Okla. Stat. tit. 52, § 52-24.5

A. No gatherer shall charge any fee or require any terms and

conditions of service, or both, for gathering, which is unfair,

unjust, unreasonable, or unduly discriminatory under the standard

specified in and as provided by subsection D of this section. Upon

complaint of an aggrieved party filed pursuant to this act, the

Corporation Commission shall have the authority to remedy any such

fee or terms and conditions of service, or both, for gathering, by:

1. Ordering an adjustment of the fee or terms and conditions of

service, or both, as to the aggrieved party to the extent necessary

Oklahoma Statutes - Title 52. Oil and Gas Page 21

to remove any unfair, unjust, unreasonable, or unduly discriminatory

portion of such fee or terms and conditions of service, or both,

under the standard specified in and as provided by subsection D of

this section; and, if applicable,

2. Ordering the continuation of gathering service during the

pendency of the complaint as provided in subsection F of this

section; or

3. Ordering the application of fees and terms and conditions of

service established by an order previously issued by the Commission

under this act be applied to a similarly situated shipper as

specified in subsection L of this section.

Nothing in this section shall operate to abrogate the terms of

an existing contract while the contract is in force. Upon the

expiration or cancellation of an existing contract, under the terms

of the contract, the provisions of this section shall apply.

B. No gatherer shall refuse to provide open access natural gas

gathering, including the redelivery of such natural gas to existing

redelivery points, for a fee for any person seeking such gathering

for natural gas which is connected to the gatherer's pipeline unless

the gatherer can demonstrate to the Commission that any of the

following apply:

1. The continuation of gathering service on the basis requested

by the complainant would require an additional capital investment,

material to the well or wells at issue, by the gatherer and

complainant is unable or unwilling to timely pay gatherer for all

reasonable direct costs attributable to such capital investment

together with that reasonable portion of a gatherer’s overhead

directly related to such capital investment;

2. The continued gathering of such natural gas could reasonably

be expected to have a material adverse effect on safety or service

to existing customers;

3. The natural gas does not satisfy minimum standards for

quality, including energy content, consistently applied by the

gatherer for such gathering system;

4. The gathering service requested is inconsistent with an

existing contract which governs the gathering of the complainant's

natural gas; or

5. For such other good cause as the Commission may determine in

the particular case.

Upon complaint of an aggrieved party connected to the gatherer’s

pipeline, the Commission shall determine whether such gatherer is

required by reason of this subsection to continue to provide open

access natural gas gathering to such party, and if so, and the

parties are unable to agree upon a fee or terms and conditions of

service or both, for gathering, to fix a fee or terms and conditions

of service, or both, for such gathering.

Oklahoma Statutes - Title 52. Oil and Gas Page 22

C. No gatherer shall refuse to provide open access natural gas

gathering, including the redelivery of such natural gas to existing

redelivery points, for a fee for any person seeking such gathering

for natural gas which is not connected to gatherer's pipeline unless

the gatherer can demonstrate that any of the following apply:

1. The natural gas cannot be reasonably carried by such

gatherer due to existing capacity limitations on the gatherer's

pipeline;

2. An extension or expansion of facilities would be required

and the complainant is unable or unwilling to timely pay the
gathering

for natural gas which is not connected to gatherer's pipeline unless

the gatherer can demonstrate that any of the following apply:

1. The natural gas cannot be reasonably carried by such

gatherer due to existing capacity limitations on the gatherer's

pipeline;

2. An extension or expansion of facilities would be required

and the complainant is unable or unwilling to timely pay the

gatherer for all reasonable direct costs attributable to such

extension or expansion together with that reasonable portion of a

gatherer’s overhead directly related to such extension or expansion

of facilities;

3. The gathering of such natural gas could reasonably be

expected to have a material adverse effect on safety or service to

existing customers or on the operation of or recovery in any

processing facility;

4. The natural gas does not satisfy minimum standards for

quality or energy or recoverable hydrocarbon content consistently

applied by the gatherer for such gathering system; or

5. For such other good cause as the Commission may determine in

the particular case.

Upon complaint of an aggrieved party not connected to the

gatherer's pipeline, the Commission shall determine whether a

gatherer is required by reason of this subsection to provide open

access natural gas gathering to such party, and if so, and the

parties are unable to agree upon a fee or terms and conditions of

service, or both, for gathering, to fix a fee or terms and

conditions of service, or both, for such gathering.

