{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-581.5","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-581.5","heading":"Election to market share - Procedure","body":"A. For wells producing natural gas or casinghead gas, any owner\n\nnot having a gas sales contract shall be entitled to elect to share\n\nin the sale of production, to the extent set forth in the Natural\n\nGas Market Sharing Act.\n\nAn electing owner shall give written notice of his election to\n\nthe designated marketer. An election shall constitute a warranty\n\nthat gas production attributable to such electing owner's interest\n\nis not covered by an existing gas purchase contract, and an\n\nindemnification of any designated marketer sharing market with such\n\nelecting owner from losses arising from breach of such warranty.\n\nMarket sharing shall become effective as to sales commencing on the\n\nfirst day of the month following the expiration of sixty (60) days\n\nfrom receipt of such election by the designated marketer.\n\nTermination of a market sharing shall become effective on the first\n\nday of the month following expiration of sixty (60) days from\n\nreceipt of written notice of said termination by the designated\n\nmarketer. Copies of all elections and notices required shall also\n\nbe sent to the operator if the operator is not the designated\n\nmarketer.\n\nB. The operator shall serve as designated marketer until such\n\ntime as a substituted designated marketer is elected by a numerical\n\nmajority of the eligible electing owners. No election of a\n\nsubstituted designated marketer shall occur within twelve (12)\n\nmonths of the prior election.\n\nC. Upon receipt of the notice of election to market share, the\n\ndesignated marketer shall secure an independent nonaffiliated\n\npurchaser for gas production of such electing owner or shall produce\n\nand sell for the account of such electing owner gas attributable to\n\nthe working interest of such electing owner and account to such\n\nelecting owner at the same average price, weighted by volume,\n\nreceived by the designated marketer for all of its nonexempt gas\n\nsales from that well during each month, net of all reasonable\n\nmarketing and post-production costs and expenses required to render\n\nthe gas marketable and to sell and deliver the gas to market. The\n\nvolumetric allocation of sales between a designated marketer and an\n\nelecting owner shall be in proportion to their respective working\n\ninterests in such well.\n\nD. If all of a designated marketer's sales of gas are exempt,\n\nit may so notify the electing owners and the operator in writing\n\nwhereupon the electing owners shall select another designated\n\nmarketer pursuant to subsection B of this section by written notice\n\nthereof to the operator and the new designated marketer.\n\nE. If the gas sales of the designated marketer are subject to a\n\ncontract of a duration in excess of one (1) year, the designated\n\nmarketer may require such electing owners' written agreement to be\n\nbound by the terms of such contract. If the contract does not\n\ncontain a confidentiality provision preventing the furnishing of a\n\ncopy to the electing owners, the designated marketer shall then\n\nfurnish them a copy of the gas sales contract, and upon receipt of a\n\ncopy of such contract and notice setting forth the provisions of\n\nthis section, each electing owner shall have thirty (30) days within\n\nwhich in writing to either:\n\n1. Elect a new designated marketer pursuant to subsection B of\n\nthis section, notwithstanding the twelve-month limitation contained\n\ntherein;\n\n2. Agree to be bound by the terms of such contract; or\n\n3. Terminate market sharing.\n\nFailure by any electing owner to return such written agreement shall\n\nbe deemed an election to not market share and shall relieve that\n\nproducing owner of any further obligation to market share or\n\notherwise secure a market for such electing owner's share of\n\nproduction under this section for the duration of that contract.\n\nF. Any administration fees established by the Corporation\n\nCommission which are payable to a designated marketer by an electing\nagreement shall\n\nbe deemed an election to not market share and shall relieve that\n\nproducing owner of any further obligation to market share or\n\notherwise secure a market for such electing owner's share of\n\nproduction under this section for the duration of that contract.\n\nF. Any administration fees established by the Corporation\n\nCommission which are payable to a designated marketer by an electing\n\nowner who has elected to market share may be deducted from proceeds.\n\nG. The election to market share under the provisions of the\n\nNatural Gas Market Sharing Act shall not result in the electing\n\nowner becoming a party to any contract under which the electing\n\nowner's gas is marketed, and neither the electing owner nor any\n\nperson owning a royalty or other non-cost-bearing interest burdening\n\nthe interest of the electing owner shall acquire any third-party\n\nbeneficiary rights in such contract. Further, the election to\n\nmarket share under the Natural Gas Market Sharing Act shall not\n\nresult in the designated marketer having any fiduciary or other\n\nduties to the electing owner, or to any persons having a royalty or\n\nother nonoperating interest burdening the interest of the electing\n\nowner with respect to the marketing of the electing owner's gas\n\nexcept those expressly provided in the Natural Gas Market Sharing\n\nAct. In no event shall any designated marketer be liable to any\n\nelecting owner for any losses sustained or liabilities incurred in\n\nthe absence of bad faith, gross negligence or willful misconduct.\n\nH. If by statute an owner's percentage entitlement to produce\n\nand market gas in a well is other than its working interest\n\npercentage, such percentage calculated pursuant to statute shall be\n\nutilized in lieu of the working interest percentage for purposes of\n\nthe Natural Gas Market Sharing Act.","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":"bd93be5e4c57e0b7871e173730d97b242405e1306f9a4f870aa6049c28703862","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-581.4","next":"us-ok/okla.-stat.-tit.-52-52-581.6"},"notice":"GroundRules: Original legal text. Not legal advice."}