SB 1240 Summary

• Amends Oklahoma oil and gas pooling law (52 O.S. 2011, Section 87.1) to establish requirements for well spacing and drilling units covering common sources of supply

• Modifies how ownership rights are determined for unleased tracts by allowing owners to elect lessor status under pooling orders while retaining full royalty percentage rights, subject to implied oil and gas lease covenants

• Authorizes Corporation Commission to establish spacing rules for horizontally drilled oil wells with units up to 640 acres plus tolerances, matching gas well spacing standards

• Provides that if lessee declines unit participation, operator's acquired interest remains subject to original lease terms, conditions, and covenants

• Declares emergency effective date upon passage and approval