SECTION 165:5-7-21. Unitized management of a common source of supply; brine and associated gas

(a)   Notice of hearing for an order creating a unit pursuant to

165:10-3-40 shall be served by the applicant no less than twenty

(20) days prior to the date of the hearing, by regular mail upon each person who would be entitled to share in the production from the proposed unit.

(b)   Notice of hearing for an order creating a unit pursuant to 165:10-3-40 shall be published pursuant to 165:5-7-1(n)(2).

(c)   Provision for amending or terminating the unit shall be in the Plan of Unitization. To amend the Plan of Unitization, the order creating the unit shall be amended and notice shall be as provided for an application seeking an order creating a unit pursuant to 165:10-3-40. When a unit is terminated in accordance with the terms of the Plan of Unitization, a copy of certificate of dissolution filed in the county in which the lands are located shall also be filed with the Commission. In such causes, no Commission action shall be required to terminate a unit if terminated in accordance with the Plan of Unitization. Where the Plan of Unitization does not provide for amendment or termination of a unit, an application may be filed seeking relief from the order creating the unit and notice shall be given as provided for the filing of an application in the original cause.

(d)   The application for an order creating a unit pursuant to 165:10-3-40 shall contain the following:

(1)   The names and addresses of the operator or operators of the unit.

(2)   A plat showing the lease, group of leases or unit(s) included within the proposed unit, the location of the known proposed injection well or wells, and the location of all existing brine wells including abandoned, drilling and dry holes, and the names of all operators offsetting the area encompassed within the unit producing from or injecting into the common source of supply affected by the unit.

(3)   The common source of supply in which all wells are currently completed.

(4)   The name, description, and depth of each common source of brine supply to be affected.

(5)   A log of a representative well completed in the common source of supply.

(6)   The proposed plan of development of the area included within the unit.

(7)   The approval of fifty-five percent (55%) of the ownership named in the unit application has been obtained, or will be obtained prior to the unit becoming effective.

(e)   A copy of the application, with attachments, and notice of hearing shall be served by regular mail to each person who would be entitled to share in production from the proposed unit, and to each operator offsetting the unit as shown on the application.

(f)   Category B surety shall be a requirement of a person, company, corporation, partnership, etc., filing an application to produce brine for the extraction of minerals and the reinjection of minerals and the reinjection or disposal of the effluent. The amount of surety shall be twenty-five thousand ($25,000) dollars per well or a maximum of one hundred thousand ($100,000) dollars for each authorized operator.

[Source: Amended at 9 Ok Reg 2323, eff 6-25-92; Amended at 10 Ok Reg 2591, eff 6-25-93]