Current through Reg. 49, No. 12; March 22, 2024
(a)
Definitions. The following words and terms, when used in this section, shall
have the following meanings, unless the context clearly indicates otherwise.
(1) Correlative interval--The depth interval
designated by the field rules or by new field designation on Form P-7 (New
Field Designation).
(2) First take
point--The take point in a horizontal drainhole well nearest to the point where
the drainhole penetrates the top of the correlative interval. The first take
point may be at a location different from the penetration point.
(3) Horizontal drainhole--That portion of the
wellbore drilled in the correlative interval, between the penetration point and
the terminus.
(4) Horizontal
drainhole displacement--The calculated horizontal displacement of the
horizontal drainhole from the first take point to the last take
point.
(5) Horizontal drainhole
well--Any well that is developed with one or more horizontal drainholes having
a horizontal drainhole displacement of at least 100 feet.
(6) Last take point--The take point in a
horizontal drainhole well nearest the terminus. The last take point may be at a
location different from the terminus.
(7) Nonperforation zone (NPZ)--A portion of a
horizontal drainhole well within the field between the first take point and the
last take point that the operator has intentionally designated as containing no
take points pursuant to the spacing requirements in §
RSA
3.37 of this title (relating to Statewide
Spacing Rule).
(8) Penetration
point--The point where the drainhole penetrates the top of the correlative
interval.
(9) Record well--The
single horizontal drainhole within a stacked lateral well designated by the
operator as the record well for reporting purposes.
(10) Stacked lateral well--A horizontal
drainhole well in which the following conditions are met:
(A) there are two or more horizontal
drainhole wells on the same lease, pooled unit, or unitized tract at different
depths within the correlative interval for the field;
(B) the horizontal drainholes are drilled
from different surface locations;
(C) all take points of a stacked lateral
well's horizontal drainholes are within a rectangular area the width of which
is 660 feet, and the length of which is 1.2 times the distance between the
first and last take points of the record well;
(D) all horizontal drainholes are tested
independently and have the same classification (i.e., gas or oil). Only
horizontal drainholes of the same classification are eligible to be designated
as a stacked lateral well; and
(E)
there is only one operator for the stacked lateral well.
(11) Take point in a horizontal drainhole
well--Any point along a horizontal drainhole where oil and/or gas can be
produced from the correlative interval.
(12) Terminus--The farthest point required to
be surveyed along the horizontal drainhole from the penetration point and
within the correlative interval.
(13) Unconventional fracture treated (UFT)
field--A field designated by the Commission under subsection (i) of this
section for which horizontal well development and hydraulic fracture treatment
(as defined in §
RSA
3.29<subdiv>(a)(15) and
(16)</subdiv> of this title (relating to
Hydraulic Fracturing Chemical Disclosure Requirements)) must be used in order
to recover resources from all or a part of the field and which may include the
drilling of vertical wells along with the drilling of horizontal
wells.
(b) Drainhole
spacing.
(1) No take point on a horizontal
drainhole shall be located nearer than 1,200 feet (horizontal displacement), or
other between-well spacing requirement under applicable rules for the field, to
any take point along any other horizontal drainhole in another well, or to any
other well completed or permitted in the same field on the same lease, pooled
unit, or unitized tract.
(2) No
take point on a horizontal drainhole shall be located nearer than 467 feet, or
other lease-line spacing requirement under applicable rules for the field, from
any property line, lease line, or subdivision line.
(3) All wells developed with horizontal
drainholes shall otherwise comply with §
RSA
3.37 of this title (relating to Statewide
Spacing Rule), or other applicable spacing rules.
