Oklahoma Marginal Well Commission Presented by Executive Director James M.

Revard

What is the Marginal Well Commission?

In 1992, the Oklahoma Legislature created the Commission on Marginally Producing Oil and Gas Wells. Senate Bill 684, now Title 52 O.S. Section 700. Marginal oil or gas is produced from low-volume stripper wells defined by the IOGCC as producing less than 10 barrels of oil or 60,000 cubic feet of gas per day. The Marginal Well Commission is the only organization of its kind in the nation. Funded by a voluntary fee of $.0035 on each barrel of crude oil produced in the state and $.00015 of every 10,000 cubic feet of natural gas produced. Requests for refunds can be made during the first 3 months of the calendar year. Last year, less than 1% of the budget was refunded.

What is the Marginal Well Commission? (Cont.)

Mission Statement:
The mission of the Commission on Marginally Producing Oil and Gas Wells is to serve the Governor, Legislators, oil and gas industry and public by defining, identifying, and evaluating the economic and operational factors that affect marginally producing oil and gas wells, and to assure that appropriate efforts are made to extend the life of these wells so energy can be economically provided to all citizens of the State of Oklahoma

What does the Marginal Well Commission do to help?

Research and collect information on the number, location and operational conditions of marginally producing oil and gas wells in the state Propose legislation, regulatory and operational remedies that will extend the life of the marginally producing well

What does the Marginal Well Commission do to help? (Cont.)

Provides information:
Workshops held throughout the state to provide operators with information on new technology and other issues that affect them Trade Expo brings the operator and service sectors face to face

Website
www.marginalwells.com
History Purpose Quick Facts Opportunities & Involvement Commissioners Contact Staff Events Regulations & Environment Speakers Bureau Newsletters Online Store Workbooks & Videos Surveys & Reports Feedback Library Contractors Page Lease Sales Pumpers Manual Equipment Sales Stolen Equipment Links Orphaned Wells List

Studies
FY1994 FY1996 FY1996 FY1996 FY1996 FY1999 FY2000 FY2002 FY2002 FY2005 FY2007 FY2007 FY2007 FY2009 Survey of Marginal Oil Wells State of Oklahoma Survey of Oklahoma Oil & Gas Leases Well Cost Analysis Impact of Oil & Gas Production & Drilling on the Oklahoma Economy Localized Impacts of Oil & Gas Production & Drilling Activity in Oklahoma The Osage Environmental Audit Electricity Usage among Oklahoma Oil and Gas Producers The Local Impact of Oil & Gas Production and Drilling in Oklahoma The Economic Impact of Oil & Gas Production & Drilling on the Oklahoma Economy Impact of Refineries on Crude Oil Production & Pricing in Oklahoma The Local Impact of Oil & Gas Production and Drilling in Oklahoma The Economic Impact of Oil & Gas Production & Drilling on the Oklahoma Economy A Demographic and Economic Profile of Oklahomas Marginal Oil and Gas Well Operators Breakeven Analysis

Why are marginal wells important?

Marginal or stripper wells produce 17% of the U.S. domestic oil and 65% of the production in Oklahoma Marginal gas wells produce 9% of the U.S. domestic gas and 10% of the production in Oklahoma Oklahomas 80,000 active oil wells produce nearly 61 million barrels of oil that the United States would otherwise have to import each year.

Why is the industry important to Oklahoma?

Gross Production Tax Revenues $ Over 1 billion in fiscal year 2010 for oil and natural gas

Why is the industry important to Oklahoma? (Cont.)

Jobs
100,000+ direct jobs 300,000+ impacted or supported

Economic Impact
$6.20 Billion in labor income

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Smartphone Benefits to You

Accurate Data Data Communication Data History Efficiency Safety

Pumpers Friend Software Organization

Headquarters Wells Tanks Send Data Help

Headquarters
Contact Information at your Fingertips

Wells
Well List & Gauges Data

Well Gauges
Gauge List for each Well Data & Plot Option

Data Plot
Historical Data Plot Zoom & Pan

Tanks
Tank List & Level Data Data & Plot Modes

Tanks
Data History/Plot

Send Data
Communicate Data to Office

Data Received
Plot Data from Spreadsheet