OVERVIEW OF OKLAHOMA CONSERVATION PRACTICE

• Jurisdiction: United States

Onshore Pooling and Unitization
(Jan 1997)
CHAPTER 5E
OVERVIEW OF OKLAHOMA CONSERVATION PRACTICE
Robert G. Gum
Spradling, Alpern, Friot & Gum
Oklahoma City, Oklahoma

Successful Oklahoma exploration and production depends upon effectively accessing and managing the impact of Oklahoma's conservation laws on your activities. A thorough understanding of our conservation laws and how they are applied is required. In the time provided here, I can supply some insight into Oklahoma's approach to this subject; however, I must caution against unrealistic expectations. In truth, this is a complicated subject. The most valuable thing I will tell you today is to hire an attorney experienced in this area before you start spending a lot of money in the Sooner State.

Sources Of Oklahoma Conservation Law

The backbone of Oklahoma's conservation law is statutory. Most of the pertinent statutes are found at 52 O.S.A. §81-378. In addition, there are hundreds of appellate opinions released for publication by our Supreme Court interpreting and applying these statutes. Of greatest practical significance is 52 O.S.A. §87.1 and the corresponding annotated cases.

The administration and enforcement of Oklahoma's conservation laws rests with the Oklahoma Corporation Commission. The Commission promulgates its own substantive and procedural rules known respectively as The General Rules Of The Oklahoma Corporation Commission, OAC 165:10 and Oklahoma Corporation Commission Rules Of Practice, OAC 165:5. Copies may be secured from the Commission's offices in Oklahoma City or from a commercial source located in Oklahoma City known as Oil Law Records Corporation.

When adjudicating conservation causes, the Commission is viewed as a court of record. Its orders are reviewable only by direct appeal to our Supreme Court. When final, its orders are immune from collateral attack and may not be changed or modified without a showing of a change of condition or a change of knowledge of condition since entry of the order. Its orders are res judicata and will serve to preclude relitigation of an issue between the same parties and their successors. This makes it necessary to know what orders are already in effect and binding upon you, your competitors and the respective parties' interests. This is accomplished either by a direct search of the Commission's historical records or by purchasing abstracts of such orders from commercial sources such as Oil Law Records or Pangea, Inc.

As a practical matter, the Commission's conservation orders may also bind persons and properties not involved with those orders. While there is no formal rule of stare decisis in place at the Commission, some orders are ultimately identified as representing current Commission policy as to particular issues. These orders are often cited by counsel as precedent for the point in question and are frequently treated as such by the Commission. Unfortunately, there is no organized research tool that will provide you with access to these orders and the many unwritten rules and policies of the Commission. This is one reason why it pays to retain the services of an experienced conservation practitioner. He or she will be much more likely to be aware of these things than will anyone else.

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Commission Organization

The Corporation Commission is comprised of three elected officials. Among...