Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
In the event an emergency is found to exist by the Commission which in its judgment requires the making, changing, renewal or extension of an order or special rule, without first having a hearing, such emergency order shall have the same validity as if a hearing with respect to the same had been held after due notice. The emergency order permitted by this section shall remain in force until the date of the next regular Commission hearing set to be held after the emergency rule or order was issued, or sixty days from its effective date in accordance with the Brine Act found in Ark. Code Ann. § 15-76-307, and, in any event, it shall expire when any order made after due notice and hearing with respect to the subject matter of such emergency order becomes effective.
The Commission shall provide a certified court reporter to take down the testimony and preserve a record of all proceedings at the hearing. Any person testifying shall be required to do so under oath. However, relevant unsworn statements, comments and observations by any interested person may be heard and considered by the Commission as such and included in the record.
Any hearing may be postponed or continued for due cause by the Hearing Officer upon his/her own motion or upon the motion of a party to the hearing. A motion filed by a party to the hearing shall set forth facts attesting that the request for continuance is not solely for the purpose of delay. All parties involved in a hearing shall avoid undue delay caused by repetitive postponements or continuances so that the subject matter of the hearing may be resolved expeditiously. The Applicant may postpone or continue the hearing of an application for three consecutive regularly scheduled Commission meetings without prior approval of the Hearing Officer. After the third consecutive postponement, the application shall be dismissed, unless the Hearing Officer allows an exception for due cause, and the applicant shall be required to re-file in accordance with applicable General Rules in order for an application to be scheduled for a hearing.
If a party, after proper service of notice, fails to appear at the pre-hearing conference or at a hearing, and if no continuance is granted, the Commission may then proceed to make its decision in the absence of such party. If the failure to appear at such pre-hearing conference or hearing is due to an emergency situation beyond the parties' control, and the Commission is notified of such situation on or before the scheduled pre-hearing conference or hearing, the Hearing Officer may continue or post-pone the pre-hearing conference or hearing. Emergency situations include sudden unavailability of counsel, sudden illness of a party or his representative, or similar situations beyond the parties' control.
Within 30 days of the close of the hearing record, the Commission shall issue findings of fact, conclusions of law and final administrative decision of the Commission signed by the Director. The Commission shall have continuing jurisdiction for the purposes of enforcement, and/or modifications or amendments to the provisions of all orders. Any appeals shall be governed by the Administrative Procedures Act found in Ark. Code Ann. § 25-15-201et. seq.
Within 30 days after an order has been issued, a copy of such order shall be mailed by the Commission to each interested party at his/her last known address or his/her attorney of record, and filed in accordance with the Administrative Procedures Act found in Ark. Code Ann. § 25-15-201et. seq.
In every case of adjudication, the official record shall be complied in accordance with the Administrative Procedures Act found in Ark. Code Ann. § 25-15-201et. seq.
(Source: 1992 rule book; amended April 13, 2008; amended June 5, 2009; amended October 24, 2009; amended July 1, 2016)
Where the oil or gas rights within a drilling unit are separately owned and the owners of those rights have not voluntarily agreed to integrate or pool those rights to develop the oil or gas, an owner may petition the Commission for an order integrating those rights, pursuant to Ark. Code Ann. § 15-72-302 and § 15-72-303. The application for an order integrating interests shall contain the following:
A resume of efforts showing that the applicant has exercised due diligence, to locate each uncommitted leasehold working interest owner and that a bona fide effort, was made to reach an agreement with each owner as to how the unit would be developed, by providing the uncommitted leasehold working interest owners notice, including an AFE and Well Proposal, prior to filing the integration application.
(Source: 1992 rule book; amended April 13, 2008; amended December 14, 2008; amended July 17, 2009; amended July 1, 2016)
Unless the context otherwise requires, the words defined shall have the following meaning when found in these rules, to-wit:
ATMOSPHERIC PRESSURE - shall mean the pressure of air at the sea level, equivalent to about 14.7 pounds to the square inch.
BALANCE - (Gas) shall mean an instrument used for determining the specific gravity of gases by weighing methods.
BAROMETRIC PRESSURE - shall mean the pressure or weight of air determined by the use of a barometer at a given point.
"BARREL" or "BARREL OF OIL" - shall mean 42 United States gallons of oil at a test of 60 degrees Fahrenheit, with deductions for the full percent of basic sediment, water and other impurities present, ascertained by centrifugal or other recognized and customary test.
BLOW-OUT - shall mean a sudden or violent escape of crude oil or natural gas, as from a drilling well, when high formation pressure is encountered.
BLOW-OUT PREVENTER - shall mean a heavy casing head control filled with special gates or discs which may be closed around the drill pipe, or which completely closes the top of the casing if the pipe is withdrawn.
BOTTOM HOLE PRESSURE - shall mean the pressure in pounds per square inch at or near the bottom of an oil or gas well determined at the face of the producing horizon by means of a pressure recovery instrument, adopted and recognized by the oil and gas industry, which can be lowered into the bore of the well. In the case of gas wells or wells having no fluid in the well bore, it shall mean the pressure as calculated by adding the pressure at the surface of the ground to the calculated weight of the column of gas from the surface to the bottom of the hole.
CASING PRESSURE - shall mean the pressure built up between the casing and tubing when the casing and tubing are packed off at the top of the well.
CASINGHEAD GAS- shall mean any gas or vapor, or both gas, and vapor, indigenous to an oil stratum and produced from such stratum with oil.
CHRISTMAS TREE - shall mean an assembly of valves and fittings at the head of the casing of a well to control the flow. Also spoken of as "well head connections."
CIRCULATION - shall mean the passing of an approved fluid down through the drill stem and up to the surface in the process of rotary drilling in setting casing.
COMBINATION WELL - shall mean a well productive of both oil and gas in commercial quantities from the same common source of supply and which has sufficient natural gas pressure to cause the gas to enter a pipe line carrying more than atmospheric pressure.
