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 11/30/2019

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
2010 24,583 15,513 63.1% 8,305 33.8% 765 3.1% $1,147,375.00 9,077
2011 31,667 20,084 63.4% 10,632 33.6% 951 3.0% $1,261,625.00 11,218
2012 24,083 15,446 64.1% 7,816 32.5% 821 3.4% $1,937,670.00 8,980
2013 32,291 19,905 61.6% 10,575 32.7% 1,811 5.6% $3,058,625.00 11,526
2014 30,378 19,534 64.3% 9,729 32.0% 1,115 3.7% $3,100,525.00 11,539
2015 25,556 16,057 62.8% 8,337 32.6% 1,162 4.5% $2,115,379.50 9,481
2016 21,648 13,457 62.2% 6,445 29.8% 1,746 8.1% $1,619,875.00 8,240
2017 55,891 45,420 81.3% 8,282 14.8% 2,189 3.9% $1,722,908.61 10,284
2018 83,072 71,965 86.6% 8,339 10.0% 2,768 3.3% $2,262,900.00 10,822
2019 97,862 87,589 89.5% 6,517 6.7% 3,756 3.8% $2,121,494.00 10,163
10-Yr Average 42,703 32,497 76.1% 8,498 19.9% 1,708 4.0% $2,034,837.71 10,133
 
2020 15,912 13,711 86.2% 262 1.6% 1,939 12.2% $522,000.00 2,071
 
For the 10-year period 2010-2019, 96.0% of violations managed through this process have been resolved. 76.1% of violations were corrected by the operator promptly upon notice with no further action needed by the Commission; another 19.9% 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 FY2017, 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: 1/24/2020 8:00:37 AM