Current through February, 2024
Rule
No.1 Authority of the Natural Gas and Oil Resources
Board
(a) The Natural Gas and Oil
Resources Board, established by Act 240 of the acts of the Adjourned
Session of the 1982 General Assembly of the State of Vermont (Chapter
14 of Title 29), has authority over all oil and gas resources within
the state for the following purposes:
(1) to encourage oil and gas
exploration and production;
(2) to protect property rights and
interests of all citizens;
(3) to prevent long-term harm to
the environment and other resources that might occur through oil and
gas activities;
(4) to
protect correlative rights;
(5) to prevent undue waste of oil
and gas;
(6) to promote
the greatest ultimate recovery of oil and gas, consistent with
technology and economic conditions.
(b) The board serves as the
regulatory body having authority over all matters involving oil and
gas resources in the State of Vermont, including but not limited to
the matters set forth in
29 V.S.A. §
505(b). The board
also serves as a quasi-judicial body to decide contested cases
relating to the issuance of drilling and other permits, the issuance
and revocation of licenses, and the establishment of drilling units,
and fieldwide unitization.
Rule No.1a Scope of Rules
(a) The rules and forms promulgated
by the board shall be of statewide application unless specifically
stated otherwise.
(b)
Special rules or orders may be promulgated by the board as may be
required to carry out the purposes of 29 V.S.A., Chapter
14.
Rule No.2
Definitions
a. The definitions of
terms contained in
29 V.S.A. §
503 shall apply to those terms to
the extent they are used in these rules.
1. "Abandoned Well" shall mean a
well drilled for oil or gas which has never been used or is no longer
used for the production of oil or gas or for purposes related to the
production of oil or gas.
2. "Adjoining Landowners" shall
include both surface and subsurface interest holders whose property
adjoins a reservoir that is the subject of a decision by the
Board.
3. "Allowable":
The amount of oil or gas which a well, leasehold, or field is
permitted to produce under order of the Board.
4. "Annular Space": The space
between the outer wall of casing suspended in a well bore and the
side of the open hole or the inner side of a larger pipe.
5. "Blow-out Preventer": A
casinghead assembly designed to control well pressure, which may be
closed around the drill pipe or which completely closes the top of
the casing.
6. "Casing":
Heavy steel pipe used to seal off fluid from the hole or to keep the
hole from caving in. There may be several strings of casing, one
inside the other, in a single well.
7. "Field": The general area
underlaid by one or more pools. The words "field" and "pool" mean the
same thing when only one underground reservoir is involved; however,
"field" may relate to two or more pools.
8. "Intangible Drilling Costs"
shall be those costs deductible as intangible drilling and
development costs pursuant to the Internal Revenue Code,
26 U.S.C. §
263(c) and
applicable Treasury Regulations.
9. "Person" shall include any
individual, partnership, corporation, association, or other business
unit.
10. "Pooling"
refers to the aggregation of two or more tracts of land into a
drilling unit of prescribed size.
11. "Ratable Take": Production of
oil and/or gas in accordance with allowable fixed by the
Board.
12. "Royalty"
shall mean the landowner's share of production free of the costs of
production.
13. "Royalty
Interest" shall mean the property interest in oil and gas after a
severance by royalty deed.
14. "Unitization" refers to the
combination of most if not all of the separate tracts in a field into
one tract so that a reservoir may be operated without regard to
surface property lines.
15. "Well-Spacing" shall mean the
pattern of minimum distances from lease boundary lines, and from
other wells drilling to or producible from the same pool, at which
wells may be located on the surface as established by rule,
regulation, or order of the Natural Gas and Oil Resources
Board.
16. "Working
Interest" shall mean the operating interest under an oil and gas
lease; the working interest may include the right to share in
production or revenues therefrom, subject to the costs of
production.
Rule
No.3 Licensing of Oil and Gas Well Drillers
(a) Any person or company,
including its subcontactor(s), who desires to engage in the business
of drilling wells for oil and gas in the state of Vermont or engage
in related activities subject to the supervision of the board, shall
obtain a license from the board. Related activities include testing,
equipping, completing, operating, stimulating, and plugging oil and
gas wells.
(b) An
application shall include the following:
1. A copy of the tradename
affidavit filed with the Secretary of State, if an individual or
partnership;
2. A copy of
the certificate of authority filed with the Secretary of State, if a
corporation;
3. A
description of the technical education, experience, and other
qualifications of the principal employees, managers, partners,
officers, or directors of the applicant; who will have direct
responsibility for operations within the State of Vermont;
4. A current financial statement or
annual report of the applicant.
5. A list of all other states in
which the applicant is engaged in activities listed in subsection (a)
of this rule. If licensed, the list shall include the number of the
license, and the name under which licensed.
6. The names and addresses of three
references who are individuals having expertise in an area relating
to oil and gas and have known applicant in a professional capacity
for at least three (3) years.
7. Any relevant information
requested by the board.
(c) The application fee for a
license, which is nonrefundable, shall be $ 100.00 to be paid to the
Board. Licenses shall not be transferable and shall expire each
December 31.
(d) The
board may, after notice and an opportunity for hearing, suspend,
revoke, deny or refuse to renew a license for failure to comply with
applicable statutes or rules of the board. The applicant or licensee
shall have fifteen (15) days from the receipt of notice to request a
hearing, at which time he shall be given an opportunity to show
compliance with the lawful requirements for issuance or retention of
the license. Issuance of a license may be without hearing. The board
may impose reasonable conditions for the issuance or reinstatement of
a license. Notice shall conform to the requirements of
3 V.S.A. §
814.
(e) The board may refuse to issue
or renew, suspend, deny, or revoke a license if it finds that the
applicant:
(1) has failed to
conduct its business according to prevailing industry
standards;
(2) has
previously engaged in fraudulent, deceptive, or illegal
practices;
(3) has failed
to comply with an order or rule of the board;
(4) has had its license suspended,
revoked, or denied renewal by another state for failure to comply
with that state's rules, regulations, or statutory
provisions;
(5) lacks
expertise or qualifications reasonably necessary to engage in the
practice of oil or gas drilling.
Rule No.4 Drilling Permit Required;
Application
(a) No person shall
commence operations to drill, deepen, plug back, or convert a well
for oil and gas exploration, production, storage, or related purposes
without a permit issued by the board. This rule shall apply to
stratigraphic test wells, but shall not apply to deepening or plug
back operations to be conducted exclusively within the current
producing zone of an existing well.
