{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-87.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-87.1","heading":"Common source of supply of oil - Well spacing and","body":"drilling units.\n\nWhenever the production from any common source of supply of oil\n\nor natural gas in this state can be obtained only under conditions\n\nconstituting waste or drainage not compensated by counterdrainage,\n\nthen any person having the right to drill into and produce from such\n\ncommon source of supply may, except as otherwise authorized or in\n\nthis section provided, take therefrom only such proportion of the\n\noil or natural gas that may be produced therefrom without waste or\n\nwithout such drainage as the productive capacity of the well or\n\nwells of any such person considered with the acreage properly\n\nassignable to each such well bears to the total productive\n\ncapacities of the wells in such common source of supply considered\n\nwith the acreage properly assignable to each well therein.\n\n(a) To prevent or to assist in preventing the various types of\n\nwaste of oil or gas prohibited by statute, or any wastes, or to\n\nprotect or assist in protecting the correlative rights of interested\n\nparties, the Corporation Commission, upon a proper application and\n\nnotice given as hereinafter provided, and after a hearing as\n\nprovided in the notice, shall have the power to establish well\n\nspacing and drilling units of specified and approximately uniform\n\nsize and shape covering any common source of supply, or prospective\n\ncommon source of supply, of oil or gas within the State of Oklahoma;\n\nprovided, that the Commission may authorize the drilling of an\n\nadditional well or wells on any spacing and drilling unit or units\n\nor any portion or portions thereof or may establish, reestablish, or\n\nreform well spacing and drilling units of different sizes and shapes\n\nwhen the Commission determines that a common source of supply\n\ncontains predominantly oil underlying an area or areas and contains\n\npredominantly gas underlying a different area or areas; provided\n\nfurther that the units in the predominantly oil area or areas shall\n\nbe of approximately uniform size and shape, and the units in the\n\npredominantly gas area or areas shall be of approximately uniform\n\nsize and shape, except that the units in the gas area or areas may\n\nbe of nonuniform size and shape when they adjoin the units in the\n\noil area or areas; provided further that the drilling pattern for\n\nsuch nonuniform units need not be uniform, and provided further that\n\nthe Commission shall adjust the allowable production within the\n\ncommon source of supply, or any part thereof, and take such other\n\naction as may be necessary to protect the rights of interested\n\nparties. Any order issued pursuant to the provisions hereof may be\n\nentered after a hearing upon the petition of any person owning an\n\ninterest in the minerals in lands embraced within such common source\n\nof supply, or the right to drill a well for oil or gas on the lands\n\nembraced within such common source of supply, or on the petition of\n\nthe Conservation Officer of the State of Oklahoma. When such a\n\npetition is filed with the Commission, the Commission shall give at\n\nleast fifteen (15) days' notice of the hearing to be held upon such\n\npetition by one publication, at least fifteen (15) days prior to the\n\nhearing, in some newspaper of general circulation published in\n\nOklahoma County, and by one publication, at least fifteen (15) days\n\nprior to the date of the hearing, in some newspaper published in the\n\ncounty, or in each county, if there be more than one, in which the\n\nlands embraced within the application are situated. Except as to\n\nthe notice of hearing on such a petition, the procedural\n\nrequirements of Section 86.1 et seq. of this title shall govern all\n\nproceedings and hearings provided for by this section.\neen (15) days\n\nprior to the date of the hearing, in some newspaper published in the\n\ncounty, or in each county, if there be more than one, in which the\n\nlands embraced within the application are situated. Except as to\n\nthe notice of hearing on such a petition, the procedural\n\nrequirements of Section 86.1 et seq. of this title shall govern all\n\nproceedings and hearings provided for by this section.\n\n(b) In case of a spacing unit of one hundred sixty (160) acres\n\nor more, no oil and/or gas leasehold interest outside the spacing\n\nunit involved may be held by production from the spacing unit more\n\nthan ninety (90) days beyond expiration of the primary term of the\n\nlease.