Current through Register Vol. 49, No. 2, February 2024
a) Domestic
Natural Gas Wells
1) Any well drilled by
persons for use as a domestic, livestock or agriculture natural gas source, is
not under the jurisdiction of the Commission and is not subject to permitting
or regulation by the Commission, provided such natural gas is not sold or
gathered for sale to others. Such wells may be subject to other applicable
State laws.
2) If the gas produced
from a well operating as a domestic use well is gathered for resale to others,
that well is under the jurisdiction of the Commission and shall be subject to
all applicable regulatory requirements of the Commission and any other
applicable state laws regarding the production, gathering and distribution of
natural gas for use by consumers.
b) Domestic Use Transfer(s) after November
16, 2008.
1) A controlled natural gas
production well, required to be permitted by the Commission, may be transferred
to a surface owner for use as a domestic natural gas supply well if the well
has not produced commercial quantities of natural gas during the previous
twenty four (24) calendar months provided:
A)
The operator files, on a form prescribed by the Director, a request to transfer
the well to the surface owner, which shall include written documentation from
the surface owner accepting transfer of the well for use as a domestic natural
gas supply well; and
B) A statement
by the surface owner and the operator that the natural gas from the well will
be used on the property where the well is located and that any natural gas
production from the well will not be sold; and
C) Written documentation from all owner(s),
as defined in Ark. Code Ann. § 15-72-102 (9), and all mineral owners in
the drilling unit upon which the well is located, stating that they do not
object to the transfer of the well to the surface owner.
2) An oil or natural gas production well may
be transferred to a surface owner for use as a domestic or livestock freshwater
supply well provided:
A) The operator files,
on a form prescribed by the Director, a request to transfer the well to a
surface owner prior to commencing plugging operations, which shall include
written documentation from the surface owner accepting transfer of the well for
use as a freshwater supply well; and
B) The well is plugged in accordance with
current Commission plugging requirements with respect to all oil and natural
gas producing zones and a cement plug is placed, on the inside and outside of
the production casing if left in the well, from 100 feet below the base of the
fresh water extending up to the base of the fresh water in the well;
and
C) All related surface
production equipment is removed from the well site.
3) Following completion of the above domestic
use well transfer requirements, all regulatory oversight of the well by the
Commission shall terminate and the well shall become the sole responsibility of
the surface owner. The well shall be subject to any applicable state laws
regarding private fresh water wells or domestic natural gas supply wells
administered by state and or federal agencies other than the Arkansas Oil and
Gas Commission.
c)
Uncontrolled natural gas production wells may not be transferred for domestic
use, unless otherwise approved the Commission after notice and a hearing.
Notice shall be given to all owner(s), as defined in Ark. Code Ann. §
15-72-102 (9), and all mineral owners in the leasehold upon which the well is
located. Any person requesting a transfer of an uncontrolled natural gas
production well shall file an application in accordance with General Rules A-2,
A-3, and other applicable hearing procedures.
d) Domestic Use Transfer(s) prior to November
16, 2008.
Any natural gas production well transferred to a surface owner
for use as a domestic natural gas supply well prior to November 16, 2008, shall
no longer be subject to the regulatory oversight by the Commission as long the
natural gas from the well is used only on the property where the well is
located and that any natural gas production from the well is not
sold.
