, or any deputy administrator or safety code

enforcement officer.

D. The Administrator and the chief deputy administrator, and

such deputies and safety code enforcement officers as the

Administrator shall by appropriate written commission appoint, shall

have all of the powers and authority of peace officers of this state

in making arrests for violations of this act or the safety rules

promulgated thereunder, or in serving any process, notice or order

connected with the enforcement of this act issued by the

Administrator.

E. The Administrator, the chief deputy administrator and any

deputy administrator or safety code enforcement officer are hereby

empowered and authorized to sign complaints against and to cause the

arrest of any person charged with a violation or violations of this

act or the safety rules promulgated thereunder. In the event the

district attorney fails or refuses to draw or endorse any complaint

submitted to the district attorney and the complainant, whether it

be the Administrator, the chief deputy administrator or any deputy

administrator or safety code enforcement officer, desires to secure

prosecution of the complaint, then and in that event any court of

competent jurisdiction shall be authorized to issue a warrant for

the arrest of the person charged in the complaint and the

complainant shall not be required to file with the court the bond

provided to be filed with and approved by the court in Sections 231

through 233 of Title 22 of the Oklahoma Statutes.

F. The Administrator and any deputy or safety code enforcement

officer are hereby severally empowered and authorized to condemn any

liquefied petroleum gas system, container, apparatus or appliance in

this state not manufactured, fabricated, assembled or installed in

accordance with the safety rules adopted or promulgated under this

act, and shall have the authority to forbid the use of any such

system, container, apparatus or appliance unless and until the same

have been made to comply in all respects with such safety rules.

G. The Administrator is hereby empowered and authorized to

inspect or cause the inspection of the records of any person, firm

or corporation pertaining to the installation by such person, firm

or corporation of liquefied petroleum gas systems, containers,

apparatus or appliances in this state.

H. The Attorney General of the State of Oklahoma shall appear

and represent the Administrator and the Board and members thereof,

or any of them, in all litigation or other proceedings that may

arise in the discharge of duties and shall, at the request of the

Oklahoma Statutes - Title 52. Oil and Gas Page 196

Administrator, assist the district attorney in prosecuting charges

of violations of this act.
Okla. Stat. tit. 52, § 52-608 — OK Code / Title 52 / Section 52-608
Hearing relating to act or enforcement - Entities that may
Status: in_force

initiate - Jurisdiction - Time and place - Notice.

Any transferee, transferor, the Attorney General on behalf of

the state, or the Commission on its own motion may institute

proceedings or apply for a hearing before the Commission upon any

question relating to this act or its enforcement. Jurisdiction is

hereby conferred upon the Commission to hear and determine the same.

Oklahoma Statutes - Title 52. Oil and Gas Page 262

The Commission shall set a time and place when and where the hearing

shall be had and give reasonable notice to all interested persons or

classes by publication in a newspaper or newspapers having general

circulation in the state, and in addition, shall serve reasonable

notice in writing to any person complained against.Oklahoma Statutes - Title 52. Oil and Gas Page 12
Okla. Stat. tit. 52, § 52-581.10 — OK Code / Title 52 / Section 52-581.10
Enforcement powers of Corporation Commission - Promulgation of rules -
Status: in_force

Administration fees - Judicial remedies - Costs and expenses - Statute of limitations - Jurisdiction ofPromulgation of rules - Administration fees - Judicial remedies -

Costs and expenses - Statute of limitations - Jurisdiction of

district courts.

A. The Corporation Commission is herein empowered to promulgate

rules by which the purpose of the Natural Gas Market Sharing Act

shall be administered, including the power to establish and enforce

penalties for violations thereof. The Corporation Commission shall

establish a schedule of reasonable administration fees sufficient to

cover the actual costs incurred by the designated marketer to

perform duties required by the Natural Gas Market Sharing Act and

not assumed by private agreement. Such power shall supplement the

existing authority of the Corporation Commission to provide for a

ratable taking of gas to protect the correlative rights of those

entitled to take from a common reservoir or common source of supply.