(b) An application for a permit
shall be filed on Form P-1, Application for a Permit to Drill,
Deepen, or Plug Back, and shall include the following information:
1. The applicant's name, address,
address of each of the applicant's offices within the state and,
where the applicant is not a natural person, the form, date, and
place of incorporation of the applicant;
2. A plat prepared or approved by a
professional engineer registered under 26 V.S.A. Chapter 19, or
professional surveyor registered under 26 V.S.A. Chapter 45, showing
the county, town, and tract of land on which the well is to be
located and an exact location of the well site established in
accordance with the Vermont Coordinate System;
3. If available, an orthophoto
Vermont Base Map showing the exact location of the well
site;
4. A narrative
description of the location of the well site, separate leasehold, or
pooled unit, acreage, distance to boundary lines, and distance to any
oil and gas and water well on the same or adjoining
properties;
5. The
proposed angle, direction, and depth of the well if it is to
substantially deviate from a vertical course;
6. A narrative description of the
facilities to be used to contain and dispose of salt water and other
waste fluids, including back-up facilities;
7. A permit under Chapter 151 of
Title 10 (Act 250);
8.
The applicant's license number and date of issuance by the
board.
9. Any other
information which may be reasonably requested by the board.
(c) A permit may be
denied if:
1. The applicant fails
to provide information required by this rule or requested by the
board.
2. The applicant
has not obtained necessary permits required by other state or federal
agencies;
3. The board
finds that the granting of a permit will not effectuate the purposes
set forth in
29 V.S.A. §
502(b). In the
event of a conflict among these purposes, the duty to prevent waste
shall be paramount.
Rule No.4a Application Fees
(a) The fee for a permit to drill
or deepen a well shall be $ 100.00 plus $ 0.30 per foot to be
drilled.
(b) The schedule
of other fees shall be:
Oil and Gas Well Driller's
License |
$ 100.00 |
All other permits |
100.00 |
(c) In the event that an
application is withdrawn prior to approval or is denied, that portion
of any fee in excess of $ 1,000.00 shall be refunded in full and
fifty percent (50%) of the fee, $ 100.00 or over but less than $
1,000.00 shall be refunded.
Rule No.5 Applications and Other
Pleadings; Service
(a) All
applications, petitions, notices, entries of appearance, or other
pleadings filed with the board shall be deemed to have been filed
when the pleading is received by the Board, except that applications
and forms which do not contain all the required information shall be
considered filed on the date that the required information is
received. Any such pleading shall be signed by the applicant, his
attorney, or an officer thereof and the original and four (4) copies
filed with the Board.
(b)
Service shall be made upon all interested parties in accordance with
subsection (c) of this rule in the following instances:
(1) upon application for a drilling
permit;
(2) upon petition
for a declaratory ruling or rule change;
(3) upon application for relief
from the ratable take requirement pursuant to
29 V.S.A. §
526;
(4) upon application to plug and
abandon;
(5) upon
application to deepen or engage in directional drilling;
(6) upon application for multiple
completion;
(7) upon
application for an exception pursuant to Rule 45(e);
(8) upon application for revocation
or suspension of a permit pursuant to Rule 19;
(9) upon application for enhanced
recovery operations.
(c) Service shall be made on or
before filing with the board by personal service or by first-class
mail, to the person's last known address, except in cases where a
different manner of service is required or permitted by an applicable
provision of law. The applicant shall certify by affidavit that
service of an initial pleading has been made upon all parties
entitled to receive notice by law or rule of the board. Notice to
other persons may be provided in the discretion and responsibility of
the board. Subsequent pleadings shall be served upon the attorneys of
record for all other parties and upon all parties who appeared for
themselves, and shall be made by handing a copy to the attorney or
party or by mailing a copy to his last known address.
(d) Amendments to Pleadings:
(1) The board or the presiding
officer at any time during a hearing on its motion or on motion of
any participant may direct a party to state his case by way of
amendment more fully or in more detail. Such amendment shall be
reduced to writing and filed within such time as may be fixed
therefore.
(2) The board
may in its discretion on motion and for cause shown, after notice to
all parties, allow the parties to amend their petitions and other
pleadings, and order and permit pleading to be filed, or any
proceeding to be had, at other times than are prescribed in these
rules.
(3) The party
shall furnish the Board a typed copy of the amendments, making
suitable reference to the places where the same are to be inserted,
or may furnish a corrected copy of the complete pleading as sought to
be amended. The amendments or amended pleading shall be provided to
all parties in accordance with the above subsection relating to
service of subsequent pleadings.
(e) Publication
(1) Publication shall be made in
the instances listed in subsection (b) above and shall be made in a
local newspaper generally circulating in the area where the affected
land is located.
(2) The
notice shall contain the name and address of the applicant, the name
of the landowner(s) of record, the location of the proposed activity,
and the date of filing of the publication.
(3) Publication shall be not less
than ten (10) days before the hearing date.
Rule No.6 Petitions for
Rule Changes or Declaratory Rulings
(a) Petitions for the adoption,
amendment, or repeal of any rule may be filed with the board.
Petitions will be considered and disposed of pursuant to the
procedures specified in
3 V.S.A. §§
803,
806.
(b) Petitions for declaratory
rulings as to the applicability of any statutory provision or of any
rule or order of the board will be entertained by the board.
Petitions shall be considered to be either a petition for adoption or
a contested case as may be proper under the circumstances.
Rule No.7 Hearings
(a) A hearing shall be held in the
following instances:
(1) When an
applicant or licensee has made timely demand for a hearing after
receipt of notice of suspension, revocation, denial, or nonrenewal of
a license;
(2) Upon
application for a drilling permit;
(3) Upon petition for a declaratory
ruling or rule change pursuant to Rule 6.
(4) In the following instances,
unless the board has received written waiver by all interested
parties:
(A) upon application for
relief from the ratable take requirement pursuant to
29 V.S.A. §
526;
(B) upon application to plug and
abandon;
(C) upon
application to deepen or engage in directional drilling;
(D) upon application for multiple
completion;
(E) upon
application for an exception pursuant to Rule 44;
(F) upon application for revocation
or suspension of a permit pursuant to Rule 19;
(G) upon application for enhanced
recovery operations.
(5) Where the board decides it
would be in the public interest to do so.
(b) Following the receipt of a
request for a hearing, the Board shall cause a hearing to be called
at a time and place determined by the Board. The date for a hearing
shall be set within fifteen (15) days of receipt of an application or
request for hearing, but in no event shall the hearing be held later
than thirty (30) days after receipt of a request for a hearing. The
parties shall not be given fewer than ten (10) days' notice. Subject
to the approval of the board an applicant may waive the requirements
of this rule pertaining to scheduling of hearings.
(c) Hearings may be continued until
all testimony and evidence relating to the case has been presented
and all parties have had adequate opportunity to be heard in the
judgment of the board.
(d) At any time prior to the
adjournment of a hearing, any party may petition for a recess for a
reasonable period of time, which the board may grant or deny in its
discretion.