\n\n(c) In establishing a well spacing or drilling unit for a\n\ncommon source of supply thereunder, the acreage to be embraced\n\nwithin each unit may include acreage from more than one governmental\n\nsection, but shall not exceed six hundred forty (640) acres for a\n\ngas well plus ten percent (10%) tolerance, unless the unit is a\n\ngovernmental section and the governmental section contains more than\n\nsix hundred forty (640) acres in which case the unit may comprise\n\nthe entire section. Provided, however, fractional sections along\n\nthe state boundary line and within the townships along the boundary\n\nwhere the survey west of the Indian Meridian meets the survey east\n\nof the Cimarron Meridian may be spaced with adjoining section unit,\n\nand the shape thereof shall be determined by the Commission from the\n\nevidence introduced at the hearing, and the following facts, among\n\nother things, shall be material: (1) the lands embraced in the\n\nactual or prospective common source of supply; (2) the plan of well\n\nspacing then being employed or contemplated in the source of supply;\n\n(3) the depth at which production from the common source of supply\n\nhas been or is expected to be found; (4) the nature and character of\n\nthe producing or prospective producing formation or formations; and\n\n(5) any other available geological or scientific data pertaining to\n\nthe actual or prospective source of supply which may be of probative\n\nvalue to the Commission in determining the proper spacing and well\n\ndrilling unit therefor, with due and relative allowance for the\n\ncorrelative rights and obligations of the producers and royalty\n\nowners interested therein.\n\nThe order establishing such spacing or drilling units shall set\n\nforth: (1) the outside boundaries of the surface area included in\n\nsuch order; (2) the size, form, and shape of the spacing or drilling\n\nunits so established; (3) the drilling pattern for the area, which\n\nshall be uniform except as hereinbefore provided; and (4) the\n\nlocation of the permitted well on each such spacing or drilling\n\nunit. To such order shall be attached a plat upon which shall be\n\nindicated the foregoing information. Subject to other provisions of\n\nSection 86.1 et seq. of this title, the order establishing such\n\nspacing or drilling units shall direct that no more than one well\n\nshall thereafter be produced from the common source of supply on any\n\nunit so established, and that the well permitted on that unit shall\n\nbe drilled at the location thereon as prescribed by the Commission,\n\nwith such exception as may be reasonably necessary where it is\n\nshown, upon application, notice and hearing in conformity with the\n\nprocedural requirements of Section 86.1 et seq. of this title, and\n\nthe Commission finds that any such spacing unit is located on the\n\nedge of a pool and adjacent to a producing unit, or for some other\n\nreason that to require the drilling of a well at the prescribed\n\nlocation on such spacing unit would be inequitable or unreasonable.\n\nWhenever such an exception is granted, the Commission shall adjust\n\nthe allowable production for the spacing unit and take such other\n\naction as may be necessary to protect the rights of interested\n\nparties.\n\nExcept for horizontal spacing units allowed by subsection (f) of\nthat to require the drilling of a well at the prescribed\n\nlocation on such spacing unit would be inequitable or unreasonable.\n\nWhenever such an exception is granted, the Commission shall adjust\n\nthe allowable production for the spacing unit and take such other\n\naction as may be necessary to protect the rights of interested\n\nparties.\n\nExcept for horizontal spacing units allowed by subsection (f) of\n\nthis section, any well spacing or drilling unit for a common source\n\nof supply thereunder which exceeds six hundred forty (640) acres for\n\na gas well plus ten percent (10%) tolerance or exceeds the total\n\namount of acreage contained in a governmental section, and is not in\n\nproduction or in the process of drilling development on the\n\neffective date of this act shall be de-spaced. However, fractional\n\nsections along the state boundary line and within the townships\n\nalong the boundary where the survey west of the Indian Meridian\n\nmeets the survey east of the Cimarron Meridian may be spaced with\n\nadjoining section unit, and the shape thereof shall be determined by\n\nthe Commission.