Oklahoma § 17-506 - Commission's findings - Evidence required - Orders

§ 17-506. 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;

Oklahoma Statutes - Title 17. Corporation Commission

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.

Added by Laws 1990, c. 255, § 7, eff. Sept. 1, 1990.