COMMISSION - shall mean the Arkansas Oil and Gas Commission.
COMMON SOURCE OF SUPPLY - shall mean the geographical area or horizon definitely separated from any other such area or horizon and which contains, or from competent evidence appears to contain, a common accumulation of oil or gas or both. Any oil or gas field or part thereof which comprises and includes any area which is underlaid, or which from geological or other scientific data or experiments or from drilling operations or other evidence appears to be underlaid by a common pool or accumulation of oil or gas or both oil and gas.
CONDENSATE - shall mean the liquid produced by the condensation of a vapor or gas either after it leaves the reservoir or while still in the reservoir. Condensate is often called Distillate, Drips, White Oil, Etc.
CONNATE WATER - shall mean water which was deposited with the deposition of solid sediments in an oil or gas reservoir and which has not, since its deposition, existed as surface water at atmospheric pressure.
CONSERVATION - shall mean the conserving, preserving, guarding or protecting the oil and gas resources of the state by obtaining the maximum efficiency with minimum waste in the production, transportation, processing, refining, treating and marketing of the unrenewable oil and gas resources of the state.
CONTROLLED OIL FIELD - shall mean any common source of supply of crude oil discovered after January 1, 1937, or any field discovered prior to January 1, 1937, provided any pool therein has been discovered after January 1, 1937.
CONTROLLED GAS FIELD - shall mean any common source of supply of natural gas discovered after January 1, 1937, or any field discovered prior to January 1, 1937, provided any pool therein has been discovered after January 1, 1937.
CONTROLLED PRODUCTION - shall mean the production of oil or gas or both oil and gas from a controlled oil or gas field.
CORE HOLE - shall mean a hole drilled below the fresh water level for obtaining geological and structural information without penetrating a known producing formation in the area.
CRUDE OIL - shall mean petroleum oil, and other hydrocarbons, regardless of gravity, which are produced at the well in liquid form by ordinary production methods, and which are not the result of condensation of gas before or after it leaves the reservoir.
CUBIC FOOT OF GAS - shall mean the volume of gas contained in one cubic foot of space at the standard pressure base and the standard temperature base. The standard pressure base shall be 14.65 pounds per square inch absolute and the standard temperature base shall be 60° Fahrenheit.
DAY - shall mean a period of twenty-four (24) consecutive hours from 7:00 a.m. one day to 7:00 a.m. the following day.
DEVELOPMENT - shall mean any work which actively looks toward bringing in production, such as erecting rigs, building tankage, drilling wells, etc.
DIFFERENTIAL PRESSURE - shall mean the difference between the tubing pressure and the flow-line pressure; the drop flow-line pressure; the drop in pressure of the fluid in passing through the flow-nipple or choke; in the case of an orifice meter, the difference of the pressures on the upstream and the down-stream sides of the orifice; a pressure measured with a differential gauge or with a manometer (U-tube); any difference in pressure.
DISTILLATE - shall mean a product of distillation of the fluid condensed from the vapor driven off in the still, such as gasoline, naphtha, kerosene, and light lubrication oils, the result of distillation of crude oil. Condensate is commonly referred to as distillate.
DIVISION ORDER - shall mean a written statement, dated, duly signed by the owners and delivered to the purchaser, certifying and guaranteeing the interests of ownership of the production and directing payments according to those interests.
DRY GAS - shall mean natural gas obtained from sands that produce gas only; or natural gas obtained which does not contain the heavier fractions which may easily condense under normal atmospheric conditions; not casinghead gas.
EDGE WATER - shall mean water that holds the oil or gas, or both oil and gas, in higher structural position, usually encroaching on a pool as the oil or gas is removed.
FIELD - shall mean the general area which is underlaid or appears to be underlaid by at least one pool; and "field" shall include the underground reservoir or reservoirs containing crude petroleum oil or natural gas, or both. The words "field" and "pool" mean the same thing when only one underground reservoir is involved; however, "field" unlike "pool," may relate to two or more pools.
FLOWING WELL - shall mean a well from which oil or gas flows naturally without pumping or other means of artificial lift.
GAS - shall mean the natural gas obtained from gas or combination wells regardless of its chemical analysis.
GAS ALLOWABLE - shall mean the amount of natural gas authorized to be produced by order of the Commission.
GAS ASSESSMENT - shall mean the assessment on each thousand cubic feet of gas produced from a gas well to pay the costs incident to the administration of the rules of the Commission.
GAS REPRESSURING - shall mean the introduction of gas or air into a common source of supply by artificial means in order to replenish, replace, or increase the gas energy causing the oil to flow out of the reservoir.
GAS-SOUR - shall mean gas which contains hydrogen sulfide in sufficient quantities to render it unfit for domestic or commercial use.
GAS-WELL - shall mean (1) a well which produces natural gas only; (2) any well capable of producing gas in commercial quantities and also producing oil from the same common source of supply but not in commercial quantities; or (3) any well classed as a gas well by the Commission for any reason; (4) a well that contains no liquid hydrocarbons in the reservoir.
GAS-LIFT - shall mean a method of injecting gas for lifting a liquid from the well to the surface.
GAS-OIL RATIO - shall mean the number of cubic feet of gas at atmospheric pressure, as produced from an oil well or combination well, divided by the number of barrels (42 gallons) of oil, the unit of time being a day of 24 hours.
ILLEGAL OIL - shall mean oil which has been produced within the State of Arkansas from any well during any time that well has produced in excess of the amount allowed by any rule or order of the Commission, as distinguished from oil produced within the State of Arkansas from a well not producing in excess of the amount so allowed, which is "legal oil."
ILLEGAL GAS - shall mean gas which has been produced within the State of Arkansas from any well during any time that well has produced in excess of the amount allowed by any rule or order of the Commission, as distinguished from gas produced within the State of Arkansas from a well not producing in excess of the amount so allowed, which is "legal gas."
