Okla. Stat. tit. 17 § 506

Current through Laws 2024, c. 453.

Section 506 - Commission's findings - Evidence required - Orders

A. If, after proper application and notice, the Commission in its hearing shall find by substantial evidence that:

1. There exists a common source of supply or prospective common source of supply for brine;

2. Unitized management, operation and further development of the common source of supply for brine is reasonably necessary in order to effectively develop the brine common source of supply;

3. Unitized operation as applied to such common source of supply is feasible and will prevent waste and, with reasonable probability, will result in greater ultimate recovery of brine and its constituent parts;

4. Such unitization is for the common good and will result in the general advantage of the owners of the brine rights within the common source of supply; and

5. The creation of a unit will accomplish one or more of the following:

a. avoid the drilling of unnecessary wells,

b. prevent waste,

c. protect correlative rights, or

d. increase the ultimate recovery from the common source of supply and unit covered by the application, the Commission shall make a finding to that effect and enter an order creating the unit, and requiring unitized operation of the prospective common source of supply or portion thereof described in the order.

B. If the Commission in its hearing shall find by substantial evidence that:

1. Solution gas exists within the common source of supply or prospective common source of supply;

2. The production of brine is impossible or impractical without also producing the solution gas; and

3. The unitization of the brine common source of supply is impractical or impossible without also unitizing the associated solution gas, the Commission shall make a finding to that effect and shall further provide in its order for the unitization of the solution gas within the unit area.

C. Orders of the Commission entered pursuant to Section 87.1 of Title 52 of the Oklahoma Statutes establishing drilling and spacing units for the production of oil, gas or oil and gas shall not be applicable to the drilling of wells and production of solution gas from a unit established by an order issued pursuant to this act.

Okla. Stat. tit. 17, § 506

Added by Laws 1990, SB 263, c. 255, § 7, eff. 9/1/1990.