Rule
No.8 Parties and Appearances
(a) In proceedings before the
board, the following persons shall be entitled to party status:
(1) any owner or operator included
in a drilling unit or field-wide unit which will be directly affected
by the action of the board.
(2) any owner or operator adjoining
a drilling unit which will be affected by the action of the board who
requests a hearing or who requests the right to be heard by entering
an appearance on or before the first day of a hearing which has
previously been scheduled. Such party may participate in a proceeding
and present evidence only to the extent the proposed action affects
his interest as owner or operator.
(3) any government agency which
will be directly affected by the action of the board.
(b) Upon written or oral
petition, the Board may allow as parties a person or agency not
otherwise afforded party status if it finds that the petitioner has
demonstrated that the action of the board may directly affect his
interest, or that his participation will materially assist the board
by providing relevant testimony or other evidence.
(c) A petition for party status
shall include:
(1) The details of
the petitioner's interest in the proceedings, including his position
of opposition or support of the action sought, if known;
(2) If the petition is in the name
of an organization, a copy of the tradename affidavit if
unincorporated, or of authority if a corporation, filed with the
Secretary of State, and a description of the organization's purposes
and membership.
(d) A petition for party status
shall be made on or before the first day of a hearing which has been
previously scheduled, unless the Board finds that there is good cause
for failure to timely appear and that a late appearance will not
unreasonably delay the proceedings or unduly burden the applicant or
other parties.
(e) The
board will issue an order granting or denying a petition for party
status. The order may restrict the participation of the petitioner to
certain portions of the proceedings.
(f) Any party to a case before the
Board may appear for himself or by an attorney of record. An attorney
who is not a member of the Vermont Bar shall be allowed to practice
before the board only if accompanied by a member of the Vermont
Bar.
(g) Upon the filing
of a pleading initiating a case before the board, the name of the
party who has signed the pleading shall be entered on the docket of
the board. All notices given to or by an attorney of record shall be
considered as notice to or from the party represented by the
attorney.
(h) Except for
appearances before the board, all other appearances by attorneys or
persons appearing for themselves shall be by notice in writing filed
with the board and served as required by Rule 4.
Rule No.9 Prehearing
Conferences
(a) The board, acting
through a designated member, may upon due notice conduct prehearing
conferences to consider:
(1)
simplification of issues;
(2) possibility or desirability of
amendments to the application or other pleadings;
(3) the possibility of obtaining
admissions of fact or documents to avoid unnecessary proof;
(4) such other matters as may aid
in the disposition of the matter.
(b) The convening member may
prepare a pre-hearing order. Copies shall be sent to all parties at
least five days prior to a hearing unless the time limit is waived.
Parties who have received notice of the prehearing conference shall
be bound by the prehearing order except upon showing of cause, timely
filing of an objection, or if fairness requires otherwise, as the
Board determines.
Rule
No.10 Hearing Examiners; Hearings by the Board
(a) The board may appoint hearing
officers to conduct hearings with respect to any matter coming before
the board and to make reports and recommendations to the board with
respect thereto.
(b) The
parties shall be given reasonable notice of the appointment of a
hearing examiner. If a party files a written objection at least ten
days before the date set for the hearing, the Board shall order a
prehearing conference to consider the matter.
(c) Rules governing proceedings
before a hearing officer shall be the same as those for proceedings
before the Board, including holding prehearing conferences and
issuing prehearing orders.
(d) The hearing examiner shall
prepare and transmit to the board recommended findings of fact and
conclusions of law. Copies of the examiner's recommended findings
shall be sent to all parties of record, who may request an
opportunity for oral argument before the board, provided such request
is submitted within five days of the receipt of the recommended
findings.
(e) Upon its
review of the record and the hearing officer's recommendations the
board shall determine whether the record is complete and the hearing
shall be adourned. The board shall make a final decision within
thirty (30) days after the hearing is adjourned.
(f) If the board approves an
application and no party having an interest adverse to the
application enters an appearance or offers evidence in opposition to
the application during the hearing before the examiner, the order
shall be effective immediately. If the board denies an application,
in whole or in part, or a party having an interest adverse to the
application enters an appearance or offers evidence in opposition to
the application, the order shall not become effective for fifteen
(15) days.
(g) Requests
for rehearing following a hearing held by hearing examiner are
governed by
29 V.S.A. §
511.
(h) Requests for rehearing
following a hearing held by the Board shall be made within fifteen
(15) days of the date of the Board's decision. If a timely request
for a rehearing is made, the Board in its discretion may deny
rehearing or affirm, revoke, or modify its decision or may order a
rehearing, at which the parties shall have the right to present
additional testimony and documentary evidence.
(i) The Vermont Rules of Civil
Procedure shall apply as to all proceedings before the board as to
which provision has not been made in these rules, and are herein
incorporated by reference.
Rule No.11 Subpoenas
A party
shall be entitled to the issuance of subpoenas by making a written
request to the board. Costs of services, fees, and compensation shall
be paid in advance by the party requesting the subpoena.
Rule No.12 Evidence at
Hearings
(a) The admissibility of
evidence in all cases before the board, whether heard by the board or
by a hearing examiner, shall be determined by the criteria set forth
in
3 V.S.A. §
810.
(b) The board shall receive
evidence in whatever order it finds to be most expeditious and
equitable.
(c) In the
event that no party having an interest adverse to the application
enters an appearance or no party offers evidence in opposition to the
application, the Board may make such reasonable inquiry as it finds
necessary to make affirmative findings as required. In such cases,
the board may recess the proceedings and require such investigations
and production of evidence as it deems necessary to evaluate the
case.
(d) A qualified
stenographer or sound recording device shall be used to record all
hearings. If a party desires a stenographer, the request shall be
made in writing at least five days before a hearing. A party may
request the Board that a transcript be made, provided that such
request is made at or within five (5) days after a hearing. The
requesting party shall bear the costs of the transcript. The Board
shall allocte the costs among requesting parties and resolve any
disputes as to costs among the parties.
(e) Cross-examination of any
witnesses shall be done only by an attorney who has entered his
appearance or by a party who is not represented by counsel, unless
the board directs otherwise.
Rule No.13 Presiding Officer;
Quorum
(a) When present, the
chairman of the board shall preside at all hearings before the board.
If the chairman is to be absent, or for any reason elects not to
participate in a hearing or is disqualified, the chairman shall
designate a member as acting chairman. The chairman or acting
chairman shall have the power to administer oaths to witnesses, rule
on questions of evidence and offers of proof, rule on the validity of
service of subpoenas and notices, and do whatever is necessary and
proper to conduct the hearing in an orderly and judicious
manner.
(b) A quorum of
the board to conduct business, including holding a hearing, shall
consist of three members. Decisions shall be by majority
vote.
