Annual report

              ANNUAL REPORT
SNAPSHOT
FY 2010 OUR MISSION
To regulate, enforce laws and supervise activities associated with the exploration and production of oil and gas, the storage and dispensing of petroleum-based fuels, the establishment of rates and services of public utilities, and the operation of intrastate transportation to best serve the economic needs of the public. In the interests of the public, the Commission will oversee the conservation of natural resources to avoid waste, abate pollution of the environment, and balance the rights and needs of the people with those of the regulated entities which provide essential and desirable services for the benefit of Oklahoma and its citizens.
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Office of Public Information
PO Box 52000, Oklahoma City, OK 73152 Phone: (405)521-4180
E-Mail: m.skinner@occemail.com
This publication, printed by the Oklahoma Corporation Commission, is issued by the Corporation Commission of Oklahoma as authorized by Article XI, Sections 18, 25 and 29 of the Oklahoma State Constitution; Title 65, Section 3-114 of the Oklahoma Statutes, and in accordance with SSJR20, 1974, passed by the 2nd Session of the 34th Oklahoma Legislature. 100 copies (70 black&white, 30 color) have been prepared and distributed at an approximate cost of $92.60. Copies have been deposited with the Publications Clearinghouse of the Oklahoma Department of Libraries. The Oklahoma Corporation Commission
History and Responsibilities
T he Corporation Commission was established in 1907 by Article 9 of the Oklahoma Constitution, and the First Legislature gave the Commission authority to regulate public service corporations; those businesses whose services are considered essential to the public welfare.
The legal principle for such regulation had been established in 1877 when the United States Supreme Court ruled in Munn v. Illinois that when a private company’s business affects the community at large, it becomes a public entity subject to state regulation.
Initially, the Corporation Commission regulated transportation and transmission companies, mostly railroads and telephone and telegraph companies. The Commission also was directed to collect and maintain records of the stockholders, officers and directors of all corporations chartered or licensed to do business in Oklahoma (about 12,500 at statehood).
As the state grew, the records collection task became larger than one agency could handle. The Commission kept authority for public service companies, and responsibility for other corporations was allocated to the Secretary of State and other state commissions and agencies according to business type.
Pipelines and telephone service were placed under Commission jurisdiction in 1908. Regulation of water, heat, light and power rates began in 1913.
The Commission began regulating oil and gas in 1914 when it restricted oil drilling and production in the Cushing and Healdton fields to prevent waste when production exceeded pipeline transport capacity. In 1915, the Legislature passed the Oil and Gas Conservation Act. This expanded oil and gas regulation to include the protection of the rights of all parties entitled to share in the benefits of oil and gas production. Also in 1915, the Legislature declared cotton gins to be public utilities and extended Corporation Commission authority over utility companies to include practices as well as rates.
While the basic regulatory responsibility of the Corporation Commission has remained intact, many changes in state and federal laws have changed what is regulated.
The Commission presently regulates public utilities, except those under municipal or federal jurisdiction or exempt from regulation; oil and gas drilling, production and environmental protection;
aspects of motor carrier, rail and pipeline transportation, cotton gins, private water companies, and the environmental integrity of petroleum storage tank systems. It also has responsibility for the proper operation of fuel dispensing units (“gas pumps”) at retail filling stations.
The Corporation Commission also enforces federal regulations for underground disposal of certain oil and gas waste fluids and remediation of soil and groundwater pollution caused by leaking petroleum product storage tanks.
The Corporation Commission is comprised of three commissioners who are elected by statewide vote to serve six-year terms. The terms are staggered so one commissioner vacancy occurs every two years. The election pattern was established when the Commission was created by the state constitution. The first three elected commissioners drew lots for two-year, four-year and six-year terms.
The Corporation Commission has judicial, legislative and administrative authority. The three Commissioners rule on all regulatory matters within Corporation Commission jurisdiction. Commission orders are appealable only to the Oklahoma Supreme Court.
In-term vacancies are filled by gubernatorial appointment. Fourteen commissioners have been seated by appointment.
