Daisy Creager | The Journal Record
The Oklahoma Energy Producers Alliance announced Friday that it filed a request for a hearing with the Oklahoma Corporation Commission to discuss a previous request that the commission restrict oil production in the state.
In an April 1 letter to the commission, OEPA President David Little and Chairman Dewey Bartlett argued oil is being produced at less than its “actual value” and “a significant amount” is being produced in a manner constituting economic waste, and the commission has an obligation to address the matters.
The letter cited the Texas Railroad Commission’s consideration of curbing Texas oil production by 500,000 barrels per day.
Bartlett said after sending the letter, the OEPA was told by the commission there was nothing for it to do in response to the letter because action had not been formally requested, so the organization filed the request for a hearing.
“The law states, very clearly in my opinion, that it’s the responsibility of the Oklahoma Corporation Commission to not allow economic waste,” Bartlett said.
“There’s a very good reason for them to very quickly and directly make a decision.”
The OEPA argues the commission has several avenues to curtail production, such as imposing allowables.
Bartlett said the “significant economic waste” occurring in the current pricing environment is “very detrimental” to the industry and the state budget.