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In the 1980s, a group of oil and natural gas industry producers formed an association called Save Our Strippers. 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.
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.
Nine commissioners appointed by the Governor Represent large and small producers, royalty owners and the Osage Indian Nation. 3 year terms that begin January 1 of the 1st year of appointment and end December 31 of the 3rd year No limit to the number of consecutive terms that can be served
Contact Information:
421 N. W. 13th, Ste 180 Oklahoma City, OK 73103 Phone: (405) 604-0460 (OKC Metro) 1-800-390-0460 Fax: (405) 604-0461
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 Advisory Council members from many different areas of the industry and community come together to offer expertise, issues and strategies to the Commission. They meet 3 times a year.
information:
Workshops
held throughout the state to provide operators with information on new technology and other issues that affect them Education Coordinator full time staff member to help operators with technical problems. Library Over 1,000 items of reference materials related to the industry 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
Workshops
# of Workshops # of Attendees Cities Utilized 279 9450 Ada, Ardmore, Burns Flat, Drumright, Duncan, Elk City, Enid, McAlester, Moore/ Norman, OKC, Okmulgee, Pawhuska, Ponca City, Shawnee, Stillwater, Tulsa, Velma, Watonga, Wetumka, Wichita KS, Wichita Falls TX, Wilburton, and Woodward
Newsletters
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
Gross Production Tax Revenues $ 1.07 billion in fiscal year 2007 for oil and natural gas
$1 ,1 0 2 8 4 ,0 4 $1 ,1 0 2 8 4 ,0 4
$1 ,8 3 5 0 7 ,8 2
$1 ,8 3 5 0 7 ,8 2 $6 ,3 4 3 5 4 ,7 6
$6 ,3 4 3 5 4 ,7 6
$6 ,3 4 3 5 4 ,7 6
$57,984,700
$57,984,700
$696,141,245
General RevenueFund
ToSchool Districts
Jobs
Economic Impact
Products
Golf
Credit
Hearts
Strollers Balloons Bandages Blenders Cameras Candles CD Players CDs Clothing Computers Containers Crayons
Cards Dentures Deodorant Diapers Digital Clocks Dinnerware DVDs Dyes Eyeglass Frames Fertilizers Food Preservatives Food Storage Bags Footballs Foul Weather Gear Furniture Garbage Bags Glue
Balls Hair Dryers Hand Gliders Heart Valve Replacements House Paint Infant Seats Ink Insecticides Life Jackets Lipstick Luggage Medical Equipment Nylon Rope Pacemakers Pantyhose Patio Screens
Film
Blades Roofing Safety Glass Shampoo Shaving Cream Shower Curtains Soft Contact Lenses Sunglasses Surfboards Surgical Equipment Syringes Telephones Toothpaste And Many More
85% of energy use comes from fossil fuels (includes, coal, oil and natural gas) Each American consumes 3 gallons of oil and 250 cubic feet of gas per day 70% of nations oil comes from foreign sources $53 During peacetime, it costs the U.S. Military approximately $33 billion a year to protect shipments of oil exported from the middle east
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 There were 65,504 marginally producing wells in the state out of a total of 119,255 wells in Oklahoma for fiscal year 2006
ALL wells become marginal at some point ALL domestic production benefits national security ALL domestic production benefits national and local economies We are dependent on petroleum products More production means less expensive petroleum products
Summary
Promoting production even from our low-producing wells is smart for Oklahoma and for America and that is why the Commission on Marginally Producing Oil and Gas Wells was created.