Oklahoma Corporation Commissioners have signed off on a plan to limit for only six months a limit on natural gas production rates from prolific wells in the state.
Commissioner Dana Murphy urged her fellow commissioners to revisit the issue in six months.
The commission took the action after the Petroleum Alliance of Oklahoma and Continental Resources mailed requests to the commissioners asking them for additional consideration.
“The Oklahoma Corporation Commission has the responsibility to weigh the economic benefits of the state producing its resources during a challenging pricing environmental for the upstream oil and gas industry,” stated alliance Chairman David Le Norman in the letter.
The statewide proration formula for production from unallocated wells has been set by the commission since the 1930s. This week’s action by the commission requires operators to limit production from the unallocated gas wells at either 65% of a well’s open flow potential or 2 million cubic feet a day. It is the same limit set by the commission over the past 20 years.
