Denver Producing & Refining Co. v. State
Supreme Court of Oklahoma
184 P.2d 961 (Okla. 1947)
Relevant factsFree
The Oklahoma Corporation Commission (defendant) limited gas-to-oil production in a particular pool to 2,000 cubic feet per barrel, close to the pool's actual average ratio of 1,895, to prevent wasteful gas use; Denver Producing (plaintiff) sought to raise the ratio to 5,000 cubic feet per barrel, and after the Commission denied that application, the trial court upheld the Commission's order, prompting Denver's appeal.
IssueFree
Whether a state regulatory commission may establish a reasonable gas-to-oil production ratio limit to carry out its duty of preventing the inefficient or wasteful utilization of gas in the operation of oil wells producing from a common source of supply.