ILLEGAL PRODUCT - shall mean any product of oil or gas, any part of which was processed or derived, in whole or in part, from illegal oil or illegal gas or from any product thereof as distinguished from "legal product," which is a product possessed or derived to no extent from illegal oil or illegal gas.
INDICES OF PRODUCTIVE VALUE - shall mean the factors to be considered in ascertaining the productivity of all property in a common source of supply for the purpose of fixing the allowable production. These indices can mean, at the discretion of the Commission, acreage, gas oil ratios, static reservoir pressures, flowing pressures, fluid level drawdowns, the well or wells, or any other pertinent factors.
LEASE TANK - shall mean the tank or other receptacle into which oil is produced either directly from a well or from a well through gas separator, gun barrel or similar equipment.
METER - shall mean an instrument for measuring and recording the volume of gases or liquids.
MONTH and CALENDAR MONTH - shall mean the period or interval of time from 7 a.m. on the first day of any month of the calendar to 7 a.m., of the first day of the next succeeding month of the calendar.
MUD-LADEN FLUID - shall mean any approved mixture of water and clay or other material as the term is commonly used in the industry.
NATURAL GASOLINE - shall mean gasoline manufactured from casinghead gas or from any natural gas.
OIL - shall mean crude oil or petroleum.
OIL ALLOWABLE - shall mean the amount of oil authorized to be produced by the order of the Commission.
OIL ASSESSMENT - shall mean the assessment on each barrel of oil produced, from any field or reservoir, to pay the costs incident to the administration of the rules of the Commission.
OIL-PIPELINE - shall mean oil free from water and basic sediment to the degree that it is acceptable for pipe line transportation and refinery use.
OIL-WELL - shall mean any well capable of producing oil in paying quantities not a gas well.
OPERATOR - shall mean any person who, duly authorized, is in charge of the development of a lease or the operation of a producing well.
OVERAGE, OVER-PRODUCTION - shall mean the oil or gas produced in excess of the allowable as set by the Commission.
OWNER - shall mean the person who was the right to drill into and produce from any field or reservoir, and to appropriate the production either for himself or for himself and another.
PERIOD, ALLOWABLE - shall mean the month or day, as designated, in which allowable may be produced.
PERMEABILITY - shall mean a measure, determined by scientific means, of the ability of fluid or gas to traverse the producing horizon in an oil or gas reservoir.
PERSON - shall mean any natural person, corporation, association, partnership, receiver, trustee, guardian, executor, administrator, Federal agency, or representative of any kind.
PETROLEUM - shall mean the natural untreated oil obtained from an oil well.
PIPE LINE - shall mean any pipes above or below the ground used or to be used for the transportation of oil or gas.
PIPE LINE OIL - see, Oil, Pipeline
PLUG - shall mean the abandoning of a producing or non-productive well; the stopping of the flow of water, gas or oil in a well.
POOL - shall mean an underground reservoir containing a common accumulation of crude petroleum oil or natural gas or both. Each zone of a general structure which is completely separated from any other zone in the structure is covered by the term "Pool" as used herein.
POROSITY - shall mean the state or quality of being porous; the volume of pore space expressed as a percentage of the total volume of the rock mass; the percentage or pores of interspaces forming the total bulk of the material.
POTENTIAL - shall mean the actual or properly computed daily ability of a well to produce oil or gas, either or both, as determined by the rules of the Commission.
PRESSURE BASE - shall mean an absolute pressure agreed upon or set as a base for converting the volume of gas metered to correct volume. The standard pressure base shall be 14.65 pounds per square inch absolute.
PRESSURE MAINTENANCE -
PRODUCER - shall mean any person who owns, in whole or in part, a well capable of producing oil or gas or both in paying quantities.
PRODUCT - means any commodity made from oil or gas, and shall include refined crude oil, crude tops, topped crude, processed crude petroleum, residue from crude petroleum, cracking stock, uncracked fuel oil, fuel oil, treated crude oil, residuum, gas oil, casinghead gasoline, natural gas, gasoline, naphtha, distillate, gasoline, kerosene, benzine, wash oil, waste oil, blended gasoline, lubricating oil, blends or mixture of oil with one or more liquid products or by-products derived from oil or gas, whether herein above enumerated or not.
PRODUCTION, ILLEGAL. - see Illegal Gas, Illegal Oil
PRODUCTION INTERESTS - shall mean the right to a specified part of production.
PROVEN OIL OR GAS LAND - shall mean that area which has been shown by development and geological information to be such that additional wells drilled thereon are reasonably certain to be commercially productive of oil or gas or both.
PURCHASER - shall mean any person who directly or indirectly purchases, transports, takes or otherwise removes production to his account from a well or lease. Purchaser is usually considered to be the person holding the Division Order.
RATABLE TAKE - see Controlled Production.
RECOMPLETION - shall mean completion operations performed in a source of supply that is separate and distinct from the source of supply in which the well was successfully completed prior to the commencement of the current completion operations.
REFINER - shall mean every person who has any part in the control or management of any operation by which the physical or chemical characteristics of oil or products are changed, but exclusive of the operations of passing oil through separators to remove gas, placing oil in settling tanks to remove basic sediment and water, dehydrating oil, and generally cleaning and purifying oil.
REPRESSURE - shall mean to increase the reservoir pressure by the introduction of gas or fluid into the reservoir.
RESERVOIR PRESSURE - see Bottom Hole Pressure
ROCK PRESSURE - shall mean the well head pressure on a gas well that has been closed long enough to attain a maximum.
ROTARY DRILLING - shall mean the hydraulic process of drilling, consisting of rotating a column of drill pipe to the bottom of which is attached a rotary drilling bit.
RUN - shall mean oil or gas removed from the lease.
SEPARATOR - shall mean an apparatus for separating gas from oil with relative efficiency, as it is produced.
SHUT-IN PRESSURE - shall mean the pressure noted at the wellhead when the well is completely shut in. Not to be confused with Bottom Hole Pressure
SPUDDING - shall mean the initial step in drilling.