The Commissioners
Commissioner Bob Anthony is a member of the Board of Directors of the National Association of Regulatory Utility Commissioners and a board member and immediate past chairman of the National Regulatory Research Institute. The U.S. Secretary of Energy recently appointed Anthony to the National Petroleum Council. Anthony is past president of the Mid-America Regulatory Conference, a member and past president of the Economic Club of Oklahoma and is a delegate to the worldwide General Conference of the United Methodist Church. Anthony holds a B.S. from the Wharton School of Finance at the University of Pennsylvania. He also earned an M.Sc. from the London School of Economics, an M.A. from Yale University and an M.P.A. from Harvard University. He rose to the rank of captain in the U.S. Army Reserve. In 1972 he was staff economist for the Interior Committee of the U.S. House of Representatives. From 1979 to 1980 Anthony served on the City Council of Oklahoma City as Ward 2 Councilman and as vice mayor. In 1988 he was Chairman of the Trust Committee of Oklahoma’s largest bank trust department. In 1995 the FBI honored Anthony with its highest award given to a citizen who, “at great personal sacrifice, has unselfishly served his community and the nation.” Among other recognitions, the AARP of Oklahoma presented Anthony with an award “in appreciation of his tireless efforts on behalf of Oklahoma consumers.” Bob Anthony has been a statewide elected official longer than any current Oklahoma office holder, winning his fourth consecutive six-year term on the Oklahoma Corporation Commission in November 2006. He initially ran for the Corporation Commission in 1988, becoming the first Republican elected to that body in 60 years, and receiving more votes than any Republican since statehood. In 1994 Anthony became the first Republican incumbent in Oklahoma history to win statewide reelection to a state office. In 2000 he was reelected, receiving more votes at that time than any candidate for state office in Oklahoma history. In 1980, at age 32, Anthony became president of C.R. Anthony Company retail stores, then the largest privately-owned firm headquartered in Oklahoma. During his seven-year term as president, annual sales for the retail chain increased from $256 million to $411 million and payroll, employment and dollar profits reached all-time record levels. Prior to joining the Corporation Commission Anthony served on the boards of the Oklahoma State, Oklahoma City and South Oklahoma City chambers of commerce, the Oklahoma Historical Society, the Oklahoma Science and Arts Museum, Liberty National Bank, Banks of Mid-America, Inc., the Dale Rogers School for Retarded Citizens, and the Kirkpatrick Center. He also held positions with Oklahoma City University, Leadership Oklahoma, Leadership Oklahoma City, O.I.C., the YMCA, Contact, Children’s Medical Research and Hospital Hospitality House. All four of Anthony’s grandparents came to Oklahoma before statehood. His father was born in Cleveland, Oklahoma, and his mother grew up in Enid, Oklahoma. He and his wife Nancy were married in 1975 and are the parents of four daughters.
Bob Anthony, Chairman
Term: January 2007 — January 2013 The Commissioners
Jeff Cloud, Vice-Chairman
Term: January 2009 — January 2015
Jeff Cloud was elected statewide to a six-year term on the Oklahoma Corporation Commission on November 5, 2002, and was overwhelmingly reelected November 4, 2008 to another six-year term. Additionally, Cloud assumed the chairmanship of the Commission in June of 2005 and served as Chairman through December 2008.
Cloud is a member of the Electricity Committee for the National Association of Regulatory Utility Commissioners (NARUC) and the Advisory Boards for the Center for Public Utilities at New Mexico State University. Cloud is also a member of the Legal and Regulatory Committee of the Interstate Oil and Gas Compact Commission (IOGCC), the Regional State Committee of the Southwest Power Pool, and serves on Oklahoma Employees Retirement System Board of Trustees.
The Aspen Institute honored Cloud as one of the top young elected officials by naming him as a fellow for the Aspen Institute-Rodel Fellowship which brings together “the nation’s emerging leaders” to discuss broad issues of democratic governance and effective public service.
Born in Tulsa and raised in Oklahoma City, Cloud earned a degree in Petroleum Land Management from the University of Oklahoma and a juris doctor from the Oklahoma City University School of Law.
