[Federal Register Volume 60, Number 23 (Friday, February 3, 1995)]
[Notices]
[Pages 6707-6708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-2708]
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DEPARTMENT OF ENERGY
[Docket No. GP94-19-000]
Oklahoma Corporation Commission Tight Formation Area
Determination FERC No. JD94-01286T (Oklahoma-57); Preliminary Finding
January 30, 1995.
On November 26, 1993, the Oklahoma Corporation Commission
(Oklahoma) determined that the Fanshawe Formation, underlying parts of
Latimer County, Oklahoma, qualifies as a tight formation under Section
107(c)(5) of the Natural Gas Policy Act of 1978 (NGPA). ARCO Oil and
Gas Company (ARCO) is the applicant before Oklahoma.
By letter dated January 10, 1994, staff tolled the Commission's 45-
day review period and requested additional support for Oklahoma's
conclusion that the Fanshawe Formation meets the Commission's tight
formation guidelines in Sec. 271.703(c)(2) of the Commission's
regulations.\1\ Staff requested additional information because the
record did not show whether the premeability and prestimulation
stabilized flow rates on which the determination was based reflected
initial characteristics or characteristics resulting from years of
sustained production.
\1\Section 271.703(c)(2) requires a jurisdictional agency's
tight formation area determination to show that: (1) The estimated
average in situ gas permeability, throughout the pay section, is
expected to be 0.1 millidarcy or less; (2) the average pre-
stimulation stabilized natural gas flow rate (against atmospheric
pressure) of wells completed for production in the formation does
not exceed the applicable maximum allowable flow rate; and (3) wells
in the recommended area is expected to produce, without stimulation,
more than 5 barrels of crude oil per day.
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The Commission has received no response to the January 10, 1994
tolling letter. Without additional information showing that the
determination is based on initial permeability and prestimulation
stabilized flow rates characteristics, we are unable to find that
Oklahoma's determination is supported by substantial evidence. Under
Sec. 275.202(a) of the regulations, the Commission's may make a
preliminary finding, before any determination becomes final, that the
determination is not supported by substantial evidence in the
record.\2\ Therefore, the Commission hereby makes a preliminary finding
that Oklahoma's determination is not supported by substantial evidence
in the [[Page 6708]] record upon which it was made. Oklahoma or ARCO
may, within 30 days from the date of this preliminary finding, submit
written comments and request an informal conference with the
Commission, pursuant to Sec. 275.202(f) of the regulations. A final
Commission order will be issued within 120 days after the issuance of
this preliminary finding.
\2\Order No. 567, issued on July 28, 1994, rescinded Part 275 of
the Commission's NGPA's regulations as of that date (68 FERC
61,135). The Commission stated, however, that rescission of Part
275 is prospective only and that timely filed applications for well
determination proceedings still pending before the Commission will
continue to be subject to the requirements of Part 275 as it existed
before July 28, 1994.
By direction of the Commission.
Lois D. Cashell,
Secretary.
[FR Doc. 95-2708 Filed 2-2-95; 8:45 am]
BILLING CODE 6717-01-M