(4) If the drilling permit application
indicates that there will be one or more NPZs, then the as-drilled plat filed
after completion of the well shall be certified by a person with knowledge of
the facts pertinent to the application that the plat is accurately drawn to
scale and correctly reflects all pertinent and required data. In addition to
the information required under subsection (f) of this section, the certified
as-drilled plat shall include:
(A) the
as-drilled track of the wellbore;
(B) the location of each take point on the
wellbore;
(C) the boundaries of any
wholly or partially unleased tracts within the distance permitted under §
RSA
3.37 of this title or applicable special
field rules of the wellbore; and
(D) notations of the shortest distance from
each wholly or partially unleased tract within the distance permitted under
§
RSA
3.37 of this title or applicable special
field rules of the wellbore to the nearest take point on the
wellbore.
(5) To comply
with the spacing requirements set forth in paragraph (3) of this subsection,
the take-points along the as-drilled location of a properly permitted
horizontal drainhole shall fall within a rectangle established as follows:
(A) two sides of the rectangle are parallel
to the permitted drainhole and 50 feet or 10% of the minimum distance to any
property line, lease line or subdivision line, whichever is greater, on either
side of the drainhole; and
(B) the
other two sides of the rectangle are perpendicular to the sides described in
subparagraph (A) of this paragraph, with one of those sides passing through the
permitted first take point and the other side passing through the permitted
last take point.
(6)
Prior to perforating the wellbore within an approved NPZ, the operator must
amend the permit to authorize perforations within the originally-approved
NPZ.
(c) Well densities.
All wells developed with horizontal drainholes shall comply with §
RSA
3.38 of this title (relating to Well
Densities) or other applicable density rules.
(d) Proration and drilling units.
(1) Acreage may be assigned to each
horizontal drainhole well for the purpose of allocating allowable oil or gas
production up to the amount specified by applicable rules for a proration unit
for a vertical well plus the additional acreage assignment as provided in this
paragraph.
Attached
Graphic
(2)
Assignment of acreage to proration and drilling units for horizontal drainhole
wells shall comply with §
RSA
3.40 of this title (relating to Assignment of
Acreage to Pooled Development and Proration Units).
(3) All proration and drilling units shall
consist of continuous and contiguous acreage and proration units shall consist
of acreage that can be reasonably considered to be productive of oil or
gas.
(4) The maximum daily
allowable assigned to a horizontal well shall comply with the table in
subsection (d)(1) of this section and the maximum daily allowable specified by
paragraph (5) of this subsection, unless special field rules specify different
requirements for acreage or maximum daily allowable.
(5) The maximum daily allowable for a
horizontal drainhole well in a designated UFT field shall be 100 barrels of oil
for each acre that is assigned to an oil well for allowable purposes, or 600
Mcf of gas for each acre that is assigned to a gas well for allowable purposes.
This paragraph does not affect suspension of the allocation formula under
§
RSA
3.31<subdiv>(j)</subdiv> of this
title (relating to Gas Reservoirs and Gas Well Allowable). The maximum daily
allowable for a horizontal drainhole well in a field that has not been
designated as a UFT field shall be determined by multiplying the applicable
allowable for a vertical well in the field with a proration unit containing the
maximum acreage authorized by the applicable rules for the field, exclusive of
tolerance acreage, by a fraction:
(A) the
numerator of which is the acreage assigned to the horizontal drainhole well for
proration purposes; and
(B) the
denominator of which is the maximum acreage authorized by the applicable field
rules for proration purposes, exclusive of tolerance acreage. The daily oil
allowable shall be adjusted in accordance with §
RSA
3.49<subdiv>(a)</subdiv> of this
title (relating to Gas-Oil Ratio), when applicable.
(6) All points on the horizontal drainhole
from the first take point to the terminus shall be within the proration and
drilling unit. If the penetration point is located on an offsite tract, the
conditions prescribed in subsection (g) of this section shall be met before the
drilling permit application is submitted to the Commission.
(e) Multiple drainholes allowed.
(1) A single well may be developed with more
than one horizontal drainhole originating from a single vertical
wellbore.
(2) A horizontal
drainhole well developed with more than one horizontal drainhole shall be
treated as a single well.