He is married to the former Trish Caldwell. They reside in Oklahoma City where they are raising their three children. Commissioner Dana Murphy serves as Chair of the Oklahoma Corporation Commission (OCC). Born in Woodward, Oklahoma, Commissioner Murphy is a fifth-generation Oklahoman deeply committed to her home state. After attending Central State University in Edmond, Oklahoma, where she received the Best All-Around Freshman Athlete award, she attended Oklahoma State University (OSU) and graduated in the top 10 percent of her class with a bachelor’s degree in geology. After practicing as a geologist for ten years, she obtained her law degree cum laude while working and attending night school at Oklahoma City University. On November 4, 2008, she was first elected to the statewide office of Oklahoma Corporation Commissioner for a partial two-year term. On July 27, 2010, she was re-elected to a full six-year term. On January 3, 2011, Commissioner Murphy became Chair of the Corporation Commission following election by her fellow Commissioners.
Commissioner Murphy's prior experience includes serving for almost six years as an administrative law judge at the Commission, where she was named co-employee of the year for 1997 and received the Commissioners’ Public Servant Award in 2001. She has more than 22 years experience in the petroleum industry including owning and operating a private law firm focused on oil and gas title, regulatory practice and transactional work and working as a geologist.
Commissioner Murphy is a member of the National Association of Regulatory Utility Commissioners (NARUC), where she serves on the Energy Resources and the Environment Committee. She is a member of the OSU Water Research Advisory Board, the Oklahoma Bar Association, American Association of Petroleum Geologists and Oklahoma City Geological Society. She also serves as the OCC representative on the Board of Trustees of the Oklahoma Public Employees Retirement System and is a member of the Salvation Army’s Central Oklahoma Area Command Advisory Board. Commissioner Murphy is a member of Energy Advocates and in March 2007 was recognized as an outstanding woman in energy. She previously served as a trustee and is currently a care chaplain for the Church of the Servant United Methodist Church in Oklahoma City.
Prior to joining the Commission, she was a member of the board of directors of Farmers Royalty Company and is a member of the Edmond Chamber of Commerce. She is also a part-time personal fitness trainer. Commissioner Murphy lives in Edmond, Oklahoma, but continues to be actively involved with her family’s farm and ranch in Ellis County, Oklahoma.
The Commissioners
Dana Murphy, Commissioner
Term: January 2009 — January 2011 OKLAHOMA CORPORATION COMMISSION
June 30, 2010
Chairman
Bob Anthony
Vice Chairman
Jeff Cloud
Commissioner
Dana Murphy
Administrative Aide
Larry Lago
Executive Assistant
Jackie Hollinhead
Administrative Aide
Bob Vandewater
Executive Assistant
Lisa Roberts
Administrative Aide
Teryl Williams
Executive Assistant
Billie Rodely
Appointing Authority
Brooks Mitchell
Information Technology
Director
Michelle Smith
Petroleum Storage Tank Division Director
Gary Walker
Office of Administrative
Proceedings Director
Michael Decker
Director of Administration Brooks Mitchell
Consumer Services
Director (acting)
Brooks Mitchell
Office of General Counsel Director
