The words defined hereafter shall have the following meaning
when used within these rules:
Abandoned well shall mean, for purposes only of compliance with
requirements herein, that a well is to be considered abandoned when it has not
been used for six (6) consecutive months and cannot be operated, whether
because it was drilled as a dry hole or has ceased to produce, or operation
shave not been conducted thereon, or for some other reason.
Area of exposure shall mean
the area within a circle constructed with the point of escape as its center and
the radius of exposure as its radius.
Barrel shall mean forty-two
(42) U.S. gallons, and when used for liquid hydrocarbon volumes it shall be at
a temperature of sixty degrees Fahrenheit (60°F), with deductions for the
full percent of any basic sediment, water, and other impurities present,
ascertained by centrifugal or other recognized and customary tests.
Blow out shall mean any
uncontrolled escape of fluids, hydrocarbons, or any other materials from a
preventer shall mean a heavy casinghead device or devices that helps
control or prevent a blow out by closing around the drill string, or work
string, or that completely closes the top of the casing if the drill string,
tubing, or other pipe is withdrawn.
Board shall mean the State
Oil and Gas Board of Alabama.
Bottom-hole pressure shall mean the pressure per square inch (psi)
at or near the face of the producing horizon obtained by means of a
pressure-recording instrument or other method approved by the Board, with
readings corrected to a predetermined plane or datum.
Casing pressure shall mean
the pressure at the surface of a well between the casing and tubing or between
two (2) strings of casing.
Casinghead gas shall mean any gas or vapor or both, indigenous to
an oil pool and produced from such pool with the oil.
Christmas tree (wellhead
connection) shall mean an assembly of valves and fittings attached to the head
of the casing of a well to control the flow.
Class II injection well
shall mean an injection well which is used (1) to inject brine or other fluids
which are brought to the surface in connection with natural gas storage
operations or oil or natural gas production and which may be commingled with
waste waters from plants which are an integral part of production operations,
unless those waters are classified as a hazardous waste at the time of
injection; (2) for enhanced recovery of oil or natural gas; or (3) for storage
of hydrocarbons which are liquid at standard temperature and
Cleansing shall mean the removal or neutralization of any
impurities found in produced oil or natural gas.
Completion shall mean, for
purposes only of compliance with requirements herein, that a well is considered
completed when drilling operations have ceased or at such other times as the
Supervisor may determine.
Compressor station shall mean an installation in a pipeline in
which the pressure of gas is raised for transmission through
Condensate shall mean the liquid produced by the condensation of
gas or vapor, either after it leaves the reservoir or while still in the
owner shall mean an owner having a working interest in an oil and gas
lease or an unleased oil and gas interest in an established or proposed spacing
unit, who has reached an agreement in writing with the Board-appointed operator
of the unit relative to the terms and conditions which will govern the manner
in which his interest shall be developed and operated.
Conservation shall mean the
conserving, preserving, guarding, or protecting of oil and gas resources of the
State by obtaining the maximum efficiency with minimum waste in the production,
transportation, processing, treating, and marketing of the nonrenewable oil and
gas resources of the State.
Contingency plan shall mean a written document that shall provide
an organized plan of action for alerting and protecting the public within an
area of exposure following the accidental release of a potentially hazardous
volume of hydrogensul fide.
Cubic foot of gas shall mean a volume of gas expressed in cubic
feet and computed at a base pressure of 14.65 pounds per square inch absolute
(psia), and flowing temperature of sixty degrees Fahrenheit (60°F);
correction to be made for pressure deviation and for specific gravity according
to tests made by the Balance Method, or other methods customary to the industry
if approved by the Supervisor.
Day shall mean a period of twenty-four (24) consecutive hours from
7:00 a.m. one day to 7:00 a.m. the following day.
Developed area or developed
unit shall mean a drainage or production unit having a well completed
the reon which is capable of producing oil or gas in paying quantities;
however, in the event it is shown, and the Board finds, that apart of any unit
is nonproductive, then the developed part of the unit shall include only that
part found to be productive.
Disposer shall mean any person or company who receives wastes for
disposal in a disposal facility that is in compliance with existing state and
Drainage unit or production unit shall mean the area in a pool,
which may be drained efficiently and economically by one well. For simplicity,
the term "production unit" is used hereinafter from time to time in place of
the term "drainage or production unit."
Drilling unit shall mean an
administrative unit established by the Board to provide and allow for the
drilling of a well.
Enhanced recovery shall mean the increased recovery from a pool
achieved by flooding, pressuring, cycling, or pressure maintenance and which
may include the injection in to the pool of a substance or a form of energy
extrinsic to the pool.
