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Oklahoma Administrative Code (Last Updated: March 11, 2021) |
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TITLE 385. Department of the Commissioners of the Land Office |
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Chapter 15. Sale and Operation of Oil and Gas Leases |
SECTION 385:15-1-2. Definitions
Latest version.
- The following words or terms, when used in this Chapter, shall have the following meaning, unless the context clearly indicates otherwise:"Affiliated party" means any party with whom the lessee has a financial relationship that results in either the lessee or the other party having control over the other, or the lessee and other party being under common control of a parent or subsidiary."Alternate Performance Payments" means to include any payment that is received by a lessee from a purchaser as an alternative to delivery of production, or as a prepayment for future delivery of production, or indexed to production, or for access to the reserves."Average spot price" means averages of actual sales derived from one or more valid publications, publishing bidweek prices (or if bidweek prices are not available, first of the month prices) with at least one index pricing point in the field or area."Barrel" means 42 (US) gallons at 60° F. at atmospheric pressure."Commission" means the Commissioners of the Land Office, State of Oklahoma."Condensate" means liquid hydrocarbons which were originally in the gaseous phase in the reservoir."Control" means identity of ownership is conclusive as is consolidated financial reporting–but is not necessary, and the lack of identity of ownership is not presumptive of lack of control."Cubic foot of gas" or "Standard cubic foot of gas" means the volume of gas, including both natural gas and casinghead gas, contained in one cubic foot of space at a standard pressure base and at a standard temperature base. The standard pressure base is 14.65 pounds per square inch absolute and the standard temperature base is 60° F. Whenever the conditions of pressure and temperature differ from the above standards, conversion of the volume from these conditions to the standard conditions shall be made in accordance with the "Ideal Gas Laws" corrected for deviation from Boyle's Law, which correction must be made unless the pressure at the point of measurement is 200 pounds per square inch gauge or less; all in accordance with the methods and tables generally recognized by and commonly used in the natural gas industry."Day" means a period of twenty-four (24) consecutive hours: For accounting purposes only, it is from 7:00 A.M. to 7:00 A.M. the following day."Field" means the general area underlaid by one or more Pools."Gas" means all natural gas and all other fluid hydrocarbons not herein defined as Oil, including Condensate, because it originally was in the gaseous phase in the reservoir."Gross proceeds" means the value of the total amount of money or credit derived from production or rights thereto without any deductions, reductions, or setoffs."Log" or "Well Log" means a systematic detailed and correct record of formations encountered in the drilling of a well."Offset Well" means a well drilled directly opposite a State tract within a 40 acre square area, or within a directly opposite unit spaced by the Oklahoma Corporation Commission, or within an area which is generally regarded as the development unit in the area."Oil" or "Crude Oil" means crude petroleum oil and all other hydrocarbons, regardless of gravity, which are produced in liquid form, but does not include liquid hydrocarbons which were originally in a gaseous phase in the reservoir."Operator" means any person or persons, who, duly authorized, is in charge of the management, development of a lease or the operation of a producing property."Plug" means the closing off, in a manner prescribed by the Corporation Commission, of all oil, gas, and water bearing formations in any producing or non-producing well bore before such well is abandoned."Potential" means the properly determined capacity of a well to produce oil, or gas, or both, under conditions prescribed by the Oklahoma Corporation Commission."Production in Paying Quantities" means that the gross income from oil and gas produced and sold (after deduction of taxes and royalty) exceeds the cost of operation."Secretary" means the duly appointed and qualified Secretary to the Commissioners of the Land Office."State Land" means any land under the control and supervision of the Commissioners of the Land Office."Subsidiary" means any party with whom the lessee has a financial relationship that results in either the lessee or the other party having control or ownership over the other, or the lessee and another party being under common ownership or control of a third person.