The Oklahoma Bar Journal May 2024

by leasehold owners as well as mineral owners. The Corporation Commission works tirelessly to protect the correlative rights of all owners whose minerals are affected by drilling operations. Thanks to the companies and individuals who spend hundreds of millions of dollars drilling hor izontal wells within our state and groundbreaking advancements in drilling technology in recent years, we have seen a wonderful resurgence of productivity in Oklahoma’s hydrocarbon depos its. Thanks to the Corporation Commission – including commis sioners, technical experts, lawyers, administrative courts and staff – that resurgence of productivity is responsibly managed to prevent waste of hydrocarbons and ensure they are efficiently exploited. Our state continues to be a national leader in both endeavors. With the incredible innovations made over the past 50 years and new inno vations sure to be just over the horizon, Oklahoma will remain a leader in bringing dependable energy to the citizens of our state and beyond. We have come a long way since the Oklahoma conser vation statutes were first codified, and we expect there remains a long and bright future for Oklahoma’s oil and gas industry for many years to come. It is hard to believe how far the oil and gas industry, in partnership with the Oklahoma Corporation Commission, has come since Mr. Nesbitt’s article was published in 1979. In his recent book, Game Changer, founder of Continental Resources and pioneering innova tor in horizontal drilling Harold Hamm aptly summed up the significance of the horizontal drill ing revolution and its effect on all

Thanks to the companies and individuals who spend hundreds of millions of dollars drilling horizontal wells within our state and groundbreaking advancements in drilling technology in recent years, we have seen a wonderful resurgence of productivity in Oklahoma’s hydrocarbon deposits.

and millions more in taxes that fund Oklahoma’s state coffers. The Oklahoma Policy Institute reported in August of this year that, from May 2022 to May 2023 alone, taxes collected from oil and gas produc tion totaled $1.91 billion, provid ing a vital source of funding for schools and state and local govern ment alike. One percent of all gross production taxes is returned to the counties and schools where the wells are located, and the remain ing revenue goes to the state. 43 The Corporation Commission is tasked with making decisions that encour age oil and gas development, all the while endeavoring to prevent waste and ensure that this precious nonrenewable resource is used for the benefit of all Oklahomans today and in the future. The other most basic charge to the Corporation Commission is to ensure that all owners get their fair share of proceeds from the production of hydrocarbons produced from minerals owned

appellate referee. If the nonpre vailing party is unsuccessful at that stage, they can again request that the Corporation Commission take up their appeal for an en banc hearing, though the commission ers rarely grant such requests. Unlike the ALJs and referees, when the commissioners do take up an appeal, they can make a decision without hearing new arguments from either side. who come to the Corporation Commission to do their business have invested millions of dollars in oil and gas exploration, and the success or failure of their invest ment depends, in part, on deci sions made by the Corporation Commission on a daily basis. The Corporation Commission helps generate millions of dollars of reve nue for owners of oil and gas rights CONCLUSION The Oklahoma Corporation Commission has an enormous job with great responsibility. Those

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

16 | MAY 2024

THE OKLAHOMA BAR JOURNAL