Oklahoma Administrative Code › Title 165 - Corporation Commission › Chapter 5 - Aboveground Storage Tanks › Subchapter 7 - Commencement of a Case › Part 3 - OIL AND GAS › Section 165:5-7-6 - Drilling and spacing unit establishment or modification

Current through Vol. 41, No. 20, July 1, 2024
(a) Notice of hearing relating to drilling
				  and spacing units shall be published one time at least fifteen (15) days prior
				  to the hearing in a newspaper of general circulation published in Oklahoma
				  County, Oklahoma, and in a newspaper of general circulation published in each
				  county in which lands embraced in the application are located.
(b) When an applicant proposes to establish,
				  vacate, alter, modify, amend, or extend a drilling and spacing unit, the
				  application and notice shall be served by the applicant no less than fifteen
				  (15) days prior to the date of the hearing, by regular mail, upon each person
				  or governmental entity having the right to participate in production from the
				  proposed drilling and spacing unit or the existing drilling and spacing
				  unit.
(c) A plat or plats shall be
				  attached to each application for an order to establish a drilling and spacing
				  unit or units or to extend existing spacing within a common source or sources
				  of supply, which plat shall show the spacing units requested together with any
				  spacing units abutting or overlapping the area to be spaced, and any abutting
				  spacing units in all spaced formations. A production plat, type log, and any
				  other documents necessary to support the requested relief [e.g. isopach map or
				  structure of the target zone(s)] shall also be submitted at the hearing in the
				  case and if requested, submitted to the Technical Services Department for
				  review as soon possible after that request, and prior to such hearing. An
				  amended plat shall be provided at the time of the hearing in the event drilling
				  and spacing units have been established after the application was filed and
				  prior to the hearing to reflect the status of the spacing at the time of the
				  hearing.
(d) An application to
				  extend spacing from an adjacent drilling and spacing unit shall state in the
				  body of the application the order number that created the spacing in the
				  adjacent unit that applies to the common sources of supply which are sought to
				  be extended by the application. Such request to extend spacing and citation to
				  such order number shall be placed in the special relief paragraph of the notice
				  of hearing.
(e) Where a well has not
				  been commenced to or completed in the common source of supply sought to be
				  spaced, notice of hearing for an order to vacate, alter, amend, extend, or
				  change a prior spacing order shall be served and published as required in (a)
				  of this Section. Such request to vacate, alter, amend, extend, or change a
				  prior spacing order shall be placed in the special relief paragraph of the
				  notice of hearing.
(f) Where two or
				  more orders have issued spacing a common source of supply and such spacing
				  orders have resulted in there being a conflict either as to the size of the
				  unit or as to a common source of supply or a conflict as to the nomenclature of
				  the common source of supply, then the applicant seeking to vacate, alter,
				  amend, or change one of the prior spacing orders shall either file an
				  application to construe and modify the conflicting orders or may amend a
				  relevant application to accomplish the same result. Notice of hearing shall be
				  served and published as required upon the commencement of a
				  proceeding.
(g) The Commission may
				  issue an order establishing horizontal well units for a common source of
				  supply. A horizontal well unit may be established for a common source of supply
				  for which there are already established non-horizontal drilling and spacing
				  units, and said horizontal well unit may include within the boundaries thereof
				  more than one existing non-horizontal drilling and spacing unit for the common
				  source of supply. Upon the formation of a horizontal well unit that includes
				  within the boundaries thereof one or more non-horizontal drilling and spacing
				  units, the Commission shall provide that such horizontal well unit exists
				  concurrently with one or more of such non-horizontal drilling and spacing
				  units, and each such unit may be concurrently developed. Notwithstanding the
				  foregoing, the Commission may vacate any non-horizontal drilling and spacing
				  unit upon a proper showing of a change of conditions or change in knowledge of
				  conditions to justify such vacation or deletion, and any such request to vacate
				  or delete any such non-horizontal drilling and spacing unit may be included in
				  and made a part of any application to form one or more horizontal well units.
(1) In any spacing proceeding to establish or
				  form a horizontal well unit, the application filed in such proceeding shall set
				  forth and describe any non-horizontal drilling and spacing unit that exists
				  concurrently with such horizontal well unit, including the API numbers of the
				  well or wells located in any such non-horizontal drilling and spacing
				  unit.
(2) The order entered in such
				  proceeding shall describe any non-horizontal drilling and spacing unit that
				  exists concurrently with the horizontal well unit, including the API numbers of
				  the well or wells located in such non-horizontal drilling and spacing unit. The
				  order establishing or forming a horizontal well unit that exists concurrently
				  with any non-horizontal drilling and spacing unit shall state, based on the
				  evidence presented, that the consent in writing required by subsection (h) of
				  this Section has been obtained and filed or that a waiver of such consent
				  requirement as authorized by subsection (i) of this Section has been granted by
				  the Commission.