SECTION 385:15-1-11. Lease cancellation procedure

(a)   Notice. Upon violation of any of the substantial terms of an oil and gas lease, or the rules and regulations of the Commission pertaining thereto, the Commission shall issue a notice of proposed cancellation by registered mail, to the last known address of the lessee, specifying the said rule or rules, terms or conditions which have been violated.

(b)   Hearing. The lessee may, within fifteen days from the date of mailing of the notice in (a) of this section, request a hearing at which he may show cause, if any he has, why the lease should not be canceled. Upon receipt, by the Secretary of the Commission, of a written request for a hearing, the matter shall be set for hearing before an outside hearing officer selected by the Commissioners, having substantial technical experience in the issue or issues under discussion, designated by the Commission, at a date, time and place certain and the lessee shall be immediately advised thereof by registered mail not less than 15 days prior to such hearing. Prior to the date set for such hearing the lessee may file with the Hearing Officer a written response setting forth the reasons such lease should not be canceled and forfeited. Affidavits, depositions or other written or documentary evidence in support of the matters and things alleged in said response may be filed therewith, in which case the lessee need not appear in person or by counsel at the hearing herein provided for and may rest on such written proof. If a hearing is not requested, the Commission may proceed to the cancellation of the lease without further notice to the lessee. The Hearing Officer shall conduct the hearing at the time and place designated, or at the time and place to which said matter is adjourned or continued. At such hearing evidence and oral arguments in support of the alleged violation giving rise to the notice of proposed cancellation and in support of the material allegations of the written response thereto will be heard, such time being allowed therefore as the Hearing Officer shall direct. The Hearing Officer shall make a full report of said hearing to the Commission, orally or in writing, as the Commission may direct. The lessee shall be promptly notified of the decision of the Commission, and the lessee or any other interested party aggrieved by such decision shall be allowed a judicial review to the District Court of the County where the leased premises are situated, in accordance with the provisions of Section 318, of said Title 75, Oklahoma Statutes; thereupon, the procedure and rights involved shall be determined in accordance with the provisions of said Section 318 and the following Sections of said Title 75 § 319, 320, 321, 322 and 323, with the right of appeal to the Supreme Court from the lower court's action as provided by Section 323 of Title 75. The judicial review referred to is to be had by filing a petition therefore in the District Court within thirty (30) days after the appellant has notice of the order to be appealed from, as provided in said statute. The review shall be conducted by the court without a jury, and shall be confined to the record. (The court does not hear the matter de novo, as formerly provided, but may, in a proper case, set aside, modify or reverse the order and remand the case.)

[Source: Amended at 15 Ok Reg 1745, eff 5-12-98]