D. Any action by the Commission under this act shall be

initiated by the filing of a complaint with the Commission by the

aggrieved party and the serving of a copy of such complaint upon the

gatherer from whom gathering service is being requested. The

Commission shall conduct a hearing and take such evidence as is

necessary to determine the complaint. Notice of the hearing on such

complaint shall be given by registered mail to such gatherer at

least twenty (20) days prior to such hearing but in no event shall

the hearing be less than thirty (30) days from the filing of the

complaint. If the parties are unable to agree on an interim fee or

terms and conditions of service, or both, for gathering to apply

during the pendency of the complaint before the Commission, then the

Commission may set such interim fee or terms and conditions of

service, or both, under the provisions of subsection F of this

section. In determining and setting a fee or terms and conditions

of service, or both, under this act, other than an interim fee under

the provisions of subsection F of this section, the Commission shall

Oklahoma Statutes - Title 52. Oil and Gas Page 23

determine a fee or terms and conditions of service, or both, which

would result from arm's-length bargaining in good faith in a

competitive market between persons of equal bargaining power and

shall consider all economically significant factors for gathering

which it determines to be relevant which may include, but are not

limited to:

1. The fees and terms and conditions of service which such

gatherer receives from the complainant and other shippers for

analogous levels of service for gathering within an area the

Commission determines to be relevant;

2. The fees charged and the terms and conditions of service

provided by other gatherers for gathering within an area the

Commission determines to be relevant;

3. The reasonable financial risks of operating such a gathering

system;

4. The reasonable capital, operating and maintenance costs of

such a gathering system; and

5. Such other factors which the Commission determines to be

relevant.

Provided, that neither such fee nor such terms and conditions of

service shall be computed on a utility rate of return basis and that

gatherers shall not be regulated like public utilities in the

setting of fees and terms and conditions of service.

E. In establishing the gathering fee, if the Commission
hering system; and

5. Such other factors which the Commission determines to be

relevant.

Provided, that neither such fee nor such terms and conditions of

service shall be computed on a utility rate of return basis and that

gatherers shall not be regulated like public utilities in the

setting of fees and terms and conditions of service.

E. In establishing the gathering fee, if the Commission

determines the natural gas is processed, the order entered by the

Commission establishing such fee shall include the following:

1. Gatherer shall return to shipper at the redelivery point the

MMBtu’s attributable to such shipper at the plant inlet, less any

volumetric deductions for fuel and loss associated with gathering;

and

2. For any month in which there is a spread fee, the shipper

shall pay to the gatherer such amount.

No further order shall be made regarding the calculation of the

spread fee or gatherer’s obligations for redelivery of natural gas

or natural gas liquids.

F. Upon the filing of a complaint under this section which

seeks to continue an existing gathering service, the Commission on

motion of the complainant shall require continuation of gathering

service under the fees and terms and conditions of service of the

last expired contract, if any, during the pendency of the complaint,

or set an interim fee and terms and conditions of service. However,

the gatherer shall not be required to provide interim gathering if

the gatherer can show that such continuance would require an

otherwise unnecessary, material capital expenditure, or if the

Commission determines interim gathering is excused for safety

reasons. Interim relief shall be by order of the Commission after

notice to the gatherer from whom gathering service is being

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requested and subsequent hearing. Any fees for gathering collected

during the period a complaint which seeks to set a fee for such

gathering is pending shall be subject to the fee finally set by the

Commission. If the finally determined fee is less than the

collected fee, the excess shall be refunded to the complainant

within fifteen (15) days after the final determination of the fee,

together with interest at a rate established by the Commission. If

the finally determined fee is greater than the collected fee, the

excess shall be paid by the complainant to the gatherer within

fifteen (15) days after the fee is finally determined, together with

interest at a rate established by the Commission.

G. A gatherer providing natural gas gathering services shall

not increase the fee for gathering, change the terms or conditions

of service, discontinue gathering service, or not renew an expiring

contract of the shipper, without first giving the shipper written

notice prior to the effective date of the increase in fee, change in

terms or conditions of service, discontinuance of gathering

services, or nonrenewal. Such written notice shall be given at

least ninety (90) days prior to the effective date of such increase,

change, discontinuance or nonrenewal, unless otherwise provided by

existing contract, but in no event less than thirty (30) days prior

to the effective date of such increase, change, discontinuance or

nonrenewal with respect to contracts having terms in excess of six
ices, or nonrenewal. Such written notice shall be given at

least ninety (90) days prior to the effective date of such increase,

change, discontinuance or nonrenewal, unless otherwise provided by

existing contract, but in no event less than thirty (30) days prior

to the effective date of such increase, change, discontinuance or

nonrenewal with respect to contracts having terms in excess of six

(6) months. If the parties are unable to agree upon continuation of

service or fees or terms and conditions of service, or both, the

aggrieved party may file a complaint under this act to determine

whether an open access obligation exists and, if so, seek the

determination of fees or terms and conditions of service, or both,

under this act.

H. All matters to be determined by the Commission under this

act shall be heard on an expedited basis and a final, appealable

order rendered thereon within one hundred twenty (120) days from the

filing of the complaint, unless otherwise agreed by the parties.

