Oklahoma § 52-24.4 - Definitions

§ 52-24.4. Definitions

For the purposes of this act:

1. “Gathering” is the transportation of natural gas through a

pipeline for hire, compensation or otherwise, or transporting

natural gas through a pipeline, in whole or in part, for such

person’s own account, whether in connection with the purchase and

resale of natural gas, or in connection with the processing of

natural gas or otherwise, performed by a person other than a local

distribution company, intrastate transmission pipeline or interstate

pipeline. Gathering includes those activities or processes

performed between the delivery points and the redelivery points,

which shall include and be limited to only transportation,

measurement, conditioning, compressing, pressure regulation,

recompressing, cleaning and treating of such gas and the fuel or gas

loss associated with such foregoing activities. The terms

“conditioning, cleaning and treating” as used herein shall include

those processes of separation, dehydration, removal of all

contaminants and inerts and filtering. Gathering specifically shall

not include processing or the extraction of natural gas liquids and

products;

2. "Gatherer" shall mean any person who performs the activities

or processes defined as gathering;

3. "Person" shall mean any individual, corporation, firm,

partnership, master limited partnership, limited liability company,

association, venture, trust, institution, or federal, state, or

local governmental instrumentality, or any legal entity however

organized;

4. "Shipper" shall mean any person who owns or controls natural

gas that seeks or receives gathering service from a gatherer;

Oklahoma Statutes - Title 52. Oil and Gas

5. "Terms and conditions of service" shall include all factors

defining the obligations between the gatherer and shipper respecting

any gathering activities or process, including, but not limited to,

nominations, deductions for fuel, accounting for imbalances,

imbalance penalties, assessments, charges or makeup provisions,

costs, charges and fees for connection or maintaining connections,

duration of gathering service, location of receipt and delivery

points, quality specifications of natural gas, minimum and maximum

pressures, and measurement;

6. “Delivery point(s)” shall mean the point where the

possession or control of the gas stream transfers from a shipper to

a gatherer;

7. “Redelivery point(s)” shall mean the point at which the

gatherer relinquishes possession or control of the gas stream;

8. “Similarly situated shipper” shall mean any person so

designated by the Commission, after application and hearing, wherein

the Commission determines that such applicant should receive the

benefits and obligations specified in a previously issued Commission

order under this act. In determining whether a person is a

similarly situated shipper, the Commission shall consider all

relevant conditions and factors including those utilized in fixing

the fee or terms and conditions of service in the previous order.

Similarly situated shipper status shall be limited to applicant’s

interest in the well(s) covered by the previous order; and

9. “Spread fee” shall mean the monthly difference obtained by

subtracting the value received by the gatherer for the natural gas

liquids attributable to shipper from the value of the heating

content of the natural gas converted to natural gas liquids

attributable to the shipper, established by the cost of natural gas

purchased by the gatherer to specifically replace such heating

content or, if no actual purchases were made, by the value received

by gatherer for natural gas sold at the plant tailgate; provided,

however, in any month that the result of this calculation generates

a value of zero or less, there shall be deemed to be no spread fee.

Added by Laws 1999, c. 317, § 2, emerg. eff. June 4, 1999. Amended

by Laws 2004, c. 77, § 1, emerg. eff. April 12, 2004.