VERTICAL EXPLORATION v. AMERICO OIL and CORPORATION COMMISSION

Syllabus

¶1 Appellants, Vertical Exploration, LLC, and VE Holdco, LLC, appeal from an order of the Oklahoma Corporation Commission dismissing their application to terminate or modify a previously issued unitization order. The Commission held that Oklahoma Administrative Code (OAC) 165:5-7-20(C) only allows a plan of unitization to be amended or terminated by application to the Commission if the plan does not provide for amendment or termination. Because the unitization plan at issue contains such a provision, the Commission held it was powerless to amend or terminate its prior unitization order. For the reasons set forth below, we hold the Commission retains authority over its previously issued unitization order notwithstanding the presence of an amendment/termination provision in the unitization plan. Accordingly, we reverse the Commission's order of dismissal and remand this matter for further proceedings.