{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-24.5","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-24.5","heading":"Discriminatory fees – Open access – Commission authority","body":"A. No gatherer shall charge any fee or require any terms and\n\nconditions of service, or both, for gathering, which is unfair,\n\nunjust, unreasonable, or unduly discriminatory under the standard\n\nspecified in and as provided by subsection D of this section. Upon\n\ncomplaint of an aggrieved party filed pursuant to this act, the\n\nCorporation Commission shall have the authority to remedy any such\n\nfee or terms and conditions of service, or both, for gathering, by:\n\n1. Ordering an adjustment of the fee or terms and conditions of\n\nservice, or both, as to the aggrieved party to the extent necessary\n\nto remove any unfair, unjust, unreasonable, or unduly discriminatory\n\nportion of such fee or terms and conditions of service, or both,\n\nunder the standard specified in and as provided by subsection D of\n\nthis section; and, if applicable,\n\n2. Ordering the continuation of gathering service during the\n\npendency of the complaint as provided in subsection F of this\n\nsection; or\n\n3. Ordering the application of fees and terms and conditions of\n\nservice established by an order previously issued by the Commission\n\nunder this act be applied to a similarly situated shipper as\n\nspecified in subsection L of this section.\n\nNothing in this section shall operate to abrogate the terms of\n\nan existing contract while the contract is in force. Upon the\n\nexpiration or cancellation of an existing contract, under the terms\n\nof the contract, the provisions of this section shall apply.\n\nB. No gatherer shall refuse to provide open access natural gas\n\ngathering, including the redelivery of such natural gas to existing\n\nredelivery points, for a fee for any person seeking such gathering\n\nfor natural gas which is connected to the gatherer's pipeline unless\n\nthe gatherer can demonstrate to the Commission that any of the\n\nfollowing apply:\n\n1. The continuation of gathering service on the basis requested\n\nby the complainant would require an additional capital investment,\n\nmaterial to the well or wells at issue, by the gatherer and\n\ncomplainant is unable or unwilling to timely pay gatherer for all\n\nreasonable direct costs attributable to such capital investment\n\ntogether with that reasonable portion of a gatherer’s overhead\n\ndirectly related to such capital investment;\n\n2. The continued gathering of such natural gas could reasonably\n\nbe expected to have a material adverse effect on safety or service\n\nto existing customers;\n\n3. The natural gas does not satisfy minimum standards for\n\nquality, including energy content, consistently applied by the\n\ngatherer for such gathering system;\n\n4. The gathering service requested is inconsistent with an\n\nexisting contract which governs the gathering of the complainant's\n\nnatural gas; or\n\n5. For such other good cause as the Commission may determine in\n\nthe particular case.\n\nUpon complaint of an aggrieved party connected to the gatherer’s\n\npipeline, the Commission shall determine whether such gatherer is\n\nrequired by reason of this subsection to continue to provide open\n\naccess natural gas gathering to such party, and if so, and the\n\nparties are unable to agree upon a fee or terms and conditions of\n\nservice or both, for gathering, to fix a fee or terms and conditions\n\nof service, or both, for such gathering.\n\nC. No gatherer shall refuse to provide open access natural gas\n\ngathering, including the redelivery of such natural gas to existing\n\nredelivery points, for a fee for any person seeking such gathering\n\nfor natural gas which is not connected to gatherer's pipeline unless\n\nthe gatherer can demonstrate that any of the following apply:\n\n1. The natural gas cannot be reasonably carried by such\n\ngatherer due to existing capacity limitations on the gatherer's\n\npipeline;\n\n2. An extension or expansion of facilities would be required\n\nand the complainant is unable or unwilling to timely pay the\ngathering\n\nfor natural gas which is not connected to gatherer's pipeline unless\n\nthe gatherer can demonstrate that any of the following apply:\n\n1. The natural gas cannot be reasonably carried by such\n\ngatherer due to existing capacity limitations on the gatherer's\n\npipeline;\n\n2. An extension or expansion of facilities would be required\n\nand the complainant is unable or unwilling to timely pay the\n\ngatherer for all reasonable direct costs attributable to such\n\nextension or expansion together with that reasonable portion of a\n\ngatherer’s overhead directly related to such extension or expansion\n\nof facilities;\n\n3. The gathering of such natural gas could reasonably be\n\nexpected to have a material adverse effect on safety or service to\n\nexisting customers or on the operation of or recovery in any\n\nprocessing facility;\n\n4. The natural gas does not satisfy minimum standards for\n\nquality or energy or recoverable hydrocarbon content consistently\n\napplied by the gatherer for such gathering system; or\n\n5. For such other good cause as the Commission may determine in\n\nthe particular case.