Oklahoma Administrative Code › Title 725 - Oklahoma Tourism and Recreation Department › Chapter 30 - Division of State Parks › Subchapter 23 - Mineral Leases and Operations › Section 725:30-23-4 - Rules and regulations

Current through Vol. 41, No. 20, July 1, 2024
The rights and responsibilities of the mineral lessee shall
				  be governed by the lease document and the following rules and
				  regulations.
(1) All pipelines, except
				those that are used exclusively in lease operations, must be covered by a
				Permit. Applications for pipeline permits must include a plat of pipeline,
				drawn to scale, in triplicate.
(2)
				All pipelines, as to location and depth, must be approved by the
				Department.
(3) Within thirty (30)
				days of the completion of a producing oil and gas well, a sign shall be posted
				showing the name and number of the well and the legal description.
(4) On or before the last day of the month
				following the month of production, the lessee must file a sworn monthly report
				of oil produced and sold from the leased premises. This report will be filed
				with the Department.
(5) On or
				before the last day of the month following the month of production, the lessee
				must file a sworn monthly report of gas and casinghead gas produced and sold
				from the leased premises. This report must be filed with the Department and
				must be complete in detail.
(6)
				Prior to the commencement of operation, notice shall be given to the Department
				of intention to drill or recomplete any well, the name and number of the well,
				the approximate date operations will begin, and the estimated depth.
(7) Notice of intention to plug must be filed
				with the Department at least five (5) days prior to plugging any oil or gas
				well. A copy of the plugging record shall be filed with the Department within
				thirty (30) days of the completion of plugging operations.
(8) The lessee shall file and annual summary
				of lease operations on or before the first day of March. This report shall be
				filed with the Department and covers operations on producing leases for the
				previous calendar year.
(9) The
				Department may require special reports pertaining to production or operation of
				a state lease. Upon request, the lessee shall promptly submit the required
				reports.
(10) Within thirty (30)
				days after completion or recompletion of any well, a completion report shall be
				filed with the Department. This report shall be on the form prescribed by the
				Oklahoma Corporation Commission and shall be signed and sworn to by the lessee
				or his authorized representative. In addition to the above report, the lessee,
				upon request, shall furnish to the Department a copy of any electric or other
				log runs on this well.
(11) All
				lessees shall abide by the environmental regulations that are included in the
				lease agreement.
(12) All lessees
				must post a performance bond, in the amount requested by the Department, to
				cover the following agreements with the Department: oil and gas lease, salt
				water disposal lease, and seismic exploration agreement.
(A) Bonds will be released upon written
				request of the lessee or bonding company if liability is terminate.
(B) All surety bonds must be made by a
				company authorized to do business in the State of Oklahoma.
(C) Each assignment must be accompanied by a
				performance bond in accordance with the Department's bond schedule, with the
				assignee as principal.
(D) No
				assignment of a state lease will be valid or vest any interest in the assignee
				until the same is approved in writing by the Department.
(E) Assignments of state leases may be made
				on any assignment form in general use in the oil and gas industry and may
				convey a subdivision.
(F) All
				assignments presented for approval which are subject to other agreements must
				be accompanied by a copy of such other agreement.
(G) Assignments or grants of overriding
				royalty do not require approval of the Department.