Judge holds hearing into request for reduced oil production

The request of a Tulsa-based energy company for a mandated reduction of oil production in Oklahoma is going before the full Oklahoma Corporation Commission in May.

Administrative Law Judge Jan Preslar heard the request of LPD Energy Company on Friday.

“The Judge in the case (Commission Administrative Law Judge Jan Preslar) today said she would issue a written recommendation to the Commissioners recommending they approve the attached as an emergency,” said Commission spokesman Matt Skinner in an email message to OK Energy Today.

The original request was filed by LPD Energy Company as well as the Oklahoma Energy Producers Alliance. The LPD Energy Company is owned by attorney Lee I. Levinson who is also general counsel to LPD.

It came as similar requests were filed by other firms to lower oil production in North Dakota and Texas in response to the glut of oil caused by plummeting demand for gasoline worldwide.

In his filing, Levinson asked the Commission to “issue an order finding that the production of oil in the State of Oklahoma under currently existing conditions may constitute economic waste.” His motion asked the commission to enter an interim order to assist in the “prevention of waste and optimize production.”

It is unclear whether the Corporation Commission, sitting “en banc” will hear Levinson’s request on May  4 or May 11.  Levinson’s request, according to his motion asked the commission to hear it on May 4 but earlier the Commission announced the OPEA’s request would be heard May 11.