Oklahoma § 52-581.4 - Exemptions - Owners ineligible to elect to market share

§ 52-581.4. Exemptions - Owners ineligible to elect to market share

A. The following sales are exempt from the provisions of the

Natural Gas Market Sharing Act:

1. Sales pursuant to contracts for an initial term of more than

one (1) year entered into prior to January 1, 1985, or any

successor, replacement, or rollover contract thereto entered into

prior to January 1, 1990. This subsection shall not apply to

participating mineral owners who were sharing in any contract on

January 1, 1992 and continue to share in such contract on September

1, 1992. Such participating mineral owners shall be subject to all

other provisions of this act;

2. Sales pursuant to contracts which provide for:

a.

an initial term of more than three (3) years,

b.

a guarantee or warranty for delivery of fixed volumes

of gas without limitation to specified wells or

reserves, and

c.

delivery of such volumes;

Oklahoma Statutes - Title 52. Oil and Gas

3. Sales of natural gas liquids extracted as a result of

mechanical processing of the natural gas stream for the removal of

liquid components other than methane.

B. Owners in a well shall not be entitled to elect to market

share pursuant to the provisions of the Natural Gas Market Sharing

Act if in such well, such owners:

1. Are subject to a balancing agreement or other written

agreement which expressly provides for the taking, sharing,

marketing or balancing of gas in a manner other than as provided for

in the Natural Gas Market Sharing Act;

2. Have terminated their contract with a purchaser for value

received, until the expiration of the remainder of the term provided

in such contract;

3. Have terminated market sharing within the previous twelve

(12) months; or

4. Are currently overproduced owners.

Added by Laws 1992, c. 190, § 21, eff. Sept. 1, 1992.