OF PROPOSED RULEMAKING
Cause No. RM 000074
Before the Corporation Commission of the State of Oklahoma.
In the Matter of adopting rules implementing Senate Bill No.
Pursuant to 52 O.S. Sections 570.13 and 547, the Oklahoma
Corporation Commission hereby commences rulemaking to implement
the Production Revenue Standards Act ("PRSA") and the Natural Gas
Market Sharing Act ("NGMSA"), both found in 1992 Okla Sess.
Chapter 190, commonly known as Senate Bill No. 168 (1992).
The following summarizes the rule proposals. OAC 165:10-23 on
revenue sharing would be deleted. Senate Bill No. 168 repealed
the statutes on which Subchapter 23 was based. Next, the
Commission plans to establish OAC 165:10-26, to implement PRSA.
Section 1 of the Subchapter 26 establishes the scope of the
Subchapter per the requirements of PRSA Section 3. Section 2 of
the subchapter proposes effective dates for the rules. For
statutory requirements now in effect, the rules would be
effective on the date of emergency or final adoption. The other
provisions go into effect on July 1, 1993, under Section 31 of
the Act. Section 4 of the subchapter provides for operator
solicitation of information about payees in a well. The procedure
comes from PRSA Section 8A. The information is necessary to
establish accounts for a well's "PRSA royalty pool." Section 5 of
the subchapter adopts the statutory scheme of PRSA Section 8B for
pre-production nominations by working interest owners who
separately market production. Section 6 of the subchapter
incorporates the PRSA concept of a proportionate production
interest for gas balancing. Section 7 of the subchapter
establishes PRSA Section 8 requirements for postsale reports.
Section 8 of the subchapter contains PRSA Section 8 supplemental
remedies against persons who fail to provide payee information, a
pre-production nomination or a post-sale report. Section 9 of the
subchapter implements PRSA Sections 4 and 5 concerning designated
payors for royalty payments. Section 10 of the subchapter
incorporates PRSA Section 6 requirements for treating in-kind
royalty distributions in the royalty pool accounting. Section 11
of the subchapter concerns administrative fees to be developed
after completion an operator survey. Section 12 of the subchapter
adopts the PRSA Section 7 scheme for voluntary balancing of
royalty accounts. …