Facility modification shall mean any change in the operation, such
as an increase in throughput, in excess of the currently permitted capacity, or
any change that would increase the radius of exposure.
Field shall mean the
general area which is underlain or appears to be underlain by at least one
pool, and field shall include the underground reservoir or reservoirs
containing crude oil or natural gas, or both. The words field and pool mean the
same thing when only one underground reservoir is involved; however, field,
unlike pool, may relate to two or more pools.
Flowline shall mean a
pipeline that transports full well stream production from a well site to the
production equipment where produced hydrocarbons are first separated,
dehydrated, commingled with other production, or otherwise processed or to the
point of custody transfer.
Forced integrated unit or forced pooled unit shall mean a drilling
unit in which all nonconsenting owners have beenordered by the Board to
integrate or pool their tracts and interests and develop them in accordance
with law and the rules and regulations of the Board.
Gas shall mean all natural
gas, including casinghead gas and occluded natural gas found in coal beds, and
all other liquid or gaseous hydrocarbons not defined as oil.
Gas well shall mean a well
capable of producing gas from a gas pool or gas pools.
Gathering line shall mean
all pipelines, equipment, facilities, or buildings downstream of production
equipment and used in the transportation of hydrocarbons to a treatment or
storage facility or to a transmission line.
Illegal oil shall mean oil
which has been produced within the State of Alabama from any well or wells in
excess of the amount allowed by any rule, regulation, or order of the Board, as
distinguished from oil produced within the State of Alabama not in excess of
the amount so allowed, which is legal oil.
Illegal gas shall mean gas
which has been produced within the State of Alabama from any well or wells in
excess of the amount allowed by any rule, regulation, or order of the Board, as
distinguished from gas produced within the State of Alabama not in excess of
the amount so allowed, which is legal gas.
Illegal product shall mean
any product of oil or gas, any part of which was processed or derived, in whole
or part, from illegal oil or illegal gas or from any product there of, as
distinguished from legal product, which is a product processed or derived to no
extent from illegal oil or illegal gas.
site shall mean the area surrounding a well, production facility,
processing facility, injection facility, storage facility, plant, or other
facility that has been developed for oil and gas operations.
Mode of transportation
shall mean any waste transportation method including trucks, rail cars, barges,
maritime vessels, aircraft, or any other means of transportation acceptable to
and calendar month shall mean the period or interval of time from 7:00
a.m. on the first (1st) day of any month of the calendar to 7:00 a.m. of the
first (1st) day of the next succeeding month of the calendar.
Nonconsenting owner shall
mean an owner having aworking interest in an oil and gas lease or an unleased
oil and gas interest in an established or proposed spacing unit, who has
reached no agreement in writing with the Board-appointed operator of the unit
relative to the terms and conditions which will govern the manner in which his
interest shall be developed and operated.
Oil shall mean crude
petroleum oil and other hydrocarbons, regardless of gravity, which are produced
at the well in liquid form by ordinary production methods and which are not the
result of condensation of gas after it leaves the pool.
Oil well shall mean a well
capable of producing oil from an oil pool or oil pools.
Onshore lands shall mean
all lands within the territorial jurisdiction of the State, except those lands
in Mobile Bay and coastal areas of Baldwin and Mobile Counties overlain by
shall mean any person who is authorized by the Board to operate an oil, gas, or
Class II injection well, or production or processing facility, or engages in
the transportation of hydrocarbons by pipeline, including the handling and
disposal of wastes that may be generated during operation of a well, or
production or processing facility. The person named as operator according to
the most current records of the Board is charged with complying with the oil
and gas statutes and the rules and regulations of the Board.
Owner shall mean the person
who has the right to drill into and to produce from any pool and to appropriate
the production either for himself or for himself and another, or
shall mean any natural person, firm, corporation, association, partnership,
joint venture, receiver, trustee, guardian, executor, administrator, fiduciary,
representative of any kind, or any other group acting as a unit, and the plural
as well as the singular number.
Pipe shall mean any pipe or
tubing used in the transportation of hydrocarbons or produced waters.
Pipeline shall mean all
parts of those physical facilities through which hydrocarbons or produced
waters move in transportation, including pipes, valves, and other appurtenances
attached to pipes, compressor units, or metering stations.
Plant shall mean any
combination of a production facility or a processing facility operated as a
mean an underground reservoir containing a common accumulation of crude
petroleum oil or natural gas or both and each zone of a general structure,
which is completely separated from any other zone in the structure. The
classification of such pool, as to oil or gas, is determined after notice and
hearing and is based on the type of hydrocarbons in such pool.
