SECTION 165:10-5-10. Transfer of authority to inject

(a)   An order or permit authorizing an injection well(s), disposal well, commercial disposal well, or hydrocarbon storage well(s) shall not be transferred from one operator to another without the following:

(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 1073I or Form 1073IMW 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 1073I or Form 1073IMW to notify the Conservation Division of any change of operation of any underground injection well within thirty (30) days of transfer of the well.

(3)   Notice in writing to the Commission on Form 1073IMW. For transfers involving more than ten (10) wells, a transferor and transferee may file a single Form 1073IMW 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 for each well transferred:

(A)   API number of the well;

(B)   Well name and number;

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

(D)   The Commission Order or permit number(s) authorizing the injection, disposal, or hydrocarbon storage activity.

(4)   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 information listed in subparagraphs (a)(3)(A) through (D), the transferor and transferee, at their option, may file one Form 1073IMW 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, and initial injection, disposal or storage dates.

(5)   Notice in writing to the Commission on Form 1075 demonstrating that a mechanical integrity test was performed within one year prior to the date of transfer. For commercial disposal wells, the Mechanical Integrity Test shall be conducted within 30 days prior to the date of transfer.

(6)   The performance of the mechanical integrity test required in (a)(5) of this subsection shall not apply to any operator transfer when the following conditions are present:

(A)   The interest of the currently designated operator is transferred to its subsidiary or parent company, or a subsidiary of a parent company;

(B)   The interest of the currently designated operator is transferred to a surviving or resulting corporation or business entity due to, respectively, a merger, consolidation or reorganization involving the transferor and transferee. As used in this subparagraph, "business entity" means a domestic or foreign partnership, whether general or limited; limited liability company; business trust; common law trust, or other unincorporated business; or

(C)   The currently designated operator undergoes a name change. The relief afforded by this subparagraph is not applicable to situations where the name change involves the following conditions:

(i)   The assignment of a new Federal Employer Identification number by the Internal Revenue Service to the new company;

(ii)   The name change is accompanied by a change in the majority of partners in a partnership;

(iii)   The name change is associated with a divorce between a husband and wife when the husband and wife comprise a partnership;

(iv)   The name change is associated with the death of one spouse in a partnership comprised of a husband and wife;

(v)   The name change involves a sole proprietorship; or

(vi)   The name change is associated with such other circumstances where the Commission determines upon application, notice and hearing that the relief provided in this subparagraph is not applicable, or that an exception to any exclusion should be granted.

(vii)   As used in this subparagraph, the term "partnership" means a domestic or foreign partnership, whether general or limited.

(7)   A Form 1012, Form 1012C or Form 1012D for that portion of the calendar year the transferor has operated the well prior to submitting the Form 1073I to the Commission.

(b)   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 authority to inject for the subject well(s).

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

(d)   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 1073I or Form 1073IMW 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 1073I or Form 1073IMW 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 1073I or Form 1073IMW.

[Source: Amended at 13 Ok Reg 2381, eff 7-1-96; Amended at 14 Ok Reg 2198, eff 7-1-97; 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 34 Ok Reg 921, eff 9-11-17; Amended at 36 Ok Reg 534, eff 8-1-19; Amended at 37 Ok Reg 1121, eff 10-1-20]