Andrew Tevington
Oil and Gas Division
Director
Lori Wrotenbery
Transportation Division
Director
Marchi McCartney
Public Utility Division
Director
David Dykeman Five Year Summary
Revenue Sources and Applications
OKLAHOMA CORPORATION COMMISSION
Statement of Sources and Applications (CASH BASIS)
For the Fiscal Year Ending June 30
SOURCES
2009
2008
2007
2006
2010
General Revenue Fund
$13,590,865
$13,519,647
$14,225,498
$12,638,013
11,544,803
Oil & Gas Conservation Fund
Revolving Funds
15,096,017
12,546,019
11,867,920
12,224,852
13,473,613
Public Utility Assessment Fund
6,039,513
5,284,491
5,265,332
4,886,949
5,889,096
Transportation One-Stop Shop Fund
7,699,441
4,951,576
7,083,370
Indemnity Fund
3,376,171
4,504,441
4,146,254
3,416,016
4,043,530
Well Plugging Fund
3,210,984
3,388,005
3,382,214
2,844,227
2,541,440
Federal Funds
2,275,780
2,609,485
1,453,723
1,644,664
2,873,215
Other Funds
327,902
3,100,000
3,300,000
1,562,409
514,647
TOTAL AVAILABLE
$51,616,673
$49,903,664
$43,640,941
$39,217,130
47,963,714
APPLICATIONS
Administration
$3,087,175
$ 2,986,903
3,014,174
$2,628,825
3,082,054
Consumer Services Division
1,033,252
946,519
1,069,065
892,788
1,040,012
Petroleum Storage Tank
5,050,074
4,695,275
4,205,043
3,804,634
4,790,514
Oil & Gas Division
8,290,474
8,596,470
7,900,020
6,606,331
8,009,238
Well Plugging/Storage Pits
2,033,266
2,025,322
1,785,059
1,182,485
1,291,445
UIC Federal
495,883
593,302
420,338
560,953
448,271
Office of Administrative Proceedings
2,538,266
2,370,955
2,343,078
2,058,891
2,286,574
Public Utilities
2,634,406
2,361,863
2,350,052
2,218,768
2,622,932
Office of General Counsel
2,166,053
2,050,020
2,020,644
1,895,953
1,864,410
Transportation
10,142,852
9,492,331
8,301,813
7,774,155
9,528,493
Pipeline Safety
1,114,450
1,139,251
1,047,040
997,845
1,056,397
Data Processing
2,805,223
2,416,235
2,135,682
2,157,773
2,474,138
Expenditures
$41,391,374
$39,674,446
$36,592,008
$32,779,401
$38,494,478
Reserve for Obligations
4,906,495
4,938,190
5,109,334
3,723,616
4,281,362
Lapsed Funds
Transferred Funds
Cash Balance Available
5,318,804
5,291,028
1,939,599
2,714,113
5,187,874
TOTAL APPLIED
$51,616,673
$49,903,664
$43,640,941
$39,217,130
$47,963,714
FY10 Financial Statement—Revenue Sources and Applications
Revenue Sources
The operations of the Corporation Commis-sion are funded by the following fund types: General Revenue: Funds appropriated by the Legislature each year. These funds are fiscal year specific. Revolving Funds: Payments received from regulated companies for licenses, permits, fees and fines. Public Utility Assessment: Annual assessments to regulated utilities for the funding of the Public Utility Division and related support costs. Well Plugging: Funds from oil and gas excise tax on gross production dedi-cated for plugging abandoned oil and gas wells. Federal Funds: Grants for federal pro-grams administered by the Oklahoma Corporation Commission.
Revenue Applications
The FY10 total available funds applied re-flects the following distribution as a percent of total.
Funding and Staffing
***Included in following fiscal year budget.
SOURCES
AMOUNTS
% OF
TOTAL
General Revenue Fund:
FY09 Cash Balance
$809,537
1.7%
General Revenue Appropriations
10,735,266
22.4%
Oil & Gas Revolving Fund:
FY09 Cash Balance
692,061
1.4%
Intent to Drill Fees
$728,150
Other
485,641
1,213,791
2.5%
OCC Revolving Fund:
FY09 Cash Balance
2,741,440
