| (i) the well's latest deliverability test on file with
the commission; or
(ii) the well's most recently reported monthly production.
(C) If a well is new to a reservoir and has been active
for less than six months, its capability shall be defined as the well's
latest deliverability test on file with the commission.
(2) An operator may submit a substitute capability
determination for any well in a prorated field that represents the
maximum monthly production capability of the well under normal operating
conditions for a specific six-month period.
(A) The determination may be made on the basis of a
well test or other acceptable information by a registered professional
engineer who certifies that the determination was made by the engineer
or under the supervision of the engineer, and that the capability
has been determined in accordance with generally accepted engineering
practices. Alternatively, the substitute capability determination
may be made by an independent tester on the basis of a well test conducted
in accordance with §3.28(c) of this title (relating to Potential
and Deliverability of Gas Wells To Be Ascertained and Reported) (Statewide
Rule 28). The request for a substitute capability must be submitted
on the appropriate form.
(B) The commission or a commission designee may reject
any substitute capability determination for good cause.
(C) The capability determined pursuant to this paragraph
shall be used as the well's capability for a period of six months
from the effective date of the determination unless:
(i) the operator files a written request that the substitute
capability determination be cancelled. If such a request is submitted,
the substitute capability may be cancelled by the commission or commission
designee; or
(ii) an affected person files a protest alleging, with
specificity, the inaccuracy or invalidity of the determination. If
a protest is filed, the commission may set the matter for hearing.
A protested substitute capability determination shall be effective
on the intended effective date, unless the commission orders otherwise.
If the commission determines that the protested substitute capability
was incorrect, appropriate allowable or status adjustments will be
made for the affected well.
(f) Fields operating under statewide rules. A statewide
prorated field is any gas field in which no special field rules have
been adopted and in which at least one well in the field has a current
reported deliverability test of greater than 250 Mcf a day. Daily
allowable production of gas from individual wells in a statewide prorated
field shall be determined by allocating the allowable production among
the individual wells in the proportion that each well's deliverability
(based on the latest deliverability test of record) bears to the summation
of the most recent reported deliverability tests of all wells producing
from the same field. Allocated allowables shall be subject to the
well capability provisions of this section.
(g) Definitions of prorated and nonprorated wells and
fields.
(1) A prorated well is a well for which an allowable
is determined by an allocation formula.
(2) A nonprorated well is a well for which an allowable
is not determined by an allocation formula.
(3) A prorated field is a field that has two or more
wells one of which is a prorated well.
(4) A nonprorated field is any field that is not a
prorated field.
(5) Statewide Exempt Fields:
(A) A statewide exempt field is any gas field in which
no special field rules have been adopted and in which no well in the
field has a current reported deliverability test of greater than 250
Mcf per day. Wells in statewide exempt fields shall be assigned allowables
equal to their capacity to produce but in no event greater than 250
Mcf per day.
(B) In fields where special field rules exist and no
well has a current deliverability test of greater than 250 Mcf per
day, an operator may request statewide exempt field status. The request
may be granted administratively by the commission or commission designee
if the applicant provides the commission with a declaration, signed
by all operators, subject to the false filing penalties provided for
in the Texas Natural Resources Code, §91.143, stating all operators
in the field agree to exempt status. If declarations are not provided
from all operators in the field or if the commission or commission
designee declines to grant any request administratively, the applicant
may request a hearing. If a notice of intent to appear in protest
of the application has not been filed by five days before the date
of the hearing, then there shall be a presumption that each well's
first purchaser has a market for 100% of the well's deliverability
as determined by the most recent deliverability tests on file with
the Commission and that granting exempt status to the field will not
harm correlative rights or cause waste and exempt status will be granted.
Wells in exempt fields with special rules shall be assigned allowables
equal to their capability to produce but in no event greater than
250 Mcf per day. If 250 Mcf per day is exceeded by any well, the field
will be changed to the existing special field rule allocation. Reinstatement
of allocation formula may be initiated by the commission designee,
or by one of the operators in the field.
(6) A limited well is a nonprorated well in a prorated
field (other than a special or administrative special allowable well)
with an allowable set below the maximum allowable it would receive
under the allocation formula. A limited well shall be assigned an
allowable at the rate that the well is capable of producing as determined
by subsection (e) of this section.
(7) A special allowable well is a nonprorated well
granted a fixed allowable by the commission after notice and hearing.
(8) An administrative special allowable well is a nonprorated
well that has been granted an allowable pursuant to subsection (k)
of this section.
(9) The maximum allowable for a well is the largest
allowable that can be assigned under applicable rules. For a limited
well, the maximum allowable is the allowable the well would receive
under the allocation formula. For a special allowable well, the maximum
allowable is the allowable assigned pursuant to paragraph (7) of this
subsection. For administrative special allowable wells, the maximum
allowable is 100 Mcf/day for wells qualifying as administrative special
wells under subsection (k)(1) of this section and is the allowable
the well would receive under the allocation formula for wells qualifying
as administrative special allowable wells under subsection (k)(2)
of this section. Additionally, for administrative special allowable
wells in prorated gas fields without special field rules, the maximum
allowable is 250 Mcf a day. For a well in a one well field, the maximum
allowable is the well's deliverability based on the latest deliverability
test of record. For an associated gas well, the maximum allowable
is the gas well allowable calculated by §3.49(b)(1) or (2) of
this title (relating to Gas-Oil Ratio) (Statewide Rule 49).
(h) Allowable adjustments and balancing provisions
for nonprorated wells.
(1) A nonprorated well shall not be allowed to accumulate
underproduction. However, a limited well shall be entitled to accumulate
underage up to the well's capability each month.
(2) If the most recent production figures reported
to the commission show a nonprorated well to be overproduced, the
alllowable will be revised to cover overproduction that is in excess
of the well's accumulated underproduction, up to the maximum allowable.
A nonprorated well with accumulated overproduction will be assigned
a supplemental allowable that will balance the accumulated overproduction
or a supplemental allowable equal to the well's maximum allowable,
whichever is smaller.
(3) The allowable for wells in nonprorated fields,
except for special and administrative special allowable wells, shall
be limited to the lesser of:
(A) the well's maximum allowable;
(B) the well's capability as determined by subsection
(e) of this section.
(4) The initial allowable for special and administrative
special allowable wells shall be the least of the well's:
(A) capability;
(B) its amount of production during the most recently
reported production month; or
(C) the amount provided for by the allocation formula.
(i) Balancing provisions for overproduction and underproduction
of gas for wells completed in prorated gas fields.
(1) Balancing provisions for prorated fields. Except
as provided in subsection (h) of this section or as necessary to prevent
waste or protect correlative rights, balancing provisions will be
applied for wells completed in prorated gas fields.
Cont'd... |
