SB565 Summary

• Modifies Oklahoma's oil and gas spacing and drilling unit procedures by allowing horizontally drilled wells to have units up to 1,280 acres plus tolerances, compared to existing 640-acre limits for gas wells.

• Permits the Corporation Commission to establish concurrent horizontal well drilling and spacing units overlaying existing vertical units for the same common source of supply, with limits of no more than two concurrent units per tract.

• Establishes procedures for multiunit horizontal wells crossing multiple units to allocate drilling, completion, and production costs based on the length of the well's completion interval in each affected unit, with allocation factors subject to Commission adjustment to prevent waste and protect correlative rights.

• Requires owners participating in initial wells to retain election rights for subsequent horizontal wells under pooling orders, allowing them to participate in additional wells or relinquish rights only to specific subsequent wells rather than all future development.

• Declares an emergency effective date for immediate implementation upon passage and approval.