Okla. Stat. tit. 17, § 17-508

owners - Election to sell.

A. The plan of unitization for each such unit and unit area

shall be one suited to the needs and requirements of the particular

unit dependent upon the facts and conditions found to exist with

respect thereto. In addition to such other terms, provisions,

conditions and requirements found by the Commission to be reasonably

necessary or proper to effectuate or accomplish the purpose of this

act, and subject to the further requirements hereof, each such plan

of unitization shall contain fair, reasonable and equitable

provisions for:

1. The efficient unitized management or control of further

development and operation of the unit area. Under such plan the

actual operations of the unit shall be carried on by one of the

owners of the right to drill for and produce brine within the unit

area as unit operator. The designation of unit operator shall be by

majority vote of the owners of the right to drill for and produce

brine in the unit in accordance with their acreage ownership in the

unit;

2. The method and circumstances under which brine or effluent

from the unit, or from any other source, may be injected into the

common source of supply under the unit area or into other

formations;

3. The fair, just and reasonable compensation to be awarded to

any owner within the unit who does not wish to participate in

development of the unit by paying such owner's share of unit costs;

4. The fair, just and reasonable manner of participation for

any owner desiring to participate in the development of the unit by

paying such owners share of unit costs;

5. The fair, just and reasonable allocation and distribution to

each owner and the value of such owner's share of the brine and

solution gas produced from the unit;

6. The procedure and basis upon which wells, equipment and

other properties of the owners within the unit area are to be taken

over and used for unit operations, including the method of arriving

at the compensation therefor, or for otherwise proportionately

equalizing the investment of the several owners in the unit;

7. The method of apportioning costs of development and

operation between owners of brine and owners of solution gas, if

solution gas has also been unitized;

8. The time when the plan of unitization shall become

effective;

9. The time when and conditions under which the unit shall or

may be dissolved and all affairs concluded.

B. No order of the Commission creating a unit and prescribing

the plan of unitization applicable thereto shall become effective

Oklahoma Statutes - Title 17. Corporation Commission Page 277

unless and until the plan of unitization has been signed, or in

writing ratified or approved by record owners of the right to drill

of not less than fifty-five percent (55%) of the unit area affected

thereby and by owners of record of not less than fifty-five percent

(55%) (exclusive of royalty interest owned by lessees or

subsidiaries of any lessee) of the royalty interest in and to the

unit area and the Commission has made a finding either in the order

creating the unit or in a supplemental order that the plan of

unitization has been so signed, ratified or approved by lessees and

royalty owners owning the required percentage interest in and to the

unit area. Provided, however, in any instance where a royalty owner

has, through lease or other agreement, previously authorized pooling

or unitization of a size equal to or larger than the size specified

in the Commission order, said lease or other agreement shall be

deemed to be such royalty owner's authorization to unitize, and no

additional signature, ratification or approval shall be necessary

from such owner, unless the lease provides for a different

production sharing formula than set out in the plan of unitization.

Further provided, however, in any instance where a royalty owner

has, through lease or other agreement, previously consented to have
e

deemed to be such royalty owner's authorization to unitize, and no

additional signature, ratification or approval shall be necessary

from such owner, unless the lease provides for a different

production sharing formula than set out in the plan of unitization.

Further provided, however, in any instance where a royalty owner

has, through lease or other agreement, previously consented to have

the unit boundaries and the allocation formula established by the

Commission, said lease or other agreement shall be deemed to be such

royalty owner's authorization to unitize, and no additional

signature, ratification or approval shall be necessary from such

owner. Where the plan of unitization has not been so signed,

ratified or approved by lessees and royalty owners owning the

required percentage interest in and to the unit area at the time the

order creating the unit is made, the Commission shall hold such

additional and supplemental hearings as may be requested or required

to determine if and when the plan of unitization has been so signed,

ratified or approved by lessees and royalty owners owning the

required percentage interest in and to the unit area and shall, in

respect to such hearings, make and enter a finding of its

determination in such regard. In the event lessees or royalty

owners, or either, owning the required percentage interest in and to

the unit area have not so signed, ratified or approved the plan of

unitization within a period of six (6) months from and after the

date on which the order creating the unit is made, the order

creating the unit shall be deemed vacated and of no force and

effect.

C. A participating brine owner shall have a one-time election

to sell, and any brine owner in the unit with brine refining

equipment shall have the obligation to buy, the brine produced from

the unit at the value determined by the Commission; provided

however, nothing herein shall require the purchasing brine owner to

purchase brine when it is not producing brine from the unit for its

own account.

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