Okla. Stat. tit. 52, § 52-570.2

As used in the Production Revenue Standards Act:

Oklahoma Statutes - Title 52. Oil and Gas Page 233

1. "Owner" means a person or governmental entity with a legal

interest in the mineral acreage under a well which entitles that

person or entity to oil or gas production or the proceeds or

revenues therefrom;

2. "Produce", "Producing" and "Production" mean the physical

act of severance of oil and gas from a well by an owner and includes

but is not limited to the sale or other disposition thereof;

3. "Producing owner" means an owner entitled to produce who

during a given month produces oil or gas for its own account or the

account of subsequently created interests as they burden its

interest;

4. "Proportionate production interest" means that interest in

production which a working interest owner is entitled to produce in

order to adjust for shifting of royalty burdens among working

interest owners under the royalty payment provisions of this act,

and is equal to the quotient of:

a. the sum of that working interest owner's net revenue

interests plus the net revenue interests of any

subsequently created interests as they burden such

owner's working interest,

b. divided by the remainder of one (1) less the royalty

share;

5. "Proportionate royalty share" means the percentage of the

royalty share owned by a royalty interest owner calculated by

dividing such owner's royalty interest in a well by the royalty

share;

6. "Royalty interest" means the entirety of the percentage

interest in production or proceeds therefrom:

a. reserved or granted by a mineral interest owner

exclusive of any interest defined as a working

interest or a subsequently created interest, or

b. otherwise provided or ascribed to a mineral interest

owner by statute, rule, order or operation of law.

The interest of a participating mineral interest owner shall be

designated in part as a royalty interest and in part as a working

interest as set forth in Section 87.1 of Title 52 of the Oklahoma

Statutes;

7. "Royalty interest in a well" means an owner's royalty

interest multiplied by the quotient of:

a. the gross mineral acres under the well attributable to

such interest, divided by

b. the total mineral acres under the well;

8. "Royalty proceeds" means the share of proceeds or other

revenue derived from or attributable to any production of oil and

gas attributable to the royalty share, but shall not include

payments of bonus, delay rentals, shut-in royalties or any

additional royalty payable to the Commissioners of the Land Office

Oklahoma Statutes - Title 52. Oil and Gas Page 234

or other governmental entity, pursuant to and valued according to

the terms of its oil and gas lease, which is calculated separately

from the royalty portion of actual proceeds from the sale of oil or

gas;

9. "Royalty share" means the percentage of the well equal to

the sum of all royalty interests in a well;

10. "Subsequently created interest" means any interest carved

from a working interest other than a royalty interest. In addition

to the royalty interest contained in a lease, a nonparticipatory

interest created by a working interest owner for the benefit of a

mineral interest owner in excess of a one-eighth (1/8) royalty

interest may, by separate agreement other than the oil and gas

lease, be a subsequently created interest and thereby not be

communitized under the terms of the Production Revenue Standards Act

only if there is clear and unambiguous language expressing that

intent in the creating document. The additional royalty payable to

the Commissioners of the Land Office or other governmental entity,

pursuant to and valued according to the terms of its oil and gas

lease, which is calculated separately from the royalty portion of

actual proceeds from the sale of oil or gas shall also be a

subsequently created interest and thereby shall not be communitized

under the Production Revenue Standards Act;
ional royalty payable to

the Commissioners of the Land Office or other governmental entity,

pursuant to and valued according to the terms of its oil and gas

lease, which is calculated separately from the royalty portion of

actual proceeds from the sale of oil or gas shall also be a

subsequently created interest and thereby shall not be communitized

under the Production Revenue Standards Act;

11. "Well" means an oil or gas well, and shall include:

a. a well having uniform ownership as to all producing

zones,

b. a drilling and spacing unit having uniform ownership

wherein multiple wells producing gas are commonly

metered, and

c. each separately metered producing zone within a single

wellbore wherein ownership varies by zone; and

12. "Working interest" means the interest in a well entitling

the owner thereof to drill for and produce oil and gas, including

but not limited to the interest of a participating mineral owner to

the extent set forth in Section 87.1 of Title 52 of the Oklahoma

Statutes.