STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

SENATE BILL 135	By:	Justice

AS INTRODUCED

An Act relating to oil and gas well spacing; stating Legislative findings related to current statutes governing horizontal well spacing requirements; declaring need for new governing statutes for certain procedures; providing for noncodification; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law not to be codified in the Oklahoma Statutes reads as follows:
The Legislature finds that advances in horizontal drilling techniques for oil and gas wells drilled and completed in shale formations in this state have advanced beyond the historical spacing requirements found in current statutes.  The Corporation Commission, as the agency charged with the protection of the correlative rights of those owning oil and gas interests in this state, the prevention of waste and the promotion of full development of these resources, is constrained in its ability to adequately accomplish the balancing of these goals by the limitations place upon it by existing law.  In order to prevent waste, better protect the correlative rights of the owners of oil and gas rights, and harmonize Oklahoma’s historical regulatory authority over such matters with the expanding technology of drilling and completing horizontal wells in shale reservoirs in this state, the Legislature finds it necessary to modify current statutes to authorize:
1.  The drilling of certain horizontal wells in shale formations across unit boundaries, with the costs, production and proceeds allocated to each of the affected units; and
2.  Unitization of two or more, but not to exceed four, governmental sections into a single unit for the uniform development of the shale formation through the use of extended lateral horizontal wells.
SECTION 2.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

53-1-338	MJM	1/5/2011 11:22:36 AM