[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