Rule
No.14 Joint Hearings
(a) Where conistent with 29 V.S.A.
Chapter 14, in order to avoid duplication of testimony and
unnecessary time and expense, the board may hold a joint hearing with
another government agency if the agency requests or agrees to a joint
hearing. The board shall notify the parties entitled to notice under
these rules prior to the joint hearing date.
(b) Any party may request the board
in writing to hold a joint hearing with another government
agency.
Rule
No.15 Review of Applications
(a) The board shall review each
application in the order presented unless the board determines that
review in some other order is fair and reasonable.
(b) The board may undertake such
investigations, examinations, tests, and site evaluations as it deems
necessary to verify information contained in an
application.
(c) The
board may attach such conditions to a permit or other approval as may
be appropriate to ensure compliance with applicable statutes or
regulations of the board. Such conditions may include the posting of
a bond or the establishment of an escrow account.
(d) In the event that an
application is also subject to the standards and/or requires one or
more permits from another government agency, the board may require
that the certificate of compliance or permit be obtained prior to the
board's approval of the application. Such certificate or permit shall
create a rebuttable presumption that the proposed action is not
detrimental to the public health, safety or welfare.
(1) If the certificate of
compliance or permit imposes conditions or restrictions on the
proposed action which materially alter its character, the application
shall be amended to reflect such changes and notice shall be given to
all parties.
(2) If
requested by any party and found necessary and proper, or upon motion
of the board, a rehearing shall be held on the amended
application.
(e) Insofar as an applicant
sustains his burden of proof, or a party opposing the application
fails to sustain his burden of proof, as provided by law or rule of
the board, the board shall make affirmative findings of fact and
conclusions of law including any conditions or limitations thereto.
The findings of fact and conclusions of law made under this section
shall be binding on all parties during the term specified by the
board unless the board amends the order because there was material
misrepresentation or fraud, or the circumstances have so materially
changed that the findings or conclusions are clearly erroneous,
without basis in fact or contrary to law.
Rule No.16 Approval or Denial of
Applications
(a) If the board
approves an application, it shall issue a permit or other written
approval of the application. If the board does not approve an
application it shall give written notice to the applicant specifying
the reasons for denial.
(b) The board shall issue all
findings and conclusions within thirty (30) days of the final
hearing, which shall constitute final action of the board.
(c) Within fifteen days of final
action of the board a party may file such motions as may be
appropriate. The board shall act promptly on any motions. The running
of time for appeal to the Supreme Court shall be stayed upon filing
of such motions and until further action on the motion is taken by
the board.
Rule
No.17 Permit Conditions; Duration of Permits
(a) All conditions shall be clearly
and unambiguously stated in permits. Conditions may include any
requirement reasonably necessary to accomplish the purposes of 29
V.S.A. Chapter 14. The board may require a permittee to file reports
or affidavits of compliance with respect to the conditions of a
permit. Failure to comply and failure to submit such reports or
affidavits may be cause for suspension or revocation of a permit.
Conditions may include periodic inspections by members of the board
or their designated agent.
(b) Drilling permits shall expire
one year after issuance unless drilling operations are commenced
within such time and are pursued with due diligence. Drilling
operations shall include, but not be limited to, actions by the
permittee to obtain a drilling rig, prepare a drilling site, and
other necessary preliminary preparations if performed in good faith
with the intention of continuing operations.
(c) The duration of permits other
than drilling permits shall be for the period stated in the permit or
for that period of time during which the permittee or his successor
may, by reason of the conditions of a permit, be responsible and held
accountable for compliance with the terms of the permit. The board
may extend or renew a permit prior to its expiration.
(d) At least fifteen (15) days
prior to the actual commencement of drilling operations, the
permittee shall give written notice to the board, state and local
agencies from whom other permits or certificates of compliance were
obtained, and the surface landowner affected.
(e) During the period when drilling
operations are in progress, the permit shall be posted in a prominent
place at the well site and maintained in a clearly visible and
legible condition.
(f) A
person holding a drilling permit who desires to transfer it to
another person shall submit in triplicate a written request for a
transfer to the board together with proof that all other required
state and local permits have been transferred or acquired. The
transfer shall not be approved nor any bond released until the person
to whom the permit is to be transferred submits an amended permit
application acceptable to the board.
Rule No.18 Recording of Drilling
Permit
Within thirty (30) days of the granting of a drilling
permit by the board, the applicant shall file the permit for
recording in the land records of the town in which the proposed well
is to be located. Failure to comply with this rule may be cause for
revocation of a drilling permit.
Rule No.19 Revocation and
Suspension of Permits
(a) A petition
for revocation or suspension of a permit under
29 V.S.A. §
555 may be made to the board by any
person who was party to the application or proceedings may be
instituted on the board's initiative.
(b) A permit may be revoked or
suspended if:
(1) the board finds
that the applicant has wilfully or negligently failed to obtain or
comply with the terms of a license or permit from the board or other
state agency;
(2) the
board finds that the permittee has negligently or wilfully failed to
provide necessary information requested by the board;
(3) the board finds that the
permittee has violated a provision of these rules or of 29 V.S.A.
Chapter 14.
(c) Procedure for revocation or
suspension of a permit shall be according to Rule 3(d) except that if
there is a clear and imminent danger to public health or safety, the
board may revoke or suspend a permit immediately upon discovery of
the imminent danger, provided that a hearing is held within five (5)
days of the board's order. After this hearing, the board shall give
the permittee reasonable opportunity to correct a violation before
the order of revocation or suspension becomes final.
(d) Nothing in this rule shall be
construed to preclude the board or any other government agency from
instituting an enforcement action or other action, civil or criminal,
against the permittees as provided by law.
Rule No.20 Access to Properties and
Records
(a) The board, its agents
and employees shall have access at all reasonable times to enter upon
and inspect any exploration site, oil or gas well site, storage,
transportation, or related facility for the purpose of making any
investigation, test or audit to determine whether the operator is in
compliance with applicable law, rules, or orders of the
board.
(b) The board, its
agents and employees, shall have access at all reasonable times to
all exploration, well and facility records wherever located. Copies
of these records or other records in which the owner has an exclusive
right may be makred "confidential" and filed with the
board.
(c)
(1) Confidential records filed with
the board shall not be open to pbulic inspection nor their contents
disclosed for a period of two years of their filing.
(2) Confidential records filed with
the board may be held confidential for an additional period of one
year upon written request of the owner and a showing of special
circumstances requiring an extension.
(3) All well and facility records,
whether or not filed with the board and designated "confidential",
may be used in any legal proceedings in which the board is a party or
conducted by the board.
(4) The State Geologist shall be
considered an agent or the board.
(d) Data obtained by means of
inspection or audit or company records or well sites shall be
considered "confidential" and subject to subsection (c) of this
rule.
