Oklahoma § 52-570.7 - Out-of-balance wells

§ 52-570.7. Out-of-balance wells

A. For purposes of the Production Revenue Standards Act a well

is out of balance when cumulative gas sales on a volumetric basis

for the account of all owners in a well have not been made in

proportion to the respective net revenue interest of each owner.

B. In a well wherein the cumulative gas production accounts of

royalty interest owners are out of balance, producing owners in that

Oklahoma Statutes - Title 52. Oil and Gas

well may agree to have the distribution of gas royalty proceeds

among the royalty interest owners made in a manner other than

according to their proportionate royalty shares, provided that:

1. Such variance shall only be permitted to the extent required

to balance the cumulative gas production accounts of the royalty

interest owners; and

2. Prior notice thereof is given to the royalty interest owners

affected thereby, and to the operator along with any ongoing

information necessary for the operator to discharge its duties.

C. Nothing in this section shall be construed to impair any

rights to balancing which may exist by contract or law.

Added by Laws 1992, c. 190, § 7, eff. July 1, 1993.