Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 5 - Aboveground Storage Tanks › Subchapter 7 - Commencement of a Case › Part 3 - OIL AND GAS › Section 165:5-7-11 - Change of operator

Current through Vol. 41, No. 20, July 1, 2024
(a)
Scope.
This Section addresses designation of operators under
				  forced pooling orders, location exception orders, and increased density orders.
(b)
Designation of operator
				  under a forced pooling order.
Each order forced pooling the rights and
				  equities in a drilling and spacing unit shall designate at least one operator
				  to operate the well or unit. In addition, the Commission may designate one or
				  more alternate operators in the order.
(c)
Procedure for obtaining a change of
				  operator under a forced pooling order.
Application, notice and hearing
				  shall be prerequisites to the issuance of an order changing or deleting a
				  designation of operator in any forced pooling order. The applicant shall send
				  or cause to be sent copies of the application and notice of hearing by
				  certified mail at least fifteen (15) days prior to the hearing to the
				  respondents to the pooling order or to their successors in interest and the
				  notice of hearing shall be published as required in OAC
				  165:5-7-1(n)(2).
				  Provided, however, this procedure shall not be the exclusive method of
				  obtaining a change of operator under a forced pooling order as the use of the
				  forms set forth in OAC 165:5-7-11(g) below is still available. If such forms
				  are used, Applicant must still provide personal notice by sending or causing to
				  be sent copies of the application and notice of hearing by certified mail to
				  the respondents to the pooling order or their successors in interest as well as
				  publishing the notice of hearing as required in OAC
				  165:5-7-1(n)(2).
(d)
Optional designation of operator
				  for location exception and increased density orders.
A designation of
				  operator shall not be necessary for an order for either a well location
				  exception or increased well density. In any situation where a location
				  exception or increased density order designates an operator, the Commission may
				  issue an order either appointing a successor operator or removing the
				  designation of operator provision.
(e)
Procedure for obtaining a change in
				  operator designation regarding increased density and location exception
				  orders.
Application, notice and hearing shall be prerequisites to
				  issuance of an order changing or deleting a designation of operator in
				  increased density and location exception orders. The applicant shall mail or
				  cause to be mailed copies of the application and notice of hearing to each
				  current working interest owner in the well at least fifteen (15) days prior to
				  the hearing and the notice of hearing shall be published as required in OAC
				  165:5-7-1(n)(2).
				  Provided, however, this procedure shall not be the exclusive method of
				  obtaining a change of operator under increased density and location exception
				  orders as the use of the forms set forth in OAC 165:5-7-11(g) below is still
				  available. If such forms are used, Applicant must still mail or cause to be
				  mailed copies of the application and notice of hearing to each current working
				  interest owner in the well at least fifteen (15) days prior to the hearing and
				  the notice of hearing shall be published as required in OAC
				  165:5-7-1(n)(2).
				  No application, notice, or hearing shall be required to change or delete the
				  designation of operator in increased density or location exception orders when:
(1) The interest of the currently designated
				  operator is transferred to its subsidiary or parent company, or a subsidiary of
				  a parent company;
(2) The interest
				  of the currently designated operator is transferred to a surviving or resulting
				  corporation or business entity due to, respectively, a merger, consolidation or
				  reorganization involving the transferor and transferee. As used in this
				  paragraph, "business entity" means a domestic or foreign partnership, whether
				  general or limited; limited liability company; business trust; common law
				  trust, or other unincorporated business; or
(3) The currently designated operator
				  undergoes a name change. The relief afforded by this paragraph is not
				  applicable to situations where the name change involves the following
				  conditions:
(A) The assignment of a new
				  Federal Employer Identification number by the Internal Revenue Service to the
				  new company;
(B) The name change is
				  accompanied by a change in the majority of partners in a partnership;
(C) The name change is associated with a
				  divorce between a husband and wife when the husband and wife comprise a
				  partnership;
(D) The name change is
				  associated with the death of one spouse in a partnership comprised of a husband
				  and wife;
(E) The name change
				  involves a sole proprietorship; or
(F) The name change is associated with such
				  other circumstances where the Commission determines upon application, notice
				  and hearing that the relief provided in this paragraph is not applicable, or
				  that an exception to any exclusion should be granted.
(G) As used in this subsection, the term
				  "partnership" means a domestic or foreign partnership, whether general or
				  limited.
(4) In such
				  events, the parent, subsidiary, surviving or resulting corporation or business
				  entity or currently designated operator who has undergone a name change shall
				  be substituted as designated operator upon filing and approval of Form 1073,
				  required by OAC
				  165:10-1-15.