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Denver Producing & Refining Co. v. State
Supreme Court of Oklahoma
184 P.2d 961 (Okla. 1947)
Under Oklahoma law, the Oklahoma Corporation Commission (Commission) (defendant) must prevent “the inefficient or wasteful utilization of gas in the operation of oil wells producing from a common source of supply.” Pursuant to this law, the Commission issued an order limiting the gas-to-oil production ratio to 2000 cubic feet per barrel of oil in a particular pool. Prior to the order, the average gas-to-oil ratio for the pool was 1895 cubic feet per barrel of oil. Denver Producing & Refining Co. (DPRC) (plaintiff) applied to the Commission to amend the order to raise the ratio to 5000 cubic feet per barrel of oil. The Commission denied the application. DPRC appealed the denial to the trial court, arguing that the order violated its correlative rights. The trial court upheld the Commission’s order. DPRC appealed.
Rule of Law
Holding and Reasoning (Bayless, J.)
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