Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 10 - Oil And Gas Conservation › Subchapter 27 - Production Revenue Standards › Section 165:10-27-10 - Administrative fees

Current through Vol. 41, No. 20, July 1, 2024
(a) This
				Section prescribes fees which may be charged by the operator of a gas producing
				well or substitute payor, for administrative expenses generated by the
				Production Revenue Standards Act.
(b) Fees shall be assessed on a per-well
				basis against the cost- bearing working interests in a well according to
				respective gross working interest. They shall not be assessed against either
				royalty interests or non-cost bearing working interests in the well.
(c) A one-time implementation fee shall cover
				any cost associated with establishing or modifying the well operator's record
				keeping for the well, and it shall apply to any existing gas producing well
				with a date of first production occurring before September 1, 1992. If
				operations are transferred to a different operator after assessment of the
				one-time implementation fee, the successor operator may not assess another
				implementation fee against the working interests in the well.
(d) Should any working interest owner in a
				well producing gas fail to fully and timely comply with the requirements of
				165:10-27-4,
				the well operator or substitute payor shall have the right to charge against
				said non-complying working interest owner a late fee of two hundred-fifty
				dollars per affected well.
(e) An
				annual maintenance fee shall cover any cost associated with record keeping,
				issuance of gas balancing statements and any election of a producing owner
				regarding separate distribution of royalty proceeds. Maintenance fees shall be
				calculated on an annual basis using the first day of May as the anniversary
				date. Such fees may be prorated and billed on a monthly basis at the well
				operator's discretion. If a well has a date of first production after the first
				day of May of the calendar year, the annual maintenance fee shall be prorated
				based on the remaining number of months before the next anniversary date on the
				first day of May.
(f) No working
				interest owner other than the well operator shall be entitled to assess either
				an implementation fee or a maintenance fee.
(g) The rates for implementation fees and
				annual maintenance fees shall be based on the appropriate table values found in
				Appendix G to this Chapter, subject to annual adjustments as provided below.
				The appropriate table value shall be determined from a matrix using the number
				of working interest owners or royalty owners in a well. The table value shall
				be adjusted as of the first day of May each year following May 1, 1993. The
				annual adjustment shall be computed by multiplying the rate currently in use by
				the percentage of increase or decrease in the annual overhead adjustment factor
				established by the Council of Petroleum Accountants Societies at its annual
				spring meeting for purposes of adjusting the combined fixed-rate overhead
				charges against joint operations in a well.
(h) Any fee assessed under this Section may
				be billed or deducted from the working interest owner's share of undistributed
				proceeds of production.
Added at 10 Ok Reg 2601,
				  eff 6-25-93