178.00.09 Ark. Code R. § 006 - Rule D-18 - Authority to Commingle
RULE D-18 AUTHORITY TO COMMINGLE
a) This
rule authorizes the Director of Production and Conservation, or his designee,
to approve certain commingle requests as detailed in this rule. This rule is
applicable for administrative approval of commingling of multiple common
sources of supply on an individual well basis only, and includes previously
completed and/or uncompleted sources of supply in a well, with no restriction
on rate of production. The rule is not applicable on a field-wide
basis.
b) All common sources of
supply classified by the Commission as uncontrolled, are exempt from the
provisions of this rule and are permitted to be commingled without application,
only when commingled with other uncontrolled sources of supply. Upon completion
of the commingling activities, reporting in accordance with Rule B-5 is
required.
c) All common sources of
supply previously approved and commingled in wells before the effective date of
this rule are allowed to continue in effect for the life of the well.
d) Commingling is permitted without
application for the Middle Atoka, as defined by General Rule B-44 (a) (4). Upon
completion of commingling activities, reporting in accordance with Rule B-5 is
required.
e) Requests for the
commingle of common sources of supply with a well, or at the surface of a well
in the following well categories, are not subject to the administrative
approval process set forth in this rule, and must be brought before the
Commission for approval following proper notice and hearing:
1) A wildcat well; or
2) A well located within an exploratory unit
established by Commission Order; or
3) A well in which the commingling of
multiple common sources of supply will result in an unapproved additional
completion within the drilling unit; or
4) A well in which the primary reservoir
drive mechanism for a requested zone to be commingled is a water drive;
or
5) A well in which the ownership
between the commingled zones is not common, unless all owners, as defined in
Ark. Code. Ann. (1987) § 15-72-102(9), in the well agree in writing;
or
6) A well in which spacing
requirements are different between commingled zones.
f) Application to commingle common sources of
supply in accordance with this rule shall be submitted on a form prescribed by
the Director of Production and Conservation and shall include, at a minimum:
1) The operator's contact
information;
2) The name and
location of the well;
3) The
perforated intervals to be commingled;
4) A plat showing well locations in the unit
indicating all common sources of supply to be commingled;
5) A statement as to whether the primary
reservoir drive mechanism for the requested commingled zone is a water
drive;
6) A statement as to whether
all zones to be commingled have common spacing requirements;
7) A statement as to whether any of the
requested zones to be commingled are subject to a location exception order, the
penalty for which will be applied to the commingled production;
8) Proof of notice sent to all offset
operators, of the right to drill and produce in all adjacent units, of the
intent to commingle.
g)
Upon review and approval of the application and If no objections are received
by the Director of Production and Conservation within 15 days of the date of
the notice sent to each adjacent offset operator or if the application is
accompanied by written acceptance by the offset operators of the commingle
request, the application for commingling shall be approved. Approved
applications are only valid for one year from date of issuance, unless
commingling activities have been commenced prior to that time.
h) Following approval of the commingle
application, the applicant shall submit to the Director of Production and
Conservation, the following:
1. Completed
Well Completion and Recompletion Report, and
2. Rates and pressures for each commingled
zone, unless a staged frac completion technique has been used in the
well.
i) If the Director
of Production and Conservation receives an objection to a commingle application
during the notice period specified in (f) above, or if the application does not
satisfy the requirements of this Rule and is denied by the Director, the
applicant may request to have the matter placed, in accordance with General
Rules A-2, A-3, and other established procedures, on the docket of a regularly
scheduled Commission hearing.
Notes
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