Such power shall not preclude the remedies available through the

district courts as provided by existing law nor preclude the right,

herewith granted, of any owner who is injured in business or

property by any other owner in the well by reason of any action in

violation of the provisions of the Natural Gas Market Sharing Act to

sue in the courts of this state and to recover actual damages so

sustained and obtain specific performance where equitable. The

Oklahoma Statutes - Title 52. Oil and Gas Page 255

prevailing party in any court proceeding brought pursuant to the

Natural Gas Market Sharing Act shall be entitled to recover court

costs, attorneys' fees and allowable litigation expenses. The

statute of limitations on actions brought pursuant to the provisions

of the Natural Gas Market Sharing Act shall be five (5) years from

the date of violation of the Natural Gas Market Sharing Act.

B. In any action brought pursuant to the provisions of the

Natural Gas Market Sharing Act, the district courts of this state

shall have the sole and exclusive jurisdiction to determine the

entitlement of any working interest owner in a well to its share of

proceeds from production or any damages, interest, court costs,

attorneys' fees and allowable litigation expenses incurred as a

result of a nonpayment of such working interest owner's share of

proceeds from production or as a result of any action brought to

enforce the right to receive any such payment.
Okla. Stat. tit. 52, § 52-581.2 — OK Code / Title 52 / Section 52-581.2
Purpose and intent of act
Status: in_force

It is the purpose and intent of the Natural Gas Market Sharing

Act to protect the rights and correlative rights of all owners in

wells producing natural gas including but not limited to casinghead

gas and to afford all such owners an equal opportunity to produce

and market their share of gas and to receive the proceeds derived

therefrom. It is further the intent of the Natural Gas Market

Sharing Act to protect such owners against discrimination in

purchases in favor of one owner as against another.

Oklahoma Statutes - Title 52. Oil and Gas Page 250
Okla. Stat. tit. 52, § 52-603 — OK Code / Title 52 / Section 52-603
Definitions
Status: in_force

As used in this act:

1. "Commission" means the Corporation Commission of Oklahoma;

2. "Energy resource assets" means assets located in this state

which consist of oil, gas, coal and other hydrocarbons in solid,

liquid or gaseous form or any combinations of such forms, any rights

for the exploration, development or production of such assets, and

any tangible assets used in the exploration, development,

production, refining, processing, transportation or transmission by

pipeline or other common carrier of any of the foregoing;

3. "Person" means and includes natural persons, firms,

partnerships, companies, corporations, associations, common law

trusts, statutory trusts and other concerns by whatever name known

or howsoever organized, formed or created;

4. "Transfer" means a disposition for value of:

a. any energy resource assets, or

b. any ownership interest in any person, other than a

natural person, directly or indirectly owning or

controlling any such asset;

5. "Transferee" means a person, and any person or persons

acting in concert or participating with or controlling such a

person, who offers or agrees to acquire in a transfer, or who

acquires in a transfer, energy resource assets, or an ownership

interest in any person, other than a natural person, directly or

indirectly owning or controlling energy resource assets; and

6. "Transferor" means a person who owns or controls, directly

or indirectly, energy resource assets proposed to be acquired in a

transfer, as defined in subparagraph a of paragraph 4 of this

section, or a person who owns or controls energy resource assets in

which an ownership interest is proposed to be acquired in a transfer

as defined in subparagraph b of paragraph 4 of this section.
Okla. Stat. tit. 52, § 52-581.5 — OK Code / Title 52 / Section 52-581.5
Election to market share - Procedure
Status: in_force

A. For wells producing natural gas or casinghead gas, any owner

not having a gas sales contract shall be entitled to elect to share

in the sale of production, to the extent set forth in the Natural

Gas Market Sharing Act.

An electing owner shall give written notice of his election to

the designated marketer. An election shall constitute a warranty

that gas production attributable to such electing owner's interest

is not covered by an existing gas purchase contract, and an

indemnification of any designated marketer sharing market with such

electing owner from losses arising from breach of such warranty.

Market sharing shall become effective as to sales commencing on the

first day of the month following the expiration of sixty (60) days

from receipt of such election by the designated marketer.

Termination of a market sharing shall become effective on the first

day of the month following expiration of sixty (60) days from

receipt of written notice of said termination by the designated

marketer. Copies of all elections and notices required shall also

be sent to the operator if the operator is not the designated

marketer.

B. The operator shall serve as designated marketer until such

time as a substituted designated marketer is elected by a numerical

majority of the eligible electing owners. No election of a

substituted designated marketer shall occur within twelve (12)

months of the prior election.