Pressure base shall mean an
absolute pressure agreed upon or set as a base for converting the volume of gas
metered to a correct volume.
Pressure maintenance shall mean the injection of gas, water, or
other fluid into an oil or gas pool to maintain pressure or retard pressure
decline in the pool for the purpose of enhanced recovery.
mean either a cleansing facility or an extraction facility.
Cleansing facility shall
mean a facility designed to remove or neutralize any impurities, such as
hydrogen sulfide and carbon dioxide, found in produced oil or natural
facility shall mean a facility designed to separate or remove substances
from the produced hydrocarbons by chemical reactions or physical actions and
converting the substances to new products such as natural gas liquids, gas, and
Product shall mean any commodity made from oil or gas, and shall
include refined crude oil, crude tops, topped crude, processed crude petroleum
residue from crude petroleum, cracking stock, uncracked fuel oil, fuel oil,
treated crude oil, residuum, gas oil, casing head gasoline, natural gas
gasoline, naphtha, distillate, gasoline, kerosene, benzene, wash oil, waste
oil, blended gasoline, lubricating oil, blends or mixtures of oil with one or
more liquid products or by-products derived or separated from oil or gas, and
blends or mixtures of two or more liquid products or by-products derived or
separated from oil, gas, or sulfur whether hereinabove enumerated or
equipment shall mean piping and vessels used in the production,
extraction, recovery, lifting, stabilization, separation, initial treating, and
storage of produced hydrocarbons.
mean either a separation facility or a treatment facility.
Separation facility shall
mean a facility that uses a pressure vessel(s) for the purpose of separating
well fluids into gaseous and liquid components.
Treatment facility shall
mean a facility that separates well fluids into gaseous and liquid components,
with the addition of treatment such as stabilization of liquids from the
gaseous phase and the dehydration of the gaseous phase or hydrocarbon liquid
Production unit is used hereinafter from time to time in place of
the term "drainage or production unit."
Public area shall include
but not be limited to a dwelling, place of business, church, school, hospital,
school bus stop, government building, a public road, all or any portion of a
park, city, town, village, or other similar area that can expect to be
shall mean a public area or a public road that has been
established within an area of exposure to the degree that such infringement
would change the applicable requirements of Rule
to those operations
responsible for creating the area of exposure.
Public meeting shall mean a
meeting held by the Supervisor to provide general information and receive
comments concerning operations in a specific area.
Public road shall mean any
federal, state, county, or municipal street or road owned or maintained for
public access or use.
Purchaser shall mean any person that acquires title to oil, gas or
condensate by purchase from an operator or other person.
Radius of exposure
mean that radius constructed with the point of escape as its starting point and
its length calculated as provided for in Rule
Recompletion or reworking
shall mean any operation that requires a change in the physical construction of
a well after its initial completion to secure production when there has been
none, or to restore production that has ceased, or to increase production. Such
operations include, but are not limited to, any changes in the depths of
perforations, method of lift, tubing depths, packer depths, restoring pressure
integrity to casing or tubing, etc.
Rural locations shall mean
those locations that lie outside the limits of any incorporated or
unincorporated city, town, village, or any other designated residential or
commercial area such as a subdivision, a business or shopping center, or a
Separator shall mean an apparatus for separating oil, gas,
condensate, water, etc., as it is produced.
Shut-in pressure shall mean
the pressure in pounds per square inch (psi) at the well head when the well is
completely shut in.
Shut-in well shall mean, for purposes only of compliance with
requirements herein, a well that is capable of producing hydrocarbons but must
remain shut-in until connected to a gathering system, pipeline or processing
facility; or for some other reason.
flowline shall mean a pipeline that transports full well stream
production containing hydrogensul fide from a well site to equipment at a
production facility where produced hydrocarbons are first separated,
dehydrated, commingled with other production, or otherwise processed.
Sour gathering line shall
mean all pipelines, equipment, facilities, or buildings downstream of a
production facility and used in the transportation of hydrocarbons containing
hydrogen sulfide to a treatment or storage facility.
Sour gas operations shall
mean a facility that handles hydrogen sulfide concentrations in the system
equal to one hundred (100) parts per million (ppm) or more.
Spacing unit shall mean a
unit established by the Board for each well. A spacing unit may either be (a) a
drilling unit or (b) a drainage or production unit.
Special field rules shall
mean those rules promulgated for, and which are limited in their application
to, individual pools and fields within the State of Alabama.
