{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-570.2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-570.2","heading":"Definitions","body":"As used in the Production Revenue Standards Act:\n\n1. \"Owner\" means a person or governmental entity with a legal\n\ninterest in the mineral acreage under a well which entitles that\n\nperson or entity to oil or gas production or the proceeds or\n\nrevenues therefrom;\n\n2. \"Produce\", \"Producing\" and \"Production\" mean the physical\n\nact of severance of oil and gas from a well by an owner and includes\n\nbut is not limited to the sale or other disposition thereof;\n\n3. \"Producing owner\" means an owner entitled to produce who\n\nduring a given month produces oil or gas for its own account or the\n\naccount of subsequently created interests as they burden its\n\ninterest;\n\n4. \"Proportionate production interest\" means that interest in\n\nproduction which a working interest owner is entitled to produce in\n\norder to adjust for shifting of royalty burdens among working\n\ninterest owners under the royalty payment provisions of this act,\n\nand is equal to the quotient of:\n\na. the sum of that working interest owner's net revenue\n\ninterests plus the net revenue interests of any\n\nsubsequently created interests as they burden such\n\nowner's working interest,\n\nb. divided by the remainder of one (1) less the royalty\n\nshare;\n\n5. \"Proportionate royalty share\" means the percentage of the\n\nroyalty share owned by a royalty interest owner calculated by\n\ndividing such owner's royalty interest in a well by the royalty\n\nshare;\n\n6. \"Royalty interest\" means the entirety of the percentage\n\ninterest in production or proceeds therefrom:\n\na. reserved or granted by a mineral interest owner\n\nexclusive of any interest defined as a working\n\ninterest or a subsequently created interest, or\n\nb. otherwise provided or ascribed to a mineral interest\n\nowner by statute, rule, order or operation of law.\n\nThe interest of a participating mineral interest owner shall be\n\ndesignated in part as a royalty interest and in part as a working\n\ninterest as set forth in Section 87.1 of Title 52 of the Oklahoma\n\nStatutes;\n\n7. \"Royalty interest in a well\" means an owner's royalty\n\ninterest multiplied by the quotient of:\n\na. the gross mineral acres under the well attributable to\n\nsuch interest, divided by\n\nb. the total mineral acres under the well;\n\n8. \"Royalty proceeds\" means the share of proceeds or other\n\nrevenue derived from or attributable to any production of oil and\n\ngas attributable to the royalty share, but shall not include\n\npayments of bonus, delay rentals, shut-in royalties or any\n\nadditional royalty payable to the Commissioners of the Land Office\n\nor other governmental entity, pursuant to and valued according to\n\nthe terms of its oil and gas lease, which is calculated separately\n\nfrom the royalty portion of actual proceeds from the sale of oil or\n\ngas;\n\n9. \"Royalty share\" means the percentage of the well equal to\n\nthe sum of all royalty interests in a well;\n\n10. \"Subsequently created interest\" means any interest carved\n\nfrom a working interest other than a royalty interest. In addition\n\nto the royalty interest contained in a lease, a nonparticipatory\n\ninterest created by a working interest owner for the benefit of a\n\nmineral interest owner in excess of a one-eighth (1/8) royalty\n\ninterest may, by separate agreement other than the oil and gas\n\nlease, be a subsequently created interest and thereby not be\n\ncommunitized under the terms of the Production Revenue Standards Act\n\nonly if there is clear and unambiguous language expressing that\n\nintent in the creating document. The additional royalty payable to\n\nthe Commissioners of the Land Office or other governmental entity,\n\npursuant to and valued according to the terms of its oil and gas\n\nlease, which is calculated separately from the royalty portion of\n\nactual proceeds from the sale of oil or gas shall also be a\n\nsubsequently created interest and thereby shall not be communitized\n\nunder the Production Revenue Standards Act;\nional royalty payable to\n\nthe Commissioners of the Land Office or other governmental entity,\n\npursuant to and valued according to the terms of its oil and gas\n\nlease, which is calculated separately from the royalty portion of\n\nactual proceeds from the sale of oil or gas shall also be a\n\nsubsequently created interest and thereby shall not be communitized\n\nunder the Production Revenue Standards Act;\n\n11. \"Well\" means an oil or gas well, and shall include:\n\na. a well having uniform ownership as to all producing\n\nzones,\n\nb. a drilling and spacing unit having uniform ownership\n\nwherein multiple wells producing gas are commonly\n\nmetered, and\n\nc. each separately metered producing zone within a single\n\nwellbore wherein ownership varies by zone; and\n\n12. \"Working interest\" means the interest in a well entitling\n\nthe owner thereof to drill for and produce oil and gas, including\n\nbut not limited to the interest of a participating mineral owner to\n\nthe extent set forth in Section 87.1 of Title 52 of the Oklahoma\n\nStatutes.","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":"7732f37e65c82c4fac38c3728306e6cada9e7e124b007dd706affe056355a1ad","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-570.15","next":"us-ok/okla.-stat.-tit.-52-52-570.3"},"notice":"GroundRules: Original legal text. Not legal advice."}