Pennaco Resources, Corp. v. Oklahoma Corp. Commission

BAILEY, Judge:

Appellant Pennaco Resources Corporation (Pennaco) seeks review of an order of the Corporation Commission sitting en banc (Commission) adopting the findings of the appellate hearing officer and holding that well costs assessed by Appellee Sanguine, Ltd. (Sanguine) were reasonable and necessary. Herein, Pennaco asserts (in essence) no liability for costs incurred in the drilling of an “unauthorized, off pattern, bottom hole location.”

Sanguine drilled the Schlitt Well in Section 2, T5N, R10W, Caddo County, Oklahoma, in accord with Commission pooling orders. Pennaco, as a…