- The Oklahoma Corporation Commission says it is working on legal action to modify SandRidge Energy’s (SD -5.6%) permits in order to force it to comply with a request that it shut down six wells used to dispose of wastewater because of fears they may be contributing to earthquakes.
- A growing body of research links temblors in Oklahoma and other oil and gas producing states to the use of disposal wells, and the state's energy regulator has been asking operators to voluntarily pull back on their use of disposal wells in earthquake-prone areas.
- A 4.3-magnitude quake last week temporarily knocked out power to nearly 4,500 homes and businesses in Edmond, a suburb of Oklahoma City.
- SD may be reluctant to shut down the wells because it needs every bit of revenue it can generate, since the company could run out of cash in 2016, says Wunderlich analyst Jason Wangler; SD has said that it is not resisting regulators because of its financial position.