\n\nUpon complaint of an aggrieved party not connected to the\n\ngatherer's pipeline, the Commission shall determine whether a\n\ngatherer is required by reason of this subsection to provide open\n\naccess natural gas gathering to such party, and if so, and the\n\nparties are unable to agree upon a fee or terms and conditions of\n\nservice, or both, for gathering, to fix a fee or terms and\n\nconditions of service, or both, for such gathering.\n\nD. Any action by the Commission under this act shall be\n\ninitiated by the filing of a complaint with the Commission by the\n\naggrieved party and the serving of a copy of such complaint upon the\n\ngatherer from whom gathering service is being requested. The\n\nCommission shall conduct a hearing and take such evidence as is\n\nnecessary to determine the complaint. Notice of the hearing on such\n\ncomplaint shall be given by registered mail to such gatherer at\n\nleast twenty (20) days prior to such hearing but in no event shall\n\nthe hearing be less than thirty (30) days from the filing of the\n\ncomplaint. If the parties are unable to agree on an interim fee or\n\nterms and conditions of service, or both, for gathering to apply\n\nduring the pendency of the complaint before the Commission, then the\n\nCommission may set such interim fee or terms and conditions of\n\nservice, or both, under the provisions of subsection F of this\n\nsection. In determining and setting a fee or terms and conditions\n\nof service, or both, under this act, other than an interim fee under\n\nthe provisions of subsection F of this section, the Commission shall\n\ndetermine a fee or terms and conditions of service, or both, which\n\nwould result from arm's-length bargaining in good faith in a\n\ncompetitive market between persons of equal bargaining power and\n\nshall consider all economically significant factors for gathering\n\nwhich it determines to be relevant which may include, but are not\n\nlimited to:\n\n1. The fees and terms and conditions of service which such\n\ngatherer receives from the complainant and other shippers for\n\nanalogous levels of service for gathering within an area the\n\nCommission determines to be relevant;\n\n2. The fees charged and the terms and conditions of service\n\nprovided by other gatherers for gathering within an area the\n\nCommission determines to be relevant;\n\n3. The reasonable financial risks of operating such a gathering\n\nsystem;\n\n4. The reasonable capital, operating and maintenance costs of\n\nsuch a gathering system; and\n\n5. Such other factors which the Commission determines to be\n\nrelevant.\n\nProvided, that neither such fee nor such terms and conditions of\n\nservice shall be computed on a utility rate of return basis and that\n\ngatherers shall not be regulated like public utilities in the\n\nsetting of fees and terms and conditions of service.\n\nE. In establishing the gathering fee, if the Commission\nhering system; and\n\n5. Such other factors which the Commission determines to be\n\nrelevant.\n\nProvided, that neither such fee nor such terms and conditions of\n\nservice shall be computed on a utility rate of return basis and that\n\ngatherers shall not be regulated like public utilities in the\n\nsetting of fees and terms and conditions of service.\n\nE. In establishing the gathering fee, if the Commission\n\ndetermines the natural gas is processed, the order entered by the\n\nCommission establishing such fee shall include the following:\n\n1. Gatherer shall return to shipper at the redelivery point the\n\nMMBtu’s attributable to such shipper at the plant inlet, less any\n\nvolumetric deductions for fuel and loss associated with gathering;\n\nand\n\n2. For any month in which there is a spread fee, the shipper\n\nshall pay to the gatherer such amount.\n\nNo further order shall be made regarding the calculation of the\n\nspread fee or gatherer’s obligations for redelivery of natural gas\n\nor natural gas liquids.