SECTION 165:10-24-1. Scope

(a)   This Subchapter implements the Natural Gas Market Sharing Act of 1992, codified at 52 O.S. Section 581, et seq.

(b)   This Subchapter establishes a procedure whereby an owner in a well may compel the well operator or other designated marketer to either sell gas on the owner's behalf or find a market for that owner's gas.

(c)   This Subchapter shall apply to the sale of natural gas from a well except for:

(1)   any sale under a gas contract for more than one year, entered into before January 1, 1985 (including any successor, replacement or roll-over contract entered into before January 1, 1990) provided that any participating mineral owners who were sharing in a contract on January 1, 1992, and continue to share in such a contract on September 1, 1992, are subject to this Subchapter;

(2)   any sale under a contract which provides for:

(A)   an initial term of more than three years; and

(B)   a guarantee or warranty of delivery of fixed volumes without limitation on specified wells or reserves; and

(C)   delivery of such volumes;

(3)   any sale of natural gas liquids extracted by mechanical processing of the natural gas stream for removal of liquid components other than methane.

(d)   Nothing in this Subchapter shall change the obligation of a first purchaser of production under an existing gas contract unless otherwise agreed to by the parties.

[Source: Added at 10 Ok Reg 2601, eff 6-25-93; Amended at 11 Ok Reg 3699, eff 7-11-94]