178.00.07 Ark. Code R. 003 - Rule D16- Backpressure Test for Natural Gas Well

RULE D-16 BACK PRESSURE TESTS FOR NATURAL GAS WELLS FOR PRODUCTION ALLOWABLE DETERMINATION

a) Definitions

(1) AOF shall mean absolute open flow at a pressure of 14.65 psia and slope of 45 degrees (n=1).

b) All new wells, regardless of the amount of daily production, are subject to an initial one (1) point test, which shall be run within ten (10) days after a new well has commenced production. The Permit Holder of the gas well shall provide the Commission not less than seventy-two (72) hour notice in advance of such test, which may be witnessed by a representative of the Commission. Except as provided for in General Rule B-43(l) or other Commission general rules regulating production allowables, the production allowable for such well shall be calculated based upon the AOF. The AOF shall be calculated based upon the deliverability established by an initial one (1) point test by flowing the well for a period of twenty-four (24) hours through the production facilities into the pipeline. A minimum pressure draw down of thirty percent (30%) will be required. If such draw down is not achieved over twenty-four (24) hours, then the test may continue for up to 72 hours to measure deliverability or deliverability may be calculated if the required drawdown is not achieved. . All new wells producing in excess of the assigned allowable, based on an annual balancing of production for that well, on the date the initial one point test was run the subsequent year, must be shut-in until all overproduction is eliminated. A retest may be conducted at any time when requested by the Permit Holder if the Commission results are questioned by the Permit Holder or when the Permit Holder is directed by the Commission to conduct a retest.

c) All existing gas wells, which include zone recompletions or workovers, producing in excess of 1 MMCF per day and all existing gas wells recompleted in a new source of supply shall be tested to determine the AOF. The Permit Holder of the gas well shall provide the Commission not less than seventy-two (72) hour notice in advance of such test, which may be witnessed by a representative of the Commission. Except as provided for in General Rule B-43(l) or other Commission general rules regulating production allowables, the production allowable for such well shall be calculated based upon the AOF utilizing the methodology as specified in subparagraph (b) above. The test shall be conducted within ten (10) days after the well has commenced production. The results of the test shall be used to determine the production allowable, which shall commence on the date of the test. If the test is witnessed by the Commission, the test results shall be forwarded to the Permit Holder for review. A retest may be conducted at any time when requested by the Permit Holder if the Commission results are questioned by the Permit Holder or when the Permit Holder is directed by the Commission to conduct a retest. If the test is not witnessed, the test results shall be submitted to the Commission within 10 days after the test is run. All gas wells, subject to be tested under the provisions of this paragraph, shall continue to be subject to an annual test, and a production allowable determination, in accordance with subparagraph (e) below. Until such time that the well has a daily production rate of less than 1 MMCF per day, as evidenced by an annual test, the well shall continue to be tested. Wells which are assessed an exceptional location penalty, shall remain subject to an annual test and allowable determination until the annual well production is 75 MCF per day or less. All wells subject to be tested, under the provisions of this subparagraph, producing in excess of the assigned annual production allowable, must be shut-in on the annual balancing date of based on the last test run the subsequent year, until all overproduction is eliminated.

d) All new or existing wells, including zone recompletions or workovers, except wells subject to an exceptional location penalty, producing less than 1 MMCF per day shall not be subject to an allowable determination as calculated in paragraph (e) below, but shall be required to report, on a form prescribed by the Director, a 24 hour shut-in pressure and absolute open flow rate. The collection of the shut-in pressure and absolute open flow rate information is not required to be witnessed by a representative of the Commission. The 24 hour shut-in pressure and absolute open flow rate information shall be filed with the Commission within ten (10) days after the test is run. The Commission shall have the right to require wells covered by this sub-paragraph, to have the 24 hour shut-in pressure and absolute open flow rate information resubmitted if for any reason the previously submitted information appears to be inaccurate. In that event, the Commission may require the collection of another shut-in pressure which may be witnessed by a Commission representative. Failure to provide the shut-in pressure and AOF rate information will resuh in the Certificate of Authority to Produce and Transport for that well to be cancelled until such time as the required information is submitted.

e) The initial and annual tests, run on wells as required in paragraphs (b) and (c) above, shall be conducted as follows:

(1) Before a test is started, the wellbore should be cleared of any accumulated fluids. The well shall be shut-in for a minimum of twenty-four (24) hours for a one (1) point test. The pressure shall be measured with a dead-weight pressure gauge or a calibrated test gauge approved by the Commission. All flow rate measurements shall be obtained by the use of an orifice meter or other authorized metering device in good operating condition previously approved by a representative of the Commission. The Commission shall be furnished a written explanation setting forth in detail the reasons why such data cannot be obtained in accordance with this procedure.

(2) Methods for allowable calculations for new wells as specified in paragraph (b), or existing wells producing greater than or equal to 1 MMCF per day as specified in paragraph (c) above, shall be as follows:

A) Wells at a legal location and in a standard 640 acre unit:

Allowable = AOF x 0.75

B) Wells at a legal location and not in a standard 640 acre unit:

Allowable = AOF x 0.75 x unit acreage/640(standard unit acreage)

C) Wells that are assigned an exceptional location penalty and in a standard 640 acre unit:

Allowable = AOF x 0.75 x penalty factor (encroachment footage/legal footage)

D) Wells that are assigned an exceptional location penalty and not in a standard 640 acre unit:

Allowable = AOF x 0.75 x penalty factor (encroachment footage/legal footage) x unit acreage/640(standard unit acreage)

(3) Wells producing less than 1 MMCF per day, and do not have an exceptional location penalty, may produce at AOF.

(4) Wells that have an AOF of less than 75 MCF, and are assigned a exceptional location penalty, may produce at AOF.

Notes

178.00.07 Ark. Code R. 003

1/14/2008