Okla. Admin. Code § 165:10-3-1 - Required approval of notice of intent to drill, deepen, re-enter, or recomplete; Permit to Drill
(a)
Permit to
Drill.
(1) Except as provided in (I) of
this Section, on emergency authorization to commence, the operator shall obtain
for the well a Permit to Drill approved by the Conservation Division before:
(A) Spudding a well for the exploration for
and production of oil or gas .
(B)
Spudding a well for use as an injection, disposal, or service well .
(C) Re-entry into a plugged well.
(D) Recompletion of a well.
(E) Deepening an existing well.
TEST
(2) A Permit to
Drill shall be valid only for each common source of supply listed on the
permit.
(3) Any operator who
drills, deepens, reenters or recompletes a well without a permit to drill may
be fined up to $1,000.00.
(4) An
operator requesting a Permit to Drill for a well shall submit a plat utilizing
Commission records showing the well name, operator , section, township, range
and county, ground elevation, and total depth of each abandoned, plugged,
producing or drilling well, and dryhole within one quarter (1/4) mile of the
completion interval of the proposed well. The operator is also required to
submit a certified plat regarding the proposed well prepared by a licensed
surveyor, and the following information shall be included in the plat
concerning the completion interval of the proposed well: the surface hole
location footages from the quarter section with latitude and longitude,
proposed bottom hole location footages from the quarter section with latitude
and longitude, landing point, corner coordinates at section corners and quarter
section points, GPS Datum NAD 27 and NAD 83, and distance to wells that will be
closer than authorized in Commission rules or by Commission order. In addition,
regarding an application for a Permit to Drill to recomplete a well, the
operator shall include on the plat the surface hole location latitudes and
longitudes for wells for which Permits to Drill have been approved.
(5) The Conservation Division shall send an
approved Permit to Drill by electronic mail to the operator applying for the
Permit to Drill at the electronic mail address(es) listed in the Form 1006B
Operator Agreement filed by the operator with the Conservation Division . If no
electronic mail address is listed in the Form 1006B Operator Agreement filed by
the operator with the Conservation Division , the Conservation Division shall
mail the approved Permit to Drill to the operator 's address listed in the Form
1006B.
(6) The Commission may issue
a Permit to Drill for any well after a hearing for a special order or for an
order on the merits prior to the issuance of any such order. Any such Permit to
Drill is subject to and must conform with the final provisions of any such
order.
(b)
Amended
or additional Form 1000 requirements.
(1)
When required. If the
Conservation Division has issued a Permit to Drill for a well, the operator of
the well shall submit an amended Form 1000 for the well and obtain an amended
Permit to Drill before:
(A) Completing the
well in a common source of supply which is not listed on the current unexpired
Permit to Drill for the well.
(B)
Recompleting the well in a common source of supply which is not listed on the
current unexpired Permit to Drill for the well.
(C) Installing less surface casing than the
amount approved on the unexpired Permit to Drill for the well.
(D) Deviating from an alternative casing and
cementing procedure which the Conservation Division approved on the unexpired
Permit to Drill for the well.
(E)
Completing a well in a common source of supply at a subsurface location which
does not correspond with the surface location on the most recently issued
Permit to Drill for the well.
(2)
Effect of amended or additional
Permit to Drill on prior Permit to Drill. Each approved, amended, or
additional Permit to Drill for a well cancels any previously issued Permit to
Drill for the well.
(c)
Expired or revoked Permit to Drill. If a Permit to Drill for a
well expires or is revoked, the operator shall be subject to the requirements
of (a) of this Section.
(d)
Casing and cementing requirements. Each Permit to Drill shall list
the minimum amount of surface casing to be used or an approved alternative
casing and cementing program under
165:10-3-4.
(e)
Spud report and well spacing
requirements. In addition to complying with the requirement of obtaining
a Permit to Drill, the operator shall comply with the following:
(1) The spud report requirement of
165:10-3-2.
(2) Any well spacing requirements applicable
by order or rule of the Commission . Well spacing requirements do not apply to
injection or disposal wells.
(f)
Disposal of drilling fluids.