(3) The
horizontal drainhole displacement used for calculating additional acreage
assignment for a well completed with multiple horizontal drainholes shall be
the horizontal drainhole displacement of the longest horizontal drainhole plus
the projection of any other horizontal drainhole on a line that extends in a
180 degree direction from the longest horizontal drainhole.
(f) Stacked lateral wells.
(1) For oil and gas wells, stacked lateral
wells within the correlative interval for the field may be considered a single
well for density and allowable purposes, at an operator's discretion. If an
operator chooses to designate horizontal drainholes as a stacked lateral well,
the operator shall designate:
(A) one
horizontal drainhole within the stacked lateral well as the record well. An
operator may change the record well designation to another wellbore by filing
amended drilling permit applications and completion reports for the previous
and the new record well; and
(B)
all points, from the first take point to the last take point, of the record
well for a stacked lateral well are within the proration and drilling unit
designated for that well. Notwithstanding paragraph (4) of this subsection, all
points from the first take point to the last take point of any other horizontal
drainhole comprising the stacked lateral well are not required to be within the
proration and drilling unit designated for the record well so long as they
otherwise comply with the requirements of this section and any applicable lease
line spacing rules.
(2)
For the purpose of assigning additional acreage to the stacked lateral well,
the horizontal drainhole displacement shall be calculated based on the distance
from the first take point to the last take point in the horizontal drainhole
for the record well, regardless of the horizontal drainhole displacement of
other horizontal drainholes of the stacked lateral well.
(3) Each surface location of a stacked
lateral well shall be permitted separately and assigned an API number. When
applying for a drilling permit for a stacked lateral well, the operator shall:
(A) identify each surface location of such
well as a stacked lateral well on the Form W-1 drilling permit
application;
(B) identify on the
plat any other existing, or applied for, horizontal drainholes comprising the
stacked lateral well being permitted; and
(C) depict on the plat a rectangle described
in subsection (a)(10)(C) of this section indicating the lateral boundaries of
the stacked lateral well.
(4) Each horizontal drainhole of a stacked
lateral well shall comply with: the applicable minimum spacing distance under
§
RSA
3.37 of this title or any applicable special
field rules for any lease, pooled unit or property line; and the applicable
minimum between well spacing distance under §
RSA
3.37 of this title or any applicable special
field rules for any different well, including all horizontal drainholes of any
other stacked lateral well, on the same lease or pooled unit in the field. An
operator may seek an exception to §
RSA
3.37 or §
RSA
3.38 of this title for stacked lateral wells
in accordance with the Commission's rules in this chapter or any applicable
special field rule. There are no maximum or minimum distance limitations
between horizontal drainholes of a stacked lateral well in a vertical
direction.
(5) An operator shall
file separate completion forms for each surface location of the stacked lateral
well. An operator shall also file a certified plat showing the as-drilled
location for each surface location of a stacked lateral well. The certified
as-drilled plat shall:
(A) show each
horizontal drainhole from each surface location; and
(B) depict on the plat a rectangle described
in subsection (a)(10)(C) of this section indicating the lateral boundaries of
the stacked lateral well.
(6) In addition to the record well, each
surface location of a stacked lateral well shall be listed on the proration
schedule, but no allowable shall be assigned for an individual surface
location. Each surface location of a stacked lateral well shall be required to
have a separate well status report (Form G-10 or Form W-10, as applicable) and
the sum of all horizontal drainhole test rates shall be reported as the test
rate for the record well.
(7) An
operator shall report all production from horizontal drainholes included as a
stacked lateral well on the production report that includes the record well.
Production reported for a record well shall equal the total production from all
of the horizontal drainholes comprising the stacked lateral well. An operator
shall measure the production from each surface location of a stacked lateral
well. An operator shall measure the full well stream with the measurement
adjusted for the allocation of condensate based on the gas to liquid ratio
established by the most recent Form G-10 test rate for that surface location.
The gas and condensate production shall be identified by individual API number,
and recorded and reported on the "Supplementary Attachment to Form
PR".
