| (k) Exceptions to Statewide Rule 37 apply to the total
depth for which the permit is granted or if special field rules are
applicable, an exception to the spacing rule shall be granted only
for the reservoir or reservoirs or applicable depth to which the well
is projected. Subsequent recompletion of the well to reservoirs other
than that covered by the permit issued would be granted only after
the filing and processing of a new application.
(l) Salt dome oil or gas fields.
(1) The provisions of this section shall not apply
to certain approved salt dome oil or gas fields. An application for
classification as a salt dome oil or gas field shall include the following:
(A) geological evidence proving that an oil or gas
field is a piercement-type salt dome, that faulting has caused the
producing formation to be at a 45 angle or greater, and that each
well is likely to be completed in a separate reservoir;
(B) establishment, by plat or otherwise, of the probable
productive limits of the salt dome area;
(C) certification that notice of the application for
salt dome classification with evidence included has been given to
all operators in the field or, if a new field, in accordance with
subsection (a)(2) of this section; and
(D) a list of persons notified and the date notice
was mailed.
(2) The director of the Oil and Gas Division, or the
director's delegate, may administratively grant an application for
salt dome classification if the evidence proves that the oil or gas
field is a salt dome.
(3) The operator may request a hearing if the director
of the Oil and Gas Division, or the director's delegate, declines
to approve an application. If an application is protested within 10
days of notice, it will be set for hearing. After hearing, the examiner
shall recommend final commission action.
(4) The amendment providing for administrative approval
of salt dome oil and gas fields does not alter the status of those
fields previously approved and listed in this section.
(m) Wells that were deviated, whether intentionally
or otherwise, prior to April 1, 1949, and are bottomed on the lease
where permitted, are legal wells. The Rule 37 department will develop
the record in each reapplication for such deviated wells so that the
commission can determine the condition of each such well. The following
will be adduced from sworn testimony and authenticated data at each
such hearing.
(1) That such well was deviated before April 1, 1949.
Proof of completion of the well prior to that date and its subsequent
producing status is not adequate proof of deviation.
(2) That such well was completed on the lease where
the surface location was permitted. Such bottom hole location must
be proven by the submission of an acceptable authenticated directional
survey.
(3) That such bottom hole location is one that either
is not in direct violation of a condition or limitation placed in
the permit to drill, or is not in violation of a specific commission
order. Example: Denial order for a Rule 37 application for a comparable
location.
(4) That the present operator of such well or its predecessor
has not filed either a false inclination or a false directional survey
with the commission.
(5) A well that is either bottomed off the lease, deviated
after April 1, 1949, drilled in direct violation of a specific condition
or limitation placed in the Rule 37 permit, or is in violation of
a specific commission order, is an illegal well and it shall not be
permitted, and such well where permit is refused shall not be considered
a replaceable well under commission replacement-well regulation.
(6) The provisions of this section do not preclude
an operator from applying for approval of the bottom hole location
of a deviated well as a reasonable location under the rules and regulations
now applicable, provided, that such bottom hole location shall not
be approved unless the applicant proves that a vertical projection
of the permitted surface location for such well is within the productive
limits of the reservoir.
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| Source Note: The provisions of this §3.37 adopted to be effective January 1, 1976; amended to be effective November 4, 1981, 6 TexReg 3911; amended to be effective May 7, 1982, 7 TexReg 1624; amended to be effective June 1, 1989, 14 TexReg 1586; amended to be effective May 23, 1990, 15 TexReg 2634; amended to be effective September 15, 1997, 22 TexReg 8973; 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 March 18, 2019, 44 TexReg 1437 |