STORER - shall mean every person as herein defined who stores, terminals, retains in custody under warehouse or storage agreements or contracts, oil which comes to rest in his tank or other receptacle under control of said storer, but excluding the ordinary lease stock of producers.
TAKER - see Purchaser.
TENDER - shall mean a permit or certificate of clearance for the transportation of oil, gas, or products, approved and issued or registered under the authority of the Commission.
TENDERSHIP - shall mean the production delivered from one person to another.
TOPPING PLANT - shall mean a refinery designed to remove only the gasoline and kerosene fractions from oil.
TRAP PRESSURE - shall mean pressure held at the oil and gas separator.
TRANSPORTER - shall mean and include any common carrier by pipe line, barge, boat or other water conveyance, or truck or other conveyance except railroads, and any person transporting oil by pipeline, barge, boat or other water conveyance, or truck and other conveyance.
TUBING - shall mean the conduit through which oil or gas is removed from a well.
VACUUM - shall mean pressure which is reduced below the pressure of the atmosphere.
VOLATILE - shall mean easily wasting away by evaporation.
WASTE - in addition to its ordinary meaning, shall mean "physical waste" as that term is generally understood in the oil and gas industry. It shall include:
WATER CONE - shall mean the creation of irregularly intruding water by allowing a well to produce too rapidly.
WELL LOG - shall mean an electrical, or any other type of survey, made for the purpose of ascertaining the strata through which a well bore has penetrated.
WILDCAT WELL - shall mean a well drilled outside the geological confines of proven production.
WORKOVER - shall mean work of a remedial nature performed within the vertical confines of the same source of supply.
(Source: 1992 rule book)
(Source: new rule September 14, 2008; amended July 17, 2009; amended October 24, 2009; amended July 29, 2011; amended February 17, 2012; amended January 20, 2014)
Reserved for Future Use
In accordance with Ark. Code Ann. § 26-58-128, the Director of the Oil and Gas Commission shall determine the well categories for all gas production wells, which will be used by the Arkansas Department of Finance and Administration to determine the appropriate severance tax rate for each well. All gas production wells under the jurisdiction of the Oil and Gas Commission are subject to the provisions of this rule.
(Source: new rule November 16, 2008; amended June 5, 2009)
Rule Repealed Effective July 1, 2016
(Source: 1992 rule book; amended July 29, 2011; amended January 20, 2014)
1. | 1-5 Permits or Wells | $100/Well |
2. | 6-15 Permits or Wells | $750/Operator |
3. | 16-50 Permits or Wells | $1,250/Operator |
4. | 51-150 Permits or Wells | $2,000/Operator |
5. | 151-300 Permits or Wells | $3,000/Operator |
6. | 301 or more Permits or Wells | $4,000/Operator |
(Source: 1992 rule book; amended (Order 27-95) June 20, 1995; amended (Order 4-99) March 23, 1999; amended January 15, 2006; amended October 15, 2006; amended November 16, 2008; amended June 5, 2009)
(Source: 1992 rule book; amended November 13, 2005; amended September 16, 2006; amended November 19, 2018)
Following the revocation notice the Permit Holder is required to plug the well. The Permit holder shall have thirty (30) days from the date of the well transfer revocation to appeal the Director's Decision to revoke the well transfer approval in accordance with General Rule A-2, A-3 and other applicable hearing procedures. Drilling, production, or operation may not commence or continue during the appeal process. A revocation of a well transfer approval for which an appeal has not been filed, shall become a final administrative decision of the Commission thirty (30) days following the date of the revocation.
(Rule Repealed Effective November 11, 2007; New Rule Effective November 19, 2018)
(Source: 1992 rule book; amended September 16, 2006; amended January 14, 2008; amended May 11, 2008)
Before any well or any producing horizon encountered therein shall be abandoned, the owner or operator shall use such means, methods and procedures as may be necessary to prevent water from entering any oil or gas-bearing formations, and to protect any underground or surface water that is suitable for domestic or irrigation purposes from waste, downward drainage, harmful infiltration and addition of deleterious substances.
(Source: 1992 rule book)
(Source: 1992 rule book; amended December 16, 2007; amended February 19, 2009; amended November 19,2018)
The methods and procedures for plugging a well shall be as follows:
(Source: 1992 rule book)
(Original rule Repealed Effective October 15, 2006; new rule March 25, 2010; amended October 1, 2015)
Before any hole is abandoned which is drilled for seismic, core or other exploratory purposes below the fresh water formation, it shall be the duty of the owner or driller of any such hole to plug the same in such manner as to properly protect all water-bearing formations.
(Source: 1992 rule book)
Any natural gas production well transferred to a surface owner for use as a domestic natural gas supply well prior to November 16, 2008, shall no longer be subject to the regulatory oversight by the Commission as long the natural gas from the well is used only on the property where the well is located and that any natural gas production from the well is not sold.
(Source: 1992 rule book; amended November 16, 2008; amended May 18, 2012)
Rule Repealed Effective November 11, 2007
(Source: 1992 rule book; amended January 22, 2009)
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
TVDofwell | Amount of Surface Casing |
0' - 3,000' | 100' |
3,001'- 4,000' | 160' |
4,001'- 5,000' | 300' |
5,001'- 6,500' | 500' |
6,501'- 7,500' | 750' |
7,501'- 8,500' | 1,000' |
8,501'-10,500' | 1,250' |
10,501' & below | 1,500' |
TVD of Well | Amount of Surface Casing |
0'- 1,500' | 100' |
1,501'- 3,000' | 200' |
3,001'- 6,500' | 500' |
6,501'-10,000' | 800' |
10,001' & below | 1,000' |
* Director's Notice to Fayetteville Shale Operators - June 1, 2015 (Supersedes previous version of June 1, 2011). Unless an exception is granted, all operators of all wells spud after May 22, 2015, or permitted on or after June 1, 2015 in Cleburne, Conway, Faulkner, Independence, Jackson, Searcy, Stone, Van Buren, and White Counties, and Fayetteville Shale wells only in Pope County, shall comply with casing and cementing requirements based on the zone in which the well is located (please contact the El Dorado Regional office for the zone map). The well casing and cementing requirements are as follows:
(Source: 1992 rule book; amended September 16, 2006)
All proper and necessary precautions shall be taken for keeping the well under control during drilling operations, including but not limited to the use of blow-out preventers and high pressure fittings attached to properly anchored and cemented casing strings or maintain mud-laden fluid of sufficient weight to provide proper well control. Blow-out preventers shall be tested at regular intervals to insure proper operation.