(8) If the field is designated
as absolute open flow (AOF) pursuant to §
RSA
3.31<subdiv>(j)</subdiv> of this
title and that designation is removed, the Commission shall assign a single gas
allowable to each record well classified as a gas well. The assigned allowable
may be produced from any one, all, or a combination of the horizontal
drainholes that constitute the stacked lateral well.
(9) An operator shall file Form W-3A, Notice
of Intention to Plug and Abandon, and Form W-3, Well Plugging Report, for each
horizontal drainhole within the stacked lateral well as required by §
RSA 3.14 of
this title (relating to Plugging).
(10) In order to maintain a single operator
of record for a stacked lateral well, a certificate of compliance changing the
designation of an operator for a horizontal drainhole in a stacked lateral well
pursuant to §
RSA
3.58 of this title (relating to Certificate
of Compliance and Transportation Authority; Operator Reports) may only be
approved if certificates of compliance designating the same operator have been
filed for all horizontal drainholes within the stacked lateral well.
(11) An operator may remove a horizontal
drainhole from a designated stacked lateral well by filing an amended drilling
permit application and a completion report. If the horizontal drainhole being
removed is the record well for the stacked lateral and there are still multiple
horizontal drainholes remaining within the designated stacked lateral well,
then the operator shall designate a new record well for the stacked lateral
well prior to removing the existing record well from the designated stacked
lateral well.
(g)
Drilling applications and required reports.
(1) Application. Any intent to develop a new
or existing well with horizontal drainholes must be indicated on the
application to drill. An application for a permit to drill a horizontal
drainhole shall include the fees required by §
RSA
3.78 of this title (relating to Fees and
Financial Security Requirements), and shall be certified by a person acquainted
with the facts, stating that all information in the application is true and
complete to the best of that person's knowledge. If the penetration point on
the proposed horizontal drainhole is located on an offsite tract, the following
conditions shall be met prior to submission of the application to drill:
(A) The applicant shall give written notice
by certified mail, return receipt requested, to all mineral owners of any
offsite tracts through which the proposed wellbore path traverses from the
point of penetration. The notice shall identify the proposed well, include a
plat clearly depicting the projected path of the entire wellbore, and allow the
party notified not less than 21 days to object to the proposed offsite tract
penetration. Notice of offsite tract penetration is not required if:
(i) written waivers of objection are received
by the applicant from all mineral owners of any offsite tracts and the waivers
are attached to the drilling permit application; or
(ii) the applicant is the only mineral owner
of any offsite tracts.
(B) For purposes of this subsection, the
mineral owners of any offsite tracts through which the proposed wellbore path
traverses from the point of penetration include:
(i) the designated operator;
(ii) all lessees of record for any offsite
tracts which have no designated operator; and
(iii) all owners of unleased mineral
interests where there is no designated operator or lessee.
(C) In the event the applicant is unable
after due diligence to locate the whereabouts of any person to whom notice is
required by this subsection, the applicant shall publish notice of this
application pursuant to Chapter 1 of this title (relating to Practice and
Procedure).
(D) If any mineral
owner of an offsite tract objects to the location of the penetration point, the
applicant may request a hearing to demonstrate the necessity of the location of
the penetration point of the well to prevent waste or to protect correlative
rights.
(E) If any person specified
in subparagraph (B) of this paragraph did not receive notice as required in
subparagraph (A) of this paragraph, that person may request a hearing. If the
Commission determines at a hearing that the applicant did not provide the
notice as required by subparagraph (A) of this paragraph, the Commission may
cancel the permit.
(F) To mitigate
the potential for wellbore collisions, the applicant shall provide copies of
any directional surveys to the parties entitled to notice under this section,
upon request, within 15 days of the applicant's receipt of a request.
(2) Drilling unit plat. The
application to drill a horizontal drainhole shall be accompanied by a plat as
required by §
RSA
3.5<subdiv>(h)</subdiv> of this
title (relating to Application to Drill, Deepen, Reenter, or Plug Back).