\n\n(d) The Commission shall have jurisdiction upon the filing of a\n\nproper application therefor, and upon notice given as provided in\n\nsubsection (a) of this section, to decrease the size of the well\n\nspacing units or to permit additional wells to be drilled within the\n\nestablished units, or to increase the size or modify the shape of\n\nthe well spacing units, upon proper proof at such hearing that such\n\nmodification or extension of the order establishing drilling or\n\nspacing units will prevent or assist in preventing the various types\n\nof wastes prohibited by statute, or any of the wastes, or will\n\nprotect or assist in protecting the correlative rights of persons\n\ninterested in the common source of supply, or upon the filing of a\n\nproper application therefor to enlarge the area covered by the\n\nspacing order, if such proof discloses that the development or the\n\ntrend of development indicates that such common source of supply\n\nunderlies an area not covered by the spacing order and such proof\n\ndiscloses that the applicant is an owner within the area or within a\n\ndrilling and spacing unit contiguous to the area covered by the\n\napplication. Except in the instance of reservoir dewatering as\n\ndescribed herein, the Commission shall not establish well spacing\n\nunits of more than forty (40) acres in size covering common sources\n\nof supply of oil, the top of which lies less than four thousand\n\n(4,000) feet below the surface as determined by the original or\n\ndiscovery well in the common source of supply, and the Commission\n\nshall not establish well spacing units of more than eighty (80)\n\nacres in size covering common sources of supply of oil, the top of\n\nwhich lies less than nine thousand nine hundred ninety (9,990) feet\n\nand more than four thousand (4,000) feet below the surface as\n\ndetermined by the original or discovery well in the common source of\n\nsupply. In the instance of reservoir dewatering to extract oil from\n\nreservoirs having initial water saturations at or above fifty\n\npercent (50%), the Commission may establish drilling and spacing\n\nunits not to exceed six hundred forty (640) acres in size.\n990) feet\n\nand more than four thousand (4,000) feet below the surface as\n\ndetermined by the original or discovery well in the common source of\n\nsupply. In the instance of reservoir dewatering to extract oil from\n\nreservoirs having initial water saturations at or above fifty\n\npercent (50%), the Commission may establish drilling and spacing\n\nunits not to exceed six hundred forty (640) acres in size.\n\n(e) The drilling of any well or wells into any common source of\n\nsupply for the purpose of producing oil or gas therefrom, after a\n\nspacing order has been entered by the Commission covering such\n\ncommon source of supply, at a location other than that fixed by the\n\norder is hereby prohibited. The drilling of any well or wells into\n\na common source of supply, covered by a pending spacing application\n\nat a location or within location tolerance areas other than that\n\napproved by a special order of the Commission authorizing the\n\ndrilling of such well is hereby prohibited. The operation of any\n\nwell drilled in violation of any spacing order so entered is also\n\nhereby prohibited. Notwithstanding any provision of this section to\n\nthe contrary, the Commission, in the exercise of its authority to\n\nprevent waste and protect correlative rights, may issue a permit to\n\ndrill any well for which notice and hearing have occurred for a\n\nspecial order or an order on the merits in any type case prior to\n\nthe issuance of any such order. Any such permit shall be subject to\n\nand conform with the final provisions of any such order when\n\nentered. A final order from the Commission shall be required prior\n\nto drilling for any well that falls within one (1) mile of the\n\ncertified boundary of an underground storage facility. The\n\nCommission may issue a permit to drill any well prior to the\n\nissuance of any such order in cases where the underground storage\n\noperator does not object. When two or more separately owned tracts\n\nof land are embraced within an established spacing unit, or where\n\nthere are undivided interests separately owned, or both such\n\nseparately owned tracts and undivided interests embraced within such\n\nestablished spacing unit, the owners thereof may validly pool their\n\ninterests and develop their lands as a