Corporation Commission Has Authority to Determine Whether Parties Are Bound by an Operating Agreement Incident to Determining Issues of Jurisdiction

摘要

In NBI Services, Inc. v. Corporation Commission, 2010 OK CIV APP 86, No. 107,452,2010 WL 3529803 (Okla. Civ. App. Aug. 6, 2010), Davis Operating Co. (Davis) filed a pooling application to drill a well in Pittsburg County to develop common sources of supply in a spacing unit in which NBI Services, Inc., also operated a well. At a hearing before the Oklahoma Corporation Commission (Commission), the administrative law judge recommended issuance of a pooling order naming Davis as operator, and providing "that any burden on the NBI interest exceeding a 1/4 total royalty be borne by NBI because NBI conveyed overrides in a 'non-arm's-length' transaction in contemplation of the Pooling Order."