Small Change in OCC – Big Impact on Aggressive Smaller Companies’ MO

Oklahoma SCOOP is one of the hottest drilling fairways in the U.S. On Aug. 1, an Oklahoma Corporation Commission (OCC) regulation that will change the way aggressive—usually smaller—companies often leverage their way into larger companies’ drilling units went into effect. This new change is found in Title 165 (Oklahoma Statutes), Chapter 5-13-3 (d) and provides that anyone who wishes to protest an oil and gas company’s Conservation Docket (CD) application—including Spacing, Increased Density, Multiunit Horizontal Well, etc.—must register their protest in writing at the OCC and provide a legally sufficient reason for the protest. Doesn’t sound like much of a big deal, but it is. Here’s why. When a CD application is protested, it automatically goes to the OCC “Protest Docket”—one of the most congested court dockets in the Oklahoma State court system, where getting a final order can take months, sometimes a year. Aggressive companies have this knowledge and use it to their advantage. Until now, “use” of this congestion was an unwritten, but entirely legal, tactic inked into their playbook and using it was as simple as showing up at the larger companies’ CD hearing and verbally announcing a protest existed. OK … still sounds simple, and if… continue reading

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Source: CTRM Center

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