Ala. Admin. Code r. 400-2-2-.01

Current through Register Vol. 43, No. 1, October 31, 2024

Section 400-2-2-.01 - Well Permit

(1)Activities Requiring Permits. The followingactivities require permits:

(a) Drilling of any well in search of oil or gas;

(b) Drilling a Class II injection well or convertingany well to a Class II injection well for enhanced recovery orfor the disposal of salt water and other wastes produced inassociation with oil or gas operations;

(c) Drilling or converting any well for thedevelopment of reservoirs or solution-mined cavities for theunderground storage of liquid or gaseous hydrocarbons; or

(d) Reentry of a plugged and abandoned well.

(2)Permit Requirements. Prior to initiating any ofthe activities identified in section (1) above, an applicationon either Form OGB-1, OGB-1A, or OGB-1B, whichever isappropriate, shall be filed with and approval obtained from theSupervisor or the Board. If applicable, applicants should alsorefer to Rule 400-4-1-.01, et seq. relating to Rules andRegulations Governing Class II Underground Injection ControlOperations, Rule 400-5-1-.01, et seq. relating to Rules andRegulations Governing Underground Storage of Gas in Reservoirs,or Rule 400-6-1-.01, et seq. relating to Rules and Regulations Governing Underground Storage of Gas in Solution-Mined Cavities.Such applications shall be accompanied by:

(a) A check or bank draft in the sum of three hundreddollars ($300.00) payable to the State Treasurer, State ofAlabama, which sum is fixed as the fee for the approval of apermit to drill. No permit fee is required if the application issubmitted for the purpose of obtaining approval to convert ordeepen a well;

(b) A plat, in triplicate, prepared by a licensedland surveyor showing the entire offshore tract and the surfaceand bottom hole locations of the proposed well within saidoffshore tract. The plat shall be drawn to the scale of one (1)inch equals two thousand (2,000) feet, unless otherwisestipulated by the Supervisor. The plat shall show the directionof north, and the latitude and longitude in decimal degrees tofive (5) significant digits and state plane coordinates of theproposed well. The plat shall show the distances of the proposedwell to the nearest unit boundaries and offshore tract orsection boundaries and from the nearest well in the sameoffshore tract or section completed in or drilling to the samereservoir. The plat shall also show the location and status ofall other wells that have been drilled in said offshore tract orsection. For the purpose of designating the unit in which theproposed well is to be drilled, the boundaries of such unitshall be shown. For wells drilled in areas where offshore tractsfor submerged offshore lands have not been established, or ifthe well is being drilled from submerged offshore lands to abottom hole onshore location, the plat shall be drawn to thespecifications of the Supervisor;

(c) An Affidavit of Ownership or Control on FormOGB-2, whereby the applicant verifies that he owns or hascontrol of one hundred percent (100%) of the drilling rightswith respect to the oil and gas in and under the land comprisingeither the drilling unit or the drainage and production unit, oran Affidavit of Ownership or Control, Underground InjectionControl on Form OGB-2C, whereby the applicant verifies that heowns or has control of one hundred percent (100%) of theinterests having rights to conduct Class II well operations inand under the land on which the well is located, or an Affidavitof Ownership or Control, Natural Gas Storage Operations on FormOGB-2D, whereby the applicant verifies that he owns or hascontrol of one hundred percent (100%) of the interests havingrights to conduct Natural Gas Storage Operations, whichever is applicable;

(d) A bond on Form OGB-3 (single well) or OGB-4(blanket bond) required by Rule 400-2-2-.04 relating to Bond,unless such requirement has been previously satisfied. If two ormore persons are designated on the application as operators theneach such person shall file a separate or joint bond if anappropriate bond is not already on file;

(e) An organization report on Form OGB-5, asprescribed in Rule 400-2-2-.03, unless such requirement haspreviously been satisfied. If two or more persons are shown asoperator on the application, then each person shall file aseparate organization report or have an organization report on file;

(f) A statement that all zones containing oil, gas,or fresh water, shall be fully protected by casing and cement;

(g) Two (2) copies of the following information shallbe submitted to the Supervisor with an application for adrilling permit:

1.Casing and Cement.

(i) A down-hole schematic showing the size of theborehole and the size and anticipated setting depth (measuredand true vertical depths) and cement top for each casing stringand liner;

(ii) A tabular listing of the size, grade, thread,weight (lbs./ft.), minimum internal yield pressure, testpressure and anticipated setting depth for each casing stringand liner;

(iii) A tabular listing of the anticipated type, volume(cu. ft.) and calculated top of cement for each casing stringand liner; and

(iv) A vertical section for directionally drilledwells showing the planned trajectory of the borehole from themud line to proposed total depth.