\n\nF. Upon the filing of a complaint under this section which\n\nseeks to continue an existing gathering service, the Commission on\n\nmotion of the complainant shall require continuation of gathering\n\nservice under the fees and terms and conditions of service of the\n\nlast expired contract, if any, during the pendency of the complaint,\n\nor set an interim fee and terms and conditions of service. However,\n\nthe gatherer shall not be required to provide interim gathering if\n\nthe gatherer can show that such continuance would require an\n\notherwise unnecessary, material capital expenditure, or if the\n\nCommission determines interim gathering is excused for safety\n\nreasons. Interim relief shall be by order of the Commission after\n\nnotice to the gatherer from whom gathering service is being\n\nrequested and subsequent hearing. Any fees for gathering collected\n\nduring the period a complaint which seeks to set a fee for such\n\ngathering is pending shall be subject to the fee finally set by the\n\nCommission. If the finally determined fee is less than the\n\ncollected fee, the excess shall be refunded to the complainant\n\nwithin fifteen (15) days after the final determination of the fee,\n\ntogether with interest at a rate established by the Commission. If\n\nthe finally determined fee is greater than the collected fee, the\n\nexcess shall be paid by the complainant to the gatherer within\n\nfifteen (15) days after the fee is finally determined, together with\n\ninterest at a rate established by the Commission.\n\nG. A gatherer providing natural gas gathering services shall\n\nnot increase the fee for gathering, change the terms or conditions\n\nof service, discontinue gathering service, or not renew an expiring\n\ncontract of the shipper, without first giving the shipper written\n\nnotice prior to the effective date of the increase in fee, change in\n\nterms or conditions of service, discontinuance of gathering\n\nservices, or nonrenewal. Such written notice shall be given at\n\nleast ninety (90) days prior to the effective date of such increase,\n\nchange, discontinuance or nonrenewal, unless otherwise provided by\n\nexisting contract, but in no event less than thirty (30) days prior\n\nto the effective date of such increase, change, discontinuance or\n\nnonrenewal with respect to contracts having terms in excess of six\nices, or nonrenewal. Such written notice shall be given at\n\nleast ninety (90) days prior to the effective date of such increase,\n\nchange, discontinuance or nonrenewal, unless otherwise provided by\n\nexisting contract, but in no event less than thirty (30) days prior\n\nto the effective date of such increase, change, discontinuance or\n\nnonrenewal with respect to contracts having terms in excess of six\n\n(6) months. If the parties are unable to agree upon continuation of\n\nservice or fees or terms and conditions of service, or both, the\n\naggrieved party may file a complaint under this act to determine\n\nwhether an open access obligation exists and, if so, seek the\n\ndetermination of fees or terms and conditions of service, or both,\n\nunder this act.\n\nH. All matters to be determined by the Commission under this\n\nact shall be heard on an expedited basis and a final, appealable\n\norder rendered thereon within one hundred twenty (120) days from the\n\nfiling of the complaint, unless otherwise agreed by the parties.\n\nThe Commission shall have the power and authority to promulgate\n\nrules and issue orders to implement, administer, and enforce the\n\nprovisions of this act and may exercise all incidental powers which\n\nare necessary and proper to the performance of its duties under this\n\nact. The Commission shall promulgate rules establishing a\n\nvoluntary, nonbinding, informal procedure to be available, either\n\nbefore or after the filing of a complaint, in order to encourage the\n\nresolution of disputes arising under this act. An informal\n\nprocedure shall not extend the time limit of one hundred twenty\n\n(120) days established in this subsection, unless otherwise agreed\n\nby the parties.\n\nI. Upon the filing of a complaint of an aggrieved party, the\n\nCommission shall have the right to require the production of\n\nrelevant documents of the gatherer which is subject to the\n\ncomplaint. Gathering contracts covering the 25 wells most recently\n\nconnected to the system of the gatherer which is subject to the\n\ncomplaint are deemed discoverable and production will not be denied\n\nupon a relevance objection. The Commission may issue process to\n\nenforce the attendance of any witness and to obtain any documents\n\nrelevant to the complaint of an aggrieved party. The Commission may\n\npunish any person failing to obey or comply with any order or\n\nrequirement under this act for contempt, and such person shall be\n\nsubject to a civil penalty of not more than Five Thousand Dollars\n\n($5,000.00) for each day that such noncompliance continues. If,\n\nafter notice and opportunity to be heard, the Commission finds that\n\nthe documents of any other gatherer are relevant, the Commission may\n\nissue process to enforce the attendance of any witness and to obtain\n\nany documents relevant to the complaint and may punish any person\n\nfailing to obey or