Oklahoma Administrative Code
Title 385 - Department of the Commissioners of the Land Office
Chapter 15 - Sale and Operation of Oil and Gas Leases
Section 385:15-1-2 - Definitions

The following words or terms, when used in this Chapter, shall have the following meaning, unless the context clearly indicates otherwise:

"Affiliate" means any party with whom the lessee has a financial relationship that results in either the lessee or the other party having control over the other or the lessee and other party being under common control of a third-party.

"Alternate Performance Payments" means any payments received by a lessee from a purchaser as an alternative to delivery of production, or as a prepayment for future delivery of production, or indexed to production, or for access to reserves.

"Average published spot price" means the average of actual sales derived from one or more valid publications publishing bidweek prices (or if bidweek prices are not available, first of the month prices) within the State of Oklahoma.

"Barrel" means 42 (US) gallons at 60° F. at atmospheric pressure.

"Day" means twenty-four (24) consecutive hours. For accounting purposes, a day begins at 7:00 A.M. and ends at 7:00 A.M. the following day.

"Gas" means all natural gas produced from school lands or lands pooled therewith (including casinghead gas) and all of its constituent elements, including but not limited to sulfur contained in the gas, helium, natural gasoline, condensate, distillate, butanes, propanes, and all other gaseous or vaporous substances which are hydrocarbons as the same may exist at the surface under normal atmospheric pressures and at normal ambient temperatures, and all other gaseous or vaporous hydrocarbons condensed, absorbed, or separated out of or from the gas after it leaves the lands, including without limitation flared or vented gas.

"Gross proceeds" means the value, total amount of money, and/or credit derived from production or rights thereto without any deductions, reductions, or setoffs.

"Land Office" means the State of Oklahoma ex rel. Commissioners of the Land Office.

"Lease" or"oil and gas lease" means an oil and gas lease issued by the Land Office.

"Leased premises" means the tract of school land subject to an oil and gas lease.

"Lessee" means the successful bidder or assignee awarded a leasehold interest to mineral rights by an oil and gas lease. To the extent that the lessee designates a third-party to comply any requirement of the lease or the rules and regulations of the Land Office, the third-party designee shall comply with the requirements of the lease and the rules and regulations of the Land Office.

"Notice of Sale" means a notice of oil and gas lease sale published by the Land Office.

"Oil" means any hydrocarbons produced from school lands or lands pooled therewith, capable of being produced in liquid form at the well by ordinary production method, including, without limitation, condensate, distillate and other liquid hydrocarbons.

"Operator" means any person that controls, manages, or directs the exploration, drilling, or the payment of royalties for oil and gas on school lands.

"Pipeline" means interstate pipelines, intrastate pipelines, or similar transmission lines downstream of a processing plant.

"Plug" means the closing off, in a manner prescribed by the Corporation Commission, all oil, gas, and water bearing formations in any producing or non-producing wellbore.

"Production and Marketing Infrastructure" means any oil and gas gathering lines, midstream lines, electric lines, pipelines, and other facilities related to the production and marketing of oil and gas.

" School lands " means school lands and other public lands managed by the Land Office.

"Well information" means detailed and correct drilling and production records maintained by the lessee or operator of a well, including, but not limited to, (1) authorizations for expenditure (AFEs); (2) daily drilling reports transmitted by email; (3) cumulative hard copies of daily drilling and completion reports for each well drilled within ten days of the final report or at any time upon the Land Office's request; (4) all logging surveys, wireline tests, drillstem test charts, core analysis, title opinions, or other third party information that may be run or prepared; (5) potential test or completion reports filed with the Oklahoma Corporation Commission; (6) plugging records, if completed as a dry hole or if subsequently abandoned; (7) executed and recorded copies of the lease; and (8) all geological, geophysical, engineering, and other technical information or exhibits filed with or presented to the Oklahoma Corporation Commission in connection with any spacing, pooling, or increased density applications including such applications pursuant to which any well is drilled on the lands.

Amended at 14 Ok Reg 3171, eff 7-25-97