{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-87.6","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-87.6","heading":"Short title - Extended Horizontal Well Development Act -","body":"Definitions.\n\nA. Sections 87.6 through 87.9 of this title shall be known and\n\nmay be cited as the \"Extended Horizontal Well Development Act\".\n\nB. As used in the Extended Horizontal Well Development Act:\n\n1. \"Adjacent common source of supply\" means a common source of\n\nsupply which is immediately adjacent to and adjoining the targeted\n\nreservoir or targeted reservoirs in a multiunit horizontal well\n\nbeing drilled pursuant to Section 87.8 of this title or a well being\n\ndrilled in a horizontal well unitization pursuant to Section 87.9 of\n\nthis title and which is inadvertently encountered in the drilling of\n\nthe lateral of a multiunit horizontal well or a well pursuant to a\n\nhorizontal well unitization when such well is drilled out of or\n\nexits, whether on one or multiple occasions, the targeted reservoir\n\nor targeted reservoirs, and which is not the primary target of the\n\nsubject well and shall not be included in the relinquished rights\n\npursuant to subsection (h) of Section 87.1 of this title. In the\n\nevent that an adjacent common source of supply may be inadvertently\n\nencountered in the drilling of the lateral of a multiunit horizontal\n\nwell or a well pursuant to a horizontal well unitization when such\n\nwell is drilled out of or exits, whether on one or multiple\n\noccasions, the targeted reservoir or targeted reservoirs, then said\n\ninadvertently entered adjacent common source of supply shall be\n\nincluded as part of the targeted reservoir only for the purpose of\n\nthe inadvertent penetrations, and any subsequent completion,\n\ncommingling and production of said adjacent common source of supply\n\nwith the targeted reservoir or targeted reservoirs, but not for\n\nfuture development of said adjacent common source of supply;\n\n2. \"Allocation factor\" means the percentage of costs,\n\nproduction or proceeds allocated to a unit affected by a multiunit\n\nhorizontal well;\n\n3. \"Application\" means a written request filed by an owner of\n\nthe right to drill seeking approval to drill, complete and produce a\n\nmultiunit horizontal well or to create a horizontal well\n\nunitization;\n\n4. \"Commission\" means the Corporation Commission;\n\n5. \"Completion interval\" means, for an open hole completion in\n\na horizontal well, the interval from the point of entry to the\n\nterminus and, for a cased and cemented completion in a horizontal\n\nwell, the interval from the first perforations to the last\n\nperforations;\n\n6. \"Horizontal well\" means a well drilled, completed, or\n\nrecompleted with one or more laterals which, for at least one\n\nlateral, the horizontal component of the completion interval exceeds\n\nthe vertical component of the completion interval and the horizontal\n\ncomponent extends a minimum of one hundred fifty (150) feet in the\n\nformation;\n\n7. \"Horizontal well unitization\" means a unitization for a\n\ntargeted reservoir created pursuant to Section 87.9 of this title;\n\n8. \"Horizontal component\" means the calculated horizontal\n\ndistance from the point of entry to the terminus;\n\n9. \"Lateral\" means the portion of the wellbore of a horizontal\n\nwell from the point of entry to the terminus;\n\n10. \"Multiunit horizontal well\" means a horizontal well in a\n\ntargeted reservoir or targeted reservoirs wherein the completion\n\ninterval of the well is located in more than one unit formed for the\n\nsame targeted reservoir, with the well being completed in and\n\nproducing from such targeted reservoir in two or more of such units;\n\n11. \"Plan of development\" means the proposed plan for\n\ndeveloping the targeted reservoir unitized pursuant to Section 87.9\n\nof this title, which plan, based upon the information and knowledge\n\nthen available to the applicant, shall include:\n\na. a map or maps indicating the location of each existing\n\nwell in the proposed unit and the anticipated location\n\nof each horizontal well proposed to be drilled in the\n\nproposed unit that is anticipated to be necessary,\n\nbased upon the information and knowledge then\nSection 87.9\n\nof this title, which plan, based upon the information and knowledge\n\nthen available to the applicant, shall include:\n\na. a map or maps indicating the location of each existing\n\nwell in the proposed unit and the anticipated location\n\nof each horizontal well proposed to be drilled in the\n\nproposed unit that is anticipated to be necessary,\n\nbased upon the information and knowledge then\n\navailable to the applicant, for the full and efficient\n\ndevelopment and operation of the proposed unit for the\n\nrecovery of oil and gas from the targeted reservoir\n\nwithin the proposed unit,\n\nb. any applicable proposed allocation factor or factors\n\nfor allocating the costs, production and proceeds from\n\nthe proposed unit,\n\nc. the anticipated timing and anticipated sequence of\n\ndrilling of each horizontal well in the proposed unit,\n\nand\n\nd. any other specific terms, provisions, conditions and\n\nrequirements set forth in Section 87.9 of this title\n\nor determined by the Commission to be reasonably\n\nnecessary or proper to effectuate or accomplish the\n\npurpose of Section 87.9 of this title;\n\n12. \"Point of entry\" means the point at which the borehole of a\n\nhorizontal well first intersects the top of the targeted reservoir;\n\n13. \"PRSA\" means the Production Revenue Standards Act;\n\n14. \"Targeted reservoir\" means one or more common sources of\n\nsupply which will be encountered by the horizontal lateral portion\n\nof a horizontal well, and which has been designated by the\n\nCommission as part of an order, rule or emergency rule as\n\npotentially suited for development for the applied for multiunit\n\nhorizontal well pursuant to Section 87.8 of this title or a\n\nhorizontal well unitization pursuant to Section 87.9 of this title.\n\nProvided, however, that more than one common source of supply may\n\nonly be granted by the Commission and included in the targeted\n\nreservoir upon a showing of reasonable cause by the applicant\n\nrequesting the multiunit well in the application requesting\n\nauthority for the multiunit well prior to the drilling of said\n\nmultiunit well that the inclusion of the additional common source(s)\n\nof supply shall prevent waste and protect the correlative rights of\n\nall of the owners of the oil and gas rights;\n\n15. \"Terminus\" means the end point of the borehole of a\n\nhorizontal well in the targeted reservoir;\n\n16. \"Wellbore royalty interest\" means, for each separate\n\nmultiunit horizontal well, the sum of resulting products of each\n\naffected unit's royalty share for that unit, as defined by the PRSA,\n\nmultiplied by that unit's allocation factor for production and\n\nproceeds;\n\n17. \"Wellbore royalty proceeds\" means the proceeds or other\n\nrevenue derived from or attributable to any production of oil and\n\ngas from the multiunit horizontal well multiplied by the wellbore\n\nroyalty interest;\n\n18. \"Unit\" means a drilling and spacing unit for a single\n\ncommon source of supply created pursuant to Section 87.1 of this\n\ntitle or a horizontal well unitization created pursuant to Section\n\n87.9 of this title;\n\n19. \"Unit's royalty contribution factor\" means the royalty\n\nshare for an affected unit, as defined by PRSA, multiplied by that\n\nunit's allocation factor, then divided by the total wellbore royalty\n\ninterest; and\n\n20. \"Vertical component\" means the calculated vertical distance\n\nfrom the point of entry to the terminus.","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":"4478531ddfa1cba4398471c0bc265478a2f18b83e3dbbacaa7c746ab986d58c5","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-87.5","next":"us-ok/okla.-stat.-tit.-52-52-87.7"},"notice":"GroundRules: Original legal text. Not legal advice."}