unit. Where, however, such\n\nowners have not agreed to pool their interests and where one such\n\nseparate owner has drilled or proposes to drill a well on the unit\n\nto the common source of supply, the Commission, to avoid the\n\ndrilling of unnecessary wells, or to protect correlative rights,\n\nshall, upon a proper application therefor and a hearing thereon,\n\nrequire such owners to pool and develop their lands in the spacing\n\nunit as a unit. The applicant shall give all the owners whose\n\naddresses are known or could be known through the exercise of due\n\ndiligence at least fifteen (15) days' notice by mail, return receipt\n\nrequested. The applicant shall also give notice by one publication,\n\nat least fifteen (15) days prior to the hearing, in some newspaper\n\nof general circulation published in Oklahoma County, and by one\n\npublication, at least fifteen (15) days prior to the date of the\n\nhearing, in some newspaper published in the county, or in each\n\ncounty, if there be more than one, in which the lands embraced\n\nwithin the spacing unit are situated. The applicant shall file\n\nproof of publication and an affidavit of mailing with the Commission\n\nprior to the hearing. All orders requiring such pooling shall be\n\nmade after notice and hearing, and shall be upon such terms and\n\nconditions as are just and reasonable and will afford to the owner\n\nof such tract in the unit the opportunity to recover or receive\n\nwithout unnecessary expense the owner's just and fair share of the\n\noil and gas. The portion of the production allocated to the owner\n\nof each tract or interests included in a well spacing unit formed by\n\na pooling order shall, when produced, be considered as if produced\nitions as are just and reasonable and will afford to the owner\n\nof such tract in the unit the opportunity to recover or receive\n\nwithout unnecessary expense the owner's just and fair share of the\n\noil and gas. The portion of the production allocated to the owner\n\nof each tract or interests included in a well spacing unit formed by\n\na pooling order shall, when produced, be considered as if produced\n\nby such owner from the separately owned tract or interest by a well\n\ndrilled thereon. Such pooling order of the Commission shall make\n\ndefinite provisions for the payment of cost of the development and\n\noperation, which shall be limited to the actual expenditures\n\nrequired for such purpose not in excess of what are reasonable,\n\nincluding a reasonable charge for supervision. In the event of any\n\ndispute relative to such costs, the Commission shall determine the\n\nproper costs after due notice to interested parties and a hearing\n\nthereon. The operator of such unit, in addition to any other right\n\nprovided by the pooling order or orders of the Commission, shall\n\nhave a lien on the mineral leasehold estate or rights owned by the\n\nother owners therein and upon their shares of the production from\n\nsuch unit to the extent that costs incurred in the development and\n\noperation upon the unit are a charge against such interest by order\n\nof the Commission or by operation of law. Such liens shall be\n\nseparable as to each separate owner within such unit, and shall\n\nremain liens until the owner or owners drilling or operating the\n\nwell have been paid the amount due under the terms of the pooling\n\norder. The Commission is specifically authorized to provide that\n\nthe owner or owners drilling, or paying for the drilling, or for the\n\noperation of a well for the benefit of all shall be entitled to\n\nproduction from such well which would be received by the owner or\n\nowners for whose benefit the well was drilled or operated, after\n\npayment of royalty, until the owner or owners drilling or operating\n\nthe well have been paid the amount due under the terms of the\n\npooling order or order settling such dispute. No part of the\n\nproduction or proceeds accruing to any owner of a separate interest\n\nin such unit shall be applied toward payment of any cost properly\n\nchargeable to any other interest in the unit.