Okla. Admin. Code § 165:10-15-3 - Effect of percentage penalty on oil wells

If a percentage penalty has been assigned to an oil well, the penalty shall, depending on the status of the well, be subtracted from:

(1) Discovery status. The applicable allowable from the Discovery Allowable Table (Appendix B to this Chapter) or the capacity of the well to produce as reported, whichever is less.

(2) If allocated or unallocated per-well status. The applicable allowable from the Allocated Well Allowable Table (Appendix A to this Chapter) multiplied by the current market demand factor or the capacity of the well to produce as reported, whichever is less.

(3) If unallocated per-lease status. The shallowest ten acre or less allowable from the Allocated Well Allowable Table (Appendix A to this Chapter) multiplied by the current market demand factor for the penalized well only. The penalty shall be subtracted from the lease allowable.

Notes

Okla. Admin. Code § 165:10-15-3

Amended at 26 Ok Reg 2498, eff 7-11-09

Amended by Oklahoma Register, Volume 32, Issue 23, August 17, 2015, eff. 8/27/2015.