Newspaper article THE JOURNAL RECORD

$1.3 Million in New Fees Proposed by Commission

Newspaper article THE JOURNAL RECORD

$1.3 Million in New Fees Proposed by Commission

Article excerpt

A proposal to establish and increase certain fees affecting industries regulated by the Oklahoma Corporation Commission was unveiled to the commissioners at a Wednesday meeting.

An emergency hearing on the proposed fees, totaling $1.3 million, has been scheduled for 3 p.m. today in the Commissioners' Courtroom of the Jim Thorpe Building in Oklahoma City.

Wednesday's fee proposal seeks revenues from the oil and gas conservation division's administrative permits and disposal fees and commission docket filing fees.

Based on applications filed in fiscal 1987 and estimating such filings in fiscal 1988, the proposed measures could raise as much as $1.3 million, Maxey told the commissioners.

The greatest individual boost to the commission's revenue stream, under the proposal, would be to establish a $100 fee for intent to drill permit applications.

Permits to drill must be filed by oil and gas production companies to ensure the wells are legally located, that the well casings at the surface are sufficient to protect treatable water in the area, that the operators have the proper surety bond and do not have any outstanding citations against them.

The commission's oil and gas conservation division estimates 4,500 intents to drill will be filed in fiscal 1988, bringing in $450,000 for the commission's revolving fund.

The division had 5,500 applications for intents to drill in fiscal 1987, said C.D. Davidson, director of the division, but he expects that number to fall with the placement of a fee.

"We may not get any more superfluous items if we charge a fee," Davidson said. Some operators file for permits to drill at several locations and then drill and complete a well at only one of those locations, he said. …

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