What is an Emergency Order?

Oklahoma Mineral Rights Stephens County, OK
1

Hello to Stephens County mineral owners. I haven’t posted in quite a while but definitely need some information/guidance now. I own mineral rights in sections 9, 10, 11, 15, and 27 in T1S R4W. I have been receiving notices of OCC hearings for proposed activities in each of these sections for some time now. Recently Section 27 seems to be very active with Cheyenne trying to get a permit to drill. There are two cause numbers involved, 201904863 and 201904857. These are both titled "Notice of Hearing Application for Emergency Order, and the hearings are scheduled for 9:00 am this morning (4 Oct.).

What exactly is an Emergency Order? Each of the applications contains this paragraph: “WHEREFORE, Cheyenne Petroleum Company prays that the Commission enter an Emergency Order granting authority to commence drilling operations, complete, test and produce only for testing purposes the initial horizontal well prior to a final determination in this cause.” The application is for a horizontal drilling and spacing unit. What exactly does this mean and how does it affect royalty owners?

Thanks in advance for any information you may provide.

Teresa McKenna

2

Teresa, it effects Royalty Owners in that if the drilling is successful you have royalty payments to look forward to. I have seen emergency orders requested when a driller has crews and equipment standing by and it is costing them thousands of dollars a day to sit idle, could be other reasons I don’t know about.

3

Thank you for your input. This could be the exact reason for the emergency order application. I believe the documents mention that the company is sustaining costly expenses without gaining the permit.