5.7%
Unified Carrier Registration
$622,720
Pipeline Safety Fees
1,229,376
Filing Fees
485,040
Other
5,368,786
7,705,922
16.1%
Petroleum Storage Tank
FY09 Cash Balance
659,250
1.4%
Permits
$296,223
Other
164,926
461,149
1.0%
Public Utility Assessment Fund:
FY09 Cash Balance
617,504
1.3%
Assessments
$5,271,592
11.2%
Transportation One-Stop Shop Fund
FY09 Cash Balance
2,570,465
5.4%
Transportation Fees & Fines
4,512,905
9.4%
Indemnity Fund:
FY09 Cash Balance
62,646
0.1%
Fund Receipts
3,980,884
8.3%
Well Plugging Fund:
FY09 Cash Balance
1,177,719
2.5%
Oil & Gas Excise Tax Receipts
1,363,721
2.8%
Federal Funds:
FY09 Cash Balance
35,028
0.1%
Federal Funds Received
2,838,187
5.9%
Other Funds:
FY09 Cash Balance
327,045
0.7%
L.U.S.T. Revolving Fund
187,602
0.4%
TOTAL AVAILABLE
$47,963,714
100.0%
APPLICATIONS
AMOUNTS
% OF
TOTAL
Administration
$3,082,054
6.4%
Consumer Services Division
1,040,012
2.2%
Petroleum Storage Tank
Administration
433,125
.9%
Claims Processing
824,961
1.7%
Regulatory
3,532,428
7.4%
Oil & Gas Division
8,009,238
16.7%
Well Plugging/Storage Pits
1,291,445
2.7%
UIC Federal
448,271
.9%
Office of Administrative Proceedings
2,286,574
4.8%
Public Utilities
2,622,932
5.5%
Office of General Counsel
1,864,410
3.9%
Transportation
9,528,493
19.9%
Pipeline Safety
1,056,397
2.2%
Data Processing
2,474,138
5.2%
FY10 EXPENDITURES
$38,494,478
80.3%
Reserve for Obligations
4,281,362
8.9%
Lapsed Funds
Fund Balance
$5,187,873
10.8%
TOTAL APPLIED
$47,963,714
100.0%
Fiscal Year
Funding
Auth. FTE*
2000
$29,293,711
453
2001
$31,156,648
453
2002
$29,635,653
453
2003
$30,261,108
453
2004
$28,679,330
453
2005
$34,972,742
453
2006
$39,217,130
535**
2007
$43,640,941
547
2008
$49,903,664
547
2009
$51,616,673
547
2010
$47,963,714
478
Expenditure
Total
Salaries & Benefits
64.2%
Professional Services
7.6%
Travel
0.3%
Equipment
1.1%
Other Operating Expenses
7.1%
Funds reserved for obligations
8.9%
Transferred/Lapsed Funds
0.0%
Cash Balance Available
10.8%
Total
100.00%
*Denotes maximum authorized Full Time Employee (FTE) positions, not the actual number of FET’s - (actual average number of FTE’s in FY10 was 378).
**Increase the result of legislatively-mandated transfer of Oklahoma Tax Commission sections to the Oklahoma Corporation Commission. Administration6%Consumer Services2%Petroleum Storage Tank10%Oil & Gas20%Administrative Proceedings5%Public Utilities6%General Counsel4%Transportation20%Pipeline2%Data Processing5%Other20%APPLICATIONSGeneral Revenue24%Transportation1%Pipeline3%Other Revolving18%Indemnity9%Petroleum Storage Tank2%Well Plugging 5%Utility Assessment12%Oil & Gas Revolving4%Transportation One-Stop Shop15%Federal6%Other1%SOURCES12A
OKLAHOMA CORPORATION COMMISSION
FISCAL YEARS - 1988-2010
YEAR
CD
PD
GD
GG
MC
MCC
EN
FD
FDC
TD
PUD
RM
SF
CS
OGC
TOTAL
ORDERS
1988
9,559
1,162
10
4,025
150
141
163
13
15,223
13,474
1989
7,670
1,116
6
4,745
159
138
172
7
14,013
12,226
1990
4,413
1,085
7
4,054
181
140
196
11
10,087
8,492
1991
4,957
1,139
3
3,828
279
2
176
188
10
10,582
9,875
1992
4,226
936
5
4,151
160
2
138
220
11
9,849
8,441
1993
3,834
1,099
12
6,540
274
4
123
186
19
12,091
8,258
1994
4,543
868
5
7,159
297
4
121
203
18
52
13,270
9,566
1995
4,760
818
1
6,653
457
272
79
237
19
81
13,377
9,168
1996
4,893
898
0
7,801
398
154
59
512
23
86
29
14,853
9,395
*1997
5,645
614
0
4,604
4,404
308
24
21
120
516
22
99
3
91
16,471
10,697
1998
5,324
574
0
5,421
5,149
432
