Okla. Admin. Code § 165:10-1-15

Current through Vol. 42, No. 7, December 16, 2024

Section 165:10-1-15 - Transfer of operatorship of wells

(a) Before the operations of a well can be transferred to a new operator, the following must be submitted:

(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 1073 or Form 1073MW 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 1073 or Form 1073MW to notify the Conservation Division of any change of operation of any oil or gas well within thirty (30) days of transfer of the well. Unless otherwise stated, the new operator assumes all responsibility for the wells specified within the boundaries of the outlined area. The Form 1073MW is intended to be used for multiple well transfers of ten (10) or more wells and must contain a list with the following information for each well:

(A) API number of the well;

(B) Well name and number;

(C) Legal location of the well, described by section, township, range and quarter, quarter, quarter section calls.

(3) A current Form 1002A Completion Report must be on file with the Conservation Division in accordance with OAC 165:10-3-25. 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, footages from the south and west quarter section lines, and the drilling and completion dates.

(4) The Conservation Division shall notify both the transferor and transferee by electronic mail or regular mail within thirty (30) days of the Conservation Division's approval or disapproval of the transfer of operatorship for the subject well(s).If the Form 1073 or Form 1073MW is disapproved, the operator shall have ninety (90) days from the date of the disapproval notification to correct the deficiencies. If the operator fails to correct the deficiencies and to resubmit the Form 1073 or Form 1073MW within the ninety (90) day time period, the Form 1073 or Form 1073MW shall be considered withdrawn unless the time is extended by written request for good cause shown. The disapproval notification will explain the deficiencies that need correcting and will specify the expiration of the ninety (90) day period during which the deficiencies must be corrected.

(5) Compliance with 165:5-7-11 when and if operatorship was designated by orders of the Commission in pooling, increased density, and location exception applications.

(b) 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 1073 or Form 1073MW 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 1073 or Form 1073MW 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 1073 or Form 1073MW.

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

Okla. Admin. Code § 165:10-1-15

Amended at 13 Ok Reg 2373, eff 7-1-96; Amended at 17 Ok Reg 802, eff 12-28-99 (emergency); Amended at 17 Ok Reg 1860, eff 7-1-00

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015.

Amended by Oklahoma Register, Volume 33, Issue 23, August 15, 2016, eff. 8/25/2016

Amended by Oklahoma Register, Volume 37, Issue 24, September 1, 2020, eff. 10/1/2020

Amended by Oklahoma Register, Volume 40, Issue 24, September 1, 2023, eff. 10/1/2023