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Oil & Gas Division
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 03/03/13

Definition List
Fiscal Year (Sept. 1 - Aug. 31) Notices Issued Resolved without Severance/Seal Order Resolved after Severance/Seal Order Unresolved Notices Severance Fee Revenue Severance/Seal Orders issued by Fiscal Year
2004 23,468 14,716 62.7% 8,074 34.4% 678 2.9% $ 933,100.00 8,606
2005 18,929 11,610 61.3% 6,808 36.0% 511 2.7% $ 850,400.00 7,446
2006 20,080 11,469 57.1% 7,560 37.6% 1,051 5.2% $ 1,157,575.00 8,820
2007 17,120 10,204 59.6% 6,348 37.1% 568 3.3% $ 952,520.00 6,782
2008 31,680 20,056 63.3% 9,900 31.3% 1,724 5.4% $ 1,486,800.00 11,102
2009 27,656 17,496 63.3% 9,105 32.9% 1,055 3.8% $ 1,364,027.00 10,622
2010 24,583 15,513 63.1% 7,848 31.9% 1,222 5.0% $ 1,147,375.00 9,077
2011 31,667 20,084 63.4% 9,993 31.6% 1,590 5.0% $ 1,261,625.00 11,218
2012 24,083 15,446 64.1% 7,212 29.9% 1,425 5.9% $ 1,937,670.00 8,980
2013 32,284 19,905 61.7% 8,770 27.2% 3,609 11.2% $ 3,058,625.00 11,526
10-Yr Average 25,155 15,650 62.2% 8,162 32.4% 1,343 5.3% $ 1,414,971.70 9,418
                   
2014 (YTD) 15,199 9,117 60.0% 2,194 14.4% 3,888 25.6% $ 1,599,725.00 5,736

 

For the 10-year period 2004-2013, 94.7% of violations managed through this process have been resolved.  62.2% of violations were corrected by the operator promptly upon notice with no further action needed by the Commission; another 32.4% 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:  Percentage totals may be affected by rounding.)

 

 

For further severance information on a lease or well basis, please see the Severance Query on the Commission's website. Click here