| (ii) If, on review of the completed application, Commission
staff determines that the field meets the criteria in paragraph (1)(A)
of this subsection, Commission staff shall notify all operators in
the field that a UFT field designation order may be presented to the
Commission for approval not less than 21 days after the date the notice
is issued unless the Commission receives a written objection. If the
applicant provides written waivers of objection from all operators
in the field, then notice to the operators in the field shall not
be required.
(iii) If the Commission receives a timely filed written
objection to the notice of the proposal to designate the field as
a UFT field, or if Commission staff determines that the field does
not qualify for designation as a UFT field, then the applicant for
UFT field designation may request that the application be set for
hearing.
(iv) If the applicant requests a hearing, the Commission
shall send a notice of hearing to all operators in the field proposed
for designation as a UFT field at least 15 days in advance of the
hearing.
(v) Following a hearing on the request, the hearings
examiner may present a recommendation to the Commission regarding
the request to designate the field as a UFT field.
(j) Effect of special field rules for UFT fields.
(1) Special field rules for a UFT field shall prevail
over all conflicting provisions of this chapter.
(2) The Commission may on its own motion or on the
motion of an operator in a field call a hearing to review the current
special field rules applicable in a field that is designated or proposed
to be designated as a UFT field and request amendment or rescission
of any portion of the current field rules, in conjunction with such
designation, so that the field is regulated with the appropriate combination
of special field rules and the rules in this chapter to effectively
and efficiently protect correlative rights and/or prevent waste.
(3) The following provisions shall apply with respect
to specific amendments to the special field rules for a UFT field.
(A) A special field rule amendment hearing is not required
for the following amendments:
(i) reduction of the standard and/or optional density
to one-half of the existing standard and/or optional density;
(ii) deletion of the between-well spacing rule; or
(iii) replacement of the allowable provided by special
field rules with the allowable provided by §3.31 of this title, §3.45
of this title (relating to Oil Allowables), and subsection (d)(4)
and (5) of this section.
(B) To request one or more of the amendments listed
in subparagraph (A) of this paragraph, the operator shall submit to
the Commission a request for amendment and engineering and/or geological
data to support the requested amendments. For each exhibit submitted,
the operator shall include a written explanation showing that the
requested amendment will result in the protection of correlative rights
and/or the prevention of waste.
(C) Upon receipt of a request for amendment, the Commission
shall provide notice of the request to all operators in the field.
If no written objection is filed within 21 days after the date the
notice is issued, Commission staff may present a recommendation to
the Commission regarding the requested amendment. If the Commission
receives a timely filed written objection, the applicant may request
a hearing to establish through the submission of competent evidence
that the requested amendment is necessary for continued development
of a designated UFT field, and will result in the protection of correlative
rights and/or prevention of waste.
(k) Exceptions to §3.38 for a well in a UFT field.
To request an exception to §3.38 of this title for a well in
a UFT field:
(1) The operator shall submit to the Commission a written
request for an exception to §3.38 of this title. The operator
shall clearly state on the drilling permit application whether the
density exception is sought under this subsection or through the provisions
of §3.38 of this title.
(2) The Commission shall send written notice of the
request for an exception to §3.38 of this title filed under this
subsection to any designated operators, lessees of record for tracts
that have no designated operator, and all owners of unleased mineral
interests:
(A) within 600 feet from the location of a vertical
well completed within the UFT field; or
(B) within 600 feet from any take point on a horizontal
well within the UFT field correlative interval.
(3) Persons who have received notice pursuant to paragraph
(2) of this subsection shall have 21 days from the date of issuance
of the notice to file a written objection with the Commission.
(4) If no timely filed written objection is received
by the Commission, the applicant provides written waivers from all
persons entitled to notice under paragraph (2) of this subsection,
or there are no persons entitled to notice, then the application may
be approved administratively without the requirement of filing supporting
data.
(5) If a timely filed written objection is received
by the Commission, the applicant may request a hearing, at which the
applicant shall show that the proposed exception to §3.38 of
this title is necessary to effectively drain an area of the UFT field
that will not be effectively drained by existing wells or to prevent
waste or confiscation. Notice of a hearing for a protested exception
application under §3.38 of this title for a well in a UFT field
will be provided to those persons entitled to notice of such an application
as specified in paragraph (2) of this subsection.
(6) Permits granted pursuant to paragraphs (1) - (5)
of this subsection shall be issued as exceptions to §3.38 of
this title.
(7) Nothing in this subsection prevents an operator
from electing to apply for and obtain a density exception under the
provisions of §3.38 of this title rather than the provisions
of paragraphs (1) - (6) of this subsection.
(l) Tubing requirements for completions in UFT fields.
An operator of a flowing oil well in a UFT field may obtain a six-month
exception to the requirement in §3.13(b)(4)(A) of this title
(relating to Casing, Cementing, Drilling, Well Control, and Completion
Requirements) that flowing oil wells shall be produced through tubing.
The exception may be granted administratively. A revised completion
report shall be filed once the oil well has been equipped with the
required tubing string to reflect the actual completion configuration.
(1) For good cause shown, including a showing that
the well is flowing at a pressure in excess of 300 psig surface wellhead
flowing pressure, an operator may obtain from the District Director
one or more extensions to the six month exception. Each extension
shall be no more than six months in duration. If the request for an
extension is denied, the operator may request a hearing. If a hearing
is requested, the exception shall remain in effect pending final Commission
action on the request for an extension.
(2) This subsection applies to new drills, reworks,
recompletions, or new fracture stimulation treatments for any flowing
oil well in the field.
|
| Source Note: The provisions of this §3.86 adopted to be effective June 1, 1990, 15 TexReg 2635; amended to be effective July 10, 2000, 25 TexReg 6487; amended to be effective June 11, 2001, 26 TexReg 4088; amended to be effective September 1, 2004, 29 TexReg 8271; amended to be effective February 1, 2016, 41 TexReg 785 |
