La. Admin. Code tit. 43 § XIX-3505

Current through Register Vol. 50, No. 11, November 20, 2024
Section XIX-3505 - Base Gas/Oil Ratio and Allowables
A. The base gas/oil ratio for a well recognized by the Office of Conservation as an oil well is hereby fixed at 2,000 cubic feet of natural gas per barrel of oil (2000/1). Any well recognized by the Office of Conservation as an oil well which has a gas/oil ratio of 2000/1 or below will be allowed to produce its base oil allowable without reduction. Any well recognized by the Office of Conservation as an oil well which has a gas/oil ratio exceeding 2000/1 and from which the operator cannot use or sell the gas will have its base oil allowable reduced by assigning to such well an oil allowable determined by multiplying the base oil allowable by the base gas/oil ratio and dividing by the gas/oil ratio of the well.
B. If the operator can use or sell the gas, the allowable which shall be granted to a well which produces oil with a gas/oil ratio in excess of 2000/1, or to a well which produces hydrocarbons from the gas cap of an oil pool, shall be equivalent volumetrically to the quantity of hydrocarbons a well in the same pool would be allowed to produce if it were producing oil with a gas/oil ratio of 2000/1, each computed at reservoir conditions based on available data; provided that reasonable estimates of reservoir conditions shall be used if actual reservoir conditions cannot be determined from available data. Such allowables shall be calculated as follows.
1. Any well recognized by the Office of Conservation as an oil well which has a gas/oil ratio exceeding 2000/1 will have its base oil allowable reduced by assigning to such well an oil allowable determined by the following formula:

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where:

= current depth bracket oil allowable for one well

when producing gas-oil ratio is less than 2000:1

Qo(2000+) = oil allowable for one well when producing gas-oil ratio is greater than 2000:1

V = barrels of space occupied by one std. Mcf of gas at reservoir conditions (res. bbls. per MSCF)

Rp = permissible gas-oil ratio for an oil well (2.0MSCF/STB)

Ri = producing gas-oil ratio of wells for which the allowable is being calculated (MSCF/STB)

Ro = solution gas-oil ratio at the current bottomhole pressure (MSCF/bbl.)

B = volume occupied by one barrel of stock tank oil and its solution gas at the current reservoir pressure (Res. bbl. per STB)

2. Any well recognized by the Office of Conservation as a gas well and which is determined by the Office of Conservation to be producing from the gas cap of an oil pool will be assigned a volumetric gas allowable determined by application of the following formula:

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where:

Qg = gas well allowable (MSCF per day)

Ao = number acres in oil unit

Ag = number acres in gas unit

Qo = current depth bracket oil allowable for one well when producing gas-oil ratio is less than 2000:1

Ro = solution gas-oil ratio at the current bottomhole pressure (MSCF/bbl.)

B = volume occupied by one barrel of stock tank oil and its solution gas at the current reservoir pressure (Res. bbl. per STB)

V = barrels of space occupied by one std. Mcf of gas at reservoir conditions (res. bbls. per MSCF)

Rp = permissible gas-oil ratio for an oil well (2.0MSCF/STB)

C. The gas/oil ratios of wells which have been assigned an oil allowable based on a gas/oil ratio of 2000/1 or below shall be determined by testing at as close as practical the allowable rate. The gas/oil ratios of wells which are known to have high gas/oil ratios >2000/1 shall be determined by testing at the rate determined by the operator and the district manager as the most efficient rate. The gas/oil ratio for a gas lift well shall be calculated by subtracting the input gas from the output gas and dividing by the oil produced.
D. Any flowing oil well which produces oil with excessive amount of salt water and has a gas/oil ratio exceeding 2000/1 shall not have its base oil allowable reduced by assigning a penalized allowable under §3505. A or a volumetric allowable under §3505. B hereof if to do so would reduce the base oil allowable for the well to such a figure that the well could not produce by natural flow. Requests for exemption of any such well from the penalized or volumetric allowable shall be made in writing to the district manager, accompanied by appropriate data to establish that the well qualifies for the requested exemption, and such request may be granted by the district manager, upon receipt of such data, without the necessity of a public hearing.
E. The operator of any well which is subject to a volumetric allowable restriction under Subsection B of this Section this may be granted an exemption from such restriction if such operator can use or sell the natural gas produced from such well and if, pursuant to written application to and subsequent written approval by the appropriate district manager, it is established that:
1. the well is the only well capable of producing from the pool; or
2. the productive limits of the pool underlies a single lease or voluntary unit; or
3. all persons owning interests in the pool agree in writing, to the requested exemption from the volumetric allowable restriction.

La. Admin. Code tit. 43, § XIX-3505

Adopted by Department of Conservation, July 20, 1943, amended January 1, 1966, December 1, 1973, amended and promulgated by the Department of Natural Resources, Office of Conservation, LR 23:581 (May 1997).
AUTHORITY NOTE: Promulgated in accordance with R.S. 30:4 et seq.