Rule
No.21 Bond
(a) No
drilling permit shall be issued unless a bond has been furnished
conditioned upon compliance with all laws, rules, and orders of the
board relating to the drilling, deepening, casing and stimulating of
oil and gas wells and on the plugging, abandonment, and surface
restoration and reclamation of the drilling site, and on the
provision by the applicant of all information required by the
board.
(b) The bonding
requirement for oil and gas wells shall be:
(1) for each well, $ 10,000.00;
or
(2) for more than five
wells, a blanket bond of $ 50,000.00 to cover all wells;
(c) Each bond shall be
provided by a corporate surety authorized to do business in the State
of Vermont. Each bond shall be in favor of the Vermont Natural Gas
and Oil Resources Board. It shall remain in force and effect until
the plugging and abandonment of the well or wells, and release by the
board.
(d) In lieu of a
corporate surety, the applicant may deposit cash or such other
collateral security as the board may allow in an amount or market
value equal to or greater than the bonding requirement. The state
treasurer shall receive the deposit and certify that it meets the
bonding requirement, and shall hold the cash or security in the name
of the board in trust for the purposes described in section (a) of
this rule.
(e) The
permittee shall be entitled to all interest and income earned on the
deposit or collateral security provided he or she is in compliance
with the conditions imposed by the board.
(f) Every person engaged in the
business of well plugging and salvage of oilfield subsurface
equipment shall be required to provide a bond of $ 10,000.00 as
provided by sections (c) and (d) of this rule.
Rule No.22 Drilling Units,
Well-Spacing - General Rules
(a)
Unless the board provides otherwise in its temporary or permanent
special field rules, a drilling unit shall be at least one hundred
sixty (160) acres. The length of a drilling unit shall not exceed
twice its width.
(b) An
exploratory well shall be located not nearer than six hundred sixty
(660) feet from an outer boundary of the exploratory drilling
unit.
Rule
No.23 Directional Drilling
(a) Except for minor deviations,
intentional directional drilling shall require a permit from the
board. The following information shall be included:
(1) the reason for
deviation;
(2) an
accurate plat of the property on which the well is located and
surrounding properties;
(3) a description of the probable
bottom-hole location in relation to the surface location;
(4) any other information pertinent
to the deviation of the well from a vertical line or requested by the
board.
(b) If,
due to construction problems, it becomes necessary to directionally
drill after normal vertical drilling has commenced, the operator may
do so without a permit at his own risk provided the board is
immediately notified of the conditions necessitating this action.
Within five (5) days of commencement of directional drilling, the
operation shall be reviewed on its merits by the board.
(c) In all other respects,
directionally drilled wells shall be subject to the provisions of
these rules relating to well survey and well spacing
requirements.
Rule
No.24 Wells Not Drilled for Oil and Gas Production
(a) Rules providing for drilling
units and well-spacing shall not apply to wells drilled to obtain
geological information, stratigraphic testing, saltwater disposal, or
storage of natural gas.
Rule No.25 Exploratory Drilling
Units; Temporary Well Spacing
(a)
Whenever a well is to be drilled to test for the occurrence of a
reservoir, the board shall establish an exploratory drilling unit no
smaller than the area expected to be drained by the exploratory well,
and no larger than the expected total area of the reservoir. If
insufficient geological and engineering information is available to
permit such a determination to be made, an exploratory drilling unit
shall be at least 160 acres.
(b) An exploratory well shall be
located not less than 1,320 feet from any other oil and gas well
drilled or to be drilled into the same reservoir.
Rule No.26 Exceptions to
Well Spacing
(a) An exception to the
requirements of any temporary or permanent rule or order concerning
well spacing may be granted for good cause.
(b) Whenever the granting of an
exception would result in enabling the exception well to produce more
than a just and equitable share of the oil and gas in the reservoir,
the board shall restrict production from the well so as to protect
the correlative rights of other owners or operators.
(c) Whenever an application for an
exception to well spacing is denied, the board shall consider the
incorporation of the drilling unit on which the proposed well was to
have been drilled into a adjoining drilling unit or units. After
notice and a hearing, the board may enter an order approving the
combining of the units. If the ownership of the proposed and existent
drilling units are different, the owners of the proposed drilling
unit shall be granted an interest in the enlarged drilling unit, as
follows:
(1) as to the royalty
owners, an interest in the royalty share of production in proportion
to the oil and gas in place;
(2) as to the working interest
owners, an interest in the working interest share of production and
in the wells and other equipment on the enlarged unit in proportion
to the oil and gas in place. The working interest owner of the
proposed drilling unit shall be required to pay his proportionate
share of the wells and other equipment, either in cash or out of
production, on the following basis:
(a) the intangible portion of the
cost of the wells reduced by the percentage of the recoverable oil
and gas under the preexisting drilling unit produced prior to the
date of the board's order; and
(b) the tangible portion of the
cost of the wells valued at the market value on the date of the
board's order; and
(c) in
the event that payment is not made at the time of the adjustment,
reasonable interest on deferred payment shall be allowed to the
creditor.
Rule No.27 Well Spacing Under
Field-Wide Unitization
Unit operation covering all or part of a
reservoir in which all interests have been considered as a single
property for purposes of well spacing. When the operator of a unit
desires to drill wells therein in a pattern other than that provided
by the well spacing rules applicable to the reservoir, he shall first
submit and obtain approval from the board of a plan of development
for the unit.
Rule
No.28 Naming and Classifying Reservoirs and Wells
(a) The board shall assign a name
to each newly discovered reservoir. The name shall consist of:
(1) A geographical landmark
designation and an appropriate directional symbol, such as "Alburg
SW"; and
(2) The
geological name of the producing formation.
(b) The board shall classify and
reclassify as necesary, oil and gas reservoirs as follows:
(1) oil
(2) oil - pressure maintenance or
secondary recovery operation
(3) dry gas
(4) gas condensate
(5) gas condensate - cycling
operation
(c)
The board may classify one or more wells in a reservoir as a gas well
or oil well by special order affecting the well or wells.
Rule No.29 Well
Identification
(a) In addition to
any other system for well identification, the board shall assign a
unique numeric code to each well based upon the American Petroleum
Institute (API) system set forth in AMI Bulletin D12A, January 1979,
reissued May, 1982, as amended from time to time.
(b) The state code for Vermont is
44. The county codes are:
Addison |
001 |
Bennington |
003 |
Caledonia |
005 |
Chittenden |
007 |
Essex |
009 |
Franklin |
011 |
Grand Isle |
013 |
Lamoille |
015 |
Orange |
017 |
Orleans |
019 |
Rutland |
021 |
Washington |
023 |
Windham |
025 |
Windsor |
027 |
(c) Unique well codes are assigned
within each county from 1 to 60000. Numbers 1 to 20000 are assigned
to existing wells; numbers 20001 to 60000 are assigned to future
wells.
