News from the Oklahoma Corporation Commission

FOR IMMEDIATE RELEASE Contact: Patrick K. Petree Reference: O&G22500-12

OKLAHOMA CITY – The Corporation Commission staff will recommend continuance of the present cap on Oklahoma gas production from unallocated wells when the commission meets on March 1 to consider proration factors for the second and third quarters of 2000.

Unallocated wells are not regulated by production limits for specific fields.

The present cap of the greater of 65 percent of calculated wellhead open flow or 2 million cubic feet of gas per day for unallocated wells has been in effect since the second quarter of 1999. No recommendations for changing the cap were offered at a public technical conference on Feb. 9.

The production cap affects only a few high-volume wells since most of Oklahoma’s 29,000 unallocated wells are not able to produce enough gas to reach the allowed limits. Restricting production from high-volume wells is designed to give all producers a chance to share in the available market for Oklahoma gas. The Corporation Commission is required to review the production limits twice each year, before the start of the summer and winter gas-buying seasons.

The proration factor hearing will begin at 9:30 a.m. on Wednesday, March 1, in Room 301, Jim Thorpe State Office Bldg., 2101 Lincoln Blvd, Oklahoma City.

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