2.Mud. A tabular listing of the anticipated typeand density (lbs./gal.) of mud in the various depth intervals ofthe wellbore, including the estimated pore pressure and fracturegradient in each respective depth interval.

3.Blowout Prevention.

(i) A schematic showing the type, number andarrangement of blowout preventers to be in place before drillingbelow each casing string and liner;

(ii) A tabular listing of the rated working pressureand test pressure anticipated at the time of initially testingeach preventer, including the minimum internal yield pressure ofthe casing string on which it will be installed and the maximumanticipated surface pressure to be encountered after installation;

(iii) Written justification for any extensions betweenblowout preventer pressure tests that the operator feels are warranted.

4.Drilling Rig Specifications. Currentspecifications of the anticipated drilling facility, unlesspreviously filed with the Board. If the actual drilling facilityused is different from that identified in the application, theoperator shall notify the Supervisor in writing and provide thenecessary specifications.

5.Listing of Drilling Problems. A listing anddescription of potential problems that are anticipated duringdrilling of the proposed well (such as zones of abnormalpressure or lost circulation) and the methods proposed tocontrol such problems.

6.Report of Shallow Hazards. A report of shallowhazards required by Rule 400-2-8-.01 relating to Survey ofShallow Hazards.

7.Certificate of Compliance If applicable, anOperator's Certificate of Compliance for Operations InvolvingHydrogen Sulfide, Form OGB-24, required by Rule 400-2-8-.04

8.Area Contingency Spill Response Plan.

(i) An area contingency spill response plan requiredby Rule 400-2-8-.03(9) relating to Pollution Prevention andControl. This requirement may be satisfied by reference to anapproved and current plan on file with the Board.

(ii) If multiple completions are anticipated,available information required by Rule 400-2-6-.05 relating to Procedures for Multiple Completions shall be submitted with thepermit application. If said information is not available at thetime the permit is filed, it shall be submitted to theSupervisor for approval prior to commencing said completions.

(iii) If applicable and available, the approveddischarge permit(s) required by section (3) of Rule 400-2-8-.03 relating to Pollution Prevention and Control.

(iv) Additional information as deemed necessary may berequested by the Supervisor.

(3) The Board may require notice and hearing on anyapplication for a drilling permit in submerged offshore lands.

(4)Deepening. Prior to deepening a well below itspermitted depth, an operator shall obtain approval of theSupervisor and, thereafter, such person shall immediately fileForm OGB-1, OGB-1A or OGB-1B, whichever is appropriate. There isno fee required for a permit to deepen a well previously drilledor being drilled under a permit issued by the Supervisor.

(5)Directional Drilling.

(a) All wells must be drilled with due diligence tomaintain a reasonably vertical wellbore; however, uponapplication by an operator to drill a well that is to beintentionally deviated and directionally controlled, a permitmay be issued by the Supervisor, provided that the proposedlocation of the bottom hole in the deviated well at the depth ofthe proposed producing zone is in compliance with the applicablespacing rules. The application for a permit to directionallydrill shall be made in the manner prescribed above using FormOGB-1B, and the survey plat must show the proposed bottom holelocation in addition to the surface location of the well.

(b) If an operator desires to directionally drill orsidetrack a permitted well, such operator, prior to initiating,any activities shall file with the Supervisor Form OGB-1B and aplat showing the surface location and the proposed bottom holelocation of the directionally drilled or sidetracked well.

(c) In the event an operator, in good faith, proceedswith the drilling of a well and thereafter, decides todirectionally drill or sidetrack the well, such operator shallobtain prior approval of the Supervisor and, hereafter, shallimmediately file with the Supervisor Form OGB-1B and a plat showing the surface location and the proposed bottom holelocation of the directionally drilled or sidetracked well.

(d) If an operator desires to deviate a well so as to straighten the wellbore or to drill around an obstruction in thewellbore, such operator shall first obtain approval of theSupervisor and shall file a written report to the Supervisorwithin thirty (30) days from the completion of said deviationsetting forth the facts of the operation.

(6)Permit Approval Procedures. Applications forpermits to drill, deepen, convert, or reenter that do not complywith submerged offshore lands rules or applicable special fieldrules shall be approved or rejected by the Board, after duenotice and hearing. Applications in compliance with submergedoffshore lands rules or applicable special field rules may beapproved by the Supervisor. Drilling, deepening, converting orreentering shall not begin until such permit is issued.

(7)Expiration of a Permit. A permit shall expire six(6) months from the date of issuance if the permitted well hasnot been spudded.

Ala. Admin. Code r. 400-2-2-.01

New Rule: Filed April 11, 2000; effectiveMay 16, 2000. Amended: Filed July 6, 2010; effectiveAugust 10, 2010.

Author: Marvin Rogers

Statutory Authority:Code of Ala. 1975, §§ 9-17-1, etseq.