{"data":{"id":"us-ok/okla.-stat.-tit.-17-17-508","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 17, § 17-508","heading":"Plan of unitization - Provisions - Ratification by record","body":"owners - Election to sell.\n\nA. The plan of unitization for each such unit and unit area\n\nshall be one suited to the needs and requirements of the particular\n\nunit dependent upon the facts and conditions found to exist with\n\nrespect thereto. In addition to such other terms, provisions,\n\nconditions and requirements found by the Commission to be reasonably\n\nnecessary or proper to effectuate or accomplish the purpose of this\n\nact, and subject to the further requirements hereof, each such plan\n\nof unitization shall contain fair, reasonable and equitable\n\nprovisions for:\n\n1. The efficient unitized management or control of further\n\ndevelopment and operation of the unit area. Under such plan the\n\nactual operations of the unit shall be carried on by one of the\n\nowners of the right to drill for and produce brine within the unit\n\narea as unit operator. The designation of unit operator shall be by\n\nmajority vote of the owners of the right to drill for and produce\n\nbrine in the unit in accordance with their acreage ownership in the\n\nunit;\n\n2. The method and circumstances under which brine or effluent\n\nfrom the unit, or from any other source, may be injected into the\n\ncommon source of supply under the unit area or into other\n\nformations;\n\n3. The fair, just and reasonable compensation to be awarded to\n\nany owner within the unit who does not wish to participate in\n\ndevelopment of the unit by paying such owner's share of unit costs;\n\n4. The fair, just and reasonable manner of participation for\n\nany owner desiring to participate in the development of the unit by\n\npaying such owners share of unit costs;\n\n5. The fair, just and reasonable allocation and distribution to\n\neach owner and the value of such owner's share of the brine and\n\nsolution gas produced from the unit;\n\n6. The procedure and basis upon which wells, equipment and\n\nother properties of the owners within the unit area are to be taken\n\nover and used for unit operations, including the method of arriving\n\nat the compensation therefor, or for otherwise proportionately\n\nequalizing the investment of the several owners in the unit;\n\n7. The method of apportioning costs of development and\n\noperation between owners of brine and owners of solution gas, if\n\nsolution gas has also been unitized;\n\n8. The time when the plan of unitization shall become\n\neffective;\n\n9. The time when and conditions under which the unit shall or\n\nmay be dissolved and all affairs concluded.\n\nB. No order of the Commission creating a unit and prescribing\n\nthe plan of unitization applicable thereto shall become effective\n\nunless and until the plan of unitization has been signed, or in\n\nwriting ratified or approved by record owners of the right to drill\n\nof not less than fifty-five percent (55%) of the unit area affected\n\nthereby and by owners of record of not less than fifty-five percent\n\n(55%) (exclusive of royalty interest owned by lessees or\n\nsubsidiaries of any lessee) of the royalty interest in and to the\n\nunit area and the Commission has made a finding either in the order\n\ncreating the unit or in a supplemental order that the plan of\n\nunitization has been so signed, ratified or approved by lessees and\n\nroyalty owners owning the required percentage interest in and to the\n\nunit area. Provided, however, in any instance where a royalty owner\n\nhas, through lease or other agreement, previously authorized pooling\n\nor unitization of a size equal to or larger than the size specified\n\nin the Commission order, said lease or other agreement shall be\n\ndeemed to be such royalty owner's authorization to unitize, and no\n\nadditional signature, ratification or approval shall be necessary\n\nfrom such owner, unless the lease provides for a different\n\nproduction sharing formula than set out in the plan of unitization.\n\nFurther provided, however, in any instance where a royalty owner\n\nhas, through lease or other agreement, previously consented to have\ne\n\ndeemed to be such royalty owner's authorization to unitize, and no\n\nadditional signature, ratification or approval shall be necessary\n\nfrom such owner, unless the lease provides for a different\n\nproduction sharing formula than set out in the plan of unitization.\n\nFurther provided, however, in any instance where a royalty owner\n\nhas, through lease or other agreement, previously consented to have\n\nthe unit boundaries and the allocation formula established by the\n\nCommission, said lease or other agreement shall be deemed to be such\n\nroyalty owner's authorization to unitize, and no additional\n\nsignature, ratification or approval shall be necessary from such\n\nowner. Where the plan of unitization has not been so signed,\n\nratified or approved by lessees and royalty owners owning the\n\nrequired percentage interest in and to the unit area at the time the\n\norder creating the unit is made, the Commission shall hold such\n\nadditional and supplemental hearings as may be requested or required\n\nto determine if and when the plan of unitization has been so signed,\n\nratified or approved by lessees and royalty owners owning the\n\nrequired percentage interest in and to the unit area and shall, in\n\nrespect to such hearings, make and enter a finding of its\n\ndetermination in such regard. In the event lessees or royalty\n\nowners, or either, owning the required percentage interest in and to\n\nthe unit area have not so signed, ratified or approved the plan of\n\nunitization within a period of six (6) months from and after the\n\ndate on which the order creating the unit is made, the order\n\ncreating the unit shall be deemed vacated and of no force and\n\neffect.\n\nC. A participating brine owner shall have a one-time election\n\nto sell, and any brine owner in the unit with brine refining\n\nequipment shall have the obligation to buy, the brine produced from\n\nthe unit at the value determined by the Commission; provided\n\nhowever, nothing herein shall require the purchasing brine owner to\n\npurchase brine when it is not producing brine from the unit for its\n\nown account.","path":["OK Code","Title 17"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os17.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"3b2144f1479b167a0a9064236e6c6ae5bb6735314b209be8363dc39dcd048ca0","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-17-17-507","next":"us-ok/okla.-stat.-tit.-17-17-509"},"notice":"GroundRules: Original legal text. Not legal advice."}