(d) Directional
sidetrack bore holes within a well are related to the original well
by assigning a code from 1 to 99 which appears as a suffix to the
well number. For example:
API Well Number |
Original Well |
Sidetrack |
State Code |
County Code |
Well Code |
S/T Code |
44 |
001 |
001 |
01 |
Rule No.30 Surface Casing and
Cementing
(a) Suitable surface
casing shall be installed and cemented to a depth not less than fifty
(50) feet below the deepest fresh water strata encountered, in a
manner that will protect such fresh water strata from
contamination.
(b)
Sufficient cement shall be used to fill the annular space behind the
surface casing from the base thereof to the surface of the
ground.
(c) This rule
shall apply to all wells unless modified for a particular well or
reservoir by a temporary order of the board providing for a casing
program. Notwithstanding compliance or attempted compliance with the
foregoing requirements, if it is later determined that a fresh water
strata exists in the well which has not been properly cased and
cemented to the extent and in the manner necessary to protect such
fresh water strata from contamination, the persons responsible for
the drilling or operation of the well, shall take such measures as
may be necessary to protect or restore said fresh water
strata.
Rule
No.31 Testing of Casing and Connections
(a) Installed casing shall be
cemented by the pump and plug method or other method approved by the
Board and shall be allowed to set at least twelve (12)
hours.
(b) Before the
cement plug is drilled, the casing shall be tested by the pressure or
bailing method or other method approved by the board.
(1) If the pressure method is used,
the pressure within the casing (measured at the surface) shall be
raised to a pressure in pounds per square inch (psi) calculated by
multiplying the length of the casing in feet by (0.2), up to a
maximum of 1500 psi. The casing shall be capable of holding 90% of
the pressure applied at the end of the 30-minute test.
(2) If the bailing method is used,
the fluid level of the well shall be lowered to a point midway
between the base of the casing being tested and the top of the cement
column behind the casing. The fluid level shall show a rise
equivalent to no more than 2% of the depth of the well over a 12-hour
test.
(3) Casing failing
to pass the test shall be repaired and retested until it meets the
standard.
Rule
No.32 Production Tests for Oil Wells
(a) For new and recompleted oil
wells, an initial production test shall be undertaken by the producer
and the results reported on a form prescribed by the board. Tests
shall be carried out in accordance with instructions set forth on the
report form and shall show oil, gas and water production; gas-oil
ratio, and API gravity of the oil.
(b) Each oil well shall be tested
periodically in accordance with a schedule published by the
board.
Rule
No.33 Gas Well Testing
(a) Well operators shall conduct
open-flow capacity tests of gas wells to be used in the establishment
of the most efficient rate of production annually or as frequently as
required by the board.
Rule
No.34 Safety
(a)
Blow-out prevention: Operating drilling wells shall be equipped with
a master-gate or its equivalent, a blow-out preventer, and a
flow-line valve of an appropriate size and working pressure. Well
control equipment shall be tested regularly and maintained in good
working order at all times.
(b) Fire hazard prevention:
(1) All well and tank locations
shall be kept free of rubbish, brush, weeds, or other flammable
materials at all times.
(2) All waste materials shall be
disposed of in such manner as to avoid creating the risk of fire or
accident.
(c)
Notification: The well operator shall immediately notify the board of
any fires, leaks, or blow-outs and shall take immediate action to
control such fires, leaks, or blow-outs.
Rule No.35 Plugging and Abandonment
(a) Before any work is commenced to
plug any well drilled for oil and gas purposes or for any purpose
related to the production of oil or gas, the owner or operator
thereof shall give five days' prior written notice of intention to
plug and abandon.
(b) The
board may have a representative present at the plugging operations.
The representative shall have access to electrical logs and any other
well records to ensure that adequate and proper plugging measures are
being taken. If the representative of the board fails to appear, the
operator may proceed with plugging operations, provided he has
complied with the notice requirements.
(c) The owner or operator shall
plug an abandoned well so as to prevent the escape or migration of
all oil, gas, salt water or other substances which might pollute
ground or surface waters, and shall restore and reclaim the drillsite
to a condition consistent with the adjacent terrain and
landscape.
(d) Methods of
Plugging and Abandonment
(1) Upon
abandonment, the owner or operator shall fill and plug the well with
drilling mud or cement from the bottom of the hole to the surface as
provided by these rules.
(2) If there is no evidence of
geologic instability, the owner or operator may anchor a permanent
bridge topped by a cement plug at least 25 feet long in the well
below the deepest oil, gas, or water-bearing stratum, and therefrom
fill and plug the well.
(3) A cement plug at least 25 feet
long shall be placed at the top of each oil or gas producing
formation, and if any casing is to be left in the well, at the bottom
and top of each string of casing. Whenever two or more oil or gas
producing strata are not widely separated, they may be grouped and
treated as one producing formation.
(4) The surface string of casing
shall be abandoned in the well.
(5) The interval between all plugs
and bridges shall be filled as required by subsection l above, except
that at the surface the topmost portion of the casing shall be
removed and the well shall be filled with gravel, soil, or other
suitable material which will prevent erosion and not interfere with
surface land uses. A monument or marker shall be installed to
precisely indicate the location of the plugged well.
(6) If an oil or gas formation has
been fractured or if other unusual conditions exist in the well which
would make ineffective the filling and plugging procedures required
by these rules, the owner or operator shall request the board's
approval of an alternate procedure.
(7) When the well to be plugged may
be safely used as a fresh water well, a landowner may make a written
request to the board that it not be filled above the plug required
below fresh water. The request shall be accompanied by a written
agreement by the well owner or operator to properly complete the well
as a water well. The board may grant or deny such requests in its
discretion. Within thirty (30) days after the plugging and
reclamation of a well, and well site, the owner or operator shall
file an affidavit with the board setting forth the time and manner in
which the work was performed. This work must be performed by a
Vermont licensed well driller in accordance with
10 V.S.A. §§
1471-1479 and a report filed with
the Department of Water Resources and Environmental
Engineering.
Rule No.36 Oil Production From Oil
Wells
(a) The operator of each newly
completed well shall furnish to the board geologic and engineering
data by which it may be determined if a new reservoir has been
discovered. If a new discovery has been made, the board shall issue
an order promulgating temporary rules for the reservoir including
temporary drilling units and well spacing so that:
(1) No unnecessary wells are
drilled in the early stages of development; and
(2) The limits and characteristics
of the reservoir and its fluid contents may be determined within a
reasonable time.
