SECTION 165:10-1-15. Transfer of operatorship of wells

(a)   Before the operations of a well can be transferred to a new operator, the following must be submitted:

(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 1073 or Form 1073MW 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 1073 or Form 1073MW to notify the Conservation Division of any change of operation of any oil or gas well within thirty (30) days of transfer of the well. Unless otherwise stated, the new operator assumes all responsibility for the wells specified within the boundaries of the outlined area. For transfers involving more than ten (10) wells, a transferor and transferee may file a single Form 1073MW with the Conservation Division indicating the transfer of multiple wells, provided that such multiple well transfer shall be accompanied by a well list containing the following information regarding each well being transferred:

(A)   API number of the well;

(B)   Well name and number;

(C)   Legal location of the well, described by section, township and range.

(3)   The well list may be provided in spreadsheet form, if possible, and may be filed in digital format specified by the Conservation Division. In lieu of the spreadsheet, the transferor and transferee, at their option, may file one Form 1073MW indicating the transfer of multiple wells with an OCC Form 1002A Completion Report attached for each well transferred. 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, the quarter, quarter, quarter section calls, footages from the south and west quarter section lines, and the drilling and completion dates.

(4)   The Conservation Division shall notify both the transferor and transferee in writing within thirty (30) days of the Conservation Division's approval or disapproval of the transfer of operatorship for the subject well(s).

(5)   Compliance with 165:5-7-11 when and if operatorship was designated by orders of the Commission in pooling, increased density, and location exception applications.

(b)   Before the operatorship of a well can be transferred to a new operator when the current or former operator is unavailable for signature, one of the following may be submitted as proof of operatorship:

(1)   A certified copy of a recorded lease or assignment transferring all rights, title, and interest to the wells described on Form 1073 or Form 1073MW to the new operator.

(2)   A certified copy of a journal entry of judgment rendered by a district court of Oklahoma having jurisdiction over the wells described on Form 1073 or Form 1073MW vesting legal title to the new operator.

(3)   A certified copy of a bankruptcy proceeding by the bankruptcy court having jurisdiction over the wells described on Form 1073 or Form 1073MW.

(c)   If an operator is not in compliance with an enforceable order of the Commission, the Conservation Division shall not approve any Form 1073 or Form 1073MW transferring well(s) to said operator until the operator complies with the order. The transferor of the well(s) listed on the Form 1073 or Form 1073MW remains responsible for the well(s) until any transfer is approved by the Commission.

[Source: Amended at 13 Ok Reg 2373, eff 7-1-96; Amended at 17 Ok Reg 802, eff 12-28-99 (emergency); Amended at 17 Ok Reg 1860, eff 7-1-00; Amended at 33 Ok Reg 593, eff 8-25-16; Amended at 37 Ok Reg 1121, eff 10-1-20]