- (a) Average production volume shall be determined based upon the lease classification, wherein only the primary product shall be used to determine the average production volume. For example, an oil lease that produced 2,789 barrels over 342 active production days during the calendar year would have an average volume of 8.16 barrels per day. For example:
- (1) An oil lease that produced 2,789 barrels over 342 active production days during the calendar year would have an average volume of 8.15 barrels per day.
- (2) A gas lease that produced 13,481 MCF with a btu rate of 1.076 over 281 active production days during the calendar year would have an average volume of 51.62 MMbtu per day.
- (b) Monthly average price of oil shall be determined by taking the gross value of oil produced during the calendar year divided by the gross volume of oil produced from the lease, based on a per-barrel measurement of forty-two (42) U.S. gallons of two hundred thirty-one (231) cubic inches per gallon, computed at a temperature of sixty (60) degrees Fahrenheit.
- (c) Monthly average price of gas shall be determined by taking the gross value of natural gas produced during the calendar year divided by the gross volume of natural gas produced based on a measurement of one million (1,000,000) British thermal units (MMBtu).
Added at 40 Ok Reg 1260, eff 8-11-23
Amended at 42 Ok Reg, Number 20, effective 7-15-25