(Source: 1992 rule book; amended October 15, 2006)
This rule applies to all pits constructed during the drilling, completion and testing of a brine, oil, gas, or oil and gas production well, brine injection or disposal well, Class II Disposal Well, and Class II Commercial Disposal Well. Pits as used in context of this rule refer to the type pits as defined in subparagraph c) below.
After the effective date of this rule, any Operator who constructs or operates a pit covered by this Rule, shall be subject to the specific enforcement provisions under the respective authorities of the Arkansas Oil and Gas Commission (AOGC) or the Arkansas Department of Environmental Quality (ADEQ). The regulation of the activities covered under this rule by AOGC and ADEQ shall be in accordance with a Memorandum of Agreement (MOA) between AOGC and ADEQ.
The Operator shall notify the appropriate AOGC Regional Office, via mail, e-mail or fax, at least forty-eight (48) hours prior to the commencement of Pit construction operations. The Notice of Commencement (NOC) shall be on a form agreed upon by AOGC and ADEQ and shall include at a minimum (i) the Operator information (name, address, and emergency contact phone number), (ii) the location of the drill pad site (latitude and longitude in degrees, minutes, seconds, and County, Section, Range, and Township, including the 1/4 of the 1/4 position within the Section), (iii) the approximate size of the drill pad, (iv) the approximate distance to the nearest Waters of the State, (v) the type of fluid system and type of Drilling Fluids to be used, (vi) well name, (vii) nearest city/town, and (viii) the approximate date Pit construction operations shall commence. Upon receiving the Notice of Commencement, AOGC shall forward a copy to ADEQ, Arkansas Department of Health, and the County Judge of the county in which the pit is located. AOGC and ADEQ staff may conduct site inspections as deemed necessary.
The Discharge from a Pit or any activity associated with the drilling or completion of a well to any surface or ground waters or in a location where it is likely to cause pollution to any surface or groundwaters is prohibited. Such discharge may subject the Operator to ADEQ enforcement actions under the provisions of the Water and Air Pollution Control Act (Act 472 of 1949, as amended, A. C. A. § 8-4-101, et seq.) and enforcement actions of AOGC under Act 105 of 1939, as amended. Any Discharge must be reported within twenty-four (24) hours to the AOGC and ADEQ. Leakage from any Pit is considered an unauthorized Discharge.
(Source: Original Rule Repealed October 15, 2006; New Rule Effective October 28, 2010 - Implementation October 1, 2011; amended April 1, 2012; amended November 19, 2018)
Christmas tree fittings or wellhead connections shall have a working pressure or a test pressure in keeping with the expected depth of the well.
(Source: 1992 rule book)
(Source: Original Rule Repealed October 15, 2006; New Rule Effective January 15, 2011; Amended February 08, 2013; Amended July 15, 2017)
Rule Repealed Effective October 15, 2006
Rule Repealed Effective October 15, 2006
Rule Repealed Effective November 11, 2007
(Source: 1992 rule book; amended October 15, 2006)
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
Rule Repealed Effective November 11, 2007
Where any oil and gas reservoir fluids or salt waters or other produced fluids are potentially leaking into the USDW as determined by geologic and field investigation or are leaking onto the surface, through a permitted well transferred to the Permit Holder, the permitted well shall be plugged by the Permit Holder. Pending plugging of the well, all injection wells within a 1/4 mile radius of the leaking drill hole shall be shut-in until the well is plugged.
Where any oil and gas reservoir fluids or salt waters are potentially leaking into the USDW or to the surface as determined by geologic and field investigation, through a well plugged under applicable Commission rules, the well shall be replugged by the original Permit Holder responsible for plugging the leaking well. If the original Permit Holder is no longer in existence or cannot be located, the well shall be eligible for plugging through the Arkansas Orphan and Abandoned Well Plugging Fund. Pending plugging of the well all injection wells within a 1/4 mile radius of the leaking well shall be shut-in until the leaking well is plugged.
(Source: 1992 rule book; amended July 13, 2003; amended October, 14, 2 007; amended August 17, 2 008; amended June 16, 2 019)
Rule Repealed Effective July 15, 2 017
Rule Repealed Effective November 11, 2 007
Rule Repealed Effective October 15, 2006
The maximum point at which a well penetrates the producing formation shall not unreasonably vary from the vertical drawn from the center of the hole at the surface. Deviations in excess of the following shall be deemed to be unreasonable: More than 3 degrees from the vertical drawn from the center of the hole at the surface.
The Commission shall have the right to make, or to require the operator to make a directional survey of the hole, under the following circumstances:
(Source: 19 92 rule book; amended July 1 3, 2003)
Rule Repealed Effective October 15, 2006
(Source: 1992 rule book; amended July 29, 2011)
Rule Repealed Effective July 15, 2017
(Source: 1992 rule book; amended September 17, 2007)
Wells shall be classified as to the common sources of supply from which they produce and common sources of supply shall be determined and named by the Commission, provided, that in the event any person is dissatisfied with any such classification or determination, an application may be made to the Commission for such classification or determination, deemed proper and the Commission will hear and determine the same.
In naming the common sources of supply, preference shall be given to common usage and geographical names. Separate common sources of supply within the same area shall preferably be named according to the producing formation.