\n\nFor the purpose of this section, the owner or owners of oil and\n\ngas rights in and under an unleased tract of land shall be regarded\n\nas a lessee to the extent of a seven-eighths (7/8) interest in and\n\nto the rights and a lessor to the extent of the remaining one-eighth\n\n(1/8) interest therein, unless and until the owner or owners make an\n\nelection or are deemed to make an election not to participate under\n\na pooling order issued by the Commission, at which time each such\n\nowner shall be considered a lessor, subject to the judicially\n\nrecognized implied covenant to market found to exist by the courts\n\nof this state in oil and gas leases covering lands located in this\n\nstate, to the extent of the full royalty percentage elected under\n\nthe pooling order. Should the owners of separate tracts or\n\ninterests embraced within a spacing unit fail to agree upon a\n\npooling of their interests and the drilling of a well on the unit,\n\nand should it be established by final, unappealable judgment of a\n\ncourt of competent jurisdiction that the Commission is without\n\nauthority to require pooling as provided for herein, then, subject\n\nto all other applicable provisions of this act, the owner of each\n\ntract or interest embraced within a spacing unit may drill on his or\n\nher separately owned tract, and the allowable production therefrom\n\nshall be that portion of the allowable for the full spacing unit as\n\nthe area of such separately owned tract bears to the full spacing\n\nunit.\n\nIn the event a producing well or wells are completed upon a unit\n\nwhere there are, or may thereafter be, two or more separately owned\nest embraced within a spacing unit may drill on his or\n\nher separately owned tract, and the allowable production therefrom\n\nshall be that portion of the allowable for the full spacing unit as\n\nthe area of such separately owned tract bears to the full spacing\n\nunit.\n\nIn the event a producing well or wells are completed upon a unit\n\nwhere there are, or may thereafter be, two or more separately owned\n\ntracts, each royalty interest owner shall share in all production\n\nfrom the well or wells drilled within the unit, or in the gas well\n\nrental provided for in the lease covering such separately owned\n\ntract or interest in lieu of the customary fixed royalty, to the\n\nextent of such royalty interest owner's interest in the unit. Each\n\nroyalty interest owner's interest in the unit shall be defined as\n\nthe percentage of royalty owned in each separate tract by the\n\nroyalty owner, multiplied by the proportion that the acreage in each\n\nseparately owned tract or interest bears to the entire acreage of\n\nthe unit.\n\n(f) Notwithstanding any provision of this title to the\n\ncontrary, the Corporation Commission shall have jurisdiction upon\n\nthe filing of a proper application therefor, and upon notice given\n\nas provided in subsection (a) of this section, to establish spacing\n\nrules for horizontally drilled oil or gas wells whereby horizontally\n\ndrilled oil or gas wells may have well spacing units established of\n\nup to one thousand two hundred eighty (1,280) acres plus tolerances\n\nand variances as allowed pursuant to subsection (c) of this section.\n\nFor purposes of this subsection a \"horizontally drilled oil or gas\n\nwell\" shall mean an oil or gas well drilled, completed or\n\nrecompleted in a manner in which the horizontal component of the\n\ncompletion interval in the geological formation exceeds the vertical\n\ncomponent thereof and which horizontal component extends a minimum\n\nof one hundred fifty (150) feet in the formation. The Corporation\n\nCommission shall promulgate rules necessary for the proper\n\nadministration of this subsection. For the creation and\n\ncontinuation of any horizontal spacing unit pursuant to this\n\nsubsection that exceeds six hundred forty (640) acres plus\n\ntolerances and variances as allowed pursuant to subsection (c) of\n\nthis section:\n\n(1) absent a showing of reasonable cause, the unit shall\n\ninclude all lands within each governmental section to be included in\n\nthe horizontal spacing unit;\n\n(2) the applicant or applicants requesting the Commission to\n\nform the horizontal spacing unit must be the owner of an interest in\n\nthe oil, gas and other minerals in each of the governmental sections\n\nto be included in the horizontal spacing unit;\n\n(3) the applicant or applicants requesting the Commission to\n\nform a horizontal spacing unit must include in the application the\n\nbasis for requesting a spacing unit size greater than six hundred\n\nforty (640) acres plus tolerances and variances as allowed pursuant\n\nto subsection (c) of this section. Absent a showing of reasonable\n\ncause, the contemplated horizontal lateral length for the initial\n\nunit well in the horizontal spacing unit shall be at least seven\n\nthousand five hundred (7,500) feet. If the lateral length of the\n\ninitial horizontal well does not actually measure a minimum of seven\n\nthousand five hundred (7,500) feet, the Commission shall require the\n\napplicant to show cause as to why such spacing order should not be\n\nmodified, superseded or vacated under the circumstances; and\n\n(4) absent a showing of reasonable cause, the drilling of a\n\nmultiunit horizontal well pursuant to Section 87.8 of this title\n\nshall not be available as the initial unit well for a horizontal\n\nspacing unit unless the contemplated completed portion of the\n\nlateral for said well is to exceed ten thousand five hundred sixty\n\n(10,560) feet.