Oklahoma Keeps Natural Gas Proration Formula at 50%

The Oklahoma Corporation Commission (OCC) has voted to leave a proration formula in place that limits natural gas production from some of the state’s most prolific wells. 

In a 2-1 vote, with Chairman Todd Hiett and Commissioner Dana Murphy in support of the current formula, operators are required to limit an unallocated gas well’s absolute open flow to 50%, or cap the maximum allowable production at 2 MMcf/d, whichever is more. Oklahoma is home to an estimated 40,000-50,000 unallocated gas wells, which produce outside of specific fields, such as the Anadarko Basin. Regulators separately allocate output from these wells based on market demand. 

Hiett said the decision had been difficult as reducing output could impact the state’s revenue. However, “I feel confident...