(Source: 1992 rule book)
Every person, now or hereafter engaged in the business of purchasing and selling crude oil or natural gas in this State, shall purchase, without discrimination in favor of one producer against another, or in favor of any one source of supply as against another. For purposes hereof, a distinction shall exist between "crude oil" and "natural gas" purchased from "oil wells" and "gas wells" as those wells are respectively defined within Rule A-4 and takings shall be deemed to be ratable when purchases are made without discrimination between wells within each such separate classification.
(Source: 1992 rule book)
(Source: 1992 rule book; amended December 16, 2007)
(Source: 1992 rule book; amended September 16, 2006; amended August 17, 2008)
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
First boundary encroachment expressed as:
setback footage specified by rule (minus)(-) actual footage of proposed well from unit boundary (divided by)(÷) setback footage specified by rule, plus (+)
Second boundary encroachment expressed as:
setback footage specified by rule (minus)(-) actual footage of proposed well from unit boundary (divided by)(÷) setback footage specified by rule = penalty factor
Then:
penalty factor (x) full calculated allowable (MCF or bbl) = amount allowable reduced (MCF or bbl)
Then:
full calculated allowable (MCF or bbl) (minus)(-) amount allowable reduced (MCF or bbl) = production allowable (MCF or bbl)
(Source: 1992 rule book; amended (Order 1-94(4)) January 25, 1994; amended July 17, 2006; amended December 16, 2007; amended August 17, 2008)
Each operator who conducts operations in known areas of Hydrogen Sulfide (H2S) with minimum concentrations of fifteen (15) ppm under atmospheric conditions or one hundred (100) ppm or more in the gas stream shall provide safeguards to protect the general public from the harmful effects of Hydrogen Sulfide (H2S). The Director of the Arkansas Oil and Gas Commission shall determine the areas covered by this rule.
Operations shall include drilling, completion, workover, producing, gathering, and storage of hydrocarbon fluids, natural gas and fluids produced in association with Bromine extraction. These operations fall under these guidelines only if they contain gas in the system which has Hydrogen Sulfide (H2S) as a constituent of the gas.
DEFINITIONS
Radius of Exposureshall mean that radius constructed with the point of escape as its starting point and its length calculated as provided for in General Provisions D.
Area of Exposureshall mean the area within a circle constructed with the point of escape as its center and the radius of exposure as its radius.
Public Area shall mean a dwelling, place of business, church, school, hospital, school bus stop, governmental building, a public road, all or any portion of a park, town, city, village, or other similar area that can be populated at any given time.
Public Road shall mean any federal, state, county, or municipal street or road owned or maintained for public access or use.
Contingency Planshall mean a written document that shall provide an organized plan of action for alerting and protecting the public within an area of exposure following the accidental release of a potentially hazardous volume of hydrogen sulfide.
Where X = radius of exposure in feet
H2S = mole fraction of hydrogen sulfide in the gaseous mixture established by an industry accepted method.
Q =maximum volume of escapable gas in cubic feet per day.
For drilling of a well where insufficient data exist to calculate a ROE, but where Hydrogen Sulfide may be expected, then a radius of exposure shall be three thousand (3000) feet. A lesser -assumed radius may be considered upon written request setting out the justification for same.
Storage tanks which are utilized as a part of a production operation, and which are operated at or near atmospheric pressure, and where the vapor accumulation has a Hydrogen Sulfide (H2S) concentration in excess of 100 ppm, shall be subject to the following:
Operators subject to this provision shall install safety devices and maintain them in an operable condition and shall establish safety procedures designed to prevent the undetected continuing escape of Hydrogen Sulfide (H2S). Safety devices should be tested annually and a record of each test maintained.
Each operator and contractor shall provide appropriate Hydrogen Sulfide (H2S) training for its employees who will be on-site. All personnel must have in their possession, current proof of annual training. This training should include the following:
(Source: 1992 rule book)
DISTANCE TO STRUCTURE (FT)* | MAXIMUM ALLOWABLE CHARGE WEIGHTS (LBS)* |
50 | 0.5 |
100 | 2.0 |
150 | 4.5 |
200 | 8.0 |
250 | 12.0 |
300 | 18.0 |
350 | 25.0 |
* Based upon a charge weight of seventy (70) FT/LB 1/2
(Source: 1992 rule book; amended July 3, 2003; amended June 15, 2008)
(Source: new rule October 16, 2006; amended December 16, 2007, amended June 15, 2008, amended December 14, 2008; amended March 25, 2010; amended July 05, 2010; amended August 01, 2014; amended October 1, 2015)
(Source: new rule June 15, 2008; amended January 22, 2009; amended August 01, 2014)
Penalty Allowable = PRU Deliverability x Penalty Factor (Encroachment Footage ÷ Setback Footage) x proposed drilling unit acreage ÷ 640 acres or applicable established drilling unit acreage
Penalty Allowable = PRU Deliverability x Penalty Factor [(1st Encroachment Footage + 2nd Encroachment Footage) ÷ Setback Footage - 1] x proposed drilling unit acreage ÷ 640 acres or applicable established drilling unit acreage
(Source: new rule August 01, 2014)
All common sources of supply of crude oil discovered after January 1, 1937, if so found necessary by the Commission, will have the production of oil controlled or regulated as provided in Act 105, General Assembly, 1939.
(Source: 1992 rule book)
After the above date, whenever there shall occur a change in operating ownership of any lease in a field within the State of Arkansas, or whenever there shall occur a change of transporter from any lease in a field within the State of Arkansas, a new "Producer's Certificate of Compliance and Authorization to Transport Oil or Gas from Lease," shall be executed and filed in accordance with instructions appearing on such form, except that in the case of temporary change in transporter involving less than the allowable for one month, the producer may, in lieu of filing a new certificate, notify the Oil and Gas Commission at El Dorado, Arkansas, and the transporter then authorized by certificate on file with the Oil and Gas Commission, by letter of the estimated amount of oil to be moved by the temporary transporter and the name of such temporary transporter and a copy of such notice shall also be furnished such temporary transporter. In no instance shall the temporary transporter move any greater quantity of oil than the estimated amount shown in said notice.
