Current through Register Vol. 42, No. 11, August 30, 2024
(1)
Activities Requiring Permits. The following activities require
permits:
(a) Drilling of any well in search
of oil or gas;
(b) Drilling a Class
II injection well or converting any well to a Class II injection well for
enhanced recovery or for the disposal of salt water and other wastes produced
in association with oil or gas operations; or
(c) Reentry of a plugged and abandoned
well.
(2)
Permit
Requirements. Prior to initiating any of the activities identified in
section (1) above, an application on either Form OGB-1, OGB-1A, or OGB-1B,
whichever is appropriate, shall be filed with and approval obtained from the
Supervisor or the Board. Applicants should also refer to Rule
400-4-1-.01, et seq. relating to
Rules and Regulations Governing Class II Underground Injection Control
Operations for activities involving the drilling or converting of wells for
enhanced recovery and salt water disposal. Such applications shall be
accompanied by:
(a) A check or bank draft in
the sum of three hundred dollars ($300.00) payable to the State Treasurer,
State of Alabama, which sum is fixed as the fee for the approval of a permit to
drill. No permit fee is required if the application issubmitted for the purpose
of obtaining approval to convert or deepen a well;
(b) Each permit application to drill a
coalbed methane gas well shall be accompanied by a check or bank draft in the
sum of one hundred and fifty dollars ($150.00) payable to the State Treasurer,
State of Alabama, which sum is fixed by the Alabama Coalbed Methane Gas Well
Plugging Fund Act;
(c) A plat, in
triplicate, prepared by a licensed landsurveyor, showing the entire section and
the surface and bottom-hole locations of the proposed well within said section.
The plat shall be drawn to the scale of one (1) inch equals one thousand
(1,000) feet, unless otherwise stipulated by the Supervisor. The plat shall
show the direction of north, and the latitude and longitude in decimal degrees
to five (5) significantdigits and state plane coordinates of the proposed well.
The plat shall show the distances of the proposed well to the nearest unit
boundaries and section lines and from the nearest well in the same section
completed in or drilling to the same reservoir. The plat shall also show the
location and status of all other wells that have been drilled in said section.
For the purpose of designating the unit in which the proposed well is to be
drilled, the boundaries of such unit shall be shown. If an alternate unit is
designated on the permit application, then said unit shall be shown on the
plat;
(d) An affidavit of ownership
or control on Form OGB-2, whereby the applicant verifies that he owns or has
control of one hundred percent (100%) of the drilling rights with respect to
the oil and gas in and under the land comprising the spacing unit, or an
affidavit of ownership or control, underground injection control on Form
OGB-2C, whereby the applicant verifies that he owns or has control of one
hundred percent (100%) of the interests having rights to conduct Class II well
operations in and under the land on which the well is located;
(e) A bond on Form OGB-3 (Single Well) or
OGB-4 (Blanket), required by Rule
400-3-2-.04 relating to Bond,
unless such requirement has been previously satisfied. If two or more persons
are designated on the application as operators then each such person shall file
a separate or joint bond if an appropriate bond is not already on
file;
(f) An organization report on
Form OGB-5, as prescribed in Rule
400-3-2-.03, unless such
requirement has been previously satisfied. If two or more persons are shown as
operator on the application, then each person shall file aseparate organization
report or have an organization report on file;
(g) A letter identifying the proposed coal
beds to behydraulically fractured must accompany all applications for coalbed
methane gas wells.
(h)
Illustrations or narrative material that may be necessary for the Supervisor to
clearly understand all details of the proposed operation; and
(i) Additional information as deemed
necessary may be requested by the Supervisor.
(3)
Deepening. Prior to
deepening a well below its permitted depth, an operator shall obtain approval
of the Supervisor and, thereafter, such person shall immediately file Form
OGB-1, OGB-1A or OGB-1B, whichever is appropriate. There is no fee required for
a permit to deepen a well previously drilled or being drilled under a permit
issued by the Supervisor.
(4)
Directional Drilling.
(a) All
wells must be drilled with due diligence to maintain a reasonably vertical
wellbore; however, upon application by an operator to drill a well that is to
be intentionally deviated and directionally controlled, a permit maybe issued
by the Supervisor, provided that the proposed location of the bottom hole in
the deviated well at the depth of the proposed producing zone is in compliance
with the applicable spacing rules. The application for a permit to
directionally drill shall be made in the manner prescribed above using Form
OGB-1B, and the survey plat must show the proposed bottom hole location in
addition to the surface location of the well.
(b) If an operator desires to directionally
drill or sidetrack a permitted well, such operator, prior to initiating, any
activities shall file with the Supervisor Form OGB-1B and a plat showing the
surface location and the proposed bottom hole location of the directionally
drilled or sidetracked well.
(c) In
the event an operator, in good faith, proceeds with the drilling of a well and
thereafter, decides to directionally drill or sidetrack the well, such operator
shall obtain prior approval of the Supervisor and, thereafter, shall
immediately file with the Supervisor Form OGB-1B and a plat showing the surface
location and the proposed bottom hole location of the directionally drilled or
sidetracked well.
(d) If an
operator desires to deviate a well so as to straighten the wellbore or to drill
around an obstruction in the wellbore, such operator shall first obtain
approval of the Supervisor and shall file a written report to the Supervisor
within thirty (30) days from the completion of said deviation setting forth the
facts of the operation.
(5)
Permit Approval Procedures.
Applications for permits to drill, deepen, convert, or reenter that do not
comply with coalbed methane rules or applicable special field rules shall be
approved or rejected by the Board, after due notice and hearing. Applications
in compliance with onshore rules or applicable special field rules may be
approved by the Supervisor. Drilling, deepening, converting or reentering shall
not begin until such permit is issued.
(6)
Expiration of a Permit. A
permit shall expire six (6) months from the date of issuance if the permitted
well has not been spudded.
See history note at end of
chapter.
Author: Marvin Rogers
Statutory Authority:
Code of Ala.
1975, §§
9-17-1, et
seq.
