Oklahoma Administrative Code › Title 385 - Department of the Commissioners of the Land Office › Chapter 15 - Sale and Operation of Oil and Gas Leases › Section 385:15-1-2 - Definitions

Current through Vol. 41, No. 20, July 1, 2024
The following words or terms, when used in this Chapter, shall
				have the following meaning, unless the context clearly indicates otherwise:
"Affiliate"
means any party with whom the lessee
				has a financial relationship that results in either the lessee or the other
				party having control over the other or the lessee and other party being under
				common control of a third-party.
"Alternate Performance Payments"
means any
				payments received by a lessee from a purchaser as an alternative to delivery of
				production, or as a prepayment for future delivery of production, or indexed to
				production, or for access to reserves.
"Average published spot price"
means the average
				of actual sales derived from one or more valid publications publishing bidweek
				prices (or if bidweek prices are not available, first of the month prices)
				within the State of Oklahoma.
"Barrel"
means 42 (US) gallons at 60° F. at
				atmospheric pressure.
"Day"
means twenty-four (24) consecutive hours.
				For accounting purposes, a day begins at 7:00 A.M. and ends at 7:00 A.M. the
				following day.
"Gas"
means all natural gas produced from school
				lands or lands pooled therewith (including casinghead gas) and all of its
				constituent elements, including but not limited to sulfur contained in the gas,
				helium, natural gasoline, condensate, distillate, butanes, propanes, and all
				other gaseous or vaporous substances which are hydrocarbons as the same may
				exist at the surface under normal atmospheric pressures and at normal ambient
				temperatures, and all other gaseous or vaporous hydrocarbons condensed,
				absorbed, or separated out of or from the gas after it leaves the lands,
				including without limitation flared or vented gas.
"Gross proceeds"
means the value, total amount of
				money, and/or credit derived from production or rights thereto without any
				deductions, reductions, or setoffs.
"Land Office"
means the State of Oklahoma
ex rel.
Commissioners of the Land Office.
"Lease"
or
"oil and gas lease"
means
				an oil and gas lease issued by the Land Office.
"Leased premises"
means the tract of school land
				subject to an oil and gas lease.
"Lessee"
means the successful bidder or assignee
				awarded a leasehold interest to mineral rights by an oil and gas lease. To the
				extent that the lessee designates a third-party to comply any requirement of
				the lease or the rules and regulations of the Land Office, the third-party
				designee shall comply with the requirements of the lease and the rules and
				regulations of the Land Office.
"Notice of Sale"
means a notice of oil and gas
				lease sale published by the Land Office.
"Oil"
means any hydrocarbons produced from school
				lands or lands pooled therewith, capable of being produced in liquid form at
				the well by ordinary production method, including, without limitation,
				condensate, distillate and other liquid hydrocarbons.
"Operator"
means any person that controls,
				manages, or directs the exploration, drilling, or the payment of royalties for
				oil and gas on school lands.
"Pipeline"
means interstate pipelines, intrastate
				pipelines, or similar transmission lines downstream of a processing plant.
"Plug"
means the closing off, in a manner
				prescribed by the Corporation Commission, all oil, gas, and water bearing
				formations in any producing or non-producing wellbore.
"Production and Marketing Infrastructure"
means
				any oil and gas gathering lines, midstream lines, electric lines, pipelines,
				and other facilities related to the production and marketing of oil and gas.
" School lands "
means school lands and other
				public lands managed by the Land Office.
"Well information"
means detailed and correct
				drilling and production records maintained by the lessee or operator of a well,
				including, but not limited to, (1) authorizations for expenditure (AFEs); (2)
				daily drilling reports transmitted by email; (3) cumulative hard copies of
				daily drilling and completion reports for each well drilled within ten days of
				the final report or at any time upon the Land Office's request; (4) all logging
				surveys, wireline tests, drillstem test charts, core analysis, title opinions,
				or other third party information that may be run or prepared; (5) potential
				test or completion reports filed with the Oklahoma Corporation Commission; (6)
				plugging records, if completed as a dry hole or if subsequently abandoned; (7)
				executed and recorded copies of the lease; and (8) all geological, geophysical,
				engineering, and other technical information or exhibits filed with or
				presented to the Oklahoma Corporation Commission in connection with any
				spacing, pooling, or increased density applications including such applications
				pursuant to which any well is drilled on the lands.
Amended at 14 Ok Reg 3171,
				eff 7-25-97