Spud shall mean the
commencement of the continuous physical operation of drilling a well in which
the land surface is penetrated by a drill bit.
State shall mean the State
operator shall mean any company, person, corporation, partnership,
limited partnership, association of persons, municipality, association of
municipalities, public utility, gas district, or other entity, authorized by
the Board pursuant to Section
9-17-152 of the Code to operate any
Storage well shall mean any well drilled or converted for use in
an Underground Storage Facility.
Sulfide stress cracking
shall mean the cracking phenomenon which is the result of corrosive action of
hydrogensul fide on susceptible metals under stress.
Supervisor shall mean the
State Oil and Gas Supervisor.
Tank shall mean the receptacle into which the oil, condensate, or
produced water is produced either directly from a well or from a well through a
separator, gun barrel, or similar equipment.
Temporarily abandoned well
shall mean, for purposes only of compliance with the requirements herein, a
well that is currently not producing hydrocarbons but that has been approved
for future utility by the Supervisor or Board.
Tender shall mean a permit
or certificate of clearance, approved and issued or registered under the
authority of the Board, for the transportation of oil, gas condensate, or
line shall mean a pipeline operated for the purpose of transporting gas
from a gathering line, sales outlet of a gas processing plant or gas storage
facility to another transmission line, gas storage facility or an end-user
Transporter shall mean and include any person engaged in the
transportation of any petroleum hydrocarbons or products thereof within the
contemplation of these rules or the laws of the State of Alabama, and in
addition shall mean any person or company who transports wastes by any method
other than pipeline.
Turnaround shall mean a scheduled time when an operation is shut
down for routine maintenance, inspections, orinstallation of new
storage shall mean the storage of gas in an underground reservoir,
stratum or formation of the earth.
facility shall mean an underground reservoir or an underground
solution-mined cavity, the well bore tubular goods, the wellhead, and related
equipment to the last positive shut-off valve before the gathering line that is
used or to be used for the underground storage of gas and all surface and
subsurface rights and appurtenances necessary or useful in the operation of the
facility for the underground storage of gas, including any necessary or
reasonable buffer zone as recommended by the storage operator and approved by
the Board for the purpose of insuring the safe operation of the storage of gas
and to protect the storage facility against pollution, invasion, and escape or
migration of gas therefrom, together with any and all subsequent extensions
in addition to its ordinary meaning, shall mean "physical waste" as that term
is generally understood in the oil and gas industry. Waste shall include:
(a) The inefficient, excessive, or improper
use or dissipation of reservoir energy, and the locating, spacing, drilling,
equipping, operating, or producing of any oil or gas well or wells in a manner
which results or tends to result in reducing the quantity of petroleum
hydrocarbons ultimately to be recovered from any pool in this State;
(b) The inefficient storing of oil or
condensate and the locating, spacing, drilling, equipping, operating, or
producing of any oil or gas well or wells in a manner causing or tending to
cause unnecessary or excessive surface loss or destruction of oil, condensate,
(c) Abuse of the
correlative rights and opportunities of each owner of oil and gas in a common
reservoir due to non-uniform, disproportionate, and un ratable withdrawals,
causing undue drainage between tracts of land;
(d) Producing oil or gas in such a manner as
to cause unnecessary water channeling or coning;
(e) The operation of any oil well or wells
with an inefficient gas-oil ratio;
(f) The drowning with water of any stratum,
or part there of, capable of producing oil or gas, not including the methods
necessary for enhanced recovery after approval of the Board;
(g) Underground waste, however caused and
whether or not defined;
creation of fire hazards;
escape into the open air, from a well producing both oil and gas, of gas in
excess of the amount which is necessary in the efficient drilling or operation
of the well;
(j) The use of gas,
except sour gas, for the manufacture of carbon black;
(k) The escape of gas into the open air, from
a well producing gas, in excess of the amount which is necessary for safety
reasons or for the efficient drilling, testing, and operation of the well;
(l) Production of oil,
condensate, and gas in excess of reasonable market demand.
Wastes are materials to be
disposed of or reclaimed that were generated by drilling, completion, workover,
production, storage, treatment, processing, or injection operations associated
with oil and gas wells, Class II injection wells, production facilities,
processing facilities, plants, or underground storage facilities.
shall mean any oil or
gas well, any well drilled or being drilled in search of oil and gas, any well
defined as a Class II injection well or any well utilized for underground
All other words used herein shall be given their usual,
customary, and accepted meaning. All words of a technical nature, or peculiar
to the oil and gas industry, shall be given that meaning which is generally
accepted within the oil and gas industry.