SECTION 165:10-24-6. Fees

(a)   The designated marketer may charge each electing owner with an administrative fee for marketing the electing owner's share of production. Said fee shall be assessed monthly on a per-well basis. It shall be based on a formula described in this Section subject to annual adjustments as provided below. Said formula consists of 2.5% of the electing owner's monthly share of proceeds, but not less than twenty dollars nor more than seventy-five dollars, unless application of the annual adjustment factor provides a different maximum amount. The maximum amount of the fee permitted by this Section shall be adjusted as of the first day of May each year following May 1, 1993. The annual adjustment shall be computed by multiplying the rate currently in use by the percentage of increase or decrease in the annual overhead adjustment factor established by the Council of Petroleum Accountants Societies at its annual spring meeting for purposes of adjusting the combined fixed-rate overhead charges against joint operations in a well.

(b)   If the designated marketer produces and sells gas for the account of the electing owner, the designated marketer may charge the electing owner or deduct said fee from the electing owner's share of the undistributed proceeds of production.

(c)   Administrative fees under this Section shall be in addition to and separate from any and all post-production costs and expenses, including but not limited to reasonable marketing costs and expenses which may also be deducted from the proceeds payable to eligible electing owners.

[Source: Added at 10 Ok Reg 2601, eff 6-25-93]