Okla. Stat. tit. 17, § 507
Commission to Define Unit Area - Allocation of Production
Effective May 12, 2026Laws 1990, SB 263, c. 255, § 8, eff. September 1, 1990; Amended by Laws 2026, HB 4338, c. 341, § 7, emerg. eff. May 12, 2026 (superseded document available).
- A. The order of the Corporation Commission shall define the area of the brine common source or sources of supply or portion thereof to be included within the brine production unit or the produced water unit area. Unless a larger size unit is determined to be appropriate under the facts and circumstances, a produced water unit may be the same size and cover the same geographical area as the spacing or drilling unit or horizontal spacing unit created pursuant to Section 87.1 of Title 52 of the Oklahoma Statutes, the horizontal well unitization created pursuant to Section 87.9 of Title 52 of the Oklahoma Statutes, or unitized management area created pursuant to Sections 287.1 through 287.15 of Title 52 of the Oklahoma Statutes, of the associated oil or gas well or wells from which the produced water is derived. Each such produced water unit shall be limited to the equivalent common source or sources of supply as the oil and gas common source or sources of supply in the associated oil or gas well from which produced water is being received for the extraction of constituent elements of such produced water, unless the Commission determines that the unitization of multiple brine common sources of supply is necessary to prevent waste or protect correlative rights.
- B. Brine owners within the brine production unit shall share in the production of brine in the proportion that their acreage bears to total acreage within the unit, unless the Commission, after notice and hearing, shall provide for another method in the unit plan. Solution gas owners within the brine production unit shall share in production of solution gas in the proportion that their acreage bears to total acreage in the unit, unless the Commission, after notice and hearing, shall provide for another method in the unit plan.
- C. Brine owners within the produced water unit shall share in the extracted constituent element or elements and any reclaimed water derived from the production of produced water in the proportion that their acreage bears to total acreage within the unit, subject to any applicable lease royalty or if unleased, the royalty set forth in the Commission order creating the produced water unit. In the event a produced water unit consists solely of lands situated within a single Corporation Commission-approved multiunit horizontal well created pursuant to Section 87.8 of Title 52 of the Oklahoma Statutes, the produced water from such multiunit horizontal well shall be allocated and shared by the brine owners in each unit utilizing the same allocation factors approved by the Commission for allocating the associated oil and gas production to the individual units. The operator shall maintain records reflecting the total number of barrels of produced water received for processing from each oil and gas well and produced water unit. Produced water received from a produced water unit may be commingled with produced water from other produced water units or brine production units for the purpose of extracting constituent elements or reclaimed water. The gross production of constituent elements or reclaimed water obtained from each produced water unit shall be determined by the total volume of comingled produced water received from the associated produced water unit prior to the extraction of any constituent elements, and not by any other metric unless so ordered by the Commission for good cause shown.
Laws 1990, SB 263, c. 255, § 8, eff. September 1, 1990; Amended by Laws 2026, HB 4338, c. 341, § 7, emerg. eff. May 12, 2026 (superseded document available).