Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO: KRS 353.550(1), 349.040, 349.155, 349.570,
353.991
NECESSITY, FUNCTION, AND CONFORMITY: KRS 353.550(1) and KRS 349.115 authorizes the Department for Natural Resources to promulgate
administrative regulations requiring an operator of oil and gas properties in
the Commonwealth to identify producing leases. KRS 349.115 authorizes the
department to promulgate administrative regulations to implement KRS Chapter
349. This administrative regulation is necessary to specify the requirement of
annual reporting, the content of the report, and the form on which the report
shall be made.
Section 1. Annual Report
of Monthly Production.
(1) An oil or gas
operator shall:
(a) Compile and retain records
of the monthly production of natural gas and crude oil; and
(b) For the preceding year, file the
production information with the Division by April 15.
(2) The information may be submitted to the
division:
(a) On Form OG-17, "Annual Report of
Monthly Production for Natural Gas and/or Crude Oil"; or
(b) By using:
1. Common personal computer spread sheet or
database software;
2. An electronic
mail attachment.
(3) An operator shall be permitted to submit
the information in accordance with subsection (2)(b) of this section, subject
to the division being able to process the production data
electronically.
(4) The following
shall be included in the information submitted by the operator:
(a) Operator name and address;
(b) Production year;
(c) Permit number issued by the Division of
Oil and Gas;
(d) Purchaser
number;
(e) Number of wells on the
lease for which the report is being filed;
(f) Farm name, complete with the individual
well name and well number;
(g)
County of production;
(h) Producing
formation or, if production is commingled from multiple wells which are not
metered separately, the identification of the wells as "commingled" and the
pertinent formations from which production was made;
(i) The location of the tank battery
affiliated with the well; and
(j)
Well status, identified as producing or shut-in.
(5) Production from a gas well shall be
reported in Mcf of net gas sales by well. In addition to reporting net gas
sales, produced gas may also be reported at the option of the
operator.
(6) Monthly oil
production shall be reported in barrels by individual well or by lease; if by
lease, the operator shall attach to Form OG-17 a list identifying the purchaser
number and division permit number of all wells producing on that
lease.
(7) For a well drilled prior
to the date upon which a permit for the drilling and production of a well was
statutorily required, the operator shall provide a Carter Coordinate location
for each well not having a location on file with the division. That location
may be estimated by a topographic spot, a GPS locator, or by survey.
(8) Production information reported pursuant
to this administrative regulation shall be organized into a standard format and
shall be made available for public release no earlier than January 1 nor later
than March 1 of the following year.
Section 2. Penalties. If an operator does not
file his production data on Form OG-17 by April 15 after each production year,
the division shall notify the operator in writing of the noncompliance. If the
operator does not submit all required production information within forty-five
(45) days after being notified of the noncompliance, the operator shall be
subject to denial of permits in accordance with KRS 353.570 or KRS 349.040 for
coalbed methane wells and the penalties established in KRS 353.991(2), (3) and (4) or KRS 349.155 for coalbed methane wells.
Section 3. Incorporation by Reference.
(1) "Annual Report of Monthly Production for
Natural Gas and/or Crude Oil", OG-17, October 2019 is incorporated by
reference.
(2) This material may be
inspected, copied, or obtained, subject to applicable copyright law, at the
Kentucky Department for Natural Resources, Division of Oil and Gas, 300 Sower
Boulevard, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30
p.m., Eastern Prevailing Time.
STATUTORY AUTHORITY: KRS 349.115, 353.540, 353.550(4),
353.670(1)
