Current through Supplement No. 392, April, 2024
1. The director
shall have the authority to approve requests to consolidate production
equipment at a central location.
2.
Commingling of production from two or more wells in a central production
facility is prohibited unless approved by the director. There are two types of
central production facilities that may be approved by the director.
a. A central production facility in which all
production going into the facility has common ownership (working interests,
royalty interests, and overriding royalties), known as a common ownership
central production facility. The director may approve a common ownership
central production facility provided the production from each well can be
accurately determined at reasonable intervals.
b. A central production facility in which
production going into the facility has diverse ownership, known as a diverse
ownership central production facility. The director may approve a diverse
ownership central production facility provided the production from each well is
accurately metered prior to commingling. A diverse ownership central production
facility that is not metered prior to commingling may only be approved by the
commission after notice and hearing.
3. Common ownership central production
facility. The application for permission to commingle solutions must be
submitted on a sundry notice (form 4-sm) and shall include the following:
a. A plat or map showing thereon the location
of the central facility and the name, well file number, and location of each
well and flow lines from each well that will produce into the
facility.
b. A schematic drawing of
the facility which diagrams the testing, treating, routing, and transferring of
production. All pertinent items should be shown, such as treaters, tanks, flow
lines, valves, meters, and recycle pumps.
c. An affidavit executed by a person who has
knowledge as to the state of title demonstrating common ownership.
d. An explanation of the procedures or method
to be used to accurately determine individual well production at periodic
intervals. Such procedures or method shall be performed at least once every
three months.
A copy of all tests are to be filed with the director on form
11-sm within thirty days after the tests are completed.
4. Diverse ownership central
production facility. The application for permission to commingle solutions must
be submitted on a sundry notice (form 4-sm) and shall include the following:
a. A plat or map showing thereon the location
of the central facility and the name, well file number, and location of each
well, and flow lines from each well that will produce into the
facility.
b. A schematic drawing of
the facility which diagrams the testing, treating, routing, and transferring of
production. All pertinent items should be shown, such as treaters, tanks, flow
lines, valves, meters, and recycle pumps.
c. The name of the manufacturer, size, and
type of meters to be used. The meters must be proved at least once every three
months and the results reported to the director within thirty days following
the completion of the test.
d. An
explanation of the procedures or method to be used to accurately determine
individual well production at periodic intervals. Such procedures or method
shall be performed monthly.
A copy of all tests are to be filed with the director on form
11-sm within thirty days after the tests are completed.
5. Any changes to a previously
approved central production facility must be reported on a sundry notice (form
4-sm) and approved by the director.
General Authority: NDCC
38-12-02
Law Implemented: NDCC
38-12-02