(b) The board shall set a rate of
production for the well, which shall be the lesser of the rate
permitted by the production schedule or the well's capacity to
produce oil. Within twenty-four (24) months or upon the completion of
the tenth well in the common reservoir, the board shall hold a
hearing and shall require the submission of all available reservoir
data in order to determine the most efficient rate of production for
the reservoir.
(c) In
determining the most efficient rate of production, the board shall
consider the recommendations of operators for the future operation of
the reservoir. If at any time an operator believes that the
established most efficient rate (MER) is too low or too high, the
operator may petition the board for a redetermination of the MER.
Upon notice, a hearing, and consideration of the evidence, the board
may set a higher or lower MER, which shall thereafter be used to
determine the separate leasehold or pooled unit rates of
production.
(d) The rate
of production for a reservoir under secondary recovery, whether or
not a unit operation, will be established by a special order of the
board.
Rule
No.37 Production of Associated Gas
(a) An associated gas well shall be
allowed to produce from a separate leasehold or pooled unit on which
it is located that volume of gas which occupied the same volume in
the reservoir as oil produced at the most efficient rate of
production established by the board, producing with a gas-oil ratio
of 2000 cubic feet of gas per barrel of oil, multiplied by a factor,
the numerator of which is the number of acres productive of gas
within the separate leasehold or pooled unit and not attributed to
any other well, and the denominator of which is the number of acres
in an oil drilling unit in the reservoir as established by the
board.
(b) No gas shall
be permitted to escape into the atmosphere except for well tests
authorized by the board; but the board may permit the venting of gas
from an oil well pending the availability of a gas pipeline
connection or other means for transporting and selling gas; or the
board may hold a hearing to determine whether the volume, pressure,
quality, or location would make transporting and selling the gas
economically unfeasible, and whether the public interest or
correlative rights would be unduly harmed by venting of gas incident
to oil production.
Rule
No.38 Gas-Oil Ratio Penalty
(a) In order to prevent the waste
of associated gas, any oil well producing with a gas-oil ratio in
excess of 2000 cubic feet of gas determined by multiplying the most
efficient rate of production of oil which could have been assigned
without the application of this rule by 2000. The gas volume thus
determined shall be the daily gas production unit of the well, or
separate leasehold or pooled unit.
(b) The allowable daily production
of oil shall then be determined by dividing the daily gas production
limit by the gas-oil ratio in cubic feet of gas per barrel of oil.
The well, separate leasehold or pooled unit shall be permitted to
produce oil at the lesser of the most efficient rate of production or
gas production limit as established herein.
(c) If gas produced from an oil
reservoir is reinjected to the same reservoir from which it was
produced, only the volume of gas not returned to the reservoir shall
be considered in imposing a gas-oil ratio penalty.
(d) When a majority of the oil
wells in a reservoir are producing with gas-oil ratios in excess of
2000 cubic feet per barrel, and when substantially all the gas
produced from the wells is utilized without waste, and when it
appears that the efficiency of the oil recovery mechanism of the
reservoir will not thereby be substantially diminished, the board may
permit all or part of the gas produced before calculating the gas-oil
ratio of a well.
(e) When
it can be shown that no avoidable waste or violation of correlative
rights will result, the board may authorize a gas-oil ratio in excess
of 2000 cubic feet of gas per barrel of oil.
Rule No.40 Oil Well Production
Schedulezz
The board shall publish schedules on which are
tabulated for each well, separate leasehold or pooled unit, and each
pressure maintenance or secondary recovery project, the following
information:
a. name and
depth of the reservoir,
b. name of the operator
c. project name, lease name, and
number of wells
d. size
of drilling unit
e.
percent of oil and gas in place allocated, if applicable,
f. gas-oil ratio and penalty, if
applicable.
Rule
No.41 Gas Well Testing
(a) Well operators shall conduct
open-flow capacity tests of gas wells to be used in the establishment
of the most efficient rate of production annually or as frequently as
required by the board.
(b) At least fifteen days prior to
the proposed date of the test, the well operator shall submit to the
board a request for gas well testing, the Board shall specifically
grant or deny within 15 days prior to the test date. The request
shall include an affidavit or mailing of notice of the test to all
other producers in the reservoir, who may attend and witness the
test.
Rule
No.42 Measurement of Gas and Liquid Hydrocarbons
(a) All natural gas and liquid
hydrocarbons produced from each gas well, separate lease, or pooled
unit shall be separated, measured, and reported to the
board.
(b) The board may
grant an exception where gas from two or more separate lease or
pooled units is received by a common measuring and separation
facility if it can be demonstrated that the owners of the gas and
liquid hydrocarbons so measured will be paid their equitable
share.
(c) Meter charts,
calibration records, and other measurement records shall be kept on
file for a period of at least two years, and shall be made available
to the board upon request.
Rule No.43 Gas Production
Allocation
(a) Whenever necessary to
protect correlative rights or prevent waste, the board shall regulate
the production of gas from a reservoir by establishing a formula by
which to allocate production among wells. The board shall issue a
monthly production schedule based on the production allocation
formula.
(b) Prior to the
adoption of permanent rules for a reservoir, a temporary production
allocation shall be assigned to each gas well in the proportion that
the productive acreage attributed to the gas well bears to the total
productive acreage attributed to all the gas wells in the
reservoir.
(c) Permanent
rules for a reservoir shall provide that the total permitted
production from the reservoir shall be allocated so as to allow each
separate leasehold or pooled unit in the reservoir the opportunity to
produce its just and equitable share of recoverable gas.
(d) Every six (6) months, the
operator of a gas well, separate lease, or pooled unit which has not
produced as much gas during the preceeding six (6) months as was
allocated to it by the board may apply for permission to carry the
underproduction forward as an increased production allocation for the
next six (6) month period.
(1) If
allowed by the board, the underproduction will be balanced by a
fractional increase of the production allocation equally during each
of the next six (6) months; provided, however, that a well shall not
be permitted to produce at greater than its most efficient
rate.
(2) If a well has
cumulatively underproduced during each of two successive balancing
periods, it shall not be granted an increased production allocation
unless it can be demonstrated that the open-flow capacity of the well
exceeds the proposed greater allocation.
(e) The operator of a gas well,
separate lease, or pooled unit may produce gas in excess of the
monthly allocation; provided, however, that every six (6) months,
overproduction shall be balanced by decreased production during the
next six (6) month period. A specified fractional part of the
overproduction need not be made up during each month of the balancing
period, so long as all of the overproduction is made up within six
(6) months.
(1) Any well, separate
lease, or pooled unit that has overproduced on the immediately
preceeding balancing date, and did not balance the overproduction in
the interim, shall be shut in until the production is made up, unless
an exception is granted.
