Newspaper article THE JOURNAL RECORD

Corporation Commission

Newspaper article THE JOURNAL RECORD

Corporation Commission

Article excerpt

GD0;AGB;IP1,1.6;MC4;ITS;PS66,102;XP;END;

(77050) NOTICE OF PROPOSED& RULEMAKING Cause RM No. 000048 Before the Corporation Commission of the State of Oklahoma.

In the Matter of Establishing and Amending Certain Substantive and Procedural Rules Related to Oil and Gas Production, Natural Gas Storage, and Brine Mining.

The Commission hereby commences this rulemaking to change its substantive and procedural rules as follows:

SUMMARY: Proposal No. 1 would amend OCC-OGR Rule 1-302 to require owners who sell gas from a well to report volumes and gas purchaser's identity to the well operator. Such reporting is now required by 52 O.S. Supp. 1990 Section 540.1.

Proposal No. 2 would amend OCCOGR Rule 2-320 to provide for a 150 mcf/d minimum allowable in the Guymon-Hugoton Special Allocated Gas Pool. Authority for the change arises under 52 O.S. Section 86.1, et seq.

Proposal No. 3 would amend OCCOGR Rule 3-206 to provide an exception for horizontal drainholes. The current rule requires cementing of casing from the bottom or end of the hole. However, normal completion of horizontal drainhole does not involve cementing of the casing of the drainhole. The amendment would authorize customary completion of the drainhole. Authority for this proposal arises under 17 O.S. Section 52, 52 O.S. Section 139, et seq., and 63 O.S. Section 12005.

Proposals Nos. 4-8 results from 52 O.S. Supp. 1990 Section 87.1(f). They relate to any drilling and spacing unit established for oil and a horizontally drilled well.

Proposal No. 4 would replace the text of OCC-OGR Rule 3-211. The proposal would establish criteria for spacing, pooling, drilling and producing a horizontal well with one or more laterals.

Proposal No. 5 would amend OCCRP Rule 8-2 to establish criteria for the establishment and duration of a drillling and spacing unit established for a horizontal well.

Proposal No. 6 would amend OCCRP Rule 23-3. The amendment would provide for the following: Forced pooling of a drilling and spacing unit for a horizontal well will not affect any interest in any previously drilled well. No existing well in such a unit may be converted to a horizontal well without consent of all working interest owners participating in the well.

Proposal No. 7 would establish OCCRP Rule 23-8 to provide as follows. Any order establishing a horizontal well unit shall be an interim order which shall become final upon drilling the well and submission of a directional survey, plat and completion report. If the length of the lateral is less than minimum length under the order, the operator would be reuired to notify the Commission and othe owners in the unit. …

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