Administrative Rules of Montana
Department 36 - NATURAL RESOURCES AND CONSERVATION
Chapter 36.22 - OIL AND GAS CONSERVATION
Subchapter 36.22.17 - Horizontal Wells and Enhanced Tax Recovery Incentives
Rule 36.22.1704 - DETERMINATION OF PRODUCTION DECLINE RATE
Current through Register Vol. 18, September 20, 2024
(1) Production decline rates used for calculation of incremental production from secondary and tertiary recovery projects and expanded enhanced recovery projects will be determined by the board upon application of the operator and after notice and hearing. This determination may be made con-currently with the approval and certification of the enhanced recovery project, or at a subsequent hearing.
(2) The production decline rate for a project will be based on the primary producing mechanism(s) of the reservoir and, where applicable, the secondary recovery mechanism(s) of the project and the production history of the project. Where the production history of the project area is sufficient a decline rate will be determined by applying an exponential or hyperbolic method of analysis. If production history is not sufficient or appropriate an exponential or hyperbolic method may be applied to an analogous project, field, or well. Conventional or numeric reservoir performance analysis methods may also be used.
(3) The applicant for a hearing will file with the board's staff the production history data, the proposed analysis method(s), and any supporting information which the applicant intends to present at the hearing. This filing will be sufficiently in advance of the hearing to allow the staff an opportunity to review the data and methods selected in order to provide a recommendation for approval, modification, or rejection of the application to the board.
(4) The determination of the decline rate for individual wells in primary production which have been horizontally recompleted will be done by filing a request for determination with the board's staff. The operator may propose the method of analysis and provide data which it wishes the board's staff to use in the determination. The staff's determination will be presented to the board at the next available regular meeting. In the absence of a protest of the determination further evidence or testimony will not be required.
Sec. 7-7-2101 and 82-11-111 MCA; IMP, Sec. 15-23-601 and 15-36-101 MCA;
