SECTION 165:5-7-6.1. Horizontal well unitization for targeted reservoirs

(a)   The application, and the notice of hearing on the application, for an order creating a horizontal well unitization for a targeted reservoir pursuant to 52 O.S. §87.9 shall be served no less than fifteen (15) days prior to the date of the hearing, by regular mail, upon:

(1)   Each person or governmental entity having the right to share in production from the proposed unitization covered by the application; and

(2)   The operator, as shown by the records of the Commission, of each well that is commencing to or currently producing from the targeted reservoir in any unit or any separate tract of land for which no unit has been formed for such targeted reservoir adjoining, cornering or adjacent to the proposed unitization.

(b)   If the applicant is the operator of a well commencing to or currently producing from the targeted reservoir in a unit or a separate tract of land for which no unit has been formed for such targeted reservoir adjoining, cornering or adjacent to the proposed unitization, notice of hearing shall be served by the applicant no less than fifteen (15) days prior to the date of the hearing, by regular mail, upon each owner, as shown by the records of the operator, with a working interest in such well in the targeted reservoir.

(c)   Notice of hearing regarding an application for an order creating a horizontal well unitization for a targeted reservoir pursuant to 52 O.S. §87.9 shall be published as provided in OAC 165:5-7-1(n)(2).

(d)   The application for an order creating a horizontal well unitization for a targeted reservoir shall contain the following:

(1)   The legal description of the lands covered.

(2)   The names and addresses of the applicant and proposed operator or operators of the proposed unitization.

(3)   Allegations concerning the existence of facts relating to the proposed unitization as provided in 52 O.S. §87.9(B).

(4)   A map or plat showing the governmental sections included within the proposed unitization and the location of proposed horizontal well(s) to be drilled for the recovery of oil and gas from the targeted reservoir. If applicable, the map or plat should show the location of all other wells, including abandoned and drilling wells and dry holes, within the targeted reservoir.

(5)   The name and depth of each targeted reservoir to be affected, including any potential adjacent common source of supply.

(6)   A log of a representative well completed in the targeted reservoir which is the subject of the application.

(7)   A plan of development of the area included within the proposed unitization as provided in 52 O.S. §87.6(B)(11) and 52 O.S. §87.9(E). The plan of development must also address the conditions upon which the unit shall terminate.

(8)   Reference to any companion application, identified by the type of requested relief, such as any application for location exception, for pooling, or for any other relief that may be appropriate under the specific facts of a cause, if such companion application is filed in conjunction with or is pending at the time of the filing of the application for horizontal well unitization.

(e)   Each application for an order creating a horizontal well unitization for a targeted reservoir shall be limited to two (2) governmental sections, although the size of the unitization may be expanded by including additional governmental sections up to a maximum unit size of four (4) governmental sections for good cause shown pursuant to 52 O.S. §87.9(C).

(f)   An order approving an application for a horizontal well unitization for a targeted reservoir shall include the elements identified in 52 O.S. §87.9(F) and other applicable portions of 52 O.S. §87.9.

(g)   Any pooling application filed pursuant to 52 O.S. §87.9(I) regarding a horizontal well unitization for a targeted reservoir shall be filed pursuant to OAC 165:5-7-7.

[Source: Added at 28 Ok Reg 1893, eff 5-19-11 (emergency); Added at 29 Ok Reg 938, eff 7-1-12; Amended at 35 Ok Reg 67, eff 9-8-17 through 9-14-18 (emergency); Amended at 35 Ok Reg 946, eff 10-1-18]

Note

EDITOR’S NOTE: This emergency action expired before being superseded by a permanent action. Upon expiration of an emergency amendatory action, the last prior permanent text is reinstated. Therefore, on 9-15-18 (after the 9-14-18 expiration of the emergency action), the text of section 165:5-7-6.1 reverted back to the permanent text that became effective 7-1-12, as was last published in the 2016 Edition of the OAC, and remained as such until amended by permanent action on 10-1-18.