60
163
92
675
26
111
13
140
18,180
10,949
1999
4,789
456
0
5,937
5,968
254
43
56
64
727
23
85
12
43
18,457
9,081
2000
5,489
414
0
3
6,220
6,032
145
111
39
68
736
16
106
18
31
19,428
9,087
2001
6,594
409
0
3
6,128
6,754
259
9
37
42
683
19
131
15
63
21,146
11,220
2002
6,152
491
0
0
5,999
7,340
185
2
0
54
662
18
118
23
71
21,115
11,447
2003
7,536
486
0
1
6,489
10,496
316
2
1
95
844
9
75
26
84
26,460
12,494
2004
9,002
502
0
1
6,796
9,832
322
36
2
61
698
12
94
17
46
27,441
14,239
2005
9,891
547
3
3
6,504
22,750
349
21
1
78
582
13
120
9
83
40,954
15,903
2006
12,365
576
0
7
2,330
26,823
384
45
1
57
480
22
135
3
59
43,287
18,954
2007
8,728
619
0
0
89
21,009
445
46
7
60
520
6
128
6
20
31,683
14,560
2008
8,714
606
0
2
17
17,606
326
47
0
61
428
11
126
8
11
27,963
15,092
2009
6,086
521
0
0
14
23,463
251
76
0
63
343
12
103
15
17
30,966
12,712
2010
4,683
187
0
2
14
19,301
160
59
0
36
210
7
72
19
8
24,758
7,945
CALENDAR YEARS - 1977-2009
YEAR
CD
PD
GD
GG
MC
MCC
EN
FD
FDC
TD
PUD
RM
SF
CS
OGC
TOTAL
ORDERS
1977
5,456
522
350
3,843
10,171
10,673
1978
6,285
477
272
4,156
11,190
11,357
1979
7,362
486
271
5,107
13,226
13,617
1980
13,008
742
382
6,983
21,115
19,940
1981
14,483
1,025
593
7,606
23,707
23,739
1982
12,978
1,332
513
5,858
20,681
25,216
1983
10,589
1,605
657
4,395
17,246
20,686
1984
13,456
1,731
649
3,732
19,568
19,722
1985
13,002
1,155
401
4,004
90
53
84
0
18,789
20,149
1986
8,320
1,157
1
4,057
224
114
217
9
14,099
16,293
1987
9,560
1,136
11
4,116
184
121
179
8
15,315
13,268
1988
8,545
1,143
8
4,290
122
131
173
13
14,425
13,514
1989
6,517
1,076
7
4,744
157
155
184
7
12,847
9,826
1990
6,005
1,155
2
3,948
216
141
195
14
11,676
9,150
1991
4,605
1,062
5
4,002
248
3
180
180
8
10,293
9,349
1992
4,084
1,035
13
4,152
215
1
112
248
16
9,876
8,511
1993
4,181
990
4
9,439
276
6
129
181
17
15
15,238
8,097
1994
4,691
810
11
5,432
418
203
103
225
14
78
11,985
10,109
1995
4,686
806
0
6,119
438
217
62
435
24
68
12,855
8,426
1996
5,445
823
0
7,849
336
97
88
441
18
100
0
61
15,258
9,961
1997
5,457
663
0
5,278
4,802
397
17
35
104
616
29
114
11
115
17,638
11,447
1998
5,190
503
0
5,423
5,377
342
82
172
84
693
36
96
10
127
18,135
9,964
1999
4,650
380
0
6,194
6,142
133
15
32
80
770
12
91
16
9
18,524
8,414
2000
6,069
447
0
5
6,342
5,732
222
111
52
44
712
15
118
10
57
19,936
10,232
2001
6,606
446
0
0
5,911
7,084
218
6
17
42
661
13
134
28
77
21,243
11,539
2002
6,347
492
0
1
6,374
9,462
277
2
0
87
779
17
94
21
87
24,040
11,840
2003
8,510
515
0
1
6,533
9,561
340
2
2
74
792
10
81
21
36
26,478
13,443
2004
9,427
526
2
4
6,408
14,187
312
43
1
60
636
15
95
20
66
31,802
14,724
2005
11,977
584
1
4
5,230
24,747
344
30
0
66
540
18
71
4
54
43,670
17,901
2006
9,915
601
0
3
97
28,561
478
41
1
63
448
13
147
4
38
40,410
16,562
2007
8,533
606
0
1
25
17,701
363
56
7
49
466
12
108
10
17
27,954
14,952
2008
8704
626
0
1
15
20,256
282
67
0
72
417
12
123
11
12
30,598
15,567
2009
4,060
321
0
0
14
21,763
217
62
0
45
276
6
107
16
13
26,900
8,821 DIVISIONS
CONSUMER SERVICES DIVISION
The Public Utilities Complaints Department’s 7 member staff handled 9,345 inquiries and investigated 4,466 complaints. Intervention resulted in a savings of $134,491.61 for utility customers. A total of 28,442 customers were assisted due to the direct action of the depart-ment.
The 2 person staff of the Technical Evaluation Department conducted a total of 326 field investigations, meter tests, and compliance audits in FY 10.