The "Producer's Certificate of Compliance and Authorization to Transport Oil or Gas from Lease," when properly executed and approved by the Oil and Gas Commission, shall constitute authorization to the pipeline or other carrier to transport oil from the lease named therein, and shall remain in force and effect until:
Where a transporter disconnects from a particular lease or ceases to remove oil therefrom and another transporter connects to such lease or begins to take oil therefrom, during a month, the transporter who ceases to take oil shall furnish to the connecting transporter a certified statement under oath, showing: the legal quantity of oil on hand 7 a.m., the first day of such month; the scheduled allowable to the date disconnected; and the quantity of oil moved from the particular lease during the current month. In such case the producer shall furnish to the connecting transporter a certified statement under oath showing the lease stock on hand 7 a.m., the date of new connection. No connecting transporter shall move oil from any such lease until after it shall have received such statements, except with the written permission of the Oil and Gas Commission or their authorized agent.
Each producer is prohibited from delivering illegal oil to any transporter, and each transporter is prohibited from removing any illegal oil from producer's lease tanks. Each transporter shall maintain necessary records of lease allowables and quantities of oil removed from the leases to which he is connected, whereby he can determine the calculated quantity of legal oil on hand at the close of each calendar month with respect to such leases. The calculated quantity of legal oil on hand with respect to any lease shall be determined for each succeeding month by adding to the quantity of legally produced oil on hand at the first of the month, the scheduled allowable quantity of oil for the respective lease for the current month, as established by the Oil and Gas Commission, less the quantity of oil removed from the respective lease tanks during the current month. If the calculated balance so determined is less than the actual gauged quantity on hand as reported by the producer on "Producer's Monthly Report," the transporter shall not remove during the following month any part of the oil on hand on the first day of the month in excess of the calculated legal balance so established. If the actual quantity of oil on hand with respect to a particular lease equals or is less than the quantity of legal oil established by the above method, the transporter may remove any part or all of such quantity of oil during the current month. Where actual quantity of oil on hand with respect to a particular lease is less than the calculated quantity of legal oil established by the above method, the transporter, in determining the quantity of legal oil for the next succeeding month, shall substitute the actual quantity on hand for the calculated quantity on hand. Where there is more than one transporter moving oil from the same lease, the producer and transporters are required to furnish to each other information as the quantity of oil on hand, the quantity transported from lease tanks and any additional information necessary to establish to the satisfaction of each person involved the legal status of the oil produced.
(Source: 1992 rule book)
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
Oil conservation assessment, in order to pay the costs in connection with oil and gas conservation administration, not otherwise provided for, shall be made as follows:
(Source: 1992 rule book; amended Novermber 27, 2001)
Rule Repealed Effective July 15, 2017
Rule Repealed Effective July 17, 2009
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
(Source: new rule February 19, 2009)
Rule Repealed Effective October 16, 1953.
Rule Repealed Effective February 19, 2009
Rule Repealed Effective February 19, 2009
Rule Repealed Effective February 19, 2009
Rule Repealed Effective February 19, 2009
Rule Repealed Effective February 19, 2009
All meters, measuring the volume of gas sold, shall be calibrated at least once per year. The Director or his designee shall be notified not less than seventy-two (72) hours prior to conducting the meter calibration, so as to allow the Commission to witness such calibration. The records of such calibration shall be maintained by the person responsible for the meter and shall be available for inspection by the commission. Such records shall be maintained by the person responsible for the meter for a period of 5 years.
(Source: 1992 rule book; amended January 22, 2009)
(Source: 1992 rule book; amended November 16, 2008; amended August 21, 2009)
Rule Repealed Effective July 15, 2017
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
Rule Repealed Effective July 15, 2017
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
Rule Repealed Effective July 15, 2017
An assessment to pay the conservation expenses and other costs in connection with administration of gas conservation, not otherwise provided for, may be made as follows:
Further, any person taking gas from any well in this state for use or resale, in respect of which production any sums assessed under the provisions of this rule are payable to the Commission, shall remit any sum so due to the Commission in accordance with these rules.
(Source: 1992 rule book; amended Novermber 27, 2001; amended October 24, 2009)
(Source: 1992 rule book)
This rule shall only apply to dry natural gas wells for which it is necessary to determine the PRU Deliverability in accordance with General Rules A-7, B-43, B-44, D-19, D-21, or the request of the Director, or his designee, to conduct a back pressure test on a dry natural gas well.
Additionally, the Permit Holder shall have the right to request a retest of an Existing or New PRU at any time.
(Source: 1992 rule book; amended (Order No. 74-94) October 25, 1994; amended October 1, 2000; amended January 14, 2008; amended February 19, 2009; amended August 21, 2009; amended August 01, 2014)
(Source: (Order No. 90-97) October 28, 1997; amended December 16, 2007; amended September 14, 2008; amended October 24, 2009; amended January 20, 2014)
(Source: new rule February 2, 2006; amended January 22, 2009; amended June 5, 2009)
(Source: new rule February 2, 2006; amended April 13, 2008)
(Source: new rule November 1, 2011)
This rule shall only apply to dry natural gas wells for which it is necessary to determine the PRU Deliverability in accordance with General Rules B-43, B-44 and other applicable General Rules, Field Rules or Commission Orders. This rule shall not apply to any PRU subject to provisions of General Rule B-45.
Penalty Allowable = PRU Deliverability x Penalty Factor (Encroachment Footage ÷ Setback Footage) x proposed drilling unit acreage ÷ 640 acres or applicable established drilling unit acreage.