C. Upon receipt of the notice of election to market share, the

designated marketer shall secure an independent nonaffiliated

purchaser for gas production of such electing owner or shall produce

and sell for the account of such electing owner gas attributable to

Oklahoma Statutes - Title 52. Oil and Gas Page 252

the working interest of such electing owner and account to such

electing owner at the same average price, weighted by volume,

received by the designated marketer for all of its nonexempt gas

sales from that well during each month, net of all reasonable

marketing and post-production costs and expenses required to render

the gas marketable and to sell and deliver the gas to market. The

volumetric allocation of sales between a designated marketer and an

electing owner shall be in proportion to their respective working

interests in such well.

D. If all of a designated marketer's sales of gas are exempt,

it may so notify the electing owners and the operator in writing

whereupon the electing owners shall select another designated

marketer pursuant to subsection B of this section by written notice

thereof to the operator and the new designated marketer.

E. If the gas sales of the designated marketer are subject to a

contract of a duration in excess of one (1) year, the designated

marketer may require such electing owners' written agreement to be

bound by the terms of such contract. If the contract does not

contain a confidentiality provision preventing the furnishing of a

copy to the electing owners, the designated marketer shall then

furnish them a copy of the gas sales contract, and upon receipt of a

copy of such contract and notice setting forth the provisions of

this section, each electing owner shall have thirty (30) days within

which in writing to either:

1. Elect a new designated marketer pursuant to subsection B of

this section, notwithstanding the twelve-month limitation contained

therein;

2. Agree to be bound by the terms of such contract; or

3. Terminate market sharing.

Failure by any electing owner to return such written agreement shall

be deemed an election to not market share and shall relieve that

producing owner of any further obligation to market share or

otherwise secure a market for such electing owner's share of

production under this section for the duration of that contract.

F. Any administration fees established by the Corporation

Commission which are payable to a designated marketer by an electing

owner who has elected to market share may be deducted from proceeds.

G. The election to market share under the provisions of the

Natural Gas Market Sharing Act shall not result in the electing

owner becoming a party to any contract under which the electing

owner's gas is marketed, and neither the electing owner nor any

person owning a royalty or other non-cost-bearing interest burdening

the interest of the electing owner shall acquire any third-party

beneficiary rights in such contract. Further, the election to

market share under the Natural Gas Market Sharing Act shall not

result in the designated marketer having any fiduciary or other

duties to the electing owner, or to any persons having a royalty or

Oklahoma Statutes - Title 52. Oil and Gas Page 253

other nonoperating interest burdening the interest of the electing

owner with respect to the marketing of the electing owner's gas

except those expressly provided in the Natural Gas Market Sharing

Act. In no event shall any designated marketer be liable to any

electing owner for any losses sustained or liabilities incurred in

the absence of bad faith, gross negligence or willful misconduct.

H. If by statute an owner's percentage entitlement to produce

and market gas in a well is other than its working interest

percentage, such percentage calculated pursuant to statute shall be

utilized in lieu of the working interest percentage for purposes of

the Natural Gas Market Sharing Act.
Okla. Stat. tit. 52, § 52-24.5 — OK Code / Title 52 / Section 52-24.5
Discriminatory fees – Open access – Commission authority
Status: in_force

A. No gatherer shall charge any fee or require any terms and

conditions of service, or both, for gathering, which is unfair,

unjust, unreasonable, or unduly discriminatory under the standard

specified in and as provided by subsection D of this section. Upon

complaint of an aggrieved party filed pursuant to this act, the

Corporation Commission shall have the authority to remedy any such

fee or terms and conditions of service, or both, for gathering, by:

1. Ordering an adjustment of the fee or terms and conditions of

service, or both, as to the aggrieved party to the extent necessary

Oklahoma Statutes - Title 52. Oil and Gas Page 21

to remove any unfair, unjust, unreasonable, or unduly discriminatory

portion of such fee or terms and conditions of service, or both,

under the standard specified in and as provided by subsection D of

this section; and, if applicable,

2. Ordering the continuation of gathering service during the

pendency of the complaint as provided in subsection F of this

section; or

3. Ordering the application of fees and terms and conditions of

service established by an order previously issued by the Commission

under this act be applied to a similarly situated shipper as

specified in subsection L of this section.

