{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-29","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-29","heading":"Production levels of gas wells - Rulemaking - Hardship","body":"wells - Field rules.\n\nA. Every corporation, joint stock company, limited\n\ncopartnership, partnership or other person now or hereafter claiming\n\nor exercising the right to produce natural gas within the limits of\n\nthis state, as owner, lessee, licensee, or by virtue of any other\n\nright or claim is hereby prohibited from producing from any gas well\n\nan amount in excess of that prescribed by the Oklahoma Corporation\n\nCommission.\n\nB. Except as otherwise provided in this section, the\n\nCorporation Commission shall have the power and authority to\n\npromulgate production rules from time to time for all natural gas\n\nwells producing within this state, or for such categories of natural\n\ngas wells producing within this state as the Commission may deem\n\nappropriate, establishing levels of production upon a finding that\n\nthe levels of production so established will be sufficient to\n\nprevent waste as the same is defined in Section 86.3 of this title\n\nand will protect the interests of the public against production of\n\nthe natural gas reserves underlying this state in amounts in excess\n\nof the reasonable market demand therefor.\n\nC. For thirty (30) months from the date of first production, a\n\ndiscovery gas well, as defined in this subsection, subject to the\n\nprovisions of this section, shall have a production allowable which\n\nshall be the greater of one thousand three hundred (1,300) MCFD or\n\nsixty-five percent (65%) of the absolute open flow (AOF) as\n\nspecified by the Corporation Commission. Such discovery well\n\nallowable shall not be available for any discovery gas well wherein\n\ntwo (2) or more separate common sources of supply are commingled and\n\none (1) common source of supply would not qualify a new gas well as\n\na discovery gas well, as defined in this section.\n\nDrilling and spacing units which are downspaced after June 1,\n\n1997, shall not qualify for the discovery gas well allowable.\n\nFor purposes of this subsection, \"discovery gas well\" shall mean\n\na new gas well, which is not an off-pattern well, which is the first\n\nwell completed in a common source of supply within a drilling and\n\nspacing unit and is at least one (1) mile from all existing gas\n\nwells which are completed in the same common source of supply. In\n\nthe absence of spacing, a discovery well shall be the first well in\n\nthe governmental section completed in a common source of supply,\n\nprovided that the discovery gas well shall not be drilled closer\n\nthan one thousand three hundred twenty (1,320) feet from the\n\nboundaries of the governmental section and is at least one (1) mile\n\nfrom all existing gas wells which are completed in the same common\n\nsource of supply.\n\nAllowables shall not apply, regardless of unit size, in the\n\ninstance of production of gas by reservoir dewatering to extract\n\nsaid gas from reservoirs having initial water saturations at or\n\nabove fifty percent (50%).\n\nD. The authority granted to the Corporation Commission by this\n\nsection is in addition to that provided for in Section 239 of this\n\ntitle.\n\nE. The Corporation Commission may, for good cause shown under\n\nthe exigencies of a particular case and after appropriate notice and\n\nhearing, establish a production level different from the levels\n\nprovided by this section or established by rule promulgated by the\n\nCorporation Commission.\n\nF. Production rules promulgated by the Corporation Commission\n\npursuant to the authority granted in subsection B of this section\n\nshall be promulgated pursuant to Article I of the Administrative\n\nProcedures Act, Sections 250.3 through 308.2 of Title 75 of the\n\nOklahoma Statutes, including the provisions contained therein\n\nprescribing the required notice and hearing for rulemaking.\n\nG. The provisions of subsection A of this section and\n\nproduction rules promulgated by the Corporation Commission pursuant\n\nto subsection B of this section shall not supersede or invalidate\nf the Administrative\n\nProcedures Act, Sections 250.3 through 308.2 of Title 75 of the\n\nOklahoma Statutes, including the provisions contained therein\n\nprescribing the required notice and hearing for rulemaking.\n\nG. The provisions of subsection A of this section and\n\nproduction rules promulgated by the Corporation Commission pursuant\n\nto subsection B of this section shall not supersede or invalidate\n\nthe provisions of any rule or order of the Corporation Commission\n\nestablishing production levels for natural gas from a well which has\n\nbeen expressly authorized by Corporation Commission order to produce\n\nat a specified rate applicable only to that well where the basis for\n\nthe rate established is based upon a determination by the\n\nCorporation Commission that reasonable cause exists to expect that\n\nproduction below the rate would damage the well and cause waste, a\n\nso-called \"hardship well\", or establishing field rules under Section\n\n239 of this title governing the taking of gas from a specified\n\ncommon source of supply or field.","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":"a26591c66957a693bb7a4aa170432c4f63bab6c22751f2936b5ff3e048844fdb","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-288.9a","next":"us-ok/okla.-stat.-tit.-52-52-291"},"notice":"GroundRules: Original legal text. Not legal advice."}