Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 10 - Oil And Gas Conservation › Subchapter 5 - Underground Injection Control › Section 165:10-5-10 - Transfer of authority to inject

Current through Vol. 41, No. 20, July 1, 2024
(a) An order or
				permit authorizing an injection well(s), disposal well, commercial disposal
				well, or hydrocarbon storage well(s) shall not be transferred from one operator
				to another without the following:
(1) The new
				operator, or transferee, must comply with
				165:10-1-10 before a change in
				operator is approved.
(2) Change of
				operator Form 1073I or Form 1073IMW must be signed by both the transferor and
				transferee, with both stipulating that the facts presented are true and correct
				as to the area covered and the wells being transferred. The new operator shall
				file Form 1073I or Form 1073IMW to notify the Conservation Division of any
				change of operation of any underground injection well within thirty (30) days
				of transfer of the well.
(3) The
				Form 1073IMW is intended to be used for multiple well transfers of ten (10) or
				more wells and must contain a list with the following information for each
				well:
(A) API number of the well;
(B) Well name and number;
(C) Legal location of the well, described by
				section, township, range, and quarter, quarter, quarter section
				calls;
(D) The Commission Order or
				permit number(s) authorizing the injection, disposal, or hydrocarbon storage
				activity; and
(E) Date the most
				recent mechanical integrity test was performed on the well and the result of
				the test.
(4) A current
				Form 1002A Completion Report must be on file with the Conservation Division in
				accordance with OAC
				165:10-3-25. Upon review by the
				Conservation Division, it may require additional information from the
				transferor and/or the transferee to assist in identifying the specific well(s)
				being transferred. The additional information may include, but not be limited
				to, footages from the south and west quarter section lines, and the drilling
				and completion dates, and initial injection, disposal or storage
				dates.
(5) Notice in writing to the
				Commission on Form 1075 demonstrating that a mechanical integrity test and/or
				any required tracer survey was performed within one year prior to the date of
				transfer. For commercial disposal wells, the mechanical integrity test and/or
				any required tracer survey shall be conducted within 30 days prior to the date
				of transfer.
(6) The performance of
				the mechanical integrity test required in (a)(5) of this subsection shall not
				apply to any operator transfer when the following conditions are present:
(A) The interest of the currently designated
				operator is transferred to its subsidiary or parent company, or a subsidiary of
				a parent company;
(B) 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
				subparagraph, "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
(C) The currently designated operator
				undergoes a name change. The relief afforded by this subparagraph is not
				applicable to situations where the name change involves the following
				conditions:
(i) The assignment of a new
				Federal Employer Identification number by the Internal Revenue Service to the
				new company;
(ii) The name change is
				accompanied by a change in the majority of partners in a partnership;
(iii) The name change is
				associated with a divorce between a husband and wife when the husband and wife
				comprise a partnership;
(iv) The
				name change is associated with the death of one spouse in a partnership
				comprised of a husband and wife;
(v) The name change involves a sole
				proprietorship; or
(vi) The name
				change is associated with such other circumstances where the Commission
				determines upon application, notice and hearing that the relief provided in
				this subparagraph is not applicable, or that an exception to any exclusion
				should be granted.
(vii) As used in
				this subparagraph, the term "partnership" means a domestic or foreign
				partnership, whether general or limited.
(7) A Form 1012, Form 1012C or Form 1012D for
				that portion of the calendar year the transferor has operated the well prior to
				submitting the Form 1073I to the Commission.