Denver-based Ovintiv, Inc. is urging the Oklahoma Corporation Commission to continue with its current statewide natural gas well proration rate of 75% as established in 2024.
In a letter to Jeremy Hodges, Director of the Commission’s Oil & Gas Conservation Division, Ovintiv’s Vice President and GM of U.S. operations, Aaron Johnson any lowering of the formula could “introduce regulatory uncertainty and deter future investment in Oklahoma’s natural gas sector.”
He responded as the commission announced recently a planned review of the gas well proration formula and stated he agreed with the staff recommendations that the majority of gas wells in Oklahoma do not produce at levels exceeding the current allowable, indicating that the formula is not overly restrictive.
“These points remain just as relevant in 2025 as they were in 2024,” continued Johnson.
He further explained Ovintiv intends to invest between $300 million and $325 million this year in Oklahoma as part of its drilling program. Ovintiv operates 2,227 wells in the state and manages leasehold and mineral interests covering 400,000 net acres across Oklahoma.
“”Our presence in the state is supported by employees in three offices, Oklahoma City, Okarche and Foster and our operations contribute significantly to Oklahoma’s energy operations.”