The Commission shall have the power and authority to promulgate

rules and issue orders to implement, administer, and enforce the

provisions of this act and may exercise all incidental powers which

are necessary and proper to the performance of its duties under this

act. The Commission shall promulgate rules establishing a

voluntary, nonbinding, informal procedure to be available, either

before or after the filing of a complaint, in order to encourage the

resolution of disputes arising under this act. An informal

procedure shall not extend the time limit of one hundred twenty

(120) days established in this subsection, unless otherwise agreed

by the parties.

I. Upon the filing of a complaint of an aggrieved party, the

Commission shall have the right to require the production of

relevant documents of the gatherer which is subject to the

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complaint. Gathering contracts covering the 25 wells most recently

connected to the system of the gatherer which is subject to the

complaint are deemed discoverable and production will not be denied

upon a relevance objection. The Commission may issue process to

enforce the attendance of any witness and to obtain any documents

relevant to the complaint of an aggrieved party. The Commission may

punish any person failing to obey or comply with any order or

requirement under this act for contempt, and such person shall be

subject to a civil penalty of not more than Five Thousand Dollars

($5,000.00) for each day that such noncompliance continues. If,

after notice and opportunity to be heard, the Commission finds that

the documents of any other gatherer are relevant, the Commission may

issue process to enforce the attendance of any witness and to obtain

any documents relevant to the complaint and may punish any person

failing to obey or comply with any order or requirement under this

act for contempt and such person shall be subject to a civil penalty

of not more than Five Thousand Dollars ($5,000.00) for each day that

such noncompliance continues. If, in connection with any proceeding

under this act, any person, whether or not a party to the

proceeding, furnishes information it desires to be confidential,

proprietary and/or privileged, the Commission, upon motion of such

person and upon a finding by the Commission that the information is

confidential, proprietary or privileged, shall enter such protective

order as may be necessary to ensure that the information will be

used only as may be required for the proper determination of the

merits of a proceeding under this act and will not be used for

purposes of competitive advantage. Any person, whether or not a

party to the proceeding, furnishing a contract or contracts in

response to a request under this section shall, prior to furnishing

such contracts, delete or obfuscate the names of all persons who are
be

used only as may be required for the proper determination of the

merits of a proceeding under this act and will not be used for

purposes of competitive advantage. Any person, whether or not a

party to the proceeding, furnishing a contract or contracts in

response to a request under this section shall, prior to furnishing

such contracts, delete or obfuscate the names of all persons who are

parties to the contract, any unit or well names contained in the

contracts, and any reference to the section designation contained in

the legal description of the location of the well or unit, but such

person shall not remove references to the applicable township and

range designations. Additional nonrelevant, confidential

information may be deleted or obfuscated from contracts furnished in

response to a request under this section, subject to Commission

review. Documents produced under this section shall be covered by a

confidentiality privilege and thus exempt from the Oklahoma Open

Records Act.

J. The Commission shall maintain an index of all orders entered

by it under this act identifying the date and order number,

indicating the type of relief granted, and identifying the gatherer

and gathering system to which the order applies. All orders of the

Commission determining a fair, just, reasonable and

nondiscriminatory fee and terms and conditions of service under this

act shall contain findings of fact and conclusions of law in

Oklahoma Statutes - Title 52. Oil and Gas Page 26

sufficient detail so that the relevant and significant factors

considered by the Commission in determining a fee and terms and

conditions of service, the Commission's analysis of those factors

and the reasons supporting such fee and terms and conditions of

service can be reasonably determined from the face of the order;

provided, such order shall not include any information not permitted

to be disclosed by the terms of any protective order entered under

subsection I of this section.

K. No gatherer shall charge any fee or require any terms and

conditions of service, or both, which unduly discriminate in favor

of the gatherer's affiliated entities and against other persons.

Each gatherer shall maintain documents in such a manner that

gathering services provided to an affiliate may be identified and

segregated.

L. Any person seeking gathering service for a well or wells

covered by a previous order of the Commission may file an

application with the Commission seeking the same fee or terms and

conditions of service as provided in the previous order, which shall

be granted to the applicant by the Commission, unless the gatherer

can demonstrate that the applicant is not a similarly situated

shipper or that there has been a material change in conditions or

circumstances since the prior fee or terms and conditions of service

were determined.

M. Nothing in this act shall create or be interpreted to create

service or abandonment obligations upon a gatherer or give the

Commission jurisdiction to regulate abandonment of gathering

facilities. Nothing in this act shall give the Commission

jurisdiction to regulate the purchase, processing or resale of

natural gas or the price or other compensation for, or any of the

other terms or conditions of any such purchase, processing or

resale.