Current through Register Vol. 49, No. 2, February 2024
RULE B-7: WHEN WELLS SHALL BE PLUGGED AND
ABANDONED AND NOTICE OF INTENTION TO PLUG AND ABANDON
WELLS
a) The
current permit holder is responsible for plugging wells as defined in this
rule. In the case of leaking wells, plugging responsibility is in accordance
with General Rule B-26 (k) and (l).
b) All new wells drilled for liquid
hydrocarbons, natural gas, or brine exploration, or brine production, water
supply or injection purposes, except such holes as are described in Rule B-10,
regardless of depth are required to be either properly cased with production
casing or the uncased well or dry hole shall be plugged and abandoned in
accordance with applicable commission rules, unless an extension of time to
plug is granted in accordance with subparagraph (c) below.
c) Uncased wells and dry holes
1) Any well in which production casing is not
set and cemented shall be plugged in accordance with applicable commission
rules, prior to the time that the equipment used to drill said well is released
from the drilling operation. In the case of "staged" drilling operations, where
multiple drilling rigs are used to drill the well over a period of time,
production casing shall be set and cemented within 180 days after setting of
the surface casing or the well shall be plugged, unless an extension of time to
plug is granted in accordance with subparagraph 2) below.
2) The Director however, may grant an
extension of time to plug an uncased well. In determining whether to grant an
extension and in determining the length of an extension, the Director may
consider:
A) The permit holders specific
plans for further wellbore utilization,
B) The total depth of the well,
C) The depth of surface and any intermediate
casing,
D) A description of the
current condition of the hole including a description of the type of drilling
fluids currently in the well,
E)
The location of the well.
3) If the Director determines that the
uncased well presents a risk of contamination to the environment or a risk to
public safety the Permit Holder shall be required to repair, case, plug or
perform other remediation measures to the well, as determined by the Director,
within twenty four (24) hours after notification by the Director.
d) All cased wells utilized for
liquid hydrocarbons, natural gas or brine production, water supply or injection
purposes, except such holes as are described in Rule B-10 or liquid
hydrocarbons production wells located on actively producing leases, shall be
plugged and abandoned in accordance with applicable commission rules after the
well has been idle for more than 24 months, or sooner should the Director
determine that the cased well presents a risk of contamination to the
environment or a risk to public safety, unless an application is filed to
request temporary abandonment status for the well in accordance with
subparagraph h) below. Upon such determination by the Director or if temporary
abandonment status is denied, the Permit Holder shall commence plugging the
well within 30 days after notification by the Director. Failure to commence
plugging the well within 30 days after notification by the Director may result
in the initiation of well abandonment proceedings in accordance with General
Rule G-1.
e) Prior to the
commencement of any work in plugging and abandonment operations, the permit
holder or other person responsible for the conduct of the drilling operations
shall give notice of the intent to plug and abandon such well in a form
prescribed by the Director as follows:
1) For
uncased wells and dry holes, notice shall be provided via verbal or facsimile
communication to the Commission Regional Office where the well is located, as
soon as possible, but no less than 8 hours, prior to commencement of plugging
operations.
2) For cased wells,
written notice on a form prescribed by the Director shall be provided to the
Commission Regional Office where the well is located, at least 72 hours prior
to the commencement of plugging operations.
f) Upon receipt and review of such verbal or
written notice, the Commission Regional Office shall authorize the commencement
of plugging operations and may send a duly authorized Commission representative
to the well location to witness the plugging of such well.
g) Authorization to plug and abandon is not
granted unless the appropriate notice, as specified in subparagraph (e) above,
has been provided to the Oil and Gas Commission by the permit holder or person
responsible for the plugging of the well. Plugging of the well without
providing proper notice as required can result in the Permit Holder being
required to drill out the well plugs and the well replugged under Commission
observation.
h) Temporary
Abandonment Status
1) An application for
temporary abandonment status shall be made on form prescribed by the Director
and, if approved, shall be valid for a period not to exceed three (3) years
from the date of the Director's approval. At the expiration of the three (3)
year period the Permit Holder shall commence plugging operations within thirty
(30) days, or file an application to request a hearing before the Commission in
accordance with General Rules A-2, A-3 and other applicable hearing procedures
to request an extension of the three (3) year period of the temporary
abandonment status. Wells in an approved waterflood/enhanced oil recovery unit
are exempt from the initial three (3) year time limit as long as the unit
remains active.
2) Wells which have
not produced for more ten (10) years are not eligible for approval by the
Director of temporary abandonment status, unless the well is in an approved
waterflood/enhanced oil recovery unit that remains active. Temporary
abandonment status for these wells may only be granted by the Commission after
notice and a hearing in accordance with General Rule A-2, A-3 and other
applicable hearing procedures.
3)
Temporary abandonment status shall be approved by the Director provided:
A) Financial Assurance in the amount of
$35,000 per well for any dry natural gas production well, or $15,000 per well
for any liquid hydrocarbon production well is submitted for each well. The
Financial Assurance shall be in a form as prescribed by General Rule B-2, and
shall remain valid until the well is put back into sustained production,
plugged or a transferred, and
B)
The well is secured with a suitable wellhead with no leakage of any substance
at the surface, and
C) The well
site is maintained in accordance with General Rule B-26 i), and
D) Proper well identification is maintained
in accordance with General Rule B-26 b), and
E) Useable groundwaters are protected
utilizing one of the following methods:
i)
Set a drillable, retrievable or other type of mechanical bridge plug above the
producing interval, in the cemented portion of the production casing, but at
least 150 feet below the base of the lowest usable groundwater in the area, and
secured at the surface with a wellhead and valve in operable condition;
or
ii) Set a packer run on tubing
above the producing interval, in the cemented portion of the production casing,
but at least 150 feet below the base of the lowest usable groundwater in the
area, and secured at the surface with suitable wellhead packoff equipment and
closed to the atmosphere or with a wellhead and valve in operable condition;
iii) Run a casing inspection log
confirming the mechanical integrity of the production casing and secured at the
surface with a wellhead and valve in operable condition; or
iv) Conduct a fluid level test by wireline or
other approved electronic or mechanical means, which determines that the static
fluid level is at least 150 feet below the base of the lowest usable
groundwater in the area, and upon no less than 48 hours notice prior to
conducting the fluid level test, which may be witnessed by commission staff.
The fluid level test shall be conducted annually, within 60 days prior to the
anniversary date of the temporary abandonment during each year of the three (3)
year temporary abandonment period.
4) Failure to maintain any of the above
conditions may result in the issuance of a Notice of Violation ("NOV"). Failure
of the Permit Holder to comply with the NOV, or other applicable final
administrative decision in accordance with General Rule A-5, shall result in
the revocation of the temporary abandonment status and require the well to be
plugged in thirty (30) days, unless an extension of time to plug is granted
after notice and hearing.
5) Wells
returning to active status from temporary abandonment status shall file for
authorization to commence production operations on a form prescribed by the
Director.