(A) For fields that require a proration unit
plat, in addition to the plat requirements provided for in §
RSA
3.5<subdiv>(h)</subdiv> of this
title, the plat shall include the lease, pooled unit or unitized tract, showing
the acreage assigned to the drilling unit for the proposed well and the acreage
assigned to the drilling units for all current applied for, permitted, or
completed oil, gas, or oil and gas wells on the lease, pooled unit, or unitized
tract.
(B) An amended drilling
permit application and plat shall be filed after completion of the horizontal
drainhole well if the Commission determines that the drainhole as drilled is
not reasonable with respect to the drainhole represented on the plat filed with
the drilling permit application. A horizontal drainhole, as drilled, shall be
considered reasonable with respect to the drainhole represented on the plat
filed with the drilling permit application if the take points on the as-drilled
plat comply with subsection (b)(4) and (5) of this section and with any
applicable lease line spacing rules.
(3) Directional survey. A directional survey
from the surface to the farthest point drilled on the horizontal drainhole
shall be required for all horizontal drainholes. The directional survey and
accompanying reports shall be conducted and filed in accordance with §
RSA
3.11 and §
RSA
3.12 of this title (relating to Inclination
and Directional Surveys Required, and Directional Survey Company Report,
respectively). No allowable shall be assigned to any horizontal drainhole well
until an acceptable directional survey and survey plat has been filed with the
Commission.
(4) Proration unit
plat. The required proration unit plat must depict the lease, pooled unit, or
unitized tract, showing the acreage assigned to the proration unit for the
horizontal drainhole well, the acreage assigned to the proration units for all
wells on the lease, pooled unit, or unitized tact, and the path, penetration
point, take points, and terminus of all drainholes. No allowable shall be
assigned to any horizontal drainhole well until an acceptable proration unit
plat has been filed with the Commission. Proration unit plats are not required
for wells in a designated UFT field. However, an operator of a well in a
designated UFT field may file a proration unit plat along with Form P-16.
Designated UFT fields have no maximum diagonal limit.
(5) As-drilled plat. An as-drilled plat is
required for each horizontal drainhole well. The as-drilled plat for each
horizontal drainhole well shall show the surface location, actual wellbore
path, penetration point, terminus, and first and last take points of the
horizontal drainhole. If the drilling permit for the horizontal drainhole well
is approved with one or more NPZs, the as-drilled plat shall show the nearest
take point on either side of each NPZ.
(6) Plat requirements. All plats required by
this section shall be prepared using blue or black ink and shall include a
certification by a professional land surveyor registered in accordance with
Texas Occupations Code, Chapter 1071, relating to Land Surveyors, or by a
registered professional engineer registered in accordance with Texas
Occupations Code, Chapter 1001, relating to Professional Engineers.
(h) Exceptions and procedure for
obtaining exceptions.
(1) The Commission may
grant exceptions to this section in order to prevent waste, prevent
confiscation, or to protect correlative rights.
(2) If a permit to drill a horizontal
drainhole requires an exception to this section, the notice and opportunity for
hearing procedures for obtaining exceptions to the density provisions
prescribed in §
RSA
3.38 of this title shall be followed as set
forth in §
RSA
3.38<subdiv>(h)</subdiv> of this
title.
(3) For notice purposes, the
Commission presumes that for each adjacent tract and each tract nearer to any
point along the proposed or existing horizontal drainhole than the prescribed
minimum lease-line spacing distance, affected persons include:
(A) the designated operator;
(B) all lessees of record for tracts that
have no designated operator; and
(C) all owners of record of unleased mineral
interests.
(i)
UFT field designation criteria, application and approval procedures.
(1) Criteria for UFT field designation.