(2) The operator of a well that
would be required to be shut in may request an exception. If after
notice and a hearing, the board finds that the well would be damaged
or the lease jeopardized if the well were required to be shut in, the
board my [may] order the overproduction to be made up by a
fractionally decreased monthly production allocation imposed equally
over the next six (6) months.
(f) For the purpose of computing
and balancing overproduction and underproduction in a gas field, the
periods October 15th to March 15th and March 16th to October 14th,
shall be considered to be the periods of six (6) months duration and
shall be known as "balancing periods."
Rule No.44 Gas Production
Schedules
The board shall publish schedules showing the monthly
gas production allocation for each well, separate lease or pooled
unit. The schedule shall identify the well, separate lease or pooled
unit status (volume by which overproduced or underproduced) and
production allocation.
Rule
No.45 Miscellaneous Rules for Gas Wells
(a) Rules of the board concerning
gas production allocation shall not apply to withdrawals of gas from
storage reservoirs.
(b)
Gas from a non-associated gas reservoir shall not be utilized for the
production of carbon black without special written permission from
the board.
(c) Operators
of wells in reservoirs capable of producing carbon dioxide, nitrogen,
hydrogen, sulphide, or other gases shall obtain special approval of
operating practices from the board.
Rule No.46 Multiple Completion of
Wells
(a) No well shall be completed
to produce from more than one reservoir except with the permission of
the board. Application for a permit to complete a well in two or more
reservoirs not in communication shall include the following:
(1) Electrical log or another well
log with the top and bottom of each producing zone and perforated
intervals clearly marked;
(2) Packer setting or cementing
affidavit;
(3)
Diagrammatic sketch of the multiple completion
installation;
(4)
Reservoir communication test;
(5) An accurate plat of the
property on which the well is located and surrounding
properties.
(b) Multiple completions approved
by the board shall be so equipped, operated, and produced so as to
prevent commingling of production from separate reservoirs. Every
operator shall be required to demonstrate that the separation of
production is maintained at all times.
Rule No.47 Suspension of
Operations, Abandonment
(a) If any
oil or gas well capable of producing in commercial quantities is shut
in, or if operations on an oil and gas well not capable of producing
in commercial quantities are suspended, and the period of shut-in or
suspension exceeds twelve months, the owner or operator shall file a
notice of suspension of operations with the board within fifteen (15)
days after the expiration of the twelve-month period. The owner or
operator shall immediately notify the board in writing of the
resumption of production or operations.
(b) If a person fails to produce
and sell, or to produce for his own purposes, oil or gas from a
completed well for a period of more than twenty-four (24) months, it
shall be presumed to be permanently abandoned, except as provided by
29 V.S.A. §
544(d)(1)-(4).
(c) Upon a showing of due
diligence, an owner or operator may apply to the board for a
temporary waiver of the presumptions of section (b) above. The
application shall be in writing and shall include an explanation of
the circumstances necessitating the shut-in or suspension of
operations and an estimate of the time when production or operations
will commence or resume. The board may grant a temporary waiver for a
reasonable time not to exceed one year.
(d) Within sixty (60) days after
the expiration of the period of lawful abandonment, the owner or
operator shall plug and abandon the well.
Rule No.48 Reports of Oil and Gas
Operations
The owner or operator of an oil and gas well shall
annually file with the board a Producer's Report of Oil Production
and/or Producer's Report of Gas Production, on a form to be provided
by the board. Filing of the required reports shall be no later than
January 31st of the succeeding calendar year. All reports shall be
held confidential.
Rule
No.50 Organizational Reports
(a) Every person engaged as a
principal or agent in the drilling for, production, storage,
transportation, refining or processing of oil or gas produced within
the state, shall file an organizational report with the Secretary of
State and shall provide a copy of the report to the board.
(b) The provisions of this rule
shall apply to persons engaged in the business of well plugging and
salvage of oilfield subsurface equipment.
Rule No.51 Enhanced Recovery
Operations
(a) Permit Required. No
person shall inject any fluid, gas or other substance into a
reservoir for the purpose of secondary recovery or pressure
maintenance without a permit issued by the board.
(b) Application for Permit. An
application for a permit shall include:
(1) a description of the proposed
operations including substance to be injected, its source,
approximate amounts to be injected, and the scope of the
project;
(2) a
description of the formation to be affected, including name and
depth;
(3) identification
of leases, pooled leases, offsetting leases, or unit covering the
proposed project area and their operators;
(4) a plat prepared by a competent
professional engineer showing the entire reservoir involved,
including the location of all proposed and existing wells, regardless
of whether producing, abandoned or dry, their surface elevations, and
zone of completion if productive;
(5) a statement of the current
gas-oil ratio, oil and water production tests for each producing
well;
(6) a copy of the
log for any well to be used for injection or equivalent
information;
(7) a
description of the casing program for the proposed injection well or
wells;
(8) copies of
permits issued by the Water Resources Department, Act 250 permits or
other applicable permits.
(9) If the proposed project will
involve the unit operation of all or part of a reservoir which has
been or is proposed to be established by the board, the application
shall also include:
(A) the rate of
production of oil and gas from the project;
(B) evidence that at least
seventy-five percent (75%) of the owners have approved the proposed
plan;
(C) the estimated
additional cost of the proposed project and the value of the
estimated additional recovery of oil and gas.
(c) Records and Reports
(1) The operator of an enhanced
recovery or pressure maintenance project shall keep complete and
accurate records showing the volumes of substances injected or
produced and the injection pressures utilized. This information shall
be submitted annually to the board no later than February 15th of
each succeeding calendar year.
(2) Information submitted pursuant
to this rule may be marked "confidential" and shall be so maintained
by the board for two years, except that statistical bulletins based
upon reports filed under this section may be published in
consolidated form so as not to disclose information pertaining to any
one operator.
(3) Upon
the written request of an operator, and for good cause shown, the
period of confidentiality may be extended for a period of one
year.
(d)
Issuance of a permit under this section shall be only upon
consideration by the board of the criteria enumerated in
29 V.S.A. §
502(b).
(e) If a permit for enhanced
recovery or pressure maintenance is granted by the board, the
operator shall notify the board in writing within fifteen (15) days
of the actual commencement of operations or permanent cessation of
operations.
Rule
No.52 Disposal of Salt Water and Other Waste Fluids
(a) Salt water and other waste
fluids produced by an oil and gas well shall be collected, stored,
and disposed of in a manner which will not cause contamination or
pollution of soil, surface waters, or ground water.
(b) An operator shall obtain any
permits for such disposal as may be required from the Agency of
Environmental Conservation pursuant to 10 V.S.A. Chapter
47.
Rule No.53
Waiver of Rules
The board may waive application of any of the
above rules, provided that such waiver is reasonable and does not
violate a provision of 29 V.S.A., Chapter 14.
Statutory Authority: 29 V.S.A. C.
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