Nothing in this section shall operate to abrogate the terms of

an existing contract while the contract is in force. Upon the

expiration or cancellation of an existing contract, under the terms

of the contract, the provisions of this section shall apply.

B. No gatherer shall refuse to provide open access natural gas

gathering, including the redelivery of such natural gas to existing

redelivery points, for a fee for any person seeking such gathering

for natural gas which is connected to the gatherer's pipeline unless

the gatherer can demonstrate to the Commission that any of the

following apply:

1. The continuation of gathering service on the basis requested

by the complainant would require an additional capital investment,

material to the well or wells at issue, by the gatherer and

complainant is unable or unwilling to timely pay gatherer for all

reasonable direct costs attributable to such capital investment

together with that reasonable portion of a gatherer’s overhead

directly related to such capital investment;

2. The continued gathering of such natural gas could reasonably

be expected to have a material adverse effect on safety or service

to existing customers;

3. The natural gas does not satisfy minimum standards for

quality, including energy content, consistently applied by the

gatherer for such gathering system;

4. The gathering service requested is inconsistent with an

existing contract which governs the gathering of the complainant's

natural gas; or

5. For such other good cause as the Commission may determine in

the particular case.

Upon complaint of an aggrieved party connected to the gatherer’s

pipeline, the Commission shall determine whether such gatherer is

required by reason of this subsection to continue to provide open

access natural gas gathering to such party, and if so, and the

parties are unable to agree upon a fee or terms and conditions of

service or both, for gathering, to fix a fee or terms and conditions

of service, or both, for such gathering.

Oklahoma Statutes - Title 52. Oil and Gas Page 22

C. No gatherer shall refuse to provide open access natural gas

gathering, including the redelivery of such natural gas to existing

redelivery points, for a fee for any person seeking such gathering

for natural gas which is not connected to gatherer's pipeline unless

the gatherer can demonstrate that any of the following apply:

1. The natural gas cannot be reasonably carried by such

gatherer due to existing capacity limitations on the gatherer's

pipeline;

2. An extension or expansion of facilities would be required

and the complainant is unable or unwilling to timely pay the

gatherer for all reasonable direct costs attributable to such

extension or expansion together with that reasonable portion of a

gatherer’s overhead directly related to such extension or expansion

of facilities;

3. The gathering of such natural gas could reasonably be

expected to have a material adverse effect on safety or service to

existing customers or on the operation of or recovery in any

processing facility;

4. The natural gas does not satisfy minimum standards for

quality or energy or recoverable hydrocarbon content consistently

applied by the gatherer for such gathering system; or

5. For such other good cause as the Commission may determine in

the particular case.

Upon complaint of an aggrieved party not connected to the

gatherer's pipeline, the Commission shall determine whether a

gatherer is required by reason of this subsection to provide open

access natural gas gathering to such party, and if so, and the

parties are unable to agree upon a fee or terms and conditions of

service, or both, for gathering, to fix a fee or terms and

conditions of service, or both, for such gathering.

D. Any action by the Commission under this act shall be

initiated by the filing of a complaint with the Commission by the

aggrieved party and the serving of a copy of such complaint upon the

gatherer from whom gathering service is being requested. The

Commission shall conduct a hearing and take such evidence as is

necessary to determine the complaint. Notice of the hearing on such

complaint shall be given by registered mail to such gatherer at

least twenty (20) days prior to such hearing but in no event shall

the hearing be less than thirty (30) days from the filing of the

complaint. If the parties are unable to agree on an interim fee or

terms and conditions of service, or both, for gathering to apply

during the pendency of the complaint before the Commission, then the

Commission may set such interim fee or terms and conditions of

service, or both, under the provisions of subsection F of this

section. In determining and setting a fee or terms and conditions

of service, or both, under this act, other than an interim fee under

the provisions of subsection F of this section, the Commission shall

Oklahoma Statutes - Title 52. Oil and Gas Page 23

determine a fee or terms and conditions of service, or both, which

would result from arm's-length bargaining in good faith in a

competitive market between persons of equal bargaining power and

shall consider all economically significant factors for gathering

which it determines to be relevant which may include, but are not

limited to:

1. The fees and terms and conditions of service which such

gatherer receives from the complainant and other shippers for

analogous levels of service for gathering within an area the

Commission determines to be relevant;

2. The fees charged and the terms and conditions of service

provided by other gatherers for gathering within an area the

Commission determines to be relevant;

3. The reasonable financial risks of operating such a gathering

system;

4. The reasonable capital, operating and maintenance costs of

such a gathering system; and

5. Such other factors which the Commission determines to be

relevant.

