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 02/28/2018

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
2008 31,680 20,056 63.3% 10,065 31.8% 1,559 4.9% $1,486,800.00 11,102
2009 27,657 17,496 63.3% 9,447 34.2% 714 2.6% $1,364,027.00 10,622
2010 24,583 15,513 63.1% 8,251 33.6% 819 3.3% $1,147,375.00 9,077
2011 31,667 20,084 63.4% 10,568 33.4% 1,015 3.2% $1,261,625.00 11,218
2012 24,083 15,446 64.1% 7,735 32.1% 902 3.7% $1,937,670.00 8,980
2013 32,291 19,905 61.6% 10,462 32.4% 1,924 6.0% $3,058,625.00 11,526
2014 30,377 19,534 64.3% 9,519 31.3% 1,324 4.4% $3,100,525.00 11,539
2015 25,555 16,056 62.8% 8,052 31.5% 1,447 5.7% $2,115,379.50 9,481
2016 21,646 13,457 62.2% 6,015 27.8% 2,174 10.0% $1,619,875.00 8,240
2017 32,511 22,051 67.8% 7,225 22.2% 3,235 10.0% $1,722,908.61 10,284
10-Yr Average 28,205 17,960 63.7% 8,734 31.0% 1,511 5.4% $1,881,481.01 10,207
 
2018 32,701 24,454 74.8% 2,016 6.2% 6,231 19.1% $1,015,050.00 5,366
 
For the 10-year period 2008-2017, 94.6% of violations managed through this process have been resolved. 63.7% of violations were corrected by the operator promptly upon notice with no further action needed by the Commission; another 31.0% 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: 3/6/2018 12:03:37 PM