Louisiana Administrative Code
Title 43 - NATURAL RESOURCES
Part XIX - Office of Conservation-General Operations
Subpart 1 - Statewide Order No. 29-B
Chapter 1 - General Provisions
Section XIX-137 - Plugging and Abandonment
Universal Citation: LA Admin Code XIX-137
Current through Register Vol. 50, No. 9, September 20, 2024
A. Deadlines for Abandonment
1. Inactive, Future
Utility Wells. All inactive wells classified as having future utility shall be
plugged within five years of the date of the well becoming inactive. Failure to
accurately report wells on the inactive well report shall be subject to the
provisions of
R.S.
30:17.
a.
For wells that have been inactive for a period of four years or more on the
effective date of this rule, the well shall be plugged within one year of the
effective date of this Rule.
b. If
an operator chooses not to plug an inactive well in accordance with this
Section for reasons of future utility, an annual assessment shall be assessed
until the well is plugged in the amount specified by Table 1 hereof depending
on the total depth of the well and length of inactivity according to the Office
of Conservation records.
|
Table 1-Annual Well Assessment Amounts |
||
|
Length of Inactivity (years) |
||
|
Total Depth (ft.) |
5-10 |
10+ |
|
0-3,000 |
$125 |
$188 |
|
3,001-9,999 |
$250 |
$375 |
|
10,000+ |
$500 |
$750 |
c.
For all inactive wells not already covered by financial security as required in
§104, financial security shall be provided within one year of the promulgation
of this Rule.
d. All inactive wells
shall be subject to the above provisions until the well has reported production
for three consecutive months.
2. Other Wells on or after Effective Date of
Order
a. All such wells classified on the
inactive well report by either the operator, the engineering enforcement
section manager or the district manager as having no future utility shall be
plugged within 90 days from the date of such classification.
b. All wells classified on the inactive well
report as having no future utility shall be subject to an annual assessment
specified by Table 1 hereof depending on the total depth of the well and the
length of inactivity according to Office of Conservation records. Wells which
have been inactive for more than 90 days but less than 10 years will be
assessed using the amount for 5-10 years specified by Table 1.
c. For all inactive wells not already covered
by financial security as required in §104, financial security shall be provided
within one year of the promulgation of this Rule.
3. Reduction of Inactive Well Assessment
Amounts Based on Plugging Activity
a.
Operators that plug ten or more wells during the calendar year immediately
preceding an inactive well assessment may apply for a reduction in the inactive
well assessment based on Table 2 hereof for each well plugged and abandoned
based on Office of Conservation records.
|
Table 2-Annual Well Assessment Reduction Amounts Based on Wells Plugged |
|
|
Total Depth (ft.) |
Reduction Amount |
|
0-3,000 |
$375 |
|
3,001-9,999 |
$750 |
|
10,000+ |
$1500 |
4. Reporting
a. All wells wherein production operations or
use as a service well have ceased on or after the effective date of this order
shall continue to be reported on the Form DM-1-R or Form DT-1 with the
appropriate notation that the well is off production or no longer in use as a
service well along with the date of last production or date the service well
ceased to be used; and, after six months, if such a well has not been restored
to production or use as a service well, it shall thereafter be reported by the
operator on the semiannual inactive well report, Form INACT WR-1 (1974) which
report shall be filed with the Department of Conservation showing the status of
such well as of May 1 and November 1 of each year (report to be filed no later
than May 25 and November 25). Such wells shall continue to be reported on the
Form DM1-R or Form DT-1 showing the date of last production or the date the
well ceased to be used as a service well, together with a notation showing the
well is carried on the Form INACT WR-1 (1974), Inactive Well Report, until the
well is plugged and abandoned.
b.
The inactive well report shall list the field, well name, well number and other
pertinent data and provide an appropriate column to classify such well as
having either future utility, or no future utility. If the well is classified
as having future utility, operator shall specify such utility by completing the
appropriate column on the form. Wells so classified shall be reviewed
periodically by the district manager who, at his discretion, may require an
operator to supply additional information to justify the
classification.
c. Administrative
Interpretation. For purposes of administering the heretofore mentioned
paragraphs, it is understood that:
i. a
wellbore which is completed in more than one common source of supply (multiple
completions) shall not be considered as ceasing to produce and shall not be
reported on the inactive well report as long as there is production from or
operations in any completion in the wellbore;
ii. wells classified as having future utility
may be off production or shut-in but are considered to have future utility for
producing oil or gas, or for use as a service
well.
B. The responsibility of plugging any well over which the commissioner of conservation has jurisdiction shall be the owner(s) of record.
C. In the event any owner(s) responsible for plugging any well fails to do so, and after a diligent effort has been made by the department to have said well plugged, then the commissioner may call a public hearing to show cause why said well was not plugged.
D. The commissioner or his agent may require the posting of a reasonable bond with good and sufficient surety in order to secure the performance of the work of proper abandonment.
E. The district manager shall be notified immediately by the new operator whenever a change of operator occurs. This must be accomplished by submitting Department of Conservation Form MD-10-RA (application for amended permit to drill for minerals) to reflect the new operator.