comply with any order or requirement under this\n\nact for contempt and such person shall be subject to a civil penalty\n\nof not more than Five Thousand Dollars ($5,000.00) for each day that\n\nsuch noncompliance continues. If, in connection with any proceeding\n\nunder this act, any person, whether or not a party to the\n\nproceeding, furnishes information it desires to be confidential,\n\nproprietary and/or privileged, the Commission, upon motion of such\n\nperson and upon a finding by the Commission that the information is\n\nconfidential, proprietary or privileged, shall enter such protective\n\norder as may be necessary to ensure that the information will be\n\nused only as may be required for the proper determination of the\n\nmerits of a proceeding under this act and will not be used for\n\npurposes of competitive advantage. Any person, whether or not a\n\nparty to the proceeding, furnishing a contract or contracts in\n\nresponse to a request under this section shall, prior to furnishing\n\nsuch contracts, delete or obfuscate the names of all persons who are\nbe\n\nused only as may be required for the proper determination of the\n\nmerits of a proceeding under this act and will not be used for\n\npurposes of competitive advantage. Any person, whether or not a\n\nparty to the proceeding, furnishing a contract or contracts in\n\nresponse to a request under this section shall, prior to furnishing\n\nsuch contracts, delete or obfuscate the names of all persons who are\n\nparties to the contract, any unit or well names contained in the\n\ncontracts, and any reference to the section designation contained in\n\nthe legal description of the location of the well or unit, but such\n\nperson shall not remove references to the applicable township and\n\nrange designations. Additional nonrelevant, confidential\n\ninformation may be deleted or obfuscated from contracts furnished in\n\nresponse to a request under this section, subject to Commission\n\nreview. Documents produced under this section shall be covered by a\n\nconfidentiality privilege and thus exempt from the Oklahoma Open\n\nRecords Act.\n\nJ. The Commission shall maintain an index of all orders entered\n\nby it under this act identifying the date and order number,\n\nindicating the type of relief granted, and identifying the gatherer\n\nand gathering system to which the order applies. All orders of the\n\nCommission determining a fair, just, reasonable and\n\nnondiscriminatory fee and terms and conditions of service under this\n\nact shall contain findings of fact and conclusions of law in\n\nsufficient detail so that the relevant and significant factors\n\nconsidered by the Commission in determining a fee and terms and\n\nconditions of service, the Commission's analysis of those factors\n\nand the reasons supporting such fee and terms and conditions of\n\nservice can be reasonably determined from the face of the order;\n\nprovided, such order shall not include any information not permitted\n\nto be disclosed by the terms of any protective order entered under\n\nsubsection I of this section.\n\nK. No gatherer shall charge any fee or require any terms and\n\nconditions of service, or both, which unduly discriminate in favor\n\nof the gatherer's affiliated entities and against other persons.\n\nEach gatherer shall maintain documents in such a manner that\n\ngathering services provided to an affiliate may be identified and\n\nsegregated.\n\nL. Any person seeking gathering service for a well or wells\n\ncovered by a previous order of the Commission may file an\n\napplication with the Commission seeking the same fee or terms and\n\nconditions of service as provided in the previous order, which shall\n\nbe granted to the applicant by the Commission, unless the gatherer\n\ncan demonstrate that the applicant is not a similarly situated\n\nshipper or that there has been a material change in conditions or\n\ncircumstances since the prior fee or terms and conditions of service\n\nwere determined.\n\nM. Nothing in this act shall create or be interpreted to create\n\nservice or abandonment obligations upon a gatherer or give the\n\nCommission jurisdiction to regulate abandonment of gathering\n\nfacilities. Nothing in this act shall give the Commission\n\njurisdiction to regulate the purchase, processing or resale of\n\nnatural gas or the price or other compensation for, or any of the\n\nother terms or conditions of any such purchase, processing or\n\nresale.","path":["OK Code","Title 52"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os52.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ebc2519dafc57247b982261fab575f66d83a82ef910daf603d1fe2e1ce3440f1","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-24.4","next":"us-ok/okla.-stat.-tit.-52-52-240"},"notice":"GroundRules: Original legal text. Not legal advice."}