Penalty Allowable = PRU Deliverability x Penalty Factor [(1st Encroachment Footage + 2nd Encroachment Footage) ÷ Setback Footage -1] x proposed drilling unit acreage ÷ 640 acres or applicable established drilling unit acreage
(Source: new rule August 01, 2014)
(Source: new rule January 15, 2015; amended March 1, 2016)
It shall be the duty of the pipe line company to suspend transportation of any oil from said gathering system until such time as such pipe line company is notified in writing by the agent of the Commission that the violation on the part of the gathering system has been discontinued and that the gathering system is complying with the rules and orders of the Commission and the conservation laws of the State of Arkansas.
(Source: 1992 rule book)
Each transporter of oil within the State of Arkansas shall furnish for each calendar month a "Transporter's and Storer's Monthly Report", containing complete information and data indicated by such form respecting stocks of oil on hand and all movements of oil by pipe line within the State of Arkansas and all movements of oil by watercraft, or by trucks or other conveyances except railroads, from leases to storers or refiners; between transporters within the State; between storers within the State; between refiners within the State; and between storers and refiners within the State.
Each storer of oil within the State of Arkansas shall furnish for each calendar month a "Transporter's and Storer's Monthly Report", containing complete information and data indicated by such form respecting the storage of oil within the State of Arkansas.
The transporters and storers reports for each month shall be prepared and filed according to instructions on the form, on or before the 15th day of the next succeeding month.
(Source: 1992 rule book)
(Source: new rule January 22, 2009; amended October 24, 2009)
Rule Repealed Effective October 19, 2018 in accordance with Act 781 of 2017
Each refiner of oil within the State of Arkansas shall furnish for each calendar month a "Refiner's Monthly Report", containing the information and data indicated by such form, respecting oil and products involved in such refiner's operations during each month. Such report for each month shall be prepared and filed according to instructions on the form, on or before the 15th day of the next succeeding month.
(Source: 1992 rule book)
Each operator of a gasoline plant, cycling plant or any other plant at which gasoline, butane, propane condensate, kerosene, oil, or other liquid products are extracted from natural gas within the State of Arkansas, shall furnish for each calendar month a "Monthly Gasoline or Other Extraction Plant Monthly Report", containing the information indicated by such form respecting natural gas and products involved in the operation of each plant during each month.
Such reports for each month shall be prepared and filed according to instructions on the form on or before the 15th day of the next succeeding month.
(Source: 1992 rule book)
(Source: new rule April 13, 2008; amended November 26, 2009)
(Source: new rule April 13, 2008)
(Source: new rule April 13, 2008)
The following calculation is included only as an example, and for informational and demonstrative purposes only. For purposes of this example, assume the well is in Columbia County, the total depth to the injection formation is 2,500 feet, the specific gravity is 1.085, and the injection tubing friction loss is 250 psi. Using the formula provided above, the maximum permitted injection pressure for the well would be 1,642 psig, calculated as follows:
Step 1: 0.9 x [(1.1 psi/ft x 2500 ft) - [0.433psi/ft x 2500 ft) x 1.085 (specific gravity)] + 250 tubing friction loss]
Step 2: 0.9 x [2750 psi - 1175 + 250 tubing friction loss]
Step 3: 0.9 x [1825]
Step 4: Result = 1642 psig
Sections | Township | Range |
ALL | 4N | 13W |
ALL | 5N | 12W |
ALL | 5N | 13W |
ALL | 5N | 14W |
ALL | 6N | 12W |
ALL | 6N | 13W |
ALL | 7N | 11W |
ALL | 7N | 12W |
ALL | 7N | 13W |
ALL | 8N | 11W |
ALL | 8N | 12W |
ALL | 8N | 13W |
ALL | 9N | 10W |
ALL | 9N | 11W |
ALL | 9N | 12W |
ALL | 10N | 10W |
ALL | 10N | 11W |
ALL | 11N | 10W |
ALL | 11N | 11W |
1-12, 14-23, 27-33 | 4N | 12W |
1-30, 35-36 | 4N | 14W |
1-2, 10-15, 23-25 | 4N | 15W |
4-9, 17-20, 30-31 | 5N | 11W |
25, 35-36 | 5N | 15W |
6 | 6N | 10W |
1-23, 26-34 | 6N | 11W |
1-4. 9-36 | 6N | 14W |
24-25, 36 | 6N | 15W |
3-9, 16-20, 29-31 | 7N | 10W |
1, 11-14, 22-27, 34-36 | 7N | 14W |
6-7 | 8N | 9W |
1-24, 26-35 | 8N | 10W |
25, 36 | 8N | 14W |
3-10, 15-21, 29-32 | 9N | 9W |
1-5, 7-36 | 9N | 13W |
1-23, 27-34 | 10N | 9W |
1-3, 9-17, 19-36 | 10N | 12W |
25,33, 34, 36 | 10N | 13W |
17-22, 27-35 | 11N | 9W |
13, 23-27, 34-36 | 11N | 12W |
(Source: new rule July 17, 2009; amended November 26, 2009; amended July 30, 2010; amended July 29, 2011; amended February 17, 2012; amended June 16, 2019)
The casing-tubing annulus above the packer shall be tested under the supervision of a Commission representative at a minimum pressure differential between the tubing and the annulus of fifty (50) psig for a period of thirty (30) minutes. The casing-tubing annulus starting test pressure shall not be less than three hundred (300) psig and may vary no more than ten (10) percent of the starting test pressure during the test. The pressure at which the test is to be performed shall be fifty (50) psig over the permitted injection pressure, with a maximum of one thousand (1000) psig.
For those wells in which alternative well construction has been approved by the Director in accordance with subparagraph f) 2) above, a radioactive tracer survey may be run in the well at a frequency to be determined by the Director to evidence mechanical integrity of the well by demonstrating that the injected fluid is being injected into the approved disposal zone.
(Source: new rule July 17, 2009; amended October 24, 2009; amended June 16, 2019)
(Source: new rule July 17, 2009; amended October 24, 2009)
178.00.20 Ark. Code R. 001