Provided, that neither such fee nor such terms and conditions of

service shall be computed on a utility rate of return basis and that

gatherers shall not be regulated like public utilities in the

setting of fees and terms and conditions of service.

E. In establishing the gathering fee, if the Commission

determines the natural gas is processed, the order entered by the

Commission establishing such fee shall include the following:

1. Gatherer shall return to shipper at the redelivery point the

MMBtu’s attributable to such shipper at the plant inlet, less any

volumetric deductions for fuel and loss associated with gathering;

and

2. For any month in which there is a spread fee, the shipper

shall pay to the gatherer such amount.

No further order shall be made regarding the calculation of the

spread fee or gatherer’s obligations for redelivery of natural gas

or natural gas liquids.

F. Upon the filing of a complaint under this section which

seeks to continue an existing gathering service, the Commission on

motion of the complainant shall require continuation of gathering

service under the fees and terms and conditions of service of the

last expired contract, if any, during the pendency of the complaint,

or set an interim fee and terms and conditions of service. However,

the gatherer shall not be required to provide interim gathering if

the gatherer can show that such continuance would require an

otherwise unnecessary, material capital expenditure, or if the

Commission determines interim gathering is excused for safety

reasons. Interim relief shall be by order of the Commission after

notice to the gatherer from whom gathering service is being

Oklahoma Statutes - Title 52. Oil and Gas Page 24

requested and subsequent hearing. Any fees for gathering collected

during the period a complaint which seeks to set a fee for such

gathering is pending shall be subject to the fee finally set by the

Commission. If the finally determined fee is less than the

collected fee, the excess shall be refunded to the complainant

within fifteen (15) days after the final determination of the fee,

together with interest at a rate established by the Commission. If

the finally determined fee is greater than the collected fee, the

excess shall be paid by the complainant to the gatherer within

fifteen (15) days after the fee is finally determined, together with

interest at a rate established by the Commission.

G. A gatherer providing natural gas gathering services shall

not increase the fee for gathering, change the terms or conditions

of service, discontinue gathering service, or not renew an expiring

contract of the shipper, without first giving the shipper written

notice prior to the effective date of the increase in fee, change in

terms or conditions of service, discontinuance of gathering

services, or nonrenewal. Such written notice shall be given at

least ninety (90) days prior to the effective date of such increase,

change, discontinuance or nonrenewal, unless otherwise provided by

existing contract, but in no event less than thirty (30) days prior

to the effective date of such increase, change, discontinuance or

nonrenewal with respect to contracts having terms in excess of six

(6) months. If the parties are unable to agree upon continuation of

service or fees or terms and conditions of service, or both, the

aggrieved party may file a complaint under this act to determine

whether an open access obligation exists and, if so, seek the

determination of fees or terms and conditions of service, or both,

under this act.

H. All matters to be determined by the Commission under this

act shall be heard on an expedited basis and a final, appealable

order rendered thereon within one hundred twenty (120) days from the

filing of the complaint, unless otherwise agreed by the parties.

The Commission shall have the power and authority to promulgate

rules and issue orders to implement, administer, and enforce the

provisions of this act and may exercise all incidental powers which

are necessary and proper to the performance of its duties under this

act. The Commission shall promulgate rules establishing a

voluntary, nonbinding, informal procedure to be available, either

before or after the filing of a complaint, in order to encourage the

resolution of disputes arising under this act. An informal

procedure shall not extend the time limit of one hundred twenty

(120) days established in this subsection, unless otherwise agreed

by the parties.