\nmodified, superseded or vacated under the circumstances; and\n\n(4) absent a showing of reasonable cause, the drilling of a\n\nmultiunit horizontal well pursuant to Section 87.8 of this title\n\nshall not be available as the initial unit well for a horizontal\n\nspacing unit unless the contemplated completed portion of the\n\nlateral for said well is to exceed ten thousand five hundred sixty\n\n(10,560) feet.\n\n(g) A horizontal spacing unit may be established for a common\n\nsource of supply for which there are already established\n\nnonhorizontal drilling and spacing units. A horizontal spacing unit\n\nformed under subsection (f) of this section may exist concurrently\n\nwith any previously formed nonhorizontal drilling and spacing unit,\n\nor any portion thereof, such that each concurrently existing unit\n\nmay be separately developed with a well drilled into, completed in\n\nand hydrocarbons produced from the same common source of supply in\n\neach such concurrently existing unit, with production from each such\n\nwell to be governed by and allocated pursuant to the applicable\n\nunit. Subject to all of the provisions of this section, a pooling\n\norder for a horizontal spacing unit which overlies an existing,\n\nproducing nonhorizontal drilling and spacing unit, shall provide\n\nthat, if a working interest owner in such producing nonhorizontal\n\ndrilling and spacing unit does not agree to develop the horizontal\n\nspacing unit, the owner shall relinquish its nonparticipating\n\nworking interest in the horizontal spacing unit while retaining all\n\nother rights, including the right to concurrently develop the\n\nproducing nonhorizontal unit.\n\n(h) Notwithstanding anything in this title or a pooling order\n\nto the contrary, each party owning a right to participate in\n\ndevelopment of a horizontal well described in this subsection with a\n\nvested interest as to which there is production in the geographical\n\narea of the spacing unit or spacing units for a proposed horizontal\n\nwell which is drilled after the effective date of this act pursuant\n\nto a pooling order, whether the pooling order was issued before or\n\nafter the effective date of this act, shall be afforded separate\n\nelections as set forth below, subject to the following, provided;\n\nhowever, a geographic area in which there is no existing producing\n\nunit as of the date of the filing of the application for the\n\ngoverning pooling order and which is initially developed pursuant to\n\na multiunit horizontal well authorized under Section 87.8 of this\n\ntitle, or a horizontal spacing unit which contains more than six\n\nhundred forty (640) acres plus tolerances and variances as allowed\n\nfor pursuant to subsection (c) of this section shall not be\n\nconsidered to contain existing production for purposes of this\n\nsubsection, unless the geographical area of any spacing unit covered\n\nby the governing pooling order: is overlain by a horizontal spacing\n\nunit greater than six hundred forty (640) acres plus tolerances and\n\nvariances as allowed for pursuant to subsection (c) of this section\n\nwhich is not subject to said pooling order; has a multiunit well\n\ndrilled pursuant to Section 87.8 of this title which includes a\n\nhorizontal spacing unit which contains more than six hundred forty\n\n(640) acres plus tolerances and variances as allowed for pursuant to\n\nsubsection (c) of this section which is subject to said pooling\n\norder; or has a multiunit well drilled pursuant to Section 87.8 of\n\nthis title for a combination of units different than drilled by the\n\ninitial multiunit well pursuant to said pooling order:\nes a\n\nhorizontal spacing unit which contains more than six hundred forty\n\n(640) acres plus tolerances and variances as allowed for pursuant to\n\nsubsection (c) of this section which is subject to said pooling\n\norder; or has a multiunit well drilled