(A) Administrative UFT field designation. To
be designated administratively as a UFT field, a field shall have the following
characteristics:
(i) the in
situ permeability of at least one distinct producible interval within
the field is 0.1 millidarcies or less prior to hydraulic fracture treatment, as
determined by core data or other supporting data and analysis; and
(ii) as to producing wells for which the
Commission issued the initial drilling permit on or after February 1, 2012,
that have been completed in the field, either:
(I) there are at least five such wells of
which at least 65% were drilled horizontally and completed using hydraulic
fracture treatment; or
(II) there
are at least twenty-five such wells drilled horizontally and completed using
hydraulic fracture treatment.
(B) Alternative UFT field designation
obtained through evidentiary hearing. If an applicant demonstrates in a hearing
that reservoir characteristics exist other than the characteristics specified
in subparagraph (A) of this paragraph such that horizontal drilling and
hydraulic fracture treatment must be used in order to recover the resources
from all or a part of the field and that UFT field designation will promote
orderly development of the field, the hearings examiner may recommend to the
Commission that the field be designated as a UFT field.
(2) Procedures for UFT field designation.
(A) Commission motion to designate a UFT
field. The Commission may on its own motion propose that a field be designated
as a UFT field upon written notice of the motion to all operators in the field.
(i) If no written objection is filed within
21 days after the date the notice is issued, Commission staff may present a
recommendation to the Commission regarding designation of the field as a UFT
field.
(ii) If the Commission
receives a timely filed written objection, the Commission shall notify the
operators in the field that an objection was received and allow any operator in
the field 21 days to request a hearing. Pursuant to paragraph (1)(B) of this
subsection, the operator requesting the hearing shall bear the burden of proof
at the hearing. If no request to set the matter for hearing is received from an
operator in the field, the Commission may either dismiss the matter or set the
matter for hearing on its own motion. If the matter is set for hearing on the
Commission's motion, the proponents of UFT field designation shall bear the
burden of proof.
(B)
Operator application for UFT designation.
(i)
An operator may propose that a field be designated as a UFT field by submitting
an application to the Commission that includes an affirmative statement that
the field qualifies for designation as a UFT field and providing core data or
other supporting data and analysis in support of that affirmative
statement.
(ii) If, on review of
the completed application, Commission staff determines that the field meets the
criteria in paragraph (1)(A) of this subsection, Commission staff shall notify
all operators in the field that a UFT field designation order may be presented
to the Commission for approval not less than 21 days after the date the notice
is issued unless the Commission receives a written objection. If the applicant
provides written waivers of objection from all operators in the field, then
notice to the operators in the field shall not be required.
(iii) If the Commission receives a timely
filed written objection to the notice of the proposal to designate the field as
a UFT field, or if Commission staff determines that the field does not qualify
for designation as a UFT field, then the applicant for UFT field designation
may request that the application be set for hearing.
(iv) If the applicant requests a hearing, the
Commission shall send a notice of hearing to all operators in the field
proposed for designation as a UFT field at least 15 days in advance of the
hearing.
(v) Following a hearing on
the request, the hearings examiner may present a recommendation to the
Commission regarding the request to designate the field as a UFT
field.
(j) Effect of special field rules for UFT
fields.
(1) Special field rules for a UFT
field shall prevail over all conflicting provisions of this chapter.
(2) The Commission may on its own motion or
on the motion of an operator in a field call a hearing to review the current
special field rules applicable in a field that is designated or proposed to be
designated as a UFT field and request amendment or rescission of any portion of
the current field rules, in conjunction with such designation, so that the
field is regulated with the appropriate combination of special field rules and
the rules in this chapter to effectively and efficiently protect correlative
rights and/or prevent waste.
(3)
The following provisions shall apply with respect to specific amendments to the
special field rules for a UFT field.
(A) A
special field rule amendment hearing is not required for the following
amendments:
(i) reduction of the standard
and/or optional density to one-half of the existing standard and/or optional
density;
(ii) deletion of the
between-well spacing rule; or
(iii)
replacement of the allowable provided by special field rules with the allowable
provided by §
RSA
3.31 of this title, §
RSA
3.45 of this title (relating to Oil
Allowables), and subsection (d)(4) and (5) of this section.
