| (a) An operator may pool acreage, in accordance with
appropriate contractual authority and applicable field rules, for
the purpose of creating a drilling unit or proration unit by filing
an original certified plat delineating the pooled unit and a Certificate
of Pooling Authority, Form P-12, according to the following requirements:
(1) Each tract in the certified plat shall be identified
with an outline and a tract identifier that corresponds to the tract
identifier listed on Form P-12.
(2) The operator shall provide information on Form
P-12, accurately and according to the instructions on the form.
(A) The operator shall separately list each tract committed
to the pooled unit by authority granted to the operator.
(B) For each tract listed on Form P-12, the operator
shall state the number of acres contained within the tract. The operator
shall indicate by checking the appropriate box on Form P-12 if, within
an individual tract, there exists a non-pooled and/or unleased interest.
(C) The operator shall state on Form P-12 the total
number of acres in the pooled unit. The total number of acres in the
pooled unit shall equal the sum of all acres in each tract listed.
The total acreage shown on Form P-12 shall only include tracts in
which the operator holds a leased or ownership interest in the minerals
or other contractual authority to include the tract in the pooled
unit.
(D) If a pooled unit contains more tracts than can
be listed on a single Form P-12, the operator shall file as many additional
Forms P-12 as necessary to list each pooled tract individually. The
additional Forms P-12 shall be numbered in sequence.
(E) The operator shall provide the requested identification
and contact information on Form P-12.
(F) The operator shall certify the information on Form
P-12 by signing and dating the form.
(3) Failure to timely file the required information
on the certified plat or Form P-12 may result in the dismissal of
the W-1 application. "Timely" means within three months of the Commission
notifying the operator of the need for additional information on the
certified plat and/or Form P-12.
(4) The operator shall file Form P-12 and a certified
plat in the following instances:
(A) with the drilling permit application when two or
more tracts are joined to form a pooled unit for Commission purposes;
(B) with the initial completion report if any information
reported on Form P-12 has changed since the filing of the drilling
permit application;
(C) to designate a pooled unit formed after a completion
report has been filed; or
(D) to designate a change in a pooled unit previously
recognized by the Commission. The operator shall file any changes
to a pooled unit in accordance with the requirements of §3.38(d)(3)
of this title (relating to Well Densities).
(b) If a tract to be pooled has an outstanding interest
for which pooling authority does not exist, the tract may be assigned
to a unit where authority exists in the remaining undivided interest
provided that total gross acreage in the tract is included for allocation
purposes, and the certificate filed with the Commission shows that
a certain undivided interest is outstanding in the tract. The Commission
may not allow an operator to assign only the operator's undivided
interest out of a basic tract where a nonpooled interest exists.
(c) The nonpooled undivided interest holder retains
the development rights in the basic tract. If the development rights
are exercised, the Commission grants authority to develop the basic
tract, and the well is completed as a producing well on the basic
tract, then the entire interest in the basic tract and any interest
pooled with another tract shall be assigned to the well on the basic
tract for allocation purposes. Splitting of an undivided interest
in a basic tract between two or more wells on two or more tracts is
not acceptable.
(d) Multiple assignment of acreage is not permitted,
except as provided in subsection (e) of this section. Multiple assignment
of acreage is defined as the assignment of the same surface acreage
to more than one well in a field. However, this limitation shall not
prevent the reformation of development or proration units so long
as:
(1) no multiple assignment of acreage occurs; and
(2) such reformation does not violate other conservation
regulations.
(e) In unconventional fracture treated (UFT) fields
defined in §3.86 of this title (relating to Horizontal Drainhole
Wells), multiple assignment of acreage is permissible as follows:
(1) Assignment of acreage to both a horizontal well
and a vertical well for drilling and development or for allocation
of allowable is permissible. The field density rules apply independently
to horizontal wells and vertical wells. Acreage assigned to horizontal
wells shall not count against acreage assigned to vertical wells,
and acreage assigned to vertical wells shall not count against acreage
assigned to horizontal wells.
(A) Acreage assigned to horizontal wells for drilling
and development or for allocation of allowable shall be permissible
so long as the horizontal well density complies with §3.38 of
this title and/or special field rules, as applicable. For the purposes
of this section, stacked lateral wells as defined in §3.86(a)(10)
of this title are not considered assignment of acreage to multiple
horizontal wells.
(B) Acreage assigned to vertical wells for drilling
and development or for allocation of allowable shall be permissible
so long as the vertical well density complies with §3.38 of this
title and/or special field rules, as applicable.
(2) Where ownership of the right to drill or produce
from a tract in a UFT field is divided horizontally, acreage may be
assigned to more than one well provided that the wells having the
same wellbore profile are not completed in the same ownership interval.
For purposes of this section "divided horizontally" means that ownership
of the right to drill or produce has been separated into depth intervals
defined by total vertical depth, depth relative to a specific geological
contact, or some other discriminator. A tract may be "divided horizontally"
even where one operator has the right to drill or produce multiple
intervals on the same tract of land in the same field.
(A) To apply for multiple assignment of acreage under
this subsection, the operator's drilling permit application shall
indicate the upper and lower limits of the operator's ownership interval.
The interval shown on the drilling permit application is measured
as the total vertical depth from the surface.
(B) No more than 15 days prior to filing its drilling
permit application, the applicant shall identify any well, including
any wells permitted but not yet drilled or completed, that is located
within one-half mile of the applicant's proposed wellbore between
the first and last take points and, upon identification of all applicable
wells, send written notice of its application to the P-5 address of
record of the Commission-designated operator of the wells determined
to fall within the one-half mile radius. The applicant shall attach
to the notice a certified plat that clearly depicts the projected
path of the wellbore and the one-half mile radius surrounding the
wellbore from the first take point to the last take point. Copies
of the notice, service list, and certified plat shall be filed with
the drilling permit application.
(C) If any person entitled to notice under this subsection
did not receive notice, that person may request a hearing. If the
Commission determines at a hearing that the applicant did not provide
the notice as required by this subsection, the Commission may cancel
the permit.
(D) To mitigate the potential for wellbore collisions,
the applicant shall provide copies of any directional surveys to the
persons entitled to notice under this subsection, upon request, within
15 days of the applicant's receipt of a request.
(E) Where ownership of the right to drill or produce
from a tract in a UFT field is divided horizontally, the field density
rules for the field will apply separately to each ownership interval,
such that proration units on a tract above and below a division of
ownership are accounted for separately.
(F) Field rules that allow assignment of acreage to
more than one well in UFT fields are superseded by this rule amendment,
as of the effective date of this amendment, March 3, 2020. If, prior
to the effective date of this amendment, an operator has assigned
acreage to more than one well pursuant to previous field rules, such
multiple assignment remains valid. After March 3, 2020, multiple assignment
of acreage is not permissible unless the applicant complies with the
requirements of this subsection. The Commission will not consider
any applications for field rules regarding multiple assignment of
acreage in UFT fields until two years after March 3, 2020.
Cont'd... |