pursuant to Section 87.8 of\n\nthis title for a combination of units different than drilled by the\n\ninitial multiunit well pursuant to said pooling order:\n\n(1) as to a multiunit horizontal well authorized under Section\n\n87.8 of this title, each party owning a right to participate in\n\ndevelopment of the proposed multiunit horizontal well with a vested\n\ninterest as to which there is existing production in the\n\ngeographical area of the spacing unit for the proposed multiunit\n\nwell shall be allowed, and as to the extent of their development\n\nrights as to which there is existing production, an election as to\n\nthe targeted reservoir or targeted reservoirs covered by each\n\npooling order for such proposed multiunit horizontal well described\n\nabove, unless otherwise agreed to or waived in writing after the\n\neffective date of this act. If said multiunit well is drilled in\n\naccordance with the pooling order, the relinquished rights of an\n\nowner who elects or is deemed to have elected not to participate\n\nwith all or any part of that owner's interest in the multiunit\n\nhorizontal well shall be limited to only the owner's\n\nnonparticipating working interest in the common source or common\n\nsources of supply within the targeted reservoir or targeted\n\nreservoirs covered by said election which are actually horizontally\n\ndrilled and completed by said well. The owner shall retain all\n\nother rights, including all rights in any existing wellbores in\n\nwhich the owner has participated;\n\n(2) as to a horizontal well authorized by the Commission for a\n\nhorizontal spacing unit created under subsection (f) of this\n\nsection, if the horizontal spacing unit contains more than six\n\nhundred forty (640) acres plus tolerances and variances as allowed\n\nfor pursuant to subsection (c) of this section, or is comprised of\n\nmore than one governmental section, each party owning a right to\n\nparticipate in development of the proposed horizontal well with a\n\nvested interest as to which there is existing production in the\n\ngeographical area of the spacing unit for the proposed horizontal\n\nwell shall be allowed, and as to the extent of their development\n\nrights as to which there is existing production, a separate election\n\nas to each common source of supply or common sources of supply\n\ncovered by the pooling order for a proposed horizontal well\n\ndescribed above, unless otherwise agreed to or waived in writing\n\nafter the effective date of this act. If said horizontal well is\n\ndrilled in accordance with the pooling order, the relinquished\n\nrights of an owner who elects or is deemed to have elected not to\n\nparticipate with all or any part of that owner's interest in the\n\nhorizontal well shall be limited to only the owner's\n\nnonparticipating working interest in the common source or common\n\nsources of supply covered by said election which are actually\n\nhorizontally drilled and completed by said well. The owner shall\n\nretain all other rights, including any rights in all existing\n\nwellbores in which the owner has participated;\n\n(3) as to any well which is subject to a pooling order which\n\nwas entered prior to the effective date of this act, in order to be\n\nentitled to the rights and benefits of this subsection, the owner\n\nmust have been vested with the right to participate in the subject\n\nwell as of the effective date of this act;\n\n(4) any relinquishment of rights under this subsection shall be\n\npursuant to the governing pooling order and at such fair value as\n\ndetermined by the Commission; and\nrior to the effective date of this act, in order to be\n\nentitled to the rights and benefits of this subsection, the owner\n\nmust have been vested with the right to participate in the subject\n\nwell as of the effective date of this act;\n\n(4) any relinquishment of rights under this subsection shall be\n\npursuant to the governing pooling order and at such fair value as\n\ndetermined by the Commission; and\n\n(5) the provisions of subsections (g) and (h) of this section\n\nshall supplement each affected pooling order as to development of\n\nthe affected spacing unit by use of horizontal wells from and after\n\nthe effective date of this 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":"a9bd9c0fe41797ddfd3363921b4b1538f9fc7be5a13b797e4bd1e2d263ba082c","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-86.8","next":"us-ok/okla.-stat.-tit.-52-52-87.2"},"notice":"GroundRules: Original legal text. Not legal advice."}