(B) To request one or more of the
amendments listed in subparagraph (A) of this paragraph, the operator shall
submit to the Commission a request for amendment and engineering and/or
geological data to support the requested amendments. For each exhibit
submitted, the operator shall include a written explanation showing that the
requested amendment will result in the protection of correlative rights and/or
the prevention of waste.
(C) Upon
receipt of a request for amendment, the Commission shall provide notice of the
request to all operators in the field. If no written objection is filed within
21 days after the date the notice is issued, Commission staff may present a
recommendation to the Commission regarding the requested amendment. If the
Commission receives a timely filed written objection, the applicant may request
a hearing to establish through the submission of competent evidence that the
requested amendment is necessary for continued development of a designated UFT
field, and will result in the protection of correlative rights and/or
prevention of waste.
(k) Exceptions to §3.38 for a well in a
UFT field. To request an exception to §
RSA
3.38 of this title for a well in a UFT field:
(1) The operator shall submit to the
Commission a written request for an exception to §
RSA
3.38 of this title. The operator shall
clearly state on the drilling permit application whether the density exception
is sought under this subsection or through the provisions of §
RSA
3.38 of this title.
(2) The Commission shall send written notice
of the request for an exception to §
RSA
3.38 of this title filed under this
subsection to any designated operators, lessees of record for tracts that have
no designated operator, and all owners of unleased mineral interests:
(A) within 600 feet from the location of a
vertical well completed within the UFT field; or
(B) within 600 feet from any take point on a
horizontal well within the UFT field correlative interval.
(3) Persons who have received notice pursuant
to paragraph (2) of this subsection shall have 21 days from the date of
issuance of the notice to file a written objection with the
Commission.
(4) If no timely filed
written objection is received by the Commission, the applicant provides written
waivers from all persons entitled to notice under paragraph (2) of this
subsection, or there are no persons entitled to notice, then the application
may be a pproved administratively without the requirement of filing supporting
data.
(5) If a timely filed written
objection is received by the Commission, the applicant may request a hearing,
at which the applicant shall show that the proposed exception to §
RSA
3.38 of this title is necessary to
effectively drain an area of the UFT field that will not be effectively drained
by existing wells or to prevent waste or confiscation. Notice of a hearing for
a protested exception application under §
RSA
3.38 of this title for a well in a UFT field
will be provided to those persons entitled to notice of such an application as
specified in paragraph (2) of this subsection.
(6) Permits granted pursuant to paragraphs
(1) - (5) of this subsection shall be issued as exceptions to §
RSA
3.38 of this title.
(7) Nothing in this subsection prevents an
operator from electing to apply for and obtain a density exception under the
provisions of §
RSA
3.38 of this title rather than the provisions
of paragraphs (1) - (6) of this subsection.
(l) Tubing requirements for completions in
UFT fields. An operator of a flowing oil well in a UFT field may obtain a
six-month exception to the requirement in §
RSA
3.13<subdiv>(b)(4)(A)</subdiv> of
this title (relating to Casing, Cementing, Drilling, Well Control, and
Completion Requirements) that flowing oil wells shall be produced through
tubing. The exception may be granted administratively. A revised completion
report shall be filed once the oil well has been equipped with the required
tubing string to reflect the actual completion configuration.
(1) For good cause shown, including a showing
that the well is flowing at a pressure in excess of 300 psig surface wellhead
flowing pressure, an operator may obtain from the District Director one or more
extensions to the six month exception. Each extension shall be no more than six
months in duration. If the request for an extension is denied, the operator may
request a hearing. If a hearing is requested, the exception shall remain in
effect pending final Commission action on the request for an
extension.
(2) This subsection
applies to new drills, reworks, recompletions, or new fracture stimulation
treatments for any flowing oil well in the field.