Oklahoma allows early processing of produced water headed for disposal

A qualifying party may take and process produced water headed for disposal before the Commission creates a unit. This applies to a party that meets the operator criteria and produced water otherwise headed for disposal. The applicant must apply to form a produced water unit within 60 days after first accepting the water. After applying, the applicant may seek emergency relief. The Commission must grant relief if the facts show it is reasonable and necessary to prevent waste. Unless a lease or contract provides otherwise, the applicant must hold the set royalty share for unleased owners until a final unit order. The 60-day application period starts when the applicant first accepts the water. Any held royalty share remains set aside until the Commission issues a final unit order.

The Commission may create a produced water unit and set how owners share recovered materials or reclaimed water. A produced water unit covers water from associated oil or gas wells for commercial recovery of elements or reclaimed water; a unit may cover one or more elements. The Commission sets the unit’s size and shape based on the facts; unless a larger area is appropriate, it generally follows the area of the related oil or gas well unit. Owners share by acreage, subject to applicable lease royalties or the royalty set in the Commission’s order. The operator must keep records of water received from each well and unit. The Commission establishes a unit by order. The sharing and recordkeeping rules apply to production from that unit.

A party transferring produced water for commercial extraction or to an approved recycler is not liable for the recipient’s later handling of it or related waste. This applies to transfers for commercial extraction of one or more elements or to a recycler approved by the Commission. The limit covers later use, handling, treatment, processing, or disposal by the receiving party or a later party. The transferring party remains responsible for its own actions before transfer, including compliance with environmental rules for handling, storage, and transportation.