(6) In addition to the record well, each surface location
of a stacked lateral well shall be listed on the proration schedule,
but no allowable shall be assigned for an individual surface location.
Each surface location of a stacked lateral well shall be required
to have a separate well status report (Form G-10 or Form W-10, as
applicable) and the sum of all horizontal drainhole test rates shall
be reported as the test rate for the record well.
(7) An operator shall report all production from horizontal
drainholes included as a stacked lateral well on the production report
that includes the record well. Production reported for a record well
shall equal the total production from all of the horizontal drainholes
comprising the stacked lateral well. An operator shall measure the
production from each surface location of a stacked lateral well. An
operator shall measure the full well stream with the measurement adjusted
for the allocation of condensate based on the gas to liquid ratio
established by the most recent Form G-10 test rate for that surface
location. The gas and condensate production shall be identified by
individual API number, and recorded and reported on the "Supplementary
Attachment to Form PR".
(8) If the field is designated as absolute open flow
(AOF) pursuant to §3.31(j) of this title and that designation
is removed, the Commission shall assign a single gas allowable to
each record well classified as a gas well. The assigned allowable
may be produced from any one, all, or a combination of the horizontal
drainholes that constitute the stacked lateral well.
(9) An operator shall file Form W-3A, Notice of Intention
to Plug and Abandon, and Form W-3, Well Plugging Report, for each
horizontal drainhole within the stacked lateral well as required by §3.14
of this title (relating to Plugging).
(10) In order to maintain a single operator of record
for a stacked lateral well, a certificate of compliance changing the
designation of an operator for a horizontal drainhole in a stacked
lateral well pursuant to §3.58 of this title (relating to Certificate
of Compliance and Transportation Authority; Operator Reports) may
only be approved if certificates of compliance designating the same
operator have been filed for all horizontal drainholes within the
stacked lateral well.
(11) An operator may remove a horizontal drainhole
from a designated stacked lateral well by filing an amended drilling
permit application and a completion report. If the horizontal drainhole
being removed is the record well for the stacked lateral and there
are still multiple horizontal drainholes remaining within the designated
stacked lateral well, then the operator shall designate a new record
well for the stacked lateral well prior to removing the existing record
well from the designated stacked lateral well.
(g) Drilling applications and required reports.
(1) Application. Any intent to develop a new or existing
well with horizontal drainholes must be indicated on the application
to drill. An application for a permit to drill a horizontal drainhole
shall include the fees required by §3.78 of this title (relating
to Fees and Financial Security Requirements), and shall be certified
by a person acquainted with the facts, stating that all information
in the application is true and complete to the best of that person's
knowledge. If the penetration point on the proposed horizontal drainhole
is located on an offsite tract, the following conditions shall be
met prior to submission of the application to drill:
(A) The applicant shall give written notice by certified
mail, return receipt requested, to all mineral owners of any offsite
tracts through which the proposed wellbore path traverses from the
point of penetration. The notice shall identify the proposed well,
include a plat clearly depicting the projected path of the entire
wellbore, and allow the party notified not less than 21 days to object
to the proposed offsite tract penetration. Notice of offsite tract
penetration is not required if:
(i) written waivers of objection are received by the
applicant from all mineral owners of any offsite tracts and the waivers
are attached to the drilling permit application; or
(ii) the applicant is the only mineral owner of any
offsite tracts.
(B) For purposes of this subsection, the mineral owners
of any offsite tracts through which the proposed wellbore path traverses
from the point of penetration include:
(i) the designated operator;
(ii) all lessees of record for any offsite tracts which
have no designated operator; and
(iii) all owners of unleased mineral interests where
there is no designated operator or lessee.
(C) In the event the applicant is unable after due
diligence to locate the whereabouts of any person to whom notice is
required by this subsection, the applicant shall publish notice of
this application pursuant to Chapter 1 of this title (relating to
Practice and Procedure).
(D) If any mineral owner of an offsite tract objects
to the location of the penetration point, the applicant may request
a hearing to demonstrate the necessity of the location of the penetration
point of the well to prevent waste or to protect correlative rights.
(E) If any person specified in subparagraph (B) of
this paragraph did not receive notice as required in subparagraph
(A) of this paragraph, that person may request a hearing. If the Commission
determines at a hearing that the applicant did not provide the notice
as required by subparagraph (A) of this paragraph, the Commission
may cancel the permit.
(F) To mitigate the potential for wellbore collisions,
the applicant shall provide copies of any directional surveys to the
parties entitled to notice under this section, upon request, within
15 days of the applicant's receipt of a request.
(2) Drilling unit plat. The application to drill a
horizontal drainhole shall be accompanied by a plat as required by §3.5(h)
of this title (relating to Application to Drill, Deepen, Reenter,
or Plug Back).
(A) For fields that require a proration unit plat,
in addition to the plat requirements provided for in §3.5(h)
of this title, the plat shall include the lease, pooled unit or unitized
tract, showing the acreage assigned to the drilling unit for the proposed
well and the acreage assigned to the drilling units for all current
applied for, permitted, or completed oil, gas, or oil and gas wells
on the lease, pooled unit, or unitized tract.
(B) An amended drilling permit application and plat
shall be filed after completion of the horizontal drainhole well if
the Commission determines that the drainhole as drilled is not reasonable
with respect to the drainhole represented on the plat filed with the
drilling permit application. A horizontal drainhole, as drilled, shall
be considered reasonable with respect to the drainhole represented
on the plat filed with the drilling permit application if the take
points on the as-drilled plat comply with subsection (b)(4) and (5)
of this section and with any applicable lease line spacing rules.
(3) Directional survey. A directional survey from the
surface to the farthest point drilled on the horizontal drainhole
shall be required for all horizontal drainholes. The directional survey
and accompanying reports shall be conducted and filed in accordance
with §3.11 and §3.12 of this title (relating to Inclination
and Directional Surveys Required, and Directional Survey Company Report,
respectively). No allowable shall be assigned to any horizontal drainhole
well until an acceptable directional survey and survey plat has been
filed with the Commission.
(4) Proration unit plat. The required proration unit
plat must depict the lease, pooled unit, or unitized tract, showing
the acreage assigned to the proration unit for the horizontal drainhole
well, the acreage assigned to the proration units for all wells on
the lease, pooled unit, or unitized tact, and the path, penetration
point, take points, and terminus of all drainholes. No allowable shall
be assigned to any horizontal drainhole well until an acceptable proration
unit plat has been filed with the Commission. Proration unit plats
are not required for wells in a designated UFT field. However, an
operator of a well in a designated UFT field may file a proration
unit plat along with Form P-16. Designated UFT fields have no maximum
diagonal limit.
(5) As-drilled plat. An as-drilled plat is required
for each horizontal drainhole well. The as-drilled plat for each horizontal
drainhole well shall show the surface location, actual wellbore path,
penetration point, terminus, and first and last take points of the
horizontal drainhole. If the drilling permit for the horizontal drainhole
well is approved with one or more NPZs, the as-drilled plat shall
show the nearest take point on either side of each NPZ.
Cont'd... |