F. Plugging Procedures
1. Notification of intention to plug any well
or wells over which the commissioner of conservation has jurisdiction, shall be
given to the appropriate district manager prior to the plugging thereof.
Notification shall be made in writing to the district office in the form of a
work permit (Form DM-4 Rev.) for which an original and three copies are
required. Where plugging involves a well with a rig on location, the district
manager may grant verbal approval to plug and abandon the well provided the
work permit is subsequently submitted. Any operator who fails to comply with
this requirement may be required by the district manager to place additional
cement plug(s) and/or prove the plug(s) are placed as the operator states they
are.
2. Once an operator has been
issued a work permit to plug and abandon a well by the appropriate district
manager, then said operator shall be required to contact the appropriate oil
and gas inspector a minimum of 12 hours prior to beginning the plugging
operations. During drilling and/or workover operations, the requirement to
contact the appropriate oil and gas inspector a minimum of 12 hours prior to
beginning the plugging operations shall be waived at the time verbal
notification is made to the district office.
3. In plugging wells, it is essential that
all oil or gas bearing formations be protected.
a. Sufficient cement shall be used to
adequately isolate each perforated pool, one from the other. A cement plug of
at least 100 feet shall be placed immediately above or across the uppermost
perforated interval of the pool. If he deems it advisable, the district manager
may allow a bridge plug with a minimum of 10 feet of cement on top to be placed
immediately above each producing pool.
b. In wells completed with screen or
perforated liners, if it is impractical for the operator to remove the screen
or perforated liner, he shall place a cement plug of at least 100 feet with the
bottom as near as practical to the top of the screen or liner. If the district
manager deems it advisable, a bridge plug with a minimum of 10 feet of cement
on top and placed as near as practical to the top of the screen or liner may be
used in lieu of the cement plug.
c.
When production casing is not run or is removed from the well, a cement plug of
at least 100 feet shall be placed from at least 50 feet below the shoe of the
surface casing to at least 50 feet above. In lieu of the above, the operator
shall have the option of using a cement retainer placed at least 50 feet above
the surface casing shoe and a sufficient amount of cement shall be squeezed
below the retainer to form a cement plug from the base of the retainer to 50
feet below the base of the surface casing. A 10-foot cement plug shall be
placed on top of the retainer.
d.
If fresh-water horizons are exposed when production casing is removed from the
well, or as a result of production casing not being run, a cement plug shall be
placed fro m at least 100 feet below the base of the deepest fresh-water sand
to at least 150 feet above the base of the sand. A cement plug of at least 100
feet shall also be placed from at least 50 feet below the shoe of the surface
casing to at least 50 feet above it. In lieu of the above, the operator shall
have the option of using a cement retainer placed at least 50 feet above the
surface casing shoe and a sufficient amount of cement shall be squeezed below
the retainer to form a cement plug from the base of the retainer to 50 feet
below the base of the surface casing. A 10-foot cement plug shall be placed on
top of the retainer.
e. The setting
and location of the first plug below the top 30-foot plug shall be verified by
tagging. In the event a retainer is used, tagging will not be
necessary
f. Additional cement
plugs shall be placed to adequately contain any high pressure oil, gas or water
sands or as may be required by the district manager.
g. A 30-foot cement plug minimum shall be
placed in the top of the well.
h.
Mud laden fluid of not less than 9 pounds per gallon shall be placed in all
portions of the well not filled with cement, unless otherwise approved by the
district manager.
i. All cement
plugs shall be placed by the circulation or pump down method unless otherwise
authorized by the district manager. The hole must be in a static condition at
the time the plugs are placed.
j.
After placing the top plug, the operator shall be required on all land
locations to cut the casing a minimum of two feet below plow depth. On all
water locations, the casing shall be cut a minimum of 10 feet below the mud
line. If an operator contemplates reentering the well at some future date for
saltwater disposal or other purpose, the district manager may approve after
receiving written request from an operator not to cut off the casing below plow
depth or mud line.
k. The plan of
abandonment may be altered if new or unforeseen conditions arise during the
well work but only after approval by the district manager.
4. Upon plugging any well for any cause, a
complete record thereof shall be made out, duly verified and filed in
triplicate on Form P&A in the district office within 20 days after the
plugging of such well. A cementing report shall be filed with the plugging
report.
G. Well to be Used for Fresh Water. When the well to be plugged may be safely used as a fresh-water well and the owner or owners of the well have, by a mutual written agreement with the landowner, agreed to turn the well over to the landowner for that purpose, then the well need not be filled above the plug set below the fresh-water formation; provided, however, that the signed agreement or (if recorded in the public records) a certified copy thereof be filed with the appropriate district manager, which shall relieve the owner or owners who turn the well over to the landowner from responsibility above the plug. The plugging report shall indicate that the well has been or will be converted to a fresh water well.
H. Temporary Abandonment of Drilling Wells. Any drilling well which is to be temporarily abandoned and the rig moved away, shall be mudded and cemented as it would be for permanent abandonment, except a cement plug at the surface may be omitted.
AUTHORITY NOTE: Promulgated in accordance with R.S. 30:4 et seq.
Disclaimer: These regulations may not be the most recent version. Louisiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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