I. Upon the filing of a complaint of an aggrieved party, the

Commission shall have the right to require the production of

relevant documents of the gatherer which is subject to the

Oklahoma Statutes - Title 52. Oil and Gas Page 25

complaint. Gathering contracts covering the 25 wells most recently

connected to the system of the gatherer which is subject to the

complaint are deemed discoverable and production will not be denied

upon a relevance objection. The Commission may issue process to

enforce the attendance of any witness and to obtain any documents

relevant to the complaint of an aggrieved party. The Commission may

punish any person failing to obey or comply with any order or

requirement under this act for contempt, and such person shall be

subject to a civil penalty of not more than Five Thousand Dollars

($5,000.00) for each day that such noncompliance continues. If,

after notice and opportunity to be heard, the Commission finds that

the documents of any other gatherer are relevant, the Commission may

issue process to enforce the attendance of any witness and to obtain

any documents relevant to the complaint and may punish any person

failing to obey or comply with any order or requirement under this

act for contempt and such person shall be subject to a civil penalty

of not more than Five Thousand Dollars ($5,000.00) for each day that

such noncompliance continues. If, in connection with any proceeding

under this act, any person, whether or not a party to the

proceeding, furnishes information it desires to be confidential,

proprietary and/or privileged, the Commission, upon motion of such

person and upon a finding by the Commission that the information is

confidential, proprietary or privileged, shall enter such protective

order as may be necessary to ensure that the information will be

used only as may be required for the proper determination of the

merits of a proceeding under this act and will not be used for

purposes of competitive advantage. Any person, whether or not a

party to the proceeding, furnishing a contract or contracts in

response to a request under this section shall, prior to furnishing

such contracts, delete or obfuscate the names of all persons who are

parties to the contract, any unit or well names contained in the

contracts, and any reference to the section designation contained in

the legal description of the location of the well or unit, but such

person shall not remove references to the applicable township and

range designations. Additional nonrelevant, confidential

information may be deleted or obfuscated from contracts furnished in

response to a request under this section, subject to Commission

review. Documents produced under this section shall be covered by a

confidentiality privilege and thus exempt from the Oklahoma Open

Records Act.

J. The Commission shall maintain an index of all orders entered

by it under this act identifying the date and order number,

indicating the type of relief granted, and identifying the gatherer

and gathering system to which the order applies. All orders of the

Commission determining a fair, just, reasonable and

nondiscriminatory fee and terms and conditions of service under this

act shall contain findings of fact and conclusions of law in

Oklahoma Statutes - Title 52. Oil and Gas Page 26

sufficient detail so that the relevant and significant factors

considered by the Commission in determining a fee and terms and

conditions of service, the Commission's analysis of those factors

and the reasons supporting such fee and terms and conditions of

service can be reasonably determined from the face of the order;

provided, such order shall not include any information not permitted

to be disclosed by the terms of any protective order entered under

subsection I of this section.

K. No gatherer shall charge any fee or require any terms and

conditions of service, or both, which unduly discriminate in favor

of the gatherer's affiliated entities and against other persons.

Each gatherer shall maintain documents in such a manner that

gathering services provided to an affiliate may be identified and

segregated.

L. Any person seeking gathering service for a well or wells

covered by a previous order of the Commission may file an

application with the Commission seeking the same fee or terms and

conditions of service as provided in the previous order, which shall

be granted to the applicant by the Commission, unless the gatherer

can demonstrate that the applicant is not a similarly situated

shipper or that there has been a material change in conditions or

circumstances since the prior fee or terms and conditions of service

were determined.

M. Nothing in this act shall create or be interpreted to create

service or abandonment obligations upon a gatherer or give the

Commission jurisdiction to regulate abandonment of gathering

facilities. Nothing in this act shall give the Commission

jurisdiction to regulate the purchase, processing or resale of

natural gas or the price or other compensation for, or any of the

other terms or conditions of any such purchase, processing or

resale.
Okla. Stat. tit. 52, § 52-472 — OK Code / Title 52 / Section 52-472
Terms defined - Pressure - Conversion to standard
Status: in_force

conditions.

The term "cubic foot of gas" or "standard cubic foot of gas"

means the volume of gas, including both natural gas and casing head

gas, contained in one cubic foot of space at a standard pressure

base and at a standard temperature base. The standard pressure base

shall be fourteen and sixty-five hundredths (14.65) pounds per

square inch absolute and the standard temperature base shall be

sixty (60) degrees Fahrenheit. Whenever the conditions of pressure

and temperature differ from the above standard, conversion of the

volume from these conditions to the standard conditions shall be

made in accordance with the Ideal Gas Laws corrected for deviation

from Boyle's Law, which correction must be made unless the pressure

at the point of measurement is two hundred (200) pounds per square

inch gauge or less; all in accordance with methods and tables

generally recognized by and commonly used in the natural gas

industry.