The 3 person staff of the Oil and Gas Complaints and Information Department handled a total of 6,450 inquiries and complaints.
The 2 person Miner Owners Escrow Account Department performed collections and depos-its of $14,447,309 and reimbursements of $2,845,190, and handled 2,064 inquiries.
OIL AND GAS DIVISION
The Division’s 46 field inspectors investigated and resolved 926 pollution-related citizen complaints and 588 industry-reported incidents, as well as 661 non-pollution-related citizen complaints. Most involved overseeing remediation of the site. 439 violations were discov-ered through on-site inspections. Inspectors oversaw 3,011 well mechanical integrity tests. The field inspectors are responsible for locating and recommending all potential sites to the OERB. In addition, OERB cannot remediate the surface area of the site unless all environ-mental hazards (open well bores, water table pollution, etc.) have first been addressed by the OCC. In FY10, OCC field inspectors located and turned in to the OERB 435 abandoned sites.
The 24 person Technical, Compliance, and Document section processed 3,655 requests for reviews of surface casing requirements to ensure that the state’s groundwater resources are properly protected. In addition, the section handled 2,942 applications to drill, recomplete and re-enter wells; processed the reporting of production for more than 43,000 gas wells and more than 83,000 oil wells, and processed 3,303 completion reports, 1,086 certificates of records search, 2,873 well logs, 5,425 transfers of operatorship, 966 spacing applications, 2,052 location exception applications, and 520 increased density applications. The 9 person Underground Injection Control section oversaw 10,681 active wells, 8,847
inactive, unplugged wells with terminated orders, and 6,659 plugged and abandoned wells for a total of 26,187 past and present injection and disposal wells in FY2010. DIVISIONS (Cont.)
OFFICE OF ADMINISTRATIVE PROCEEDINGS 12 administrative law judges and one appellate referee conducted 26,981 hearings related to oil and gas production and development, petroleum storage tanks, rail crossings, motor carriers, and public utilities.
The Court Clerk's Office, staffed by 7 (1 temporary) docket clerks and one office manager, processed 24,774 applications and filed 7,830 Commission orders.
PUBLIC UTILITIES DIVISION (PUD) The PUD staff of 32 (including support staff) handled 211 new utility cases, 184 active cases, and closed 189 cases.
PUD had regulatory responsibility for 491 companies. These included electric
utilities, natural gas utilities, water companies, cotton gins, and telecommunication
companies.
PETROLEUM STORAGE TANK DIVISION (PST)
In FY 2010, PST’s 23 fuel specialists: Performed 8,372 service station inspections. Checked 97,326 pump calibrations, finding 595 pumps out of calibration. Conducted 5,490 annual inspections of motor fuel facilities. Investigated 526 complaints regarding gasoline purchased by consumers.
The Indemnity Fund is used for cleanup of sites contaminated by leaking underground petroleum storage tanks. In FY 2010 the Indemnity Fund: Paid out $18,427,405 in reimbursements on 1,541 claims. Had an average time for payment of an initial claim of 8.43 days (the law requires no more than 90 days) while the average time for settling supplemental claims was 10.36 days (the law requires no more than 30 days). Had a claims processing cost for FY10 of 5.35 cents per dollar paid out. DIVISIONS (Cont.)
TRANSPORTATION DIVISION
In FY10, 54 Motor Carrier Enforcement Officers and 6 supervisors: Performed 179,049 vehicle checks, issuing 19,100 citations and 3,502 warnings.
The Motor Carrier Requirements section is responsible for more than 7,094 for-hire and private motor carriers licensed to operate in interstate and intrastate commerce. In FY10, the Section: Processed 16,196 applications for authorization or changes in authorization to operate in or through Oklahoma. Reviewed and approved 10,856 insurance filings. Issued 393 permits for the transportation of deleterious substances, such as saltwater and other oilfield wastes. Processed 3,461 applications from Oklahoma-based interstate carriers, interstate private carriers, brokers, freight forwarders, and leasing companies for registration under the Unified Carrier Registration (UCR) program.
The 10-person Pipeline Section is responsible for 237 intrastate natural gas pipeline operators and 20 hazardous liquid pipeline operators, operating over 38,000 miles of line. 145 safety violations in natural gas pipelines were found in FY 2010, and 3 hazardous liquid pipeline violations.