(1) The operator shall indicate on Form 1000
the proposed method(s) for disposal of drilling fluids. These methods shall
include, but not be limited to:
(A)
Evaporation/dewatering and leveling of the reserve pit .
(B) Soil farming .
(C) Recycling .
(D) Commercial off-site earthen pit
disposal.
(E) Annular
injection.
(F) Hauling to a
facility or location other than a commercial earthen pit.
(2) If the method in (1)(F) in this
subsection is used, the operator shall provide the location to which the
drilling fluids are to be hauled.
(3) Issuance of the Permit to Drill shall not
be construed as constituting approval of the disposal method(s) indicated. An
operator who desires to dispose of drilling fluids through either
evaporation/dewatering and leveling of the reserve pit , soil farming ,
commercial earthen pit disposal, or annular injection must comply with
165:10-7-16,
165:10-7-19 or
165:10-9-2,
165:10-9-1, or
165:10-5-13
respectively.
(4) If the proposed
method for drilling fluid disposal is changed, the operator shall notify the
appropriate Conservation Division District Office, either by telephone,
facsimile or electronic mail, within twenty-four (24) hours after the change.
An amended Form 1000 for the well shall not be required for a change in
disposal method.
(5) Drilling
fluids and/or other deleterious substances in a closed pit system may be
disposed of utilizing the methods specified in subparagraphs (B), (C), and/or
(F).
(g)
Notice to
surface owners.
(1) The operator shall
include on each Form 1000 submitted to the Conservation Division , the name and
address of each surface owner of record for the wellsite.
(2) For each Permit to Drill other than a
Permit to Drill for a recompletion , the operator shall send by facsimile,
electronic mail or regular mail a copy of the Permit to Drill to each surface
owner listed on the Form 1000 within ten (10) business days of the Conservation
Division 's approval of the Permit to Drill.
(h)
Notice to operator under pooling
order. The entity seeking approval of a Form 1000 shall include on each
Form 1000 submitted to the Conservation Division , the name and address of any
operator designated in a Commission Pooling Order covering the drilling and
spacing unit(s) identified by order number on the Form 1000 for the listed
common source(s) of supply if different than the applicant listed on the Form
1000. For each Permit to Drill, the entity seeking approval of a Form 1000
shall mail by regular U.S. mail or send by electronic mail a copy of the Permit
to Drill to operator (s) listed on the Form 1000 within ten (10) business days
of the submission of the Permit to Drill.
(i)
Disapproval for noncompliance with
Commission order. If an operator is not in compliance with an
enforceable order of the Commission , the Conservation Division shall not issue
any Permit to Drill for the operator , until the operator complies with the
order.
(j)
Erroneous
approval. Erroneous issuance of a Permit to Drill shall not excuse
noncompliance with any order or rule of the Commission .
(k)
Expiration.
(1)
Eighteen-month period.
Except as provided in (3) of this subsection for expiration after submission of
a completion report, a permit to drill shall expire eighteen months from the
date of issuance, unless drilling operations are commenced and thereafter
continued with due diligence to completion.
(2)
Six-month extension. A six
month extension may be granted without fee providing the Conservation Division
staff determines that no material change of condition has occurred, if a
request by facsimile, electronic mail, or regular mail for such extension is
received from the operator prior to the expiration of the original permit. Only
one extension may be granted.
(3)
If Form 1002A is filed. If the operator of the well submits to the
Conservation Division a Completion Report (Form 1002A) for the well, the Permit
to Drill for the well shall expire on the date the Completion Report is
approved by the Conservation Division .
(l)
Posting of Permit to Drill at the
wellsite. During any activity subject to this Section, the operator
shall maintain at the wellsite an original or legible copy of the Permit to
Drill for inspection by Commission personnel.
(m)
Emergency authorization without
approval of a Permit to Drill. In an emergency, the Manager of the
Technical Services Department of the Conservation Division may temporarily
authorize commencement of activities without a Permit to Drill for a period up
to five business days.
(n)
Limits of authority. A Permit to Drill does not grant the operator
authority to produce, inject or dispose without the required permits or
allowable assignment.
Notes
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