Severance/Seal Orders

Among the Commission's other enforcement methods, the Oil & Gas Division has the authority to cancel an operator's Certificate of Compliance and order that production be shut in at the lease or well level for noncompliance with Commission rules, effectively blocking that operator's ability to sell oil and gas from a lease. Before the operator can resume production, it must correct the violation and pay a statutory fee for restoration of the Certificate of Compliance.

Data as of 08/31/16

Definition List
Fiscal Year (Sept. 1 - Aug. 31)Notices IssuedResolved without Severance/Seal OrderResolved after Severance/Seal OrderUnresolved NoticesSeverance Fee RevenueSeverance/Seal Orders issued by Fiscal Year
2006 20,080 11,469 57.1% 7,719 38.4% 892 4.4% $1,157,575.00 8,820
2007 17,120 10,204 59.6% 6,427 37.5% 489 2.9% $952,520.00 6,782
2008 31,680 20,056 63.3% 10,035 31.7% 1,589 5.0% $1,486,800.00 11,102
2009 27,657 17,496 63.3% 9,334 33.7% 827 3.0% $1,364,027.00 10,622
2010 24,583 15,513 63.1% 8,156 33.2% 914 3.7% $1,147,375.00 9,077
2011 31,667 20,084 63.4% 10,452 33.0% 1,131 3.6% $1,261,625.00 11,218
2012 24,083 15,446 64.1% 7,649 31.8% 988 4.1% $1,937,670.00 8,980
2013 32,291 19,905 61.6% 10,324 32.0% 2,062 6.4% $3,058,625.00 11,526
2014 30,377 19,534 64.3% 9,277 30.5% 1,566 5.2% $3,100,525.00 11,539
2015 25,553 16,056 62.8% 7,635 29.9% 1,862 7.3% $2,115,379.50 9,481
10-Yr Average 26,509 16,576 62.5% 8,701 32.8% 1,232 4.6% $1,758,212.15 9,915
 
2016 70,651 60,673 85.9% 4,129 5.8% 5,849 8.3% $1,630,825.00 8,240
 
For the 10-year period 2006-2015, 95.4% of violations managed through this process have been resolved. 62.5% of violations were corrected by the operator promptly upon notice with no further action needed by the Commission; another 32.8% were resolved following issuance of a severance/seal order. Compliance is verified by lease/well inspections in the case of field violations, or file review in the case of reporting violations. Where the violation remains unresolved, the Commission will pursue the matter through other appropriate enforcement action.
Note: beginning with FY2016, certified letter data includes notices of severances issued to operators relating to compliance with the inactive well requirements of Statewide Rule 15. While the data related to severance orders issued (and statistics based on post-severance statuses) will not be affected, the number of certified letters issued and of pre-severance statuses will be higher to accurate reflect those processes.

Last Updated: 9/12/2016 1:06:03 PM