Okla. Stat. tit. 64, § 64-1066: Community oil and gas lease

The lease contract of the state, with any lessee for oil and gas

purposes, shall stipulate, and the advertisement for bids for

leasing such land shall specify a fixed royalty, to be determined by

the commissioners of the land office, and in no event less than

twelve and one-half percent (12 1/2%) of the total output of such

oil and gas, and in addition thereto any bonus offered for such

lease, and shall also require a deposit of sufficient earnest money

in the hands of the commission as the commission may require to

accompany each bid, with appropriate conditions of forfeiture for

failure to comply with the terms and conditions of bidding upon such

lands. All leases for oil and gas provided in this article shall

contain a provision requiring the lessee to drill a sufficient

number of wells upon the leased premises to offset the wells upon

adjoining contiguous premises, and a further provision that a

failure to faithfully operate the leased premises for oil and gas to

as full an extent as individual and corporate premises are being

operated within the general oil and gas field, where such land is

located, shall forfeit such lease to the state. No transfer or

assignment of any lease shall be valid or convey any right in the

assignee without the consent in writing of the commissioners of the

land office. The board of commissioners may make such additional

rules that are determined necessary to enforce the provisions of

this article. Provided, the commissioners of the land office shall

have authority to enter into agreements upon such terms and

conditions as they may impose, providing for the communitizing of

any oil and gas lease executed by them with other leases to be

jointly operated and developed as a unit when they deem such

communitization to be to the best interest of the funds and property

under their management. This provision shall apply to existing

leases as well as to leases to be entered into hereafter. (The word

"communitizing" or "communitization", as used herein shall be

defined as a combining of diverse interests or interests owned by

different parties in lands and minerals on an area for a common

development for oil and gas purposes so that such area may be

considered as a unit or a whole.)

R.L. 1910, § 7198. Amended by Laws 1941, p. 304, § 1, emerg. eff.

May 1, 1941; Laws 1997, c. 118, § 2, eff. July 1, 1997. Renumbered

from § 285 of this title by Laws 